WASHINGTON — A bill that would pressure China to raise the value of its currency and help level competition with the U.S. textile industry is off the Congressional agenda for this year.
House Ways and Means Committee chairman Charles Rangel (D., N.Y.) blamed the delay on House leaders who set a Nov. 16 deadline for action on any nonspending-related legislation. The timetable is intended to clear the schedule for consideration of unfinished spending bills that fund the government.
"This is the first time I'm saying publicly that we will have to look...next year, but it's not because we don't want it considered; it's because the legislative timetable...would not allow us to legislate anything after Nov. 16," Rangel told reporters.
The deadline will also force the committee to delay consideration of trade deals with Panama, Colombia and South Korea, Rangel said.
The U.S. textile industry has lobbied for legislation that would impose higher tariffs on imports from China if that nation failed to revalue its currency. Producers argue that China undervalues the currency by as much as 40 percent, putting U.S. products at a competitive price disadvantage and forcing them to cut jobs and close factories.
Apparel importers, who brought in $31.7 billion worth of apparel from China for the year ended Aug. 31, oppose higher tariffs on Chinese imports, which would increase their costs.
The Bush administration, under the direction of Treasury Secretary Henry Paulson Jr., has taken a path of diplomacy with the Chinese, prodding them to revalue their currency through dialogue, rather than threatening penalties.
China has increased the value of the yuan by about 9 percent since July 2005, arguing reform of its monetary policies cannot be done quickly.
Rangel spoke with reporters after his committee passed a trade agreement with Peru that would make permanent duty free benefits for U.S. apparel importers and open Peru's market to U.S. exports. The full House is expected to vote on the measure next week.
Many proposed free trade bills, including those with Colombia, Panama and South Korea, have divided the Democratic caucus and House leaders are not sure they have enough votes to pass them before the end of the year.
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