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 Republican Orrin Hatch and Democrat Ron Wyden, the senior members
of the Senate Committee on Finance, offered a joint amendment to
legislation creating a fast track for trade deals through Congress.
The Senate is expected to vote on the bill this week.
The White House has said U.S. President Barack Obama would veto the
bill if lawmakers back a proposed amendment to force sanctions
against currency manipulators, which Treasury Secretary Jack Lew
said was a poison pill for the 12-nation Trans-Pacific Partnership.
Hatch and Wyden said their approach would strengthen language
already in the bill to pressure trading partners to avoid currency
manipulation, but not go too far.
"Our amendment, which would provide maximum flexibility, is a better
alternative for addressing currency manipulation for a number of
reasons," Hatch said.
The amendment sets out a narrow definition of currency manipulation.
The senators said it provided no threat to the independence of U.S.
Federal Reserve monetary policy or Treasury's ability to set
exchange-rate policy, key concerns raised by the administration and
some lawmakers.
But the proposal did not convince those who say that rules must have
teeth and that countries such as Japan and China have gained trade
advantages by keeping their currencies artificially weak and
depressing the price of exports.
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Democratic Senator Sherrod Brown said the amendment was too weak and
its supporters were opposed to the tough laws needed to create a
level playing field for U.S. exporters.
"It is a poison pill in reverse," Brown told reporters.
American Automotive Policy Council President Matt Blunt said the
amendment was a "rewording" of existing rules and gave officials too
many options for how to tackle currency cheats.
AAPC represents companies including Ford Motor Co <F.N> and General
Motors Co <GM.N>, which are worried about competition from TPP
partner Japan and want the country to accept more U.S. cars.
(Reporting by Krista Hughes and Richard Cowan; Editing by Lisa Von
Ahn)
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