II 

113TH CONGRESS 

1ST SESSION S. 1114 

To provide for identification of misaligned currency, require action to correct 

the misalignment, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JUNE 7, 2013 

Mr. BROWN (for himself, Mr. SESSIONS, Mr. SCHUMER, Mr. GRAHAM, Ms. 

STABENOW, Mr. BURR, Ms. COLLINS, and Mr. CASEY) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs 

A BILL 

To provide for identification of misaligned currency, require 

action to correct the misalignment, and for other purposes. 

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 Exchange 

5 Rate Oversight Reform Act of 2013’’. 

6 SEC. 2. DEFINITIONS. 

7 In this Act: 

8 (1) ADMINISTERING AUTHORITY.—The term 

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1 ferred to in section 771(1) of the Tariff Act of 1930 

2 (19 U.S.C. 1677(1)). 

3 (2) AGREEMENT ON GOVERNMENT PROCURE4 MENT.—The term ‘‘Agreement on Government Pro5 curement’’ means the agreement referred to in sec6 tion 101(d)(17) of the Uruguay Round Agreements 

7 Act (19 U.S.C. 3511(d)(17)). 

8 (3) COUNTRY.—The term ‘‘country’’ means a 

9 foreign country, dependent territory, or possession of 

10 a foreign country, and may include an association of 

11 2 or more foreign countries, dependent territories, or 

12 possessions of countries into a customs union out13 side the United States. 

14 (4) EXPORTING COUNTRY.—The term ‘‘export15 ing country’’ means the country in which the subject 

16 merchandise is produced or manufactured. 

17 (5) FUNDAMENTAL MISALIGNMENT.—The term 

18 ‘‘fundamental misalignment’’ means a significant 

19 and sustained undervaluation of the prevailing real 

20 effective exchange rate, adjusted for cyclical and 

21 transitory factors, from its medium-term equilibrium 

22 level. 

23 (6) FUNDAMENTALLY MISALIGNED CUR24 RENCY.—The term ‘‘fundamentally misaligned curVerDate Mar 15 2010 00:26 Jun 11, 2013 Jkt 029200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1114.IS S1114

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1 rency’’ means a foreign currency that is in funda2 mental misalignment. 

3 (7) REAL EFFECTIVE EXCHANGE RATE.—The 

4 term ‘‘real effective exchange rate’’ means a weight5 ed average of bilateral exchange rates, expressed in 

6 price-adjusted terms. 

7 (8) SECRETARY.—The term ‘‘Secretary’’ means 

8 the Secretary of the Treasury. 

9 (9) STERILIZATION.—The term ‘‘sterilization’’ 

10 means domestic monetary operations taken to neu11 tralize the monetary impact of increases in reserves 

12 associated with intervention in the currency ex13 change market. 

14 (10) SUBJECT MERCHANDISE.—The term ‘‘sub15 ject merchandise’’ means the merchandise subject to 

16 an antidumping investigation, review, suspension 

17 agreement, or order referred to in section 771(25) of 

18 the Tariff Act of 1930 (19 U.S.C. 1677(25)). 

19 (11) WTO AGREEMENT.—The term ‘‘WTO 

20 Agreement’’ means the agreement referred to in sec21 tion 2(9) of the Uruguay Round Agreements Act (19 

22 U.S.C. 3501(9)). 

23 SEC. 3. REPORT ON INTERNATIONAL MONETARY POLICY 

24 AND CURRENCY EXCHANGE RATES. 

25 (a) REPORTS REQUIRED.— 


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1 (1) IN GENERAL.—Not later than March 15 

2 and September 15 of each calendar year, the Sec3 retary, after consulting with the Chairman of the 

4 Board of Governors of the Federal Reserve System 

5 and the Advisory Committee on International Ex6 change Rate Policy, shall submit to Congress and 

7 make public, a written report on international mone8 tary policy and currency exchange rates. 

9 (2) CONSULTATIONS.—On or before March 30 

10 and September 30 of each calendar year, the Sec11 retary shall appear, if requested, before the Com12 mittee on Banking, Housing, and Urban Affairs and 

13 the Committee on Finance of the Senate and the 

14 Committee on Financial Services and the Committee 

15 on Ways and Means of the House of Representatives 

16 to provide testimony on the reports submitted pursu17 ant to paragraph (1). 

18 (b) CONTENT OF REPORTS.—Each report submitted 

19 under subsection (a) shall contain the following: 

20 (1) An analysis of currency market develop21 ments and the relationship between the United 

22 States dollar and the currencies of major economies 

23 and trading partners of the United States. 

24 (2) A review of the economic and monetary 

25 policies of major economies and trading partners of 


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1 the United States, and an evaluation of how such 

2 policies impact currency exchange rates. 

3 (3) A description of any currency intervention 

4 by the United States or other major economies or 

5 trading partners of the United States, or other ac6 tions undertaken to adjust the actual exchange rate 

7 relative to the United States dollar. 

8 (4) An evaluation of the domestic and global 

9 factors that underlie the conditions in the currency 

10 markets, including— 

11 (A) monetary and financial conditions; 

12 (B) accumulation of foreign assets; 

13 (C) macroeconomic trends; 

14 (D) trends in current and financial ac15 count balances; 

16 (E) the size, composition, and growth of 

17 international capital flows; 

18 (F) the impact of the external sector on 

19 economic growth; 

20 (G) the size and growth of external indebt21 edness; 

22 (H) trends in the net level of international 

23 investment; and 

24 (I) capital controls, trade, and exchange 

25 restrictions. 


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1 (5) A list of currencies designated as fun2 damentally misaligned currencies pursuant to section 

3 4(a)(2), and a description of any economic models or 

4 methodologies used to establish the list. 

5 (6) A list of currencies designated for priority 

6 action pursuant to section 4(a)(3). 

7 (7) An identification of the nominal value asso8 ciated with the medium-term equilibrium exchange 

9 rate, relative to the United States dollar, for each 

10 currency listed under paragraph (6). 

11 (8) A description of any consultations con12 ducted or other steps taken pursuant to section 5, 

13 6, or 7, including any actions taken to eliminate the 

14 fundamental misalignment. 

15 (9) A description of any determination made 

16 pursuant to section 9(a). 

17 (c) CONSULTATIONS.— 

18 (1) IN GENERAL.—The Secretary shall consult 

19 with the Chairman of the Board of Governors of the 

20 Federal Reserve System and the Advisory Com21 mittee on International Exchange Rate Policy with 

22 respect to the preparation of each report required 

23 under subsection (a). 

24 (2) COMMENTS.—Not later than the date that 

25 is 15 days before the date each report is due under 


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1 subsection (a), the Chairman of the Board of Gov2 ernors of the Federal Reserve System and the Advi3 sory Committee on International Exchange Rate 

4 Policy shall submit to the Secretary any comments 

5 of the Chairman or Advisory Committee on the re6 port. 

7 (3) CONSIDERATION.—The Secretary shall re8 view and consider all comments received from the 

9 Chairman and the Advisory Committee under para10 graph (2) before submitting the report required 

11 under subsection (a). 

12 SEC. 4. IDENTIFICATION OF FUNDAMENTALLY MISALIGNED 

13 CURRENCIES. 

14 (a) IDENTIFICATION.— 

15 (1) IN GENERAL.—The Secretary shall analyze 

16 on a semiannual basis the prevailing real effective 

17 exchange rates of foreign currencies. 

18 (2) DESIGNATION OF FUNDAMENTALLY MIS19 ALIGNED CURRENCIES.—With respect to the cur20 rencies of countries that have significant bilateral 

21 trade flows with the United States, and currencies 

22 that are otherwise significant to the operation, sta23 bility, or orderly development of regional or global 

24 capital markets, the Secretary shall determine 

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1 alignment and shall designate such currency as a 

2 fundamentally misaligned currency. 

3 (3) DESIGNATION OF CURRENCIES FOR PRI4 ORITY ACTION.—The Secretary shall designate a 

5 currency identified under paragraph (2) for priority 

6 action if the country that issues such currency is— 

7 (A) engaging in protracted large-scale 

8 intervention in the currency exchange market, 

9 particularly if accompanied by partial or full 

10 sterilization; 

11 (B) engaging in excessive and prolonged 

12 official or quasi-official accumulation of foreign 

13 exchange reserves and other foreign assets, for 

14 balance of payments purposes; 

15 (C) introducing or substantially modifying 

16 for balance of payments purposes a restriction 

17 on, or incentive for, the inflow or outflow of 

18 capital, that is inconsistent with the goal of 

19 achieving full currency convertibility; or 

20 (D) pursuing any other policy or action 

21 that, in the view of the Secretary, warrants des22 ignation for priority action. 

23 (b) REPORTS.—The Secretary shall include a list of 

24 any foreign currency designated under paragraph (2) or 

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1 lying such designations in each report required by section 

2 3. 

3 SEC. 5. NEGOTIATIONS AND CONSULTATIONS. 

4 (a) IN GENERAL.—Upon designation of a currency 

5 pursuant to section 4(a)(2), the Secretary shall seek to 

6 consult bilaterally with the country that issues such cur7 rency in order to facilitate the adoption of appropriate 

8 policies to address the fundamental misalignment. 

9 (b) CONSULTATIONS INVOLVING CURRENCIES DES10 IGNATED FOR PRIORITY ACTION.—With respect to each 

11 currency designated for priority action pursuant to section 

12 4(a)(3), the Secretary shall, in addition to seeking to con13 sult with a country pursuant to subsection (a)— 

14 (1) seek the advice of the International Mone15 tary Fund with respect to the findings of the Sec16 retary in the report submitted to Congress pursuant 

17 to section 3(a); and 

18 (2) encourage other governments, whether bilat19 erally or in appropriate multinational fora, to join 

20 the United States in seeking the adoption of appro21 priate policies by the country described in subsection 

22 (a) to eliminate the fundamental misalignment. 

23 SEC. 6. FAILURE TO ADOPT APPROPRIATE POLICIES. 

24 (a) DETERMINATION AND MEASURES REQUIRED.— 


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1 (1) DETERMINATION.—Not later than 90 days 

2 after the date on which a currency is designated for 

3 priority action pursuant to section 4(a)(3), the Sec4 retary shall determine whether the country that 

5 issues the currency has adopted appropriate policies, 

6 and taken identifiable action, to eliminate the funda7 mental misalignment. 

8 (2) NOTIFICATION AND PUBLICATION.—The 

9 Secretary shall promptly notify Congress of the de10 termination under paragraph (1) and publish notice 

11 of the determination in the Federal Register. 

12 (3) MEASURES.—If the Secretary determines 

13 that the country that issues the currency described 

14 in paragraph (1) has failed to adopt appropriate 

15 policies, or take identifiable action, to eliminate the 

16 fundamental misalignment, the measures specified in 

17 subsection (b) shall apply with respect to the coun18 try until a notification described in section 7(b) is 

19 published in the Federal Register. 

20 (b) MEASURES SPECIFIED.—The measures specified 

21 in this subsection are, with respect to a country, the fol22 lowing: 

23 (1) ADJUSTMENT UNDER ANTIDUMPING LAW.— 

24 For purposes of an antidumping investigation under 

25 subtitle B of title VII of the Tariff Act of 1930 (19 


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1 U.S.C. 1673 et seq.) or a review under subtitle C of 

2 such Act (19 U.S.C. 1675 et seq.), the following 

3 shall apply: 

4 (A) IN GENERAL.—The administering au5 thority shall ensure a fair comparison between 

6 the export price and the normal value by ad7 justing the price used to establish export price 

8 or constructed export price to reflect the funda9 mental misalignment of the currency of the 

10 country. 

11 (B) SALES SUBJECT TO ADJUSTMENT.— 

12 The adjustment described in subparagraph (A) 

13 shall apply with respect to subject merchandise 

14 sold on or after the date that is 30 days after 

15 the date the currency of the country is des16 ignated for priority action pursuant to section 

17 4(a)(3). 

18 (2) FEDERAL PROCUREMENT.— 

19 (A) IN GENERAL.—The President shall 

20 prohibit the procurement by the Federal Gov21 ernment of products or services from the coun22 try. 

23 (B) EXCEPTION.—The prohibition pro24 vided for in subparagraph (A) shall not apply 


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1 with respect to a country that is a party to the 

2 Agreement on Government Procurement. 

3 (3) REQUEST FOR IMF ACTION.—The United 

4 States shall inform the Managing Director of the 

5 International Monetary Fund of the failure of the 

6 country to adopt appropriate policies, or to take 

7 identifiable action, to eliminate the fundamental mis8 alignment, and the actions the country is engaging 

9 in that are identified in section 4(a)(3), and shall re10 quest that the Managing Director of the Inter11 national Monetary Fund— 

12 (A) consult with the country regarding the 

13 observance of the obligations of the country 

14 under article IV of the International Monetary 

15 Fund Articles of Agreement, including through 

16 special consultations, if necessary; and 

17 (B) not later than 180 days after the date 

18 of the request, formally report the results of 

19 such consultations to the Executive Board of 

20 the International Monetary Fund. 

21 (4) OPIC FINANCING.—The Overseas Private 

22 Investment Corporation shall not approve any new 

23 financing (including insurance, reinsurance, or guar24 antee) with respect to a project located within the 

25 country. 


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1 (5) MULTILATERAL BANK FINANCING.— 

2 (A) IN GENERAL.—The Secretary shall in3 struct the United States Executive Director at 

4 each multilateral bank to oppose the approval 

5 of any new financing (including loans, other 

6 credits, insurance, reinsurance, or guarantee) to 

7 the government of the country or for a project 

8 located within the country. 

9 (B) MULTILATERAL BANK.—The term 

10 ‘‘multilateral bank’’ includes each of the inter11 national financial institutions described in sec12 tion 1701(c)(2) of the International Financial 

13 Institutions Act (22 U.S.C. 262r). 

14 (c) WAIVER.— 

15 (1) IN GENERAL.—The President may waive 

16 any action provided for under subsection (a) or (b) 

17 if the President determines that— 

18 (A) taking the action would cause serious 

19 harm to the national security of the United 

20 States; or 

21 (B) it is in the vital economic interest of 

22 the United States to do so and taking the ac23 tion would have an adverse impact on the 

24 United States economy greater than the bene25 fits of the action. 


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1 (2) NOTIFICATION.—The President shall 

2 promptly notify Congress of a determination under 

3 paragraph (1) (and the reasons for the determina4 tion, if made under paragraph (1)(B)) and shall 

5 publish notice of the determination (and the reasons 

6 for the determination, if made under paragraph 

7 (1)(B)) in the Federal Register. 

8 (d) REPORTS.—The Secretary shall describe any ac9 tion or determination pursuant to subsection (a), (b), or 

10 (c) in the first semiannual report required by section 3 

11 after the date of the action or determination. 

12 SEC. 7. PERSISTENT FAILURE TO ADOPT APPROPRIATE 

13 POLICIES. 

14 (a) DETERMINATION AND MEASURES REQUIRED.— 

15 (1) DETERMINATION.—Not later than 360 days 

16 after the date on which a currency is designated for 

17 priority action pursuant to section 4(a)(3), the Sec18 retary shall determine whether the country that 

19 issues the currency has adopted appropriate policies, 

20 and taken identifiable action, to eliminate the funda21 mental misalignment. 

22 (2) NOTIFICATION AND PUBLICATION.—The 

23 Secretary shall promptly notify Congress of the de24 termination under paragraph (1) and shall publish 

25 notice of the determination in the Federal Register. 


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1 (3) MEASURES.—If the Secretary determines 

2 that the country that issues the currency has failed 

3 to adopt appropriate policies, or take identifiable ac4 tion, to eliminate the fundamental misalignment, in 

5 addition to the measures specified in section 6(b), 

6 the following measures shall apply with respect to 

7 the country until a notification described in sub8 section (b) is published in the Federal Register: 

9 (A) ACTION AT THE WTO.—The United 

10 States Trade Representative shall request con11 sultations in the World Trade Organization 

12 with the country regarding the consistency of 

13 the actions of the country with its obligations 

14 under the WTO Agreement. 

15 (B) REMEDIAL INTERVENTION.— 

16 (i) IN GENERAL.—The Secretary shall 

17 consult with the Board of Governors of the 

18 Federal Reserve System to consider under19 taking remedial intervention in inter20 national currency markets in response to 

21 the fundamental misalignment of the cur22 rency designated for priority action, and 

23 coordinating the intervention with other 

24 monetary authorities and the International 

25 Monetary Fund. In doing so, the Secretary 


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1 shall consider the impact of the interven2 tion on domestic economic growth and sta3 bility, including the impact on interest 

4 rates. 

5 (ii) NOTICE TO COUNTRY.—At the 

6 same time the Secretary takes action 

7 under clause (i), the Secretary shall notify 

8 the country that issues the currency of the 

9 consultations under clause (i). 

10 (b) NOTIFICATION.—The Secretary shall promptly 

11 notify Congress when a country that issues a currency des12 ignated for priority action pursuant to section 4(a)(3) 

13 adopts appropriate policies, or takes identifiable action, to 

14 eliminate the fundamental misalignment, and publish no15 tice of the action of that country in the Federal Register. 

16 (c) WAIVER.— 

17 (1) IN GENERAL.—The President may waive 

18 any action provided for under this section, or extend 

19 any waiver provided for under section 6(c), if the 

20 President determines that— 

21 (A) taking the action would cause serious 

22 harm to the national security of the United 

23 States; or 

24 (B) it is in the vital economic interest of 

25 the United States to do so, and that taking the 


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1 action would have an adverse impact on the 

2 United States economy substantially out of pro3 portion to the benefits of the action. 

4 (2) NOTIFICATION.—The President shall 

5 promptly notify Congress of a determination under 

6 paragraph (1) (and the reasons for the determina7 tion, if made under paragraph (1)(B)) and shall 

8 publish notice of the determination (and the reasons 

9 for the determination, if made under paragraph 

10 (1)(B)) in the Federal Register. 

11 (d) DISAPPROVAL OF WAIVER.—If the President 

12 waives an action pursuant to subsection (c)(1)(B), or ex13 tends a waiver provided for under section 6(c)(1)(B), the 

14 waiver shall cease to have effect upon the enactment of 

15 a resolution of disapproval described in section 8(a)(2). 

16 (e) REPORTS.—The Secretary shall describe any ac17 tion or determination pursuant to subsection (a), (b), or 

18 (c) in the first semiannual report required by section 3 

19 after the date of such action or determination. 

20 SEC. 8. CONGRESSIONAL DISAPPROVAL OF WAIVER. 

21 (a) RESOLUTION OF DISAPPROVAL.— 

22 (1) INTRODUCTION.—If a resolution of dis23 approval is introduced in the House of Representa24 tives or the Senate during the 90-day period (not 

25 counting any day which is excluded under section 


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1 154(b)(1) of the Trade Act of 1974 (19 U.S.C. 

2 2194(b)(1))), beginning on the date on which the 

3 President first notifies Congress of a determination 

4 to waive action with respect to a country pursuant 

5 to section 7(c)(1)(B), that resolution of disapproval 

6 shall be considered in accordance with this sub7 section. 

8 (2) RESOLUTION OF DISAPPROVAL.—In this 

9 subsection, the term ‘‘resolution of disapproval’’ 

10 means only a joint resolution of the two Houses of 

11 the Congress, the sole matter after the resolving 

12 clause of which is as follows: ‘‘That Congress does 

13 not approve the determination of the President 

14 under lllllllllll of the Currency 

15 Exchange Rate Oversight Reform Act of 2013 with 

16 respect to llllll, of which Congress was no17 tified on lllll.’’, with the first blank space 

18 being filled section 7(c)(1)(B) or section 6(c)(1)(B), 

19 whichever is applicable, the second blank space being 

20 filled with the name of the appropriate country, and 

21 the third blank space being filled with the appro22 priate date. 

23 (3) PROCEDURES FOR CONSIDERING RESOLU24 TIONS.— 


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1 (A) INTRODUCTION AND REFERRAL.—Res2 olutions of disapproval— 

3 (i) in the House of Representatives— 

4 (I) may be introduced by any 

5 Member of the House of Representa6 tives; 

7 (II) shall be referred to the Com8 mittee on Financial Services and to 

9 the Committee on Rules; and 

10 (III) may not be amended by ei11 ther Committee; and 

12 (ii) in the Senate— 

13 (I) may be introduced by any 

14 Member of the Senate; 

15 (II) shall be referred to the Com16 mittee on Banking, Housing, and 

17 Urban Affairs; and 

18 (III) may not be amended. 

19 (B) COMMITTEE DISCHARGE AND FLOOR

20 CONSIDERATION.—The provisions of sub21 sections (c) through (f) of section 152 of the 

22 Trade Act of 1974 (other than paragraph (3) 

23 of subsection (f)) (19 U.S.C. 2192 (c) through 

24 (f)) (relating to committee discharge and floor 

25 consideration of certain resolutions in the 


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1 House and Senate) apply to a resolution of dis2 approval under this section to the same extent 

3 those subsections apply to joint resolutions 

4 under such section 152. 

5 (b) RULES OF HOUSE OF REPRESENTATIVES AND

6 SENATE.—This section is enacted by Congress— 

7 (1) as an exercise of the rulemaking power of 

8 the House of Representatives and the Senate, re9 spectively, and as such is deemed a part of the rules 

10 of each House, respectively, and the rules provided 

11 for in this section supersede other rules only to the 

12 extent that they are inconsistent with those other 

13 rules; and 

14 (2) with the full recognition of the constitu15 tional right of either House to change the rules pro16 vided for in this section (so far as relating to the 

17 procedures of that House) at any time, in the same 

18 manner, and to the same extent as any other rule 

19 of that House. 

20 SEC. 9. INTERNATIONAL FINANCIAL INSTITUTION GOVERN21 ANCE ARRANGEMENTS. 

22 (a) INITIAL REVIEW.— 

23 (1) IN GENERAL.—Notwithstanding any other 

24 provision of law, before the United States approves 

25 a proposed change in the governance arrangement of 


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1 any international financial institution, as defined in 

2 section 1701(c)(2) of the International Financial In3 stitutions Act (22 U.S.C. 262r(c)(2)), the Secretary 

4 shall determine whether any member of the inter5 national financial institution that would benefit from 

6 the proposed change, in the form of increased voting 

7 shares or representation, has a currency that was 

8 designated a currency for priority action pursuant to 

9 section 4(a)(3) in the most recent report required by 

10 section 3. 

11 (2) REPORT.—The Secretary shall submit to 

12 Congress the determination required by paragraph 

13 (1). 

14 (b) SUBSEQUENT ACTION.—The United States shall 

15 oppose any proposed change in the governance arrange16 ment of the international financial institution if the Sec17 retary renders an affirmative determination pursuant to 

18 subsection (a). 

19 (c) FURTHER ACTION.—The United States shall con20 tinue to oppose any proposed change in the governance 

21 arrangement of the international financial institution, pur22 suant to subsection (b), until the Secretary determines 

23 and reports to Congress that the proposed change would 

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1 tation, that has a currency that is designated a currency 

2 for priority action pursuant to section 4(a)(3). 

3 SEC. 10. ADJUSTMENT FOR FUNDAMENTALLY MISALIGNED 

4 CURRENCY DESIGNATED FOR PRIORITY AC5 TION. 

6 (a) IN GENERAL.—Subsection (c)(2) of section 772 

7 of the Tariff Act of 1930 (19 U.S.C. 1677a(c)(2)) is 

8 amended— 

9 (1) in subparagraph (A), by striking ‘‘and’’ at 

10 the end; 

11 (2) in subparagraph (B), by striking the period 

12 at the end and inserting ‘‘, and’’; and 

13 (3) by adding at the end the following: 

14 ‘‘(C) if required by section 6(b)(1) of the 

15 Currency Exchange Rate Oversight Reform Act 

16 of 2013, the percentage by which the domestic 

17 currency of the producer or exporter is under18 valued in relation to the United States dollar as 

19 determined under section 771(37).’’. 

20 (b) CALCULATION METHODOLOGY.—Section 771 of 

21 the Tariff Act of 1930 (19 U.S.C. 1677) is amended by 

22 adding at the end the following: 

23 ‘‘(37) PERCENTAGE UNDERVALUATION.—The 

24 administering authority shall determine the percent25 age by which the domestic currency of the producer 


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1 or exporter is undervalued in relation to the United 

2 States dollar by comparing the nominal value associ3 ated with the medium-term equilibrium exchange 

4 rate of the domestic currency of the producer or ex5 porter, identified by the Secretary pursuant to sec6 tion 3(b)(7) of the Currency Exchange Rate Over7 sight Reform Act of 2013, to the official daily ex8 change rate identified by the administering author9 ity.’’. 

10 SEC. 11. CURRENCY UNDERVALUATION UNDER COUNTER11 VAILING DUTY LAW. 

12 (a) INVESTIGATION OR REVIEW.—Subsection (c) of 

13 section 702 of the Tariff Act of 1930 (19 U.S.C. 

14 1671a(c)) is amended by adding at the end the following: 

15 ‘‘(6) CURRENCY UNDERVALUATION.—For pur16 poses of a countervailing duty investigation under 

17 this subtitle where the determinations under clauses 

18 (i) and (ii) of paragraph (1)(A) are affirmative, or 

19 a review under subtitle C of this title, the following 

20 shall apply: 

21 ‘‘(A) IN GENERAL.—The administering au22 thority shall initiate an investigation to deter23 mine whether currency undervaluation by the 

24 government of a country or any public entity 

25 within the territory of a country is providing, 


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1 directly or indirectly, a countervailable subsidy 

2 as described in section 771(5), if— 

3 ‘‘(i) a petition filed by an interested 

4 party (described in subparagraph (C), (D), 

5 (E), (F), or (G) of section 771(9)) alleges 

6 the elements necessary for the imposition 

7 of the duty imposed by section 701(a); and 

8 ‘‘(ii) the petition is accompanied by 

9 information reasonably available to the pe10 titioner supporting those allegations. 

11 ‘‘(B) DESIGNATION OF FUNDAMENTALLY

12 MISALIGNED CURRENCY FOR PRIORITY AC13 TION.—Upon designation of a currency as a 

14 fundamentally misaligned currency for priority 

15 action pursuant to section 4(a)(3) of the Cur16 rency Exchange Rate Oversight Reform Act of 

17 2013, the administering authority shall initiate 

18 an investigation to determine whether the coun19 try that issues such currency is providing, di20 rectly or indirectly, a countervailable subsidy as 

21 defined in section 771(5), if— 

22 ‘‘(i) a petition filed by an interested 

23 party (described in subparagraph (C), (D), 

24 (E), (F), or (G) of section 771(9)) alleges 


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1 the elements necessary for the imposition 

2 of the duty imposed by section 701(a); and 

3 ‘‘(ii) the petition is accompanied by 

4 information reasonably available to the pe5 titioner supporting those allegations.’’. 

6 (b) BENEFIT CALCULATION METHODOLOGY.—Sec7 tion 771 of the Tariff Act of 1930 (19 U.S.C. 1677), as 

8 amended by section 10(b), is further amended by adding 

9 at the end the following: 

10 ‘‘(38) CURRENCY UNDERVALUATION BEN11 EFIT.—For purposes of a countervailing duty inves12 tigation under subtitle A of this title, or a review 

13 under subtitle C of this title, the following shall 

14 apply: 

15 ‘‘(A) IN GENERAL.—If the administering 

16 authority determines to investigate whether cur17 rency undervaluation is a countervailable sub18 sidy as defined in section 771(5), the admin19 istering authority shall determine whether there 

20 is a benefit to the recipient and measure such 

21 benefit by comparing the simple average of the 

22 real exchange rates derived from application of 

23 the macroeconomic-balance approach and the 

24 equilibrium-real-exchange-rate approach to the 


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1 official daily exchange rate identified by the ad2 ministering authority. 

3 ‘‘(B) RELIANCE ON DATA.—In making the 

4 determination under subparagraph (A), the ad5 ministering authority shall rely upon data that 

6 are publicly available, reliable, and compiled 

7 and maintained by the International Monetary 

8 Fund or the World Bank, or other international 

9 organizations or national governments if data 

10 from the International Monetary Fund or 

11 World Bank are not available. 

12 ‘‘(C) DESIGNATION OF FUNDAMENTALLY

13 MISALIGNED CURRENCY FOR PRIORITY AC14 TION.—In the case of designation of a currency 

15 as a fundamentally misaligned currency for pri16 ority action pursuant to section 4(a)(3) of the 

17 Currency Exchange Rate Oversight Reform Act 

18 of 2013, the administering authority shall de19 termine whether there is a benefit to the recipi20 ent and measure that benefit by comparing the 

21 nominal value associated with the medium-term 

22 equilibrium exchange rate of the currency of the 

23 exporting country, identified by the Secretary 

24 pursuant to section 3(b)(7) of such Act, to the 


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1 official daily exchange rate identified by the ad2 ministering authority. 

3 ‘‘(D) DEFINITIONS.—In this paragraph: 

4 ‘‘(i) MACROECONOMIC-BALANCE AP5 PROACH.—The term ‘macroeconomic-bal6 ance approach’ means a methodology 

7 under which the level of undervaluation of 

8 the real effective exchange rate of the cur9 rency of the exporting country is defined 

10 as the change in the real effective exchange 

11 rate needed to achieve equilibrium in the 

12 balance of payments of the exporting coun13 try, as such methodology is described in 

14 the guidelines of the International Mone15 tary Fund’s Consultative Group on Ex16 change Rate Issues, if available. 

17 ‘‘(ii) EQUILIBRIUM-REAL-EXCHANGE18 RATE APPROACH.—The term ‘equilibrium19 real-exchange-rate approach’ means a 

20 methodology under which the level of 

21 undervaluation of the real effective ex22 change rate of the currency of the export23 ing country is defined as the difference be24 tween the observed real effective exchange 

25 rate and the real effective exchange rate, 


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1 as such methodology is described in the 

2 guidelines of the International Monetary 

3 Fund’s Consultative Group on Exchange 

4 Rate Issues, if available. 

5 ‘‘(iii) REAL EXCHANGE RATES.—The 

6 term ‘real exchange rates’ means the bilat7 eral exchange rates derived from con8 verting the trade-weighted multilateral ex9 change rates yielded by the macro10 economic-balance approach and the equi11 librium-real-exchange-rate approach into 

12 real bilateral terms.’’. 

13 (c) EXPORT SUBSIDY.—Section 771(5A)(B) of the 

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

15 by adding at the end the following new sentence: ‘‘The 

16 fact that a subsidy may also be provided in circumstances 

17 that do not involve export shall not, for that reason alone, 

18 mean that the subsidy cannot be considered contingent 

19 upon export performance.’’. 

20 (d) EFFECTIVE DATE.—The amendments made by 

21 this section apply to countervailing duty investigations ini22 tiated under subtitle A of title VII of the Tariff Act of 

23 1930 (19 U.S.C. 1671 et seq.) and reviews initiated under 

24 subtitle C of title VII of such Act (19 U.S.C. 1675 et 

25 seq.)— 


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1 (1) before the date of the enactment of this 

2 Act, if the investigation or review is pending a final 

3 determination as of such date of enactment; and 

4 (2) on or after such date of enactment. 

5 SEC. 12. NONMARKET ECONOMY STATUS. 

6 Paragraph (18)(B) of section 771 of the Tariff Act 

7 of 1930 (19 U.S.C. 1677(18)(B)) is amended— 

8 (1) in clause (v), by striking ‘‘and’’ at the end; 

9 (2) by redesignating clause (vi) as clause (vii); 

10 and 

11 (3) by inserting after clause (v) the following: 

12 ‘‘(vi) whether the currency of the for13 eign country is designated, or has been 

14 designated at any time over the 5 years 

15 prior to review of nonmarket economy sta16 tus, a currency for priority action pursuant 

17 to section 4(a)(3) of the Currency Ex18 change Rate Oversight Reform Act of 

19 2013, and’’. 

20 SEC. 13. APPLICATION TO CANADA AND MEXICO. 

21 Pursuant to article 1902 of the North American Free 

22 Trade Agreement and section 408 of the North American 

23 Free Trade Agreement Implementation Act (19 U.S.C. 

24 3438), section 6(b)(1) and the amendments made by secVerDate Mar 15 2010 00:26 Jun 11, 2013 Jkt 029200 PO 00000 Frm 00029 Fmt 6652 Sfmt 6201 E:\BILLS\S1114.IS S1114

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1 tions 10, 11, and 12 shall apply with respect to goods from 

2 Canada and Mexico. 

3 SEC. 14. ADVISORY COMMITTEE ON INTERNATIONAL EX4 CHANGE RATE POLICY. 

5 (a) ESTABLISHMENT.— 

6 (1) IN GENERAL.—There is established an Ad7 visory Committee on International Exchange Rate 

8 Policy (in this section referred to as the ‘‘Com9 mittee’’) that shall be responsible for— 

10 (A) advising the Secretary in the prepara11 tion of each report to Congress on international 

12 monetary policy and currency exchange rates, 

13 provided for in section 3; and 

14 (B) advising Congress and the President 

15 with respect to— 

16 (i) international exchange rates and 

17 financial policies; and 

18 (ii) the impact of such policies on the 

19 economy of the United States. 

20 (2) MEMBERSHIP.— 

21 (A) IN GENERAL.—The Committee shall be 

22 composed of 9 members as follows, none of 

23 whom shall be employees of the Federal Gov24 ernment: 

25 (i) CONGRESSIONAL APPOINTEES.— 


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1 (I) SENATE APPOINTEES.—Four 

2 members shall be appointed by the 

3 President pro tempore of the Senate, 

4 upon the recommendation of the 

5 chairmen and ranking members of the 

6 Committee on Banking, Housing, and 

7 Urban Affairs and the Committee on 

8 Finance of the Senate. 

9 (II) HOUSE APPOINTEES.—Four 

10 members shall be appointed by the 

11 Speaker of the House of Representa12 tives upon the recommendation of the 

13 chairmen and ranking members of the 

14 Committee on Financial Services and 

15 the Committee on Ways and Means of 

16 the House of Representatives. 

17 (ii) PRESIDENTIAL APPOINTEE.—One 

18 member shall be appointed by the Presi19 dent. 

20 (B) QUALIFICATIONS.—Members shall be 

21 selected under subparagraph (A) on the basis of 

22 their objectivity and demonstrated expertise in 

23 finance, economics, or currency exchange. 

24 (3) TERMS.— 


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1 (A) IN GENERAL.—Members shall be ap2 pointed for a term of 4 years or until the Com3 mittee terminates. 

4 (B) REAPPOINTMENT.—An individual may 

5 be reappointed to the Committee for additional 

6 terms. 

7 (4) VACANCIES.—Any vacancy in the Com8 mittee shall not affect its powers, but shall be filled 

9 in the same manner as the original appointment. 

10 (b) DURATION OF COMMITTEE.— 

11 (1) IN GENERAL.—Notwithstanding section 

12 14(c) of the Federal Advisory Committee Act (5 

13 U.S.C. App.), the Committee shall terminate on the 

14 date that is 4 years after the date of the enactment 

15 of this Act unless renewed by the President pursu16 ant to section 14 of the Federal Advisory Committee 

17 Act (5 U.S.C. App.) for a subsequent 4-year period. 

18 (2) SUBSEQUENT RENEWALS.—The President 

19 may continue to renew the Committee for successive 

20 4-year periods by taking appropriate action prior to 

21 the date on which the Committee would otherwise 

22 terminate. 

23 (c) PUBLIC MEETINGS.— 

24 (1) PUBLIC COMMENTS.—The Committee shall 

25 hold at least 2 public meetings each year for the 


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1 purpose of accepting public comments, including 

2 comments from small business owners. 

3 (2) CALL OF SECRETARY OR MEMBERS.—The 

4 Committee shall also meet as needed at the call of 

5 the Secretary or at the call of two-thirds of the 

6 members of the Committee. 

7 (d) CHAIRPERSON.— 

8 (1) ELECTION.—The Committee shall elect 

9 from among its members a chairperson for a term 

10 of 4 years or until the Committee terminates. 

11 (2) SUBSEQUENT TERMS.—A chairperson of the 

12 Committee may be reelected chairperson but is ineli13 gible to serve consecutive terms as chairperson. 

14 (e) STAFF.—The Secretary shall make available to 

15 the Committee such staff, information, personnel, admin16 istrative services, and assistance as the Committee may 

17 reasonably require to carry out its activities. 

18 (f) APPLICATION OF FEDERAL ADVISORY COM19 MITTEE ACT.— 

20 (1) IN GENERAL.—The provisions of the Fed21 eral Advisory Committee Act (5 U.S.C. App.) shall 

22 apply to the Committee. 

23 (2) EXCEPTION.—Except for the 2 annual pub24 lic meetings required under subsection (c)(1), meet25 ings of the Committee shall be exempt from the reVerDate Mar 15 2010 00:26 Jun 11, 2013 Jkt 029200 PO 00000 Frm 00033 Fmt 6652 Sfmt 6201 E:\BILLS\S1114.IS S1114

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1 quirements of subsections (a) and (b) of sections 10 

2 and 11 of the Federal Advisory Committee Act (re3 lating to open meetings, public notice, public partici4 pation, and public availability of documents) (5 

5 U.S.C. App.), whenever and to the extent it is deter6 mined by the President or the Secretary that such 

7 meetings will be concerned with matters the disclo8 sure of which would seriously compromise the devel9 opment by the United States Government of mone10 tary and financial policy. 

11 SEC. 15. REPEAL OF THE EXCHANGE RATES AND ECO12 NOMIC POLICY COORDINATION ACT OF 1988. 

13 The Exchange Rates and International Economic 

14 Policy Coordination Act of 1988 (22 U.S.C. 5301 et seq.) 

15 is repealed. 

Æ 


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