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US senators' proposal condemned

By Han Xiao (China Daily)
Updated: 2006-09-27 08:59

Two US senators came under fire yesterday after they vowed to force a vote on a bill to impose a 27.5 per cent tariff on Chinese goods, a move that could damage the trade relationship between the United States and China.

Senators Charles Schumer and Lindsey Graham vowed to force a vote by Saturday on legislation to impose a 27.5 per cent tariff on Chinese goods if the government does not significantly raise the value of its currency within six months.

"As an advocate of free trade, I wrote a letter on behalf of my association to all the members of the House and Senate, asking them to oppose the Schumer and Graham proposal," said Frank Keating, president of American Council of Life Insurance (ACLI).

ACLI is a Washington-based trade association whose 377 member companies account for 91 per cent of the life insurance industry's total assets in the United States.

"It is encouraging to see that Schumer said he didn't expect the bill to go anywhere," added Keating, a former Oklahoma governor who has also served under Presidents Ronald Reagan and George H.W. Bush. 

"It is impossible for this legislation to pass," said Mei Xinyu, a trade researcher at the Chinese Academy of International Trade and Economic Co-operation. "And the yuan's appreciation is insufficient to rein in the growth of China's exports."

With little chance of the legislation being passed, Schumer last week said he wants to use the threat of tariffs to spur Chinese officials to boost the yuan and doesn't want the bill to become law.