I 
110TH CONGRESS 
1ST SESSION 
H. R. 321 
To require the Secretary of the Treasury to analyze and report on the 
exchange rate policies of the People’s Republic of China, and to require 
that additional tariffs be imposed on products of that country on the 
basis of the rate of manipulation by that country of the rate of exchange 
between the currency of that country and the United States dollar. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 9, 2007 
Mr. ENGLISH of Pennsylvania (for himself, Mr. HAYES, and Mr. REYNOLDS) 
introduced the following bill; which was referred to the Committee on 
Ways and Means 
A BILL 
To require the Secretary of the Treasury to analyze and 
report on the exchange rate policies of the People’s Re-
public of China, and to require that additional tariffs 
be imposed on products of that country on the basis 
of the rate of manipulation by that country of the rate 
of exchange between the currency of that country and 
the United States dollar. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Currency Harmoni-
zation Initiative Through Neutralizing Action Act of 
2005’’. 
SEC. 2. FINDINGS. 
The Congress finds as follows: 
(1) The benefit of trade concessions can be ad-
versely affected by misalignments in currency. 
(2) Misalignments in currency caused by gov-
ernment policies intended to maintain an unfair 
trade advantage nullify and impair trade conces-
sions. 
(3) Article XV of the GATT 1994 prohibits 
WTO members from, by exchange rate action, frus-
trating the intent of the provisions of that Agree-
ment, or, by trade action, the intent of the provi-
sions of the Articles of Agreement of the Inter-
national Monetary Fund. 
(4) The International Monetary Fund prohibits 
the use of currency manipulation as a method of 
gaining unfair trade advantage. The International 
Monetary Fund defines such manipulation as large- 
scale and protracted intervention in one direction to 
gain an unfair trade advantage. 
(5) Sections 301 through 309 of the Trade Act 
of 1974 contain the authority under United States 
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law to take retaliatory action, including import re-
strictions, to enforce the rights of the United States 
against any unjustifiable, unreasonable, or discrimi-
natory practice or policy of a country that burdens 
or restricts United States commerce. 
(6) Economists have estimated that the RMB 
(the currency of the People’s Republic of China) is 
undervalued against the United States dollar by as 
much as 40 percent. 
(7) Import tariffs of the People’s Republic of 
China currently average about 15 percent. Assuming 
the recent estimates of Chinese RMB undervaluation 
against the dollar are correct, the effect of a free 
and open currency market would be more than twice 
as large as the effect of eliminating every tariff that 
the People’s Republic of China imposes on United 
States goods. 
(8) The President should formally initiate ac-
tion against the People’s Republic of China, on ac-
count of the manipulation of its currency, pursuant 
to article XV of the GATT 1994, the rules of the 
International Monetary Fund, sections 122 and 301 
through 309 of the Trade Act of 1974 (19 U.S.C. 
2132 and 2411 through 2419), and section 3004 of 
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the Omnibus Trade and Competitiveness Act of 
1988 (22 U.S.C. 5304). 
(9) The President should, without weakening or 
impairing existing trade remedies, clarify and im-
prove World Trade Organization rules with regard 
to currency manipulation for trade advantage to re-
flect modern day monetary policy not envisioned at 
the time current rules were adopted in 1947, and re-
port to Congress on ways to increase oversight and 
input opportunities for Congress in the interaction 
of the United States in the World Trade Organiza-
tion. 
SEC. 3. ANALYSIS OF AND REPORT ON EXCHANGE RATE 
POLICIES OF CHINA. 
(a) ANALYSIS.—The Secretary of the Treasury shall, 
upon the enactment of this Act and annually thereafter, 
analyze the exchange rate policies of the People’s Republic 
of China in order to determine whether that country ma-
nipulates the rate of exchange between the currency of 
that country and the United States dollar, within the 
meaning of article XV of the GATT 1994. 
(b) COMPUTATION OF RATE OF MANIPULATION.—If 
the Secretary of the Treasury makes an affirmative deter-
mination under subsection (a), the Secretary shall com-
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