OMNIBUS TRADE AND COMPETITIVENESS ACT OF 

1988 (H.R. 3)

SEC. 3004. INTERNATIONAL NEGOTIATIONS ON 

EXCHANGE RATE AND ECONOMIC POLICIES. 

(a) MULTILATERAL NEGOTIATIONS.–The President shall 

seek to confer and negotiate with other countries- 

(1) to achieve– 

(A) better coordination of macroeconomic policies of 

the major industrialized nations; and 

(B) more appropriate and sustainable levels of trade 

and current account balances, and exchange rates 

of the dollar and other currencies consistent with 

such balances; and 

(2) to develop a program for improving existing mechanisms for coordination and improving the functioning 

of the exchange rate system to provide for long-term 

exchange rate stability consistent with more 

appropriate and sustainable current account balances. 

(b) BILATERAL NEGOTIATIONS.–The Secretary of the 

Treasury shall analyze on an annual basis the exchange rate 

policies of foreign countries, in consultation with the 

International Monetary Fund, and consider whether countries 

manipulate the rate of exchange between their currency and the 

United States dollar for purposes of preventing effective balance 

of payments adjustments or gaining unfair competitive 

advantage in international trade. If the Secretary considers that 

such manipulation is occurring with respect to countries that (1) 

have material global current account surpluses; and (2) have 

significant bilateral trade surpluses with the United States, the 

Secretary of the Treasury shall take action to initiate 

negotiations with such foreign countries on an expedited basis, 

in the International Monetary Fund or bilaterally, for the 

purpose of ensuring that such countries regularly and promptly 

adjust the rate of exchange between their currencies and the 

United States dollar to permit effective balance of payments 

adjustments and to eliminate the unfair advantage. The 

Secretary shall not be required to initiate negotiations in cases 

where such negotiations would have a serious detrimental 

impact on vital national economic and security interests; in such 

cases, the Secretary shall inform the chairman and the ranking 

minority member of the Committee on Banking, Housing, and 

Urban Affairs of the Senate and of the Committee on Banking, 

Finance and Urban Affairs of the House of Representatives of 

his determination. 

SEC.3005. REPORTING REQUIREMENTS. 

(a) Reports Required.– In furtherance of the purpose of this 

title, the Secretary, after consultation with the Chairman of the 

Board, shall submit to the Committee on Banking, Finance and 

Urban Affairs of the House of Representatives and the 

Committee on Banking, Housing, and Urban Affairs of the 

Senate, on or before October 15 each year, a written report on 

international economic policy, including exchange rate policy. 

The Secretary shall provide a written update of developments 

six months after the initial report. In addition, the Secretary 

shall appear, if requested, before both committees to provide 

testimony on these reports. 

(b) CONTENTS OF REPORT.–Each report submitted under 

subsection (a) shall contain– 

(1) an analysis of currency market developments and the 

relationship between the United States dollar and the 

currencies of our major trade competitors; 

(2) an evaluation of the factors in the United States and 

other economies that underline conditions in the 

currency markets, including developments in bilateral 

trade and capital flows; 

 

(3) a description of currency intervention or other actions 

undertaken to adjust the actual exchange rate of the 

dollar; 

(4) an assessment of the impact of the exchange rate of the 

United States dollar on – 

(A) the ability of the United States to maintain a more 

appropriate and sustainable balance in its current 

account and merchandise trade account; 

(B) production, employment, and noninflationary 

growth in the United States; 

(C) the international competitive performance of 

United States industries and the external 

indebtedness of the United States; 

(5) recommendations for any changes necessary in United 

States economic policy to attain a more appropriate 

and sustainable balance in the current account; 

(6) the results of negotiations conducted pursuant to 

section 3004; 

(7) key issues in United States policies arising from the 

most recent consultation requested by the International 

Monetary Fund under article IV of the Fund’s Articles 

of Agreement; and 

(8) a report on the size and composition of international 

capital flows, and the factors contributing to such 

flows, including, where possible, an assessment of the 

impact of such flows on exchange rates and trade 

flows. 

 

SEC. 3006. DEFINITIONS. 

As used in this subtitle: 

(1) SECRETARY.–The term “Secretary” means the Secretary 

of the Treasury. 

(2) BOARD.–The term “Board” means the Board of Governors 

of the Federal Reserve System.