NAM Supporting 301 Action On Chinese Currency

ByJohn S. McClenahen The Washington, D.C.-based National Association of Manufacturers (NAM) is supporting efforts by the Coalition for a Sound Dollar to bring a Section 301 case against China for alleged currency manipulation. The NAM-led coalition is a group of mainly manufacturing and agricultural trade associations formed originally to protest what was perceived as an export-damaging U.S. "strong" dollar policy. Section 301 of U.S. trade law allows foreign countries' trade-distorting actions to be challenged and has never been invoked in a currency case, says Frank J. Vargo, NAM's vice president for international economic policy. It's "hard to say" when a brief will be filed, states Vargo. The coalition is still seeking funding for the project. Assuming the coalition gets the necessary funding, a law firm to prepare the brief would have to be hired and an economic analysis done before there could be a decision on when to file, explains Vargo.