IB 

Union Calendar No. 386 

111TH CONGRESS 

2D SESSION H. R. 2378 

[Report No. 111–646] 

To amend title VII of the Tariff Act of 1930 to clarify that fundamental 

exchange-rate misalignment by any foreign nation is actionable under 

United States countervailing and antidumping duty laws, and for other 

purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 13, 2009 

Mr. RYAN of Ohio (for himself, Mr. TIM MURPHY of Pennsylvania, Mr. 

ALTMIRE, Mr. JONES, Mr. DEFAZIO, Mr. WILSON of Ohio, Mr. BURTON

of Indiana, Mr. MICHAUD, Mr. SOUDER, Mr. SHULER, Mr. MCHUGH, 

Mr. COBLE, Mr. BARRETT of South Carolina, Mr. BOUCHER, Ms. SUTTON, Mr. PLATTS, Mr. ARCURI, Mr. HIGGINS, Mr. BOSWELL, Mr. CONYERS, Mr. GENE GREEN of Texas, Ms. EDDIE BERNICE JOHNSON of 

Texas, Mr. COSTELLO, Mr. LEE of New York, Mr. HOLT, Mr. WESTMORELAND, Mr. ROHRABACHER, Mr. SHUSTER, Mr. BRALEY of Iowa, 

Mr. WILSON of South Carolina, Mr. HOLDEN, Mr. OLVER, Mr. KAGEN, 

Mr. KILDEE, Mr. HARE, Mrs. MYRICK, Mr. VISCLOSKY, Mr. MANZULLO, 

Mr. ROGERS of Michigan, and Mr. BROWN of South Carolina) introduced 

the following bill; which was referred to the Committee on Ways and 

Means 

SEPTEMBER 28, 2010 

Additional sponsors: Mr. HUNTER, Mr. LIPINSKI, Mr. MCCOTTER, Mr. 

MCHENRY, Mr. BERRY, Mr. INGLIS, Mr. KISSELL, Mr. HOEKSTRA, Mr. 

BISHOP of Utah, Mr. CARNEY, Mr. PITTS, Mr. THOMPSON of Pennsylvania, Ms. SLAUGHTER, Mr. SENSENBRENNER, Mr. MURTHA, Mr. PETERS, Mr. MILLER of North Carolina, Mr. MASSA, Mr. SHERMAN, Mr. 

SPACE, Mrs. DAHLKEMPER, Mr. BACA, Ms. RICHARDSON, Mr. DOYLE, 

Mr. DONNELLY of Indiana, Ms. DELAURO, Mr. DINGELL, Mr. SPRATT, 

Mr. WHITFIELD, Mr. PERRIELLO, Mr. EHLERS, Mr. ROGERS of Kentucky, Mr. FILNER, Ms. KAPTUR, Mr. ROGERS of Alabama, Mr. MOLLOHAN, Mr. BACHUS, Mrs. MILLER of Michigan, Mr. SCHAUER, Mr. 

COFFMAN of Colorado, Mr. TURNER, Mr. DAVIS of Tennessee, Mr. GERVerDate Mar 15 2010 23:08 Sep 28, 2010 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6652 E:\BILLS\H2378.RH H2378

srobinson on DSKHWCL6B1PROD with BILLS
2 

•HR 2378 RH

LACH, Mr. DENT, Ms. KILROY, Mr. BOCCIERI, Mr. CUMMINGS, Mr. 

LARSON of Connecticut, Mr. GUTIERREZ, Mr. LYNCH, Mr. DELAHUNT, 

Mr. ANDREWS, Ms. SHEA-PORTER, Ms. LORETTA SANCHEZ of California, 

Mr. CONNOLLY of Virginia, Mr. BARROW, Mrs. MCCARTHY of New York, 

Mr. WELCH, Mr. BRADY of Pennsylvania, Mr. DUNCAN, Mr. PATRICK J. 

MURPHY of Pennsylvania, Mrs. HALVORSON, Mr. LATOURETTE, Mr. 

HILL, Mr. FOSTER, Mr. MCINTYRE, Mr. MAFFEI, Ms. WOOLSEY, Mr. 

BOREN, Mr. HODES, Mr. LOEBSACK, Mr. MURPHY of Connecticut, Mr. 

JACKSON of Illinois, Ms. LINDA T. SA ́NCHEZ of California, Mr. ELLSWORTH, Mr. CALVERT, Mr. ROSS, Mr. RAHALL, Mr. GRIFFITH, Mr. HINCHEY, Mr. CRITZ, Mr. STARK, Mr. BUYER, Mr. EDWARDS of Texas, Mr. 

LUETKEMEYER, Ms. SCHAKOWSKY, Mr. STUPAK, Mr. YOUNG of Alaska, 

Ms. BALDWIN, Mr. COURTNEY, Mr. MCGOVERN, Mr. GEORGE MILLER

of California, Mr. SESTAK, Mr. KANJORSKI, Mr. BISHOP of Georgia, Mr. 

ELLISON, Ms. MCCOLLUM, Mr. UPTON, Mr. GRIJALVA, Ms. FUDGE, Ms. 

SPEIER, Mr. AKIN, Mr. HASTINGS of Florida, Ms. PINGREE of Maine, 

Mr. KUCINICH, Mr. HEINRICH, Mr. BLUMENAUER, Mr. PETRI, Mr. 

PASCRELL, Ms. BERKLEY, Mr. OWENS, Mr. TONKO, Ms. NORTON, Mr. 

MARKEY of Massachusetts, Mr. SALAZAR, Mr. RUSH, Mr. AL GREEN of 

Texas, Mr. HALL of New York, Mr. CLEAVER, and Ms. MATSUI

SEPTEMBER 28, 2010 

Reported with amendments, committed to the Committee of the Whole House 

on the State of the Union, and ordered to be printed 

[Strike out all after the enacting clause and insert the part printed in italic] 

[For text of introduced bill, see copy of bill as introduced on May 13, 2009] 

A BILL 

To amend title VII of the Tariff Act of 1930 to clarify 

that fundamental exchange-rate misalignment by any foreign nation is actionable under United States countervailing and antidumping duty laws, and for other purposes. 


srobinson on DSKHWCL6B1PROD with BILLS
3 

•HR 2378 RH

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Currency Reform for 

5 Fair Trade Act’’. 

6 SEC. 2. CLARIFICATION REGARDING DEFINITION OF 

7 COUNTERVAILABLE SUBSIDY. 

8 (a) BENEFIT CONFERRED.—Section 771(5)(E) of the 

9 Tariff Act of 1930 (19 U.S.C. 1677(5)(E)) is amended— 

10 (1) in clause (iii), by striking ‘‘and’’ at the end; 

11 (2) in clause (iv), by striking the period at the 

12 end and inserting ‘‘, and’’; and 

13 (3) by inserting after clause (iv) the following 

14 new clause: 

15 ‘‘(v) in the case in which the currency 

16 of a country in which the subject merchan17 dise is produced is exchanged for foreign 

18 currency obtained from export transactions, 

19 and the currency of such country is a fun20 damentally undervalued currency, as de21 fined in paragraph (37), the difference be22 tween the amount of the currency of such 

23 country provided and the amount of the 

24 currency of such country that would have 

25 been provided if the real effective exchange 


srobinson on DSKHWCL6B1PROD with BILLS
4 

•HR 2378 RH

1 rate of the currency of such country were 

2 not undervalued, as determined pursuant to 

3 paragraph (38).’’. 

4 (b) EXPORT SUBSIDY.—Section 771(5A)(B) of the 

5 Tariff Act of 1930 (19 U.S.C. 1677(5A)(B)) is amended by 

6 adding at the end the following new sentence: ‘‘In the case 

7 of a subsidy relating to a fundamentally undervalued cur8 rency, the fact that the subsidy may also be provided in 

9 circumstances not involving export shall not, for that reason 

10 alone, mean that the subsidy cannot be considered contin11 gent upon export performance.’’. 

12 (c) DEFINITION OF FUNDAMENTALLY UNDERVALUED

13 CURRENCY.—Section 771 of the Tariff Act of 1930 (19 

14 U.S.C. 1677) is amended by adding at the end the following 

15 new paragraph: 

16 ‘‘(37) FUNDAMENTALLY UNDERVALUED CUR17 RENCY.—The administering authority shall determine 

18 that the currency of a country in which the subject 

19 merchandise is produced is a ‘fundamentally under20 valued currency’ if— 

21 ‘‘(A) the government of the country (includ22 ing any public entity within the territory of the 

23 country) engages in protracted, large-scale inter24 vention in one or more foreign exchange markets 

25 during part or all of the 18-month period that 


srobinson on DSKHWCL6B1PROD with BILLS
5 

•HR 2378 RH

1 represents the most recent 18 months for which 

2 the information required under paragraph (38) 

3 is reasonably available, but that does not include 

4 any period of time later than the final month in 

5 the period of investigation or the period of re6 view, as applicable; 

7 ‘‘(B) the real effective exchange rate of the 

8 currency is undervalued by at least 5 percent, on 

9 average and as calculated under paragraph (38), 

10 relative to the equilibrium real effective exchange 

11 rate for the country’s currency during the 18- 

12 month period; 

13 ‘‘(C) during the 18-month period, the coun14 try has experienced significant and persistent 

15 global current account surpluses; and 

16 ‘‘(D) during the 18-month period, the for17 eign asset reserves held by the government of the 

18 country exceed— 

19 ‘‘(i) the amount necessary to repay all 

20 debt obligations of the government falling 

21 due within the coming 12 months; 

22 ‘‘(ii) 20 percent of the country’s money 

23 supply, using standard measures of M2; 

24 and 


srobinson on DSKHWCL6B1PROD with BILLS
6 

•HR 2378 RH

1 ‘‘(iii) the value of the country’s im2 ports during the previous 4 months.’’. 

3 (d) DEFINITION OF REAL EFFECTIVE EXCHANGE

4 RATE UNDERVALUATION.—Section 771 of the Tariff Act of 

5 1930 (19 U.S.C. 1677), as amended by subsection (c) of this 

6 section, is further amended by adding at the end the fol7 lowing new paragraph: 

8 ‘‘(38) REAL EFFECTIVE EXCHANGE RATE UNDER9 VALUATION.—The calculation of real effective ex10 change rate undervaluation, for purposes of para11 graph (5)(E)(v) and paragraph (37), shall— 

12 ‘‘(A)(i) rely upon, and where appropriate be 

13 the simple average of, the results yielded from 

14 application of the approaches described in the 

15 guidelines of the International Monetary Fund’s 

16 Consultative Group on Exchange Rate Issues; or 

17 ‘‘(ii) if the guidelines of the International 

18 Monetary Fund’s Consultative Group on Ex19 change Rate Issues are not available, be based on 

20 generally accepted economic and econometric 

21 techniques and methodologies to measure the level 

22 of undervaluation; 

23 ‘‘(B) rely upon data that are publicly avail24 able, reliable, and compiled and maintained by 

25 the International Monetary Fund or, if the 


srobinson on DSKHWCL6B1PROD with BILLS
7 

•HR 2378 RH

1 International Monetary Fund cannot provide the 

2 data, by other international organizations or by 

3 national governments; and 

4 ‘‘(C) use inflation-adjusted, trade-weighted 

5 exchange rates.’’. 

6 SEC. 3. REPORT ON IMPLEMENTATION OF ACT. 

7 (a) IN GENERAL.—Not later than 9 months after the 

8 date of the enactment of this Act, the Comptroller General 

9 of the United States shall submit to Congress a report on 

10 the implementation of the amendments made by this Act. 

11 (b) MATTERS TO BE INCLUDED.—The report required 

12 by subsection (a) shall include a description of the extent 

13 to which United States industries that have been materially 

14 injured by reason of imports of subject merchandise pro15 duced in foreign countries with fundamentally undervalued 

16 currencies have received relief under title VII of the Tariff 

17 Act of 1930 (19 U.S.C. 1671 et seq.), as amended by this 

18 Act. 

Amend the title so as to read: ‘‘A bill to amend title 

VII of the Tariff Act of 1930 to clarify that countervailing duties may be imposed to address subsidies relating to a fundamentally undervalued currency of any foreign country.’’. 


srobinson on DSKHWCL6B1PROD with BILLS
Union Calendar No. 386 

111TH CONGRESS 

2D SESSION H. R. 2378 

[Report No. 111–646] 

A BILL 

To amend title VII of the Tariff Act of 1930 to 

duty laws, and for other purposes. United States countervailing and antidumping ment by any foreign nation is actionable under clarify that fundamental exchange-rate misalignSEPTEMBER 28, 2010 

Reported with amendments, committed to the Committee 

dered to be printed of the Whole House on the State of the Union, and orVerDate Mar 15 2010 23:08 Sep 28, 2010 Jkt 089200 PO 00000 Frm 00008 Fmt 6651 Sfmt 6651 E:\BILLS\H2378.RH H2378

srobinson on DSKHWCL6B1PROD with BILLS