Trade deficit spirals out of control

The U.S. Business and Industry Council has some alarming statistics about America's growing trade deficit. Our trade deficit for one month now exceeds the total annual trade imbalance for 1991. As Alan Tonelson of the Council says why wait a year, when you can do it in a month? U.S. global merchandise trade deficit, Sept., 2005: $71.32 billionU.S. global merchandise trade deficit, Oct., 2005: $73.88 billionU.S. global merchandise trade deficit, full year, 1991: $66.98 billion. The Council is now urging Americans concerned about their economic future to write their members of Congress requesting action in response to Chinese currency manipulation which places U.S. made goods at a greater competitive disadvantage. Below is a sample letter that can be sent to your Congressman.

Dear [Your Rep's Name]:
As your constituent and an American citizen, I am greatly concerned about U.S. manufacturing jobs being lost due to China’s unfair trade practices. Since 1994 the Chinese government has actively manipulated its currency, a practice deemed illegal under existing international trade law. This “currency manipulation” has helped raise the U.S. trade deficit with China from $30 billion in 1994 to $162 billion in 2004. In 2005 the deficit will exceed $200 billion.Senators Lindsey Graham (R-SC) and Charles Schumer (D-NY) have introduced S.295 a China Currency Bill that calls for a 180-day negotiation period between the U.S. and China, during which time China must fairly revalue its currency. If the negotiations are not successful, a temporary, across-the-board tariff of 27.5% will be applied to all Chinese products entering the United States. This import surcharge will counter China’s estimated, unfair currency advantage. (Economists estimate that China undervalues its currency between 15 - 40 percent, with 27.5% representing the midpoint range). If the President determines at the end of the negotiation period that China has developed and started actual implementation of a plan to revalue its currency, he may delay imposition of the tariff for another 12 months.I ask you to stand up and fight for American manufacturing and jobs. Please support this legislation and vote for its passage when it reaches the Senate floor. Thank you for your consideration of my views.

Sincerely,Your Name Here

For more information on the Council's activities to protect American jobs go to: http://www.americaneconomicalert.org