Currency Exchange Rate Oversight Reform Act of 2013 - Directs the Secretary of the Treasury to: (1) make public and report biannually to Congress on international monetary policy and currency exchange rates; and (2) appear, if requested, before certain congressional committees to testify regarding such reports.
Prescribes report contents, including: (1) an analysis of currency market developments and the relationship between the U.S. dollar and the currencies of major economies and trading partners of the United States, (2) a review of the economic and monetary policies of major economies and trading partners of the United States and an evaluation of how such policies impact currency exchange rates, and (3) a list of currencies designated as fundamentally misaligned currencies.
Instructs the Secretary to: (1) analyze semiannually the prevailing real effective exchange rates of foreign currencies; (2) determine whether any such currency is in fundamental misalignment; and (3) designate it for priority action if the issuing country engages in specified behavior, including excessive and prolonged official or quasi-official accumulation of foreign assets for balance of payments purposes.
Prescribes procedures for: (1) negotiations and consultations; and (2) actions in response to failure, including persistent failure, to adopt appropriate policies, or take identifiable action to eliminate the fundamental misalignment.
Requires the Secretary, before the United States approves a proposed change in the governance arrangement of any international financial institution, to determine whether any member of the international financial institution that would benefit from the proposed change, in the form of increased voting shares or representation, has a currency designated for priority action. Requires U.S. opposition to the proposed change if the Secretary renders an affirmative determination.
Amends the Tariff Act of 1930, for purposes of an antidumping investigation or review, to require an adjustment in the price used to establish export (and constructed export) prices, in the case of a fundamentally misaligned currency designated for priority action, by reducing such price by the percentage by which the domestic currency of the producer or exporter is undervalued in relation to the U.S. dollar.
Requires the administering authority, upon the filing of a petition by an interested party, to initiate a countervailing duty investigation or review to determine whether currency undervaluation by the government of, or any public entity within, a foreign country is providing, directly or indirectly, a countervailable subsidy to its exporters or products. Requires the same kind of countervailing duty investigation upon the designation of a foreign currency as a fundamentally misaligned currency for priority action.
Declares that the fact that such a subsidy is also provided in circumstances not involving export shall not, for that reason alone, mean it cannot be considered export contingent and actionable under a countervailing duty and antidumping duty proceeding.
Declares that the amendments made by this Act shall apply to goods from Canada and Mexico.
Adds as a factor the administering authority must take into account in determining whether a foreign country is a nonmarket economy country the question of whether its currency is designated, or has been designated at any time over the five years before review of any nonmarket economy status, for priority action under this Act.
Establishes the Advisory Committee on International Exchange Rate Policy.
Repeals the Exchange Rates and International Economic Policy Coordination Act of 1988.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 1114 Introduced in Senate (IS)]
113th CONGRESS
1st Session
S. 1114
To provide for identification of misaligned currency, require action to
correct the misalignment, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 7, 2013
Mr. Brown (for himself, Mr. Sessions, Mr. Schumer, Mr. Graham, Ms.
Stabenow, Mr. Burr, Ms. Collins, and Mr. Casey) introduced the
following bill; which was read twice and referred to the Committee on
Banking, Housing, and Urban Affairs
_______________________________________________________________________
A BILL
To provide for identification of misaligned currency, require action to
correct the misalignment, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Currency Exchange Rate Oversight
Reform Act of 2013''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Administering authority.--The term ``administering
authority'' means the authority referred to in section 771(1)
of the Tariff Act of 1930 (19 U.S.C. 1677(1)).
(2) Agreement on government procurement.--The term
``Agreement on Government Procurement'' means the agreement
referred to in section 101(d)(17) of the Uruguay Round
Agreements Act (19 U.S.C. 3511(d)(17)).
(3) Country.--The term ``country'' means a foreign country,
dependent territory, or possession of a foreign country, and
may include an association of 2 or more foreign countries,
dependent territories, or possessions of countries into a
customs union outside the United States.
(4) Exporting country.--The term ``exporting country''
means the country in which the subject merchandise is produced
or manufactured.
(5) Fundamental misalignment.--The term ``fundamental
misalignment'' means a significant and sustained undervaluation
of the prevailing real effective exchange rate, adjusted for
cyclical and transitory factors, from its medium-term
equilibrium level.
(6) Fundamentally misaligned currency.--The term
``fundamentally misaligned currency'' means a foreign currency
that is in fundamental misalignment.
(7) Real effective exchange rate.--The term ``real
effective exchange rate'' means a weighted average of bilateral
exchange rates, expressed in price-adjusted terms.
(8) Secretary.--The term ``Secretary'' means the Secretary
of the Treasury.
(9) Sterilization.--The term ``sterilization'' means
domestic monetary operations taken to neutralize the monetary
impact of increases in reserves associated with intervention in
the currency exchange market.
(10) Subject merchandise.--The term ``subject merchandise''
means the merchandise subject to an antidumping investigation,
review, suspension agreement, or order referred to in section
771(25) of the Tariff Act of 1930 (19 U.S.C. 1677(25)).
(11) WTO agreement.--The term ``WTO Agreement'' means the
agreement referred to in section 2(9) of the Uruguay Round
Agreements Act (19 U.S.C. 3501(9)).
SEC. 3. REPORT ON INTERNATIONAL MONETARY POLICY AND CURRENCY EXCHANGE
RATES.
(a) Reports Required.--
(1) In general.--Not later than March 15 and September 15
of each calendar year, the Secretary, after consulting with the
Chairman of the Board of Governors of the Federal Reserve
System and the Advisory Committee on International Exchange
Rate Policy, shall submit to Congress and make public, a
written report on international monetary policy and currency
exchange rates.
(2) Consultations.--On or before March 30 and September 30
of each calendar year, the Secretary shall appear, if
requested, before the Committee on Banking, Housing, and Urban
Affairs and the Committee on Finance of the Senate and the
Committee on Financial Services and the Committee on Ways and
Means of the House of Representatives to provide testimony on
the reports submitted pursuant to paragraph (1).
(b) Content of Reports.--Each report submitted under subsection (a)
shall contain the following:
(1) An analysis of currency market developments and the
relationship between the United States dollar and the
currencies of major economies and trading partners of the
United States.
(2) A review of the economic and monetary policies of major
economies and trading partners of the United States, and an
evaluation of how such policies impact currency exchange rates.
(3) A description of any currency intervention by the
United States or other major economies or trading partners of
the United States, or other actions undertaken to adjust the
actual exchange rate relative to the United States dollar.
(4) An evaluation of the domestic and global factors that
underlie the conditions in the currency markets, including--
(A) monetary and financial conditions;
(B) accumulation of foreign assets;
(C) macroeconomic trends;
(D) trends in current and financial account
balances;
(E) the size, composition, and growth of
international capital flows;
(F) the impact of the external sector on economic
growth;
(G) the size and growth of external indebtedness;
(H) trends in the net level of international
investment; and
(I) capital controls, trade, and exchange
restrictions.
(5) A list of currencies designated as fundamentally
misaligned currencies pursuant to section 4(a)(2), and a
description of any economic models or methodologies used to
establish the list.
(6) A list of currencies designated for priority action
pursuant to section 4(a)(3).
(7) An identification of the nominal value associated with
the medium-term equilibrium exchange rate, relative to the
United States dollar, for each currency listed under paragraph
(6).
(8) A description of any consultations conducted or other
steps taken pursuant to section 5, 6, or 7, including any
actions taken to eliminate the fundamental misalignment.
(9) A description of any determination made pursuant to
section 9(a).
(c) Consultations.--
(1) In general.--The Secretary shall consult with the
Chairman of the Board of Governors of the Federal Reserve
System and the Advisory Committee on International Exchange
Rate Policy with respect to the preparation of each report
required under subsection (a).
(2) Comments.--Not later than the date that is 15 days
before the date each report is due under subsection (a), the
Chairman of the Board of Governors of the Federal Reserve
System and the Advisory Committee on International Exchange
Rate Policy shall submit to the Secretary any comments of the
Chairman or Advisory Committee on the report.
(3) Consideration.--The Secretary shall review and consider
all comments received from the Chairman and the Advisory
Committee under paragraph (2) before submitting the report
required under subsection (a).
SEC. 4. IDENTIFICATION OF FUNDAMENTALLY MISALIGNED CURRENCIES.
(a) Identification.--
(1) In general.--The Secretary shall analyze on a
semiannual basis the prevailing real effective exchange rates
of foreign currencies.
(2) Designation of fundamentally misaligned currencies.--
With respect to the currencies of countries that have
significant bilateral trade flows with the United States, and
currencies that are otherwise significant to the operation,
stability, or orderly development of regional or global capital
markets, the Secretary shall determine whether any such
currency is in fundamental misalignment and shall designate
such currency as a fundamentally misaligned currency.
(3) Designation of currencies for priority action.--The
Secretary shall designate a currency identified under paragraph
(2) for priority action if the country that issues such
currency is--
(A) engaging in protracted large-scale intervention
in the currency exchange market, particularly if
accompanied by partial or full sterilization;
(B) engaging in excessive and prolonged official or
quasi-official accumulation of foreign exchange
reserves and other foreign assets, for balance of
payments purposes;
(C) introducing or substantially modifying for
balance of payments purposes a restriction on, or
incentive for, the inflow or outflow of capital, that
is inconsistent with the goal of achieving full
currency convertibility; or
(D) pursuing any other policy or action that, in
the view of the Secretary, warrants designation for
priority action.
(b) Reports.--The Secretary shall include a list of any foreign
currency designated under paragraph (2) or (3) of subsection (a) and
the data and reasoning underlying such designations in each report
required by section 3.
SEC. 5. NEGOTIATIONS AND CONSULTATIONS.
(a) In General.--Upon designation of a currency pursuant to section
4(a)(2), the Secretary shall seek to consult bilaterally with the
country that issues such currency in order to facilitate the adoption
of appropriate policies to address the fundamental misalignment.
(b) Consultations Involving Currencies Designated for Priority
Action.--With respect to each currency designated for priority action
pursuant to section 4(a)(3), the Secretary shall, in addition to
seeking to consult with a country pursuant to subsection (a)--
(1) seek the advice of the International Monetary Fund with
respect to the findings of the Secretary in the report
submitted to Congress pursuant to section 3(a); and
(2) encourage other governments, whether bilaterally or in
appropriate multinational fora, to join the United States in
seeking the adoption of appropriate policies by the country
described in subsection (a) to eliminate the fundamental
misalignment.
SEC. 6. FAILURE TO ADOPT APPROPRIATE POLICIES.
(a) Determination and Measures Required.--
(1) Determination.--Not later than 90 days after the date
on which a currency is designated for priority action pursuant
to section 4(a)(3), the Secretary shall determine whether the
country that issues the currency has adopted appropriate
policies, and taken identifiable action, to eliminate the
fundamental misalignment.
(2) Notification and publication.--The Secretary shall
promptly notify Congress of the determination under paragraph
(1) and publish notice of the determination in the Federal
Register.
(3) Measures.--If the Secretary determines that the country
that issues the currency described in paragraph (1) has failed
to adopt appropriate policies, or take identifiable action, to
eliminate the fundamental misalignment, the measures specified
in subsection (b) shall apply with respect to the country until
a notification described in section 7(b) is published in the
Federal Register.
(b) Measures Specified.--The measures specified in this subsection
are, with respect to a country, the following:
(1) Adjustment under antidumping law.--For purposes of an
antidumping investigation under subtitle B of title VII of the
Tariff Act of 1930 (19 U.S.C. 1673 et seq.) or a review under
subtitle C of such Act (19 U.S.C. 1675 et seq.), the following
shall apply:
(A) In general.--The administering authority shall
ensure a fair comparison between the export price and
the normal value by adjusting the price used to
establish export price or constructed export price to
reflect the fundamental misalignment of the currency of
the country.
(B) Sales subject to adjustment.--The adjustment
described in subparagraph (A) shall apply with respect
to subject merchandise sold on or after the date that
is 30 days after the date the currency of the country
is designated for priority action pursuant to section
4(a)(3).
(2) Federal procurement.--
(A) In general.--The President shall prohibit the
procurement by the Federal Government of products or
services from the country.
(B) Exception.--The prohibition provided for in
subparagraph (A) shall not apply with respect to a
country that is a party to the Agreement on Government
Procurement.
(3) Request for imf action.--The United States shall inform
the Managing Director of the International Monetary Fund of the
failure of the country to adopt appropriate policies, or to
take identifiable action, to eliminate the fundamental
misalignment, and the actions the country is engaging in that
are identified in section 4(a)(3), and shall request that the
Managing Director of the International Monetary Fund--
(A) consult with the country regarding the
observance of the obligations of the country under
article IV of the International Monetary Fund Articles
of Agreement, including through special consultations,
if necessary; and
(B) not later than 180 days after the date of the
request, formally report the results of such
consultations to the Executive Board of the
International Monetary Fund.
(4) OPIC financing.--The Overseas Private Investment
Corporation shall not approve any new financing (including
insurance, reinsurance, or guarantee) with respect to a project
located within the country.
(5) Multilateral bank financing.--
(A) In general.--The Secretary shall instruct the
United States Executive Director at each multilateral
bank to oppose the approval of any new financing
(including loans, other credits, insurance,
reinsurance, or guarantee) to the government of the
country or for a project located within the country.
(B) Multilateral bank.--The term ``multilateral
bank'' includes each of the international financial
institutions described in section 1701(c)(2) of the
International Financial Institutions Act (22 U.S.C.
262r).
(c) Waiver.--
(1) In general.--The President may waive any action
provided for under subsection (a) or (b) if the President
determines that--
(A) taking the action would cause serious harm to
the national security of the United States; or
(B) it is in the vital economic interest of the
United States to do so and taking the action would have
an adverse impact on the United States economy greater
than the benefits of the action.
(2) Notification.--The President shall promptly notify
Congress of a determination under paragraph (1) (and the
reasons for the determination, if made under paragraph (1)(B))
and shall publish notice of the determination (and the reasons
for the determination, if made under paragraph (1)(B)) in the
Federal Register.
(d) Reports.--The Secretary shall describe any action or
determination pursuant to subsection (a), (b), or (c) in the first
semiannual report required by section 3 after the date of the action or
determination.
SEC. 7. PERSISTENT FAILURE TO ADOPT APPROPRIATE POLICIES.
(a) Determination and Measures Required.--
(1) Determination.--Not later than 360 days after the date
on which a currency is designated for priority action pursuant
to section 4(a)(3), the Secretary shall determine whether the
country that issues the currency has adopted appropriate
policies, and taken identifiable action, to eliminate the
fundamental misalignment.
(2) Notification and publication.--The Secretary shall
promptly notify Congress of the determination under paragraph
(1) and shall publish notice of the determination in the
Federal Register.
(3) Measures.--If the Secretary determines that the country
that issues the currency has failed to adopt appropriate
policies, or take identifiable action, to eliminate the
fundamental misalignment, in addition to the measures specified
in section 6(b), the following measures shall apply with
respect to the country until a notification described in
subsection (b) is published in the Federal Register:
(A) Action at the wto.--The United States Trade
Representative shall request consultations in the World
Trade Organization with the country regarding the
consistency of the actions of the country with its
obligations under the WTO Agreement.
(B) Remedial intervention.--
(i) In general.--The Secretary shall
consult with the Board of Governors of the
Federal Reserve System to consider undertaking
remedial intervention in international currency
markets in response to the fundamental
misalignment of the currency designated for
priority action, and coordinating the
intervention with other monetary authorities
and the International Monetary Fund. In doing
so, the Secretary shall consider the impact of
the intervention on domestic economic growth
and stability, including the impact on interest
rates.
(ii) Notice to country.--At the same time
the Secretary takes action under clause (i),
the Secretary shall notify the country that
issues the currency of the consultations under
clause (i).
(b) Notification.--The Secretary shall promptly notify Congress
when a country that issues a currency designated for priority action
pursuant to section 4(a)(3) adopts appropriate policies, or takes
identifiable action, to eliminate the fundamental misalignment, and
publish notice of the action of that country in the Federal Register.
(c) Waiver.--
(1) In general.--The President may waive any action
provided for under this section, or extend any waiver provided
for under section 6(c), if the President determines that--
(A) taking the action would cause serious harm to
the national security of the United States; or
(B) it is in the vital economic interest of the
United States to do so, and that taking the action
would have an adverse impact on the United States
economy substantially out of proportion to the benefits
of the action.
(2) Notification.--The President shall promptly notify
Congress of a determination under paragraph (1) (and the
reasons for the determination, if made under paragraph (1)(B))
and shall publish notice of the determination (and the reasons
for the determination, if made under paragraph (1)(B)) in the
Federal Register.
(d) Disapproval of Waiver.--If the President waives an action
pursuant to subsection (c)(1)(B), or extends a waiver provided for
under section 6(c)(1)(B), the waiver shall cease to have effect upon
the enactment of a resolution of disapproval described in section
8(a)(2).
(e) Reports.--The Secretary shall describe any action or
determination pursuant to subsection (a), (b), or (c) in the first
semiannual report required by section 3 after the date of such action
or determination.
SEC. 8. CONGRESSIONAL DISAPPROVAL OF WAIVER.
(a) Resolution of Disapproval.--
(1) Introduction.--If a resolution of disapproval is
introduced in the House of Representatives or the Senate during
the 90-day period (not counting any day which is excluded under
section 154(b)(1) of the Trade Act of 1974 (19 U.S.C.
2194(b)(1))), beginning on the date on which the President
first notifies Congress of a determination to waive action with
respect to a country pursuant to section 7(c)(1)(B), that
resolution of disapproval shall be considered in accordance
with this subsection.
(2) Resolution of disapproval.--In this subsection, the
term ``resolution of disapproval'' means only a joint
resolution of the two Houses of the Congress, the sole matter
after the resolving clause of which is as follows: ``That
Congress does not approve the determination of the President
under ___________ of the Currency Exchange Rate Oversight
Reform Act of 2013 with respect to ______, of which Congress
was notified on _____.'', with the first blank space being
filled section 7(c)(1)(B) or section 6(c)(1)(B), whichever is
applicable, the second blank space being filled with the name
of the appropriate country, and the third blank space being
filled with the appropriate date.
(3) Procedures for considering resolutions.--
(A) Introduction and referral.--Resolutions of
disapproval--
(i) in the House of Representatives--
(I) may be introduced by any Member
of the House of Representatives;
(II) shall be referred to the
Committee on Financial Services and to
the Committee on Rules; and
(III) may not be amended by either
Committee; and
(ii) in the Senate--
(I) may be introduced by any Member
of the Senate;
(II) shall be referred to the
Committee on Banking, Housing, and
Urban Affairs; and
(III) may not be amended.
(B) Committee discharge and floor consideration.--
The provisions of subsections (c) through (f) of
section 152 of the Trade Act of 1974 (other than
paragraph (3) of subsection (f)) (19 U.S.C. 2192 (c)
through (f)) (relating to committee discharge and floor
consideration of certain resolutions in the House and
Senate) apply to a resolution of disapproval under this
section to the same extent those subsections apply to
joint resolutions under such section 152.
(b) Rules of House of Representatives and Senate.--This section is
enacted by Congress--
(1) as an exercise of the rulemaking power of the House of
Representatives and the Senate, respectively, and as such is
deemed a part of the rules of each House, respectively, and the
rules provided for in this section supersede other rules only
to the extent that they are inconsistent with those other
rules; and
(2) with the full recognition of the constitutional right
of either House to change the rules provided for in this
section (so far as relating to the procedures of that House) at
any time, in the same manner, and to the same extent as any
other rule of that House.
SEC. 9. INTERNATIONAL FINANCIAL INSTITUTION GOVERNANCE ARRANGEMENTS.
(a) Initial Review.--
(1) In general.--Notwithstanding any other provision of
law, before the United States approves a proposed change in the
governance arrangement of any international financial
institution, as defined in section 1701(c)(2) of the
International Financial Institutions Act (22 U.S.C.
262r(c)(2)), the Secretary shall determine whether any member
of the international financial institution that would benefit
from the proposed change, in the form of increased voting
shares or representation, has a currency that was designated a
currency for priority action pursuant to section 4(a)(3) in the
most recent report required by section 3.
(2) Report.--The Secretary shall submit to Congress the
determination required by paragraph (1).
(b) Subsequent Action.--The United States shall oppose any proposed
change in the governance arrangement of the international financial
institution if the Secretary renders an affirmative determination
pursuant to subsection (a).
(c) Further Action.--The United States shall continue to oppose any
proposed change in the governance arrangement of the international
financial institution, pursuant to subsection (b), until the Secretary
determines and reports to Congress that the proposed change would not
benefit any member of the international financial institution, in the
form of increased voting shares or representation, that has a currency
that is designated a currency for priority action pursuant to section
4(a)(3).
SEC. 10. ADJUSTMENT FOR FUNDAMENTALLY MISALIGNED CURRENCY DESIGNATED
FOR PRIORITY ACTION.
(a) In General.--Subsection (c)(2) of section 772 of the Tariff Act
of 1930 (19 U.S.C. 1677a(c)(2)) is amended--
(1) in subparagraph (A), by striking ``and'' at the end;
(2) in subparagraph (B), by striking the period at the end
and inserting ``, and''; and
(3) by adding at the end the following:
``(C) if required by section 6(b)(1) of the
Currency Exchange Rate Oversight Reform Act of 2013,
the percentage by which the domestic currency of the
producer or exporter is undervalued in relation to the
United States dollar as determined under section
771(37).''.
(b) Calculation Methodology.--Section 771 of the Tariff Act of 1930
(19 U.S.C. 1677) is amended by adding at the end the following:
``(37) Percentage undervaluation.--The administering
authority shall determine the percentage by which the domestic
currency of the producer or exporter is undervalued in relation
to the United States dollar by comparing the nominal value
associated with the medium-term equilibrium exchange rate of
the domestic currency of the producer or exporter, identified
by the Secretary pursuant to section 3(b)(7) of the Currency
Exchange Rate Oversight Reform Act of 2013, to the official
daily exchange rate identified by the administering
authority.''.
SEC. 11. CURRENCY UNDERVALUATION UNDER COUNTERVAILING DUTY LAW.
(a) Investigation or Review.--Subsection (c) of section 702 of the
Tariff Act of 1930 (19 U.S.C. 1671a(c)) is amended by adding at the end
the following:
``(6) Currency undervaluation.--For purposes of a
countervailing duty investigation under this subtitle where the
determinations under clauses (i) and (ii) of paragraph (1)(A)
are affirmative, or a review under subtitle C of this title,
the following shall apply:
``(A) In general.--The administering authority
shall initiate an investigation to determine whether
currency undervaluation by the government of a country
or any public entity within the territory of a country
is providing, directly or indirectly, a countervailable
subsidy as described in section 771(5), if--
``(i) a petition filed by an interested
party (described in subparagraph (C), (D), (E),
(F), or (G) of section 771(9)) alleges the
elements necessary for the imposition of the
duty imposed by section 701(a); and
``(ii) the petition is accompanied by
information reasonably available to the
petitioner supporting those allegations.
``(B) Designation of fundamentally misaligned
currency for priority action.--Upon designation of a
currency as a fundamentally misaligned currency for
priority action pursuant to section 4(a)(3) of the
Currency Exchange Rate Oversight Reform Act of 2013,
the administering authority shall initiate an
investigation to determine whether the country that
issues such currency is providing, directly or
indirectly, a countervailable subsidy as defined in
section 771(5), if--
``(i) a petition filed by an interested
party (described in subparagraph (C), (D), (E),
(F), or (G) of section 771(9)) alleges the
elements necessary for the imposition of the
duty imposed by section 701(a); and
``(ii) the petition is accompanied by
information reasonably available to the
petitioner supporting those allegations.''.
(b) Benefit Calculation Methodology.--Section 771 of the Tariff Act
of 1930 (19 U.S.C. 1677), as amended by section 10(b), is further
amended by adding at the end the following:
``(38) Currency undervaluation benefit.--For purposes of a
countervailing duty investigation under subtitle A of this
title, or a review under subtitle C of this title, the
following shall apply:
``(A) In general.--If the administering authority
determines to investigate whether currency
undervaluation is a countervailable subsidy as defined
in section 771(5), the administering authority shall
determine whether there is a benefit to the recipient
and measure such benefit by comparing the simple
average of the real exchange rates derived from
application of the macroeconomic-balance approach and
the equilibrium-real-exchange-rate approach to the
official daily exchange rate identified by the
administering authority.
``(B) Reliance on data.--In making the
determination under subparagraph (A), the administering
authority shall rely upon data that are publicly
available, reliable, and compiled and maintained by the
International Monetary Fund or the World Bank, or other
international organizations or national governments if
data from the International Monetary Fund or World Bank
are not available.
``(C) Designation of fundamentally misaligned
currency for priority action.--In the case of
designation of a currency as a fundamentally misaligned
currency for priority action pursuant to section
4(a)(3) of the Currency Exchange Rate Oversight Reform
Act of 2013, the administering authority shall
determine whether there is a benefit to the recipient
and measure that benefit by comparing the nominal value
associated with the medium-term equilibrium exchange
rate of the currency of the exporting country,
identified by the Secretary pursuant to section 3(b)(7)
of such Act, to the official daily exchange rate
identified by the administering authority.
``(D) Definitions.--In this paragraph:
``(i) Macroeconomic-balance approach.--The
term `macroeconomic-balance approach' means a
methodology under which the level of
undervaluation of the real effective exchange
rate of the currency of the exporting country
is defined as the change in the real effective
exchange rate needed to achieve equilibrium in
the balance of payments of the exporting
country, as such methodology is described in
the guidelines of the International Monetary
Fund's Consultative Group on Exchange Rate
Issues, if available.
``(ii) Equilibrium-real-exchange-rate
approach.--The term `equilibrium-real-exchange-
rate approach' means a methodology under which
the level of undervaluation of the real
effective exchange rate of the currency of the
exporting country is defined as the difference
between the observed real effective exchange
rate and the real effective exchange rate, as
such methodology is described in the guidelines
of the International Monetary Fund's
Consultative Group on Exchange Rate Issues, if
available.
``(iii) Real exchange rates.--The term
`real exchange rates' means the bilateral
exchange rates derived from converting the
trade-weighted multilateral exchange rates
yielded by the macroeconomic-balance approach
and the equilibrium-real-exchange-rate approach
into real bilateral terms.''.
(c) 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: ``The fact that a subsidy may also be provided in
circumstances that do not involve export shall not, for that reason
alone, mean that the subsidy cannot be considered contingent upon
export performance.''.
(d) Effective Date.--The amendments made by this section apply to
countervailing duty investigations initiated under subtitle A of title
VII of the Tariff Act of 1930 (19 U.S.C. 1671 et seq.) and reviews
initiated under subtitle C of title VII of such Act (19 U.S.C. 1675 et
seq.)--
(1) before the date of the enactment of this Act, if the
investigation or review is pending a final determination as of
such date of enactment; and
(2) on or after such date of enactment.
SEC. 12. NONMARKET ECONOMY STATUS.
Paragraph (18)(B) of section 771 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:
``(vi) whether the currency of the foreign
country is designated, or has been designated
at any time over the 5 years prior to review of
nonmarket economy status, a currency for
priority action pursuant to section 4(a)(3) of
the Currency Exchange Rate Oversight Reform Act
of 2013, and''.
SEC. 13. APPLICATION TO CANADA AND MEXICO.
Pursuant to article 1902 of the North American Free Trade Agreement
and section 408 of the North American Free Trade Agreement
Implementation Act (19 U.S.C. 3438), section 6(b)(1) and the amendments
made by sections 10, 11, and 12 shall apply with respect to goods from
Canada and Mexico.
SEC. 14. ADVISORY COMMITTEE ON INTERNATIONAL EXCHANGE RATE POLICY.
(a) Establishment.--
(1) In general.--There is established an Advisory Committee
on International Exchange Rate Policy (in this section referred
to as the ``Committee'') that shall be responsible for--
(A) advising the Secretary in the preparation of
each report to Congress on international monetary
policy and currency exchange rates, provided for in
section 3; and
(B) advising Congress and the President with
respect to--
(i) international exchange rates and
financial policies; and
(ii) the impact of such policies on the
economy of the United States.
(2) Membership.--
(A) In general.--The Committee shall be composed of
9 members as follows, none of whom shall be employees
of the Federal Government:
(i) Congressional appointees.--
(I) Senate appointees.--Four
members shall be appointed by the
President pro tempore of the Senate,
upon the recommendation of the chairmen
and ranking members of the Committee on
Banking, Housing, and Urban Affairs and
the Committee on Finance of the Senate.
(II) House appointees.--Four
members shall be appointed by the
Speaker of the House of Representatives
upon the recommendation of the chairmen
and ranking members of the Committee on
Financial Services and the Committee on
Ways and Means of the House of
Representatives.
(ii) Presidential appointee.--One member
shall be appointed by the President.
(B) Qualifications.--Members shall be selected
under subparagraph (A) on the basis of their
objectivity and demonstrated expertise in finance,
economics, or currency exchange.
(3) Terms.--
(A) In general.--Members shall be appointed for a
term of 4 years or until the Committee terminates.
(B) Reappointment.--An individual may be
reappointed to the Committee for additional terms.
(4) Vacancies.--Any vacancy in the Committee shall not
affect its powers, but shall be filled in the same manner as
the original appointment.
(b) Duration of Committee.--
(1) In general.--Notwithstanding section 14(c) of the
Federal Advisory Committee Act (5 U.S.C. App.), the Committee
shall terminate on the date that is 4 years after the date of
the enactment of this Act unless renewed by the President
pursuant to section 14 of the Federal Advisory Committee Act (5
U.S.C. App.) for a subsequent 4-year period.
(2) Subsequent renewals.--The President may continue to
renew the Committee for successive 4-year periods by taking
appropriate action prior to the date on which the Committee
would otherwise terminate.
(c) Public Meetings.--
(1) Public comments.--The Committee shall hold at least 2
public meetings each year for the purpose of accepting public
comments, including comments from small business owners.
(2) Call of secretary or members.--The Committee shall also
meet as needed at the call of the Secretary or at the call of
two-thirds of the members of the Committee.
(d) Chairperson.--
(1) Election.--The Committee shall elect from among its
members a chairperson for a term of 4 years or until the
Committee terminates.
(2) Subsequent terms.--A chairperson of the Committee may
be reelected chairperson but is ineligible to serve consecutive
terms as chairperson.
(e) Staff.--The Secretary shall make available to the Committee
such staff, information, personnel, administrative services, and
assistance as the Committee may reasonably require to carry out its
activities.
(f) Application of Federal Advisory Committee Act.--
(1) In general.--The provisions of the Federal Advisory
Committee Act (5 U.S.C. App.) shall apply to the Committee.
(2) Exception.--Except for the 2 annual public meetings
required under subsection (c)(1), meetings of the Committee
shall be exempt from the requirements of subsections (a) and
(b) of sections 10 and 11 of the Federal Advisory Committee Act
(relating to open meetings, public notice, public
participation, and public availability of documents) (5 U.S.C.
App.), whenever and to the extent it is determined by the
President or the Secretary that such meetings will be concerned
with matters the disclosure of which would seriously compromise
the development by the United States Government of monetary and
financial policy.
SEC. 15. REPEAL OF THE EXCHANGE RATES AND ECONOMIC POLICY COORDINATION
ACT OF 1988.
The Exchange Rates and International Economic Policy Coordination
Act of 1988 (22 U.S.C. 5301 et seq.) is repealed.
<all>
Introduced in Senate
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
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