Senator Charles E. Schumer

FOR IMMEDIATE RELEASE: March 30, 2010

SCHUMER TO MEET WITH LOCAL BUSINESS AND COMMUNITY LEADERS, TOUR NOVA BUS AND DISCUSS WAYS TO SPUR JOB GROWTH AND PROTECT MANUFACTURING JOBS

Schumer to Discuss Concrete Ways to Bring Jobs to North Country and Protect Vital Manufacturing Jobs from Artificially Cheap Foreign Imports

Companies Like Nova Bus Have Been Thriving Despite Recession, But Unfair Chinese Trade Practices Are Tilting International Playing Field Against American Manufacturers

Today, US Senator Charles E. Schumer met with local business and community leaders in Plattsburgh New York to discuss the best ways to create jobs in the area and boost the region’s economy. Participants in the forum shared their experiences during the recession and discussed concrete ways that Schumer can help economic development officials and companies put people to work in Northern New York. After the forum, Schumer toured Nova Bus, one of the region’s standout businesses that recently won a major contract to supply buses and transportation infrastructure to localities in Hawaii. Schumer touted the company’s success and discussed ways to protect Nova Bus and other manufacturing companies in the North Country from unfair Chinese trade practices that are tilting the playing field against American manufacturers. Schumer said that such unfair practices on the part of the Chinese have been partly responsible for the loss of thousands of jobs across New York and threaten to erode a strong manufacturing base in Northern New York. Additionally, Schumer discussed his comprehensive legislation to crackdown on China’s manipulation of its currency and create a level playing field for New York’s workers.

“What Northern New York needs right now is a steady flow of jobs and economic development that will allow more middle class New Yorkers to provide for their families and build a stable future,” Schumer said. “One of the keys to growing the North Country’s economy in the coming years will be to make sure that New York’s workers are competing on a level playing field with foreign countries- right now that’s not the case and if we want to maintain and grow Northern New York’s manufacturing base then we’ve got to fix that problem.”

Business and community leaders came to today’s economic forum from throughout the North Country in order to discuss the policies that will best foster job creation and economic growth in the short and long term. Specifically, the participants in the forum lauded Nova Bus’ innovative business model, which has led the business to receive interest from national and international transportation officials. The local leaders also made the point that New York’s manufacturing businesses are struggling under the weight of artificially priced foreign imports. What was clear is that one of the most effective steps our government can take to protect New York’s manufacturing industry is to ensure that foreign governments are playing by the rules of the international economic system. This especially means that any country artificially manipulating its currency must be confronted. Artificially cheap, foreign imports are undercutting New York’s manufacturers and costing countless jobs.

Despite the success of innovative businesses like Nova Bus, New York’s manufacturing sector has been hemorrhaging jobs for the last decade. In the last 10 years, New York State has lost nearly 300,000 manufacturing jobs- a decline of 39%. The decline of the manufacturing sector across New York has only been exacerbated by the current economic recession and has made our economy’s ability to recover all the more difficult.

One of the key impediments to a recovery in the manufacturing sector is stopping the flood of foreign imports that are made artificially cheap when countries like China manipulate their currency.

Specifically, Schumer has introduced bipartisan, comprehensive legislation, the Currency Exchange Rate Oversight Reform Act of 2010 that would:

Create a new approach to identifying currency manipulators by requiring that the Treasury Department base its determination strictly on objective measures related to currency exchange rates. Under current law, Treasury also has to determine that the misalignment is a willful attempt to gain a trade advantage before it can cite the country. The new legislation would eliminate the need to show intent.

Establish important consequences immediately upon designation, moderately severe consequences if talks with the offending country have not resulted in appropriate policies and identifiable actions to eliminate misalignment after 90 days, and more severe consequences if consultations have not resulted in appropriate policies and identifiable actions to eliminate misalignment after 360 days.

Establish two tracks by which the Department of Commerce can take action should a foreign country refuse to adjust its currency. One path would be to utilize anti-dumping laws to enable Commerce to counter the effect a manipulated currency has on pricing. The other path would allow Commerce to apply countervailing duties, intended to offset foreign government subsidies, to goods coming into the United States from nations that misalign their currency.

Schumer added, “People all across New York, especially in the North Country, are eager to see good jobs stay in their community. After hearing the concerns of local business leaders I can confidently say that forcing China to play the rules and stop manipulating its currency will go a long way towards protecting American jobs.”

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