US business groups clash over duties on Chinese goods
01 Jul 2010
A broad coalition of US business groups yesterday strongly voiced its opposition a bill that would allow the US to use import duties as leverage against China's exchange rate policy.
"We agree that China needs an exchange rate that better responds to global trade flows," the US-China Business Council and about two dozen other groups said to members of the Senate.
"We strongly disagree that legislation is the best means to achieve that goal," the groups added.
This was followed only a few hours later by another coalition representing US labor groups and import-sensitive sectors such as steel and textiles sending their own letter urging that the bill be approved.
According to The Fair Currency Coalition, the bill was needed to offset the unfair trade advantage that China enjoyed and give the US more elbowroom for negotiation.
The flurry of correspondence came even as chances of the senate voting before next week's Independence Day break receded.