February 9, 2006 – With the U.S. trade deficit expected to hit roughly $725 billion in 2005, House Democrats are calling for the creation of a “Congressional Trade Enforcer” to ensure the United States prosecutes any country that cheats on their trade obligations.
The House Democrats made a point to emphasize the impact the U.S.’s dangerously high debt with China has on the soaring trade gap.
“China’s massive dollar holdings are a national security problem that makes the U.S. economy dependent upon Beijing’s goodwill. It’s hard to really negotiate on a level playing field with China if we are so heavily indebted to them,” Rep. Charles Rangel (D-NY) told Reuters.
Democratic lawmakers said they were also working on legislation that would give the U.S. the ability to block subsidized imports from China and other countries. China’s unfair trade practices have contributed to what is expected to be a record $200 billion deficit with China in 2005.
Many Democrats on the House Ways and Means Committee pointed to the Bush administrations’ failure to punish trade violations as a main factor in the record trade deficit, which has doubled since Bush took office in 2001.
U.S. Trade Representative Rob Portman showed interest in the Democrat’s suggestions, but failed to endorse the proposal.
Take Action: Email the office of the U.S. Trade Representative and urge Rob Portman him to endorse the creation of a “Congressional Trade Enforcer”.
Read the entire Reuters article.