I 
111TH CONGRESS 
1ST SESSION H. R. 2378 
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. SUT-
TON, Mr. PLATTS, Mr. ARCURI, Mr. HIGGINS, Mr. BOSWELL, Mr. CON-
YERS, Mr. GENE GREEN of Texas, Ms. EDDIE BERNICE JOHNSON of 
Texas, Mr. COSTELLO, Mr. LEE of New York, Mr. HOLT, Mr. WEST-
MORELAND, 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 
A BILL 
To amend title VII of the Tariff Act of 1930 to clarify 
that fundamental exchange-rate misalignment by any for-
eign nation is actionable under United States counter-
vailing and antidumping duty laws, and for other pur-
poses. 
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 Reform for 
Fair Trade Act’’. 
SEC. 2. FINDINGS. 
Congress makes the following findings: 
(1) The strength, vitality, and stability of the 
United States economy and, more broadly, the open-
ness and effectiveness of the global trading system 
are critically dependent upon an international mone-
tary regime of orderly and flexible exchange rates. 
(2) Increasingly in recent years, a number of 
foreign governments have undervalued their cur-
rencies by means of protracted, large-scale interven-
tion directly or indirectly through surrogates in for-
eign exchange markets, and this fundamental mis-
alignment has substantially contributed to distor-
tions in trade flows, unsustainable current account 
imbalances, and serious competitive problems for 
countries like the United States that permit their 
currencies to fluctuate in response to changes in 
market forces. 
(3) This exchange depreciation serves as a sub-
sidy for, and facilitates dumping of, exports from 
countries that engage in this mercantilist practice. 
(4) It is consistent with the agreements of the 
World Trade Organization and the International 
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Monetary Fund that United States trade law be 
amended to clarify and make explicit that funda-
mental undervaluation by an exporting country of its 
currency is actionable as a countervailable export 
subsidy and alternatively can be offset by anti-
dumping duties when injury to producers and work-
ers in the United States is caused by such subsidized 
and dumped imports. 
SEC. 3. FUNDAMENTAL AND ACTIONABLE MISALIGNMENT 
OF A CURRENCY. 
(a) IN GENERAL.—Subtitle D of title VII of the Tar-
iff Act of 1930 (19 U.S.C. 1677 et seq.) is amended by 
inserting after section 771B the following new section: 
‘‘SEC. 771C. FUNDAMENTAL AND ACTIONABLE MISALIGN-
MENT OF A CURRENCY. 
‘‘(a) FUNDAMENTAL AND ACTIONABLE UNDERVALU-
ATION OF A CURRENCY.—For purposes of subsection (c), 
the currency of an exporting country is fundamentally and 
actionably undervalued if— 
‘‘(1) the real effective exchange rate of the ex-
porting country’s currency is undervalued by at least 
5 percent, on average, during an 18-month period 
that represents the most recent 18 months for which 
the information required under subsection (c) is rea-
sonably available, but that does not include any time 
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later than the final month in the period of investiga-
tion or the period of review, as applicable; 
‘‘(2) during part or all of the 18-month period, 
the government of the exporting country has en-
gaged directly or indirectly through surrogates in 
protracted, large-scale intervention in foreign ex-
change markets, and that intervention has involved 
the direct transfer of funds or the potential direct 
transfer of funds or liabilities; 
‘‘(3) during part or all of the 18-month period, 
the exporting country has experienced a significant 
and prolonged global current account surplus; 
‘‘(4) during part or all of the 18-month period, 
the exporting country has experienced a significant 
and prolonged bilateral current account surplus with 
the United States; and 
‘‘(5) during part or all of the 18-month period, 
the foreign exchange reserves held or controlled by 
the government of the exporting country have ex-
ceeded the amount necessary to repay its external 
debt obligations falling due within the coming 12 
months, except that the requirement of this para-
graph shall not be satisfied and no fundamental and 
actionable undervaluation shall be found as to the 
currency of an exporting country if the exporting 
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country during any part of the 18-month period has 
been allowed under article XII or article XVIII, sec-
tion B of the GATT 1994 (as defined in section 
2(1)(B) of the Uruguay Round Agreements Act (19 
U.S.C. 3501(1)(B)) to impose restrictions to safe-
guard its balance of payments. 
‘‘(b) FUNDAMENTAL
AND
ACTIONABLE
OVER-
VALUATION OF A CURRENCY.—For purposes of subsection 
(c), the currency of an exporting country is fundamentally 
and actionably overvalued if— 
‘‘(1) the real effective exchange rate of the ex-
porting country’s currency is overvalued by at least 
5 percent, on average, during an 18-month period 
that represents the most recent 18 months for which 
the information required under subsection (c) is rea-
sonably available, but that does not include any time 
later than the final month in the period of investiga-
tion or the period of review, as applicable; 
‘‘(2) during part or all of the 18-month period, 
the government of the exporting country has en-
gaged directly or indirectly through surrogates in 
protracted, large-scale intervention in foreign ex-
change markets, and that intervention has involved 
the direct transfer of funds or the potential direct 
transfer of funds or liabilities; 
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‘‘(3) during part or all of the 18-month period, 
the exporting country has experienced a significant 
and prolonged global current account deficit; 
‘‘(4) during part or all of the 18-month period, 
the exporting country has experienced a significant 
and prolonged bilateral current account deficit with 
the United States; and 
‘‘(5) during part or all of the 18-month period, 
the foreign exchange reserves held or controlled by 
the government of the exporting country have been 
less than the amount necessary to repay its external 
debt obligations falling due within the coming 12 
months, except that the requirement of this para-
graph shall not be satisfied and no fundamental and 
actionable overvaluation shall be found as to the cur-
rency of an exporting country if the exporting coun-
try during any part of the 18-month period has been 
allowed under article XII or article XVIII, section B 
of the GATT 1994 (as defined in section 2(1)(B) of 
the Uruguay Round Agreements Act (19 U.S.C. 
3501(1)(B)) to impose restrictions to safeguard its 
balance of payments. 
‘‘(c) IDENTIFICATION OF FUNDAMENTAL AND AC-
TIONABLE MISALIGNMENT OF A CURRENCY.—In calcu-
lating under subsection (a) or (b) whether the currency 
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