Aug. 30, 2014 SIGN IN | REGISTER

Prospects Appear Dim for Currency Bill

Tom Williams/CQ Roll Call
House Majority Leader Eric Cantor expressed reservations Monday about moving forward with the bill designed to punish China for currency manipulation.

The Senate moved one step closer Monday to clearing a bill designed to punish China for allegedly manipulating its currency for economic gains but it's unclear whether the legislation will make it to the GOP-controlled House floor and even less clear whether the Obama administration would support it even if it did.

The bill, a more comprehensive framework than the one the House approved in 2010, would enable the government to impose tariffs on products from countries that undervalue their currencies. And it has caused divisions within almost every political group in Washington, D.C., with some Senate Republicans touting the bill, some House Republicans saying it could damage the economy and the White House keeping mum on what has emerged as a clear Senate Democratic priority.

Even as lawmakers prepared to push the bill forward, a top White House official on Monday expressed only lukewarm support for the general idea of fair trade and declined to say whether President Barack Obama would sign the legislation into law on the unlikely chance that it makes it to his desk.

"We're still in the process of reviewing it. We share the goal that it represents, which is to achieve further appreciation of China's currency. We've seen some appreciation since last summer, which has been useful and good, but not enough," White House Press Secretary Jay Carney said.

Democratic sources on the Hill say the administration's official position of "reviewing" the legislation is code for a desire not to support it a gentle way of letting the Senate exercise its will without stifling the effort entirely.

A lack of coordination or agreement between Democrats on the Hill and in the White House might not matter, though, as House Republicans appear unlikely to consider the legislation in its current form, if at all.

House Majority Leader Eric Cantor (R-Va.), who runs the schedule for that chamber, expressed reservations Monday about moving forward with the legislation, which would impose stricter rules on the Departments of Treasury and Commerce on how they consider currency manipulators.

The Virginia Republican said he believed the bill could have "unintended consequences" and was concerned about "the impact that an escalation may have on consumer prices and the rest" hinting that he believes increased tensions between China and the United States could damage the struggling American economy. Moreover, he appeared to question whether it was the place of Congress to aggressively step in on such a delicate foreign policy and economic issue.

"I'm not saying that there isn't something necessary right now because manufacturers in this country are hurting," Cantor told reporters. "If there are unfair practices going on, we should look to our trade rep and the administration to address those."

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