To create jobs in Maine, we can not ignore international issues

By U.S. Rep. Mike Michaud
(D-Maine)
    There is a lot that we can do here at home to help spur job creation and economic development. But our country can’t truly move forward with our economic recovery unless we work to stop the unfair trade practices of our global competitors.
    One of our top priorities must be addressing China’s undervalued currency. Since 1994 the Chinese government has actively manipulated its currency, which effectively subsidizes Chinese goods and disadvantages American companies who cannot compete with below-market prices. It is a practice that is illegal under existing international trade law, and it directly affects Maine paper producers. Both NewPage Corporation and Sappi Fine Paper North America have been forced to close or reduce their operations due to increasing imports of low-priced Chinese coated paper.
    To help remedy the current imbalance, NewPage and Sappi joined with other paper companies and their workers to file a petition with the U.S. International Trade Commission (ITC) – an independent federal agency that investigates the effects of subsidized imports on domestic industries. In the petition, NewPage and Sappi asked for a full investigation of coated paper imports from China and Indonesia. In November, the ITC voted to proceed and is now in the process of investigating unfair subsidies of coated printing paper.
    I support this investigation because it could provide relief to our domestic papermakers. But I also believe that the U.S. Department of Commerce should formally consider the effect of currency manipulation by China – something that NewPage and Sappi also recently requested that the ITC consider. That’s why I urged Commerce Secretary Gary Locke to consider China’s currency manipulation as an illegal subsidy and investigate it accordingly. In a January 20th letter to the Commerce Department, I asked that they proceed with this currency manipulation evaluation as a part of the investigation already brought forward by Sappi and NewPage.
    In addition to urging the executive branch to do the right thing, I support changing the law to mandate our country’s investigation and action on these issues. It is long past time that we address the unfair trade practices of our global competitors. If we do, we will be in a better position to create jobs here at home. In order to do so, the Congress should pass the Fair Currency Act, which would add currency manipulation to the list of unfair trade practices and allow our domestic manufacturers to file formal currency petitions against China with the ITC and seek sanctions on Chinese products until the illegal practice is ended.
    Addressing this issue is a top priority of mine, and I hope Congress addresses it this year. In this difficult economic environment we need to do everything we can to protect American jobs. By deliberately undervaluing its currency, China is subsidizing its companies and making it difficult for our businesses to compete. That’s why our country needs to use every tool available to address this issue and level the international playing field. Not doing so will frustrate our economic recovery efforts and further the loss of American jobs and the closures of American companies.