Legislative News: Vote on China Tariff Bill; Senators Seek to Reduce Trade Deficit
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Wednesday, September 20, 2006
By Sandler, Travis & Rosenberg, P.A.
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Schumer, Graham Seek Floor Vote on China Tariff Bill. Sens. Charles Schumer (D-N.Y.) and Lindsey Graham (R-S.C.) formally submitted Sept. 14 a request to Senate leadership for a floor vote on legislation (S. 295) that would apply an additional 27.5% tariff on all Chinese products entering the U.S. if China’s doesn’t revalue its currency. A statement from Schumer indicated that the two senators expect to see action on the bill the week of Sept. 25 if there is no significant announcement following Treasury Secretary Hank Paulson’s trip to China. “We’ve been very patient, but have seen little progress,” Schumer said. “The Senate will be voting on our bill if China doesn’t make a significant move very soon. Time is running out. I hope that Hank returns with tangible results, but if the disconnect between China’s rhetoric and actions is any guide, we’ll have no choice but to call for a vote.” Graham added, “We have been determined and we have been reasonable. Now, the date of our promised vote is approaching and we are sorely disappointed with China’s pace of reform.”
The Schumer-Graham bill would allow for a 180-day negotiation period before the imposition of the 27.5% tariffs. If the president certifies to Congress within that time that China has made a good-faith effort to revalue its currency upward, he can delay the tariffs for an additional 180 days. If at the end of that period the president determines that China has developed and started actual implementation of a plan to revalue its currency, he can delay the tariffs for an additional 12 months.
There appears to be little chance that the bill will be enacted into law. No companion legislation has been introduced in the House and would probably not be until after a Senate vote. Since that is not likely to happen until just a few days before lawmakers adjourn for the campaign season, any House action would not take place until the anticipated lame-duck session after the November elections, which will be focused largely on approving appropriations bills. In addition, the Bush administration has generally opposed punitive legislation against China on trade issues, particularly when, as in this case, it would likely violate WTO rules.
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