IB 
Union Calendar No. 386 
111TH CONGRESS 
2D SESSION 
H. R. 2378 
[Report No. 111–646] 
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 
SEPTEMBER 28, 2010 
Additional sponsors: Mr. HUNTER, Mr. LIPINSKI, Mr. MCCOTTER, Mr. 
MCHENRY, Mr. BERRY, Mr. INGLIS, Mr. KISSELL, Mr. HOEKSTRA, Mr. 
BISHOP of Utah, Mr. CARNEY, Mr. PITTS, Mr. THOMPSON of Pennsyl-
vania, Ms. SLAUGHTER, Mr. SENSENBRENNER, Mr. MURTHA, Mr. PE-
TERS, Mr. MILLER of North Carolina, Mr. MASSA, Mr. SHERMAN, Mr. 
SPACE, Mrs. DAHLKEMPER, Mr. BACA, Ms. RICHARDSON, Mr. DOYLE, 
Mr. DONNELLY of Indiana, Ms. DELAURO, Mr. DINGELL, Mr. SPRATT, 
Mr. WHITFIELD, Mr. PERRIELLO, Mr. EHLERS, Mr. ROGERS of Ken-
tucky, Mr. FILNER, Ms. KAPTUR, Mr. ROGERS of Alabama, Mr. MOL-
LOHAN, Mr. BACHUS, Mrs. MILLER of Michigan, Mr. SCHAUER, Mr. 
COFFMAN of Colorado, Mr. TURNER, Mr. DAVIS of Tennessee, Mr. GER-
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LACH, Mr. DENT, Ms. KILROY, Mr. BOCCIERI, Mr. CUMMINGS, Mr. 
LARSON of Connecticut, Mr. GUTIERREZ, Mr. LYNCH, Mr. DELAHUNT, 
Mr. ANDREWS, Ms. SHEA-PORTER, Ms. LORETTA SANCHEZ of California, 
Mr. CONNOLLY of Virginia, Mr. BARROW, Mrs. MCCARTHY of New York, 
Mr. WELCH, Mr. BRADY of Pennsylvania, Mr. DUNCAN, Mr. PATRICK J. 
MURPHY of Pennsylvania, Mrs. HALVORSON, Mr. LATOURETTE, Mr. 
HILL, Mr. FOSTER, Mr. MCINTYRE, Mr. MAFFEI, Ms. WOOLSEY, Mr. 
BOREN, Mr. HODES, Mr. LOEBSACK, Mr. MURPHY of Connecticut, Mr. 
JACKSON of Illinois, Ms. LINDA T. SA´NCHEZ of California, Mr. ELLS-
WORTH, Mr. CALVERT, Mr. ROSS, Mr. RAHALL, Mr. GRIFFITH, Mr. HIN-
CHEY, Mr. CRITZ, Mr. STARK, Mr. BUYER, Mr. EDWARDS of Texas, Mr. 
LUETKEMEYER, Ms. SCHAKOWSKY, Mr. STUPAK, Mr. YOUNG of Alaska, 
Ms. BALDWIN, Mr. COURTNEY, Mr. MCGOVERN, Mr. GEORGE MILLER 
of California, Mr. SESTAK, Mr. KANJORSKI, Mr. BISHOP of Georgia, Mr. 
ELLISON, Ms. MCCOLLUM, Mr. UPTON, Mr. GRIJALVA, Ms. FUDGE, Ms. 
SPEIER, Mr. AKIN, Mr. HASTINGS of Florida, Ms. PINGREE of Maine, 
Mr. KUCINICH, Mr. HEINRICH, Mr. BLUMENAUER, Mr. PETRI, Mr. 
PASCRELL, Ms. BERKLEY, Mr. OWENS, Mr. TONKO, Ms. NORTON, Mr. 
MARKEY of Massachusetts, Mr. SALAZAR, Mr. RUSH, Mr. AL GREEN of 
Texas, Mr. HALL of New York, Mr. CLEAVER, and Ms. MATSUI 
SEPTEMBER 28, 2010 
Reported with amendments, committed to the Committee of the Whole House 
on the State of the Union, and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on May 13, 2009] 
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. 
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Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Currency Reform for 
Fair Trade Act’’. 
SEC. 
2. 
CLARIFICATION 
REGARDING 
DEFINITION 
OF 
COUNTERVAILABLE SUBSIDY. 
(a) BENEFIT CONFERRED.—Section 771(5)(E) of the 
Tariff Act of 1930 (19 U.S.C. 1677(5)(E)) is amended— 
(1) in clause (iii), by striking ‘‘and’’ at the end; 
(2) in clause (iv), by striking the period at the 
end and inserting ‘‘, and’’; and 
(3) by inserting after clause (iv) the following 
new clause: 
‘‘(v) in the case in which the currency 
of a country in which the subject merchan-
dise is produced is exchanged for foreign 
currency obtained from export transactions, 
and the currency of such country is a fun-
damentally undervalued currency, as de-
fined in paragraph (37), the difference be-
tween the amount of the currency of such 
country provided and the amount of the 
currency of such country that would have 
been provided if the real effective exchange 
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rate of the currency of such country were 
not undervalued, as determined pursuant to 
paragraph (38).’’. 
(b) EXPORT SUBSIDY.—Section 771(5A)(B) of the 
Tariff Act of 1930 (19 U.S.C. 1677(5A)(B)) is amended by 
adding at the end the following new sentence: ‘‘In the case 
of a subsidy relating to a fundamentally undervalued cur-
rency, the fact that the subsidy may also be provided in 
circumstances not involving export shall not, for that reason 
alone, mean that the subsidy cannot be considered contin-
gent upon export performance.’’. 
(c) DEFINITION OF FUNDAMENTALLY UNDERVALUED 
CURRENCY.—Section 771 of the Tariff Act of 1930 (19 
U.S.C. 1677) is amended by adding at the end the following 
new paragraph: 
‘‘(37) FUNDAMENTALLY
UNDERVALUED
CUR-
RENCY.—The administering authority shall determine 
that the currency of a country in which the subject 
merchandise is produced is a ‘fundamentally under-
valued currency’ if— 
‘‘(A) the government of the country (includ-
ing any public entity within the territory of the 
country) engages in protracted, large-scale inter-
vention in one or more foreign exchange markets 
during part or all of the 18-month period that 
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represents the most recent 18 months for which 
the information required under paragraph (38) 
is reasonably available, but that does not include 
any period of time later than the final month in 
the period of investigation or the period of re-
view, as applicable; 
‘‘(B) the real effective exchange rate of the 
currency is undervalued by at least 5 percent, on 
average and as calculated under paragraph (38), 
relative to the equilibrium real effective exchange 
rate for the country’s currency during the 18- 
month period; 
‘‘(C) during the 18-month period, the coun-
try has experienced significant and persistent 
global current account surpluses; and 
‘‘(D) during the 18-month period, the for-
eign asset reserves held by the government of the 
country exceed— 
‘‘(i) the amount necessary to repay all 
debt obligations of the government falling 
due within the coming 12 months; 
‘‘(ii) 20 percent of the country’s money 
supply, using standard measures of M2; 
and 
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‘‘(iii) the value of the country’s im-
ports during the previous 4 months.’’. 
(d) DEFINITION
OF REAL EFFECTIVE EXCHANGE 
RATE UNDERVALUATION.—Section 771 of the Tariff Act of 
1930 (19 U.S.C. 1677), as amended by subsection (c) of this 
section, is further amended by adding at the end the fol-
lowing new paragraph: 
‘‘(38) REAL EFFECTIVE EXCHANGE RATE UNDER-
VALUATION.—The calculation of real effective ex-
change rate undervaluation, for purposes of para-
graph (5)(E)(v) and paragraph (37), shall— 
‘‘(A)(i) rely upon, and where appropriate be 
the simple average of, the results yielded from 
application of the approaches described in the 
guidelines of the International Monetary Fund’s 
Consultative Group on Exchange Rate Issues; or 
‘‘(ii) if the guidelines of the International 
Monetary Fund’s Consultative Group on Ex-
change Rate Issues are not available, be based on 
generally accepted economic and econometric 
techniques and methodologies to measure the level 
of undervaluation; 
‘‘(B) rely upon data that are publicly avail-
able, reliable, and compiled and maintained by 
the International Monetary Fund or, if the 
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International Monetary Fund cannot provide the 
data, by other international organizations or by 
national governments; and 
‘‘(C) use inflation-adjusted, trade-weighted 
exchange rates.’’. 
SEC. 3. REPORT ON IMPLEMENTATION OF ACT. 
(a) IN GENERAL.—Not later than 9 months after the 
date of the enactment of this Act, the Comptroller General 
of the United States shall submit to Congress a report on 
the implementation of the amendments made by this Act. 
(b) MATTERS TO BE INCLUDED.—The report required 
by subsection (a) shall include a description of the extent 
to which United States industries that have been materially 
injured by reason of imports of subject merchandise pro-
duced in foreign countries with fundamentally undervalued 
currencies have received relief under title VII of the Tariff 
Act of 1930 (19 U.S.C. 1671 et seq.), as amended by this 
Act. 
Amend the title so as to read: ‘‘A bill to amend title 
VII of the Tariff Act of 1930 to clarify that counter-
vailing duties may be imposed to address subsidies relat-
ing to a fundamentally undervalued currency of any for-
eign country.’’. 
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