House Majority Leader Eric Cantor pressed the White House on Tuesday to clarify President Barack Obama’s position on Senate legislation designed to crack down on Chinese currency manipulation. The legislation, which has bipartisan support in the Senate and House, is opposed by House GOP leaders.
“The debate would be well-served by the White House stepping up and indicating where its concerns are,” the Virginia Republican told reporters at his weekly pen-and-pad. “It’s very critical that they lead on this,” he added.
At his news conference last week, Obama said he had worries about whether the legislation, co-sponsored by Sen. Charles Schumer (D-N.Y.), would run afoul of international trade rules.
“My main concern — and I’ve expressed this to Sen. Schumer — is whatever tools we put in place, let’s make sure that these are tools that can actually work, that they’re consistent with our international treaties and obligations. I don’t want a situation where we’re just passing laws that are symbolic, knowing that they’re probably not going to be upheld by the World Trade Organization, for example, and then suddenly U.S. companies are subject to a whole bunch of sanctions,” Obama said.
But the president has declined to say whether he would veto the legislation or whether the bill, as written, would in fact violate WTO and other rules, triggering sanctions.
White House Deputy Press Secretary Josh Earnest declined to further specify the president’s position in remarks to reporters Tuesday aboard Air Force One, saying, “I don’t want to get out ahead of the vote on Capitol Hill.”
Cantor noted the White House had not issued a Statement of Administration Policy on the bill. “On something this important, I would think that they would,” he said.
“The [U.S. trade representative], the State Department, the Commerce Department — they all have an interest in this. And, certainly, the president does,” Cantor said.
Neither the U.S. trade representative, the State Department nor the Commerce Department responded to Roll Call’s inquiries by press time Tuesday.
Experts say China’s macroeconomic actions have resulted in a cheaper currency than would be expected under normal market conditions. This has made Chinese products relatively cheaper to buy in the U.S. and American imports relatively more expensive to buy in China, hurting U.S. manufacturers.
But critics of the legislation warn it could lead to a crippling trade war between the world’s two largest economies. Speaker John Boehner (R-Ohio), for instance, last week called the legislation “dangerous.”
Despite these concerns, the proposal enjoys bipartisan support. The House passed a version of the legislation in the 111th Congress, 348-79, with 99 Republicans joining 249 Democrats to support it. It was reintroduced in February with 225 co-sponsors.
Leaders from military and veterans service organizations joined Sens. Roger Wicker, R-Miss., Kelly Ayotte , R-N.H., and Lindsey Graham, R-S.C., at a press conference to urge the Senate to replace a provision in the budget proposal that cuts retirement benefits for veterans. Wicker, Ayotee, and Graham earlier called for a bipartisan solution to replace the $6.3 billion in cuts to military retiree benefits.
Each year since 1990, CQ Roll Call has reviewed the financial disclosures of all 541 senators, representatives and delegates to determine the 50 richest members of Congress. This year's report, derived from forms covering the calendar year 2012, shows it took a net worth of $6.67 million to crack the exclusive club.