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1 1 (June 24, 2019)

handle is hein.crs/govbafj0001 and id is 1 raw text is: Congressional *.Research Service Currency Manipulation and Countervailing Duties June 24, 2019 The Trump Administration has proposed new actions to counter what it regards as currency manipulation, with one analyst calling currency conflicts the next front in the trade war. In May 2019, the Commerce Department issued a notice of proposed rulemaking to provide regulatory authority to potentially impose countervailing duties on imports from countries determined by the U.S. government to be acting to undervalue their currency relative to the U.S. dollar. Public comments on the proposed changes are being accepted through June 27. Various Members of Congress have debated such a policy for years, including in 2013 and 2015, but it is controversial and Congress has refrained from legislating it. Currency Manipulation For more than a decade, some policymakers and analysts have expressed concerns that U.S. exports and jobs have been harmed by unfair exchange rate policies of other countries (currency manipulation). They argue that other countries have purposefully weakened their currency relative to the dollar as a way to boost exports, at the expense of U.S. firms and workers. A 2017 study estimates that other countries manipulated their currencies to gain an unfair trade advantage in excess of $600 billion per year between 2003 and 2013. The study estimates that currency manipulation by other countries increased the U.S. trade deficit by about $200 billion annually and cost more than 1 million jobs during and after the global financial crisis (2009-2013). The United States currently combats currency manipulation with unilateral and multilateral tools. Under U.S. law, the Department of the Treasury produces a semiannual report on exchange rate policies in other countries and, in specified instances, must initiate action against countries engaged in currency manipulation. The United States has also pushed against currency manipulation through the G-7 and the G-20, multilateral forums where major economies discuss and coordinate economic policies. The United States is also a member of the International Monetary Fund (IMF), an international organization through which countries have committed to refrain from currency manipulation, although there are questions about the IMF's ability to enforce currency commitments. Congressional Research Service https://crsreports.congress.gov IN11138 CRS INSIGHT Prepared for Members and Committees of Congress

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