of an exporting country was fundamentally and actionably 
misaligned during the applicable 18-month period de-
scribed in such subsection, the administering authority 
shall— 
‘‘(1) measure the level of any such misalign-
ment as the simple average of the results yielded 
from application of the macroeconomic-balance ap-
proach and the equilibrium-real-exchange-rate ap-
proach; 
‘‘(2) rely upon data that are publicly available, 
reliable, and compiled and maintained by the Inter-
national Monetary Fund or the World Bank or, if 
the International Monetary Fund or the World Bank 
cannot provide such data, by other international or-
ganizations or by national governments; 
‘‘(3) for the purposes of the initiation and the 
preliminary and final determinations of an investiga-
tion and for purposes of the preliminary and final 
results of a review, rely upon data for an 18-month 
period that represents the most recent 18 months 
for which the information needed under this sub-
section is reasonably available at the time, but that 
does not include any time later than the final month 
in the period of investigation or the period of review, 
as applicable; 
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‘‘(4) use inflation-adjusted, trade-weighted ex-
change rates; 
‘‘(5) implement the macroeconomic-balance ap-
proach and the equilibrium-real-exchange-rate ap-
proach using the methodologies described in the 
guidelines of the International Monetary Fund’s 
Consultative Group on Exchange Rate Issues, when-
ever possible; and 
‘‘(6) in the event that the guidelines of the 
International Monetary Fund’s Consultative Group 
on Exchange Rate Issues are not available, employ 
generally accepted economic and econometric tech-
niques to implement the macroeconomic-balance ap-
proach and the equilibrium-real-exchange-rate ap-
proach. 
‘‘(d) IDENTIFICATION
OF
UNDERVALUATION
OR 
OVERVALUATION OF A CURRENCY DURING THE PERIOD 
OF INVESTIGATION OR THE PERIOD OF REVIEW.—If fun-
damental and actionable misalignment within the meaning 
of subsection (a) or (b) is identified under subsection (c) 
as to an exporting country’s currency for the applicable 
18-month period described in subsection (a) or (b), the 
administering authority shall— 
‘‘(1) calculate for the period of investigation or 
the period of review, as applicable, the level of 
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undervaluation or overvaluation, as the case may be, 
of the real effective exchange rate of the exporting 
country’s currency in accordance with the proce-
dures, methodologies, and standards set forth in 
subsection (c); 
‘‘(2) calculate for the period of investigation or 
the period of review, as applicable, using the results 
from each approach described in subsection (c)(1), 
the level of undervaluation or overvaluation, as the 
case may be, of the real exchange rate between the 
exporting country and the United States, deriving 
such level from each level of undervaluation or over-
valuation, as the case may be, of the real effective 
exchange rate determined under paragraph (1) by 
allocating appreciations or depreciations, as the case 
may be, in the bilateral real exchange rates of the 
exporting country to its trading partners on the 
basis of the overall current account balances of such 
trading partners; and 
‘‘(3) take the simple average of each level of 
undervaluation or overvaluation, as the case may be, 
calculated under paragraph (2) to measure the level 
of undervaluation or overvaluation, as the case may 
be, of the bilateral real exchange rate between the 
exporting country and the United States. 
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‘‘(e) CONSIDERATION
OF UNDERVALUATION
OF
A 
CURRENCY
IN
COUNTERVAILING
AND
ANTIDUMPING 
DUTY PROCEEDINGS.—If the administering authority de-
termines under subsection (d) that the currency of an ex-
porting country was undervalued in relation to the United 
States dollar during the period of investigation or the pe-
riod of review, as applicable— 
‘‘(1) in a countervailing duty proceeding, the 
administering authority shall include in the net 
countervailable subsidy the amount that reflects the 
level of undervaluation determined under subsection 
(d)(3) in the bilateral real exchange rate between the 
currency of the exporting country and the United 
States dollar; and 
‘‘(2) in an antidumping duty proceeding, the 
administering authority shall adjust the export price 
and constructed export price downward by the 
amount that reflects the level of undervaluation de-
termined under subsection (d)(3) in the bilateral real 
exchange rate between the currency of the exporting 
country and the United States dollar. 
‘‘(f) CONSIDERATION OF OVERVALUATION OF A CUR-
RENCY IN ANTIDUMPING DUTY PROCEEDINGS.—If the 
administering authority determines under subsection (d) 
that the currency of an exporting country was overvalued 
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in relation to the United States dollar during the period 
of investigation or the period of review, as applicable, the 
administering authority shall adjust the export price and 
constructed export price upward by the amount that re-
flects the level of overvaluation determined under sub-
section (d)(3) in the bilateral real exchange rate between 
the currency of the exporting country and the United 
States dollar. 
‘‘(g) TYPE OF ECONOMY.—Any determination with 
respect to the currency of an exporting country by the ad-
ministering authority under this section shall be made re-
gardless of whether the exporting country has a market 
economy, a nonmarket economy, or a combination thereof. 
‘‘(h) DEFINITIONS.—In this section: 
‘‘(1) PROTRACTED, LARGE-SCALE
INTERVEN-
TION IN FOREIGN EXCHANGE MARKETS.— 
‘‘(A) IN GENERAL.—The term ‘protracted, 
large-scale intervention in foreign exchange 
markets’ means involvement in foreign ex-
change markets by the government of an ex-
porting country, either directly or indirectly 
through surrogates, in such a way as to con-
tribute significantly to fundamental and action-
able misalignment of the currency of the export-
ing country within the meaning of subsection 
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(a) or (b). Such involvement may include one or 
more of the following: 
‘‘(i) Governmental purchases, sales, or 
other exchanges of currencies in foreign ex-
change markets. 
‘‘(ii) Requirement by law or policy of 
the government of the exporting country 
that some or all of the foreign currency 
earnings by an exporter or producer in the 
exporting country be converted into the 
currency of the exporting country. 
‘‘(iii) Any other practice by the gov-
ernment of the exporting country that has 
the effect of causing fundamental and ac-
tionable misalignment of the exchange rate 
of the exporting country’s currency and 
that involves the direct transfer of funds or 
the potential direct transfer of funds or li-
abilities. 
‘‘(B) RULE
OF
CONSTRUCTION.—Funda-
mental and actionable misalignment of the cur-
rency of an exporting country within the mean-
ing of subsection (a) or (b) shall be attributed 
to the protracted, large-scale intervention in 
foreign exchange markets by the government of 
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(C) by adding at the end the following new 
subparagraph: 
‘‘(C) the amount that reflects the level of 
undervaluation in the bilateral real exchange 
rate between the exporting country and the 
United States (as determined under section 
771C).’’. 
(b) AMENDMENTS TO DEFINITION OF NONMARKET 
ECONOMY COUNTRY.—Section 771(18)(B) of the Tariff 
Act of 1930 (19 U.S.C. 1677(18)(B)) is amended— 
(1) in clause (v), by striking ‘‘and’’ at the end; 
(2) by redesignating clause (vi) as clause (vii); 
and 
(3) by inserting after clause (v) the following 
new clause: 
‘‘(vi) whether in the view of the ad-
ministering authority the currency of the 
foreign country is fundamentally and ac-
tionably undervalued or fundamentally and 
actionably overvalued (as determined under 
section 771C), and’’. 
SEC. 6. APPLICATION TO GOODS FROM CANADA AND MEX-
ICO. 
Pursuant to article 1902 of the North American Free 
Trade Agreement and section 408 of the North American 
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Free Trade Agreement Implementation Act of 1993 (19 
U.S.C. 3438), the amendments made by this Act shall 
apply with respect to goods from Canada and Mexico. 
SEC. 7. EFFECTIVE DATE. 
The amendments made by this Act apply with respect 
to countervailing and antidumping duty proceedings initi-
ated under title VII of the Tariff Act of 1930 before, on, 
or after the date of enactment of this Act. 
Æ 
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