英语翻译CURRENCY UNDERVALUATION:WHAT IT DOES,HOW IT VIOLATES NAM

英语翻译CURRENCY UNDERVALUATION:WHAT IT DOES,HOW IT VIOLATES NAM PRINCIPLES,AND WHY H.R.1498 IS THE BEST SOLUTIONAs with other commodities,the value of a currency is a function of supply anddemand.When market forces are free to determine the value,currencies move up anddown as conditions change.However,when a govemment intervenes in currencymarkets to maintain an undervalued currency,it generates powerful and systematicadvantages in its international trade.With regard to its exports,an undervalued currency conveys a subsidy if andwhen a good is shipped across the border.As shown in the attachment,the governmentby its intervention decides how much extra domestic currency an exporter of goods orservices (such as tourism) will receive for each dollar it earns.That bonus is a subsidyprovided by the foreign government.Under WTO rules,a subsidy benefit that is receivedcontingent on export is prohibited.The prohibition rests on the longstanding legaljudgment that export subsidies are inherently distortive and destructive of free and faircompetition.With regard to the country's imports,an undervalued currency serves as a hiddentax on all imported goods and services.The attachment shows clearly thatundervaluation creates the need for importers,or would-be importers,to pay extra indomestic currency to purchase each dollar of foreign goods.Whether viewed as a hiddentariff or a hidden tax,the undervalued currency undermines the level playing field forimported products and distorts free and fair competitionThe bottom line is that persistentgovemment intervention is incompatible withthe spirit ofthe WTO agreements.currency undervaluation maintained byfree trade and violates the letter as well asCurrency Undervaluation Violates NAM PrinciplesIn 2005,the Board approved two specific sets of priorities for NAM -- one anoverall trade agenda; the other,a China-specific agenda.The principles and specificobjectives in those documents provide a strong basis for condemning persistent currencyundervaluation.Specifically,NAM's established policy objectives include:.Eliminate trade-distorting subsidies & defend,preserve and enhancethe effectiveness of WTO-consistent U.S.trade law.As noted above,export subsidies are prohibited because they are the most distortive of freetrade..Elimination of artificially created and maintained competitiveadvantages through WTO-inconsistent subsidization or other means.