Bernd Janzen Quoted by Bloomberg Law on Commerce Rule Permitting Duties for Currency Manipulation
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Bloomberg Law has quoted Akin Gump international trade partner Bernd Janzen in the article “Commerce Rule Allowing Duties for Currency Manipulation Goes Live.” The article reports on a final rule by the Commerce Department that would allow domestic producers of steel, lumber and other manufactured goods to seek assistance to target and impose duties on imports subsidized by countries through currency manipulation.
As the article notes, the rule comes in response to complaints from those manufacturers that imports are benefitting from undervalued currencies. Some critics of the move, though, say Commerce lacks the legal authority to use currency policy in subsidy cases, and predict legal challenges.
The United States has long pressed China and others against using currency policy to help their exporters at the expense of U.S. firms, said Janzen, but the new rule opens the door for a U.S. industry to target exporters in any number of countries. “It could be a field day,” he said.
Given that COVID-19 has disrupted commerce, U.S. industries may be more inclined to file trade cases, Janzen added. “This regulation will allow subsidy enforcement to be ratcheted up and it is already at a quite high level,” he said.
