Sec. 7. Persistent failure to adopt appropriate policies
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/bill/113/s/1114/is/section-7A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Not later than 360 days after the date on which a currency is designated for priority action pursuant to section 4(a)(3), the Secretary shall determine whether the country that issues the currency has adopted appropriate policies, and taken identifiable action, to eliminate the fundamental misalignment. The Secretary shall promptly notify Congress of the determination under paragraph
(1)and shall publish notice of the determination in the Federal Register. If the Secretary determines that the country that issues the currency has failed to adopt appropriate policies, or take identifiable action, to eliminate the fundamental misalignment, in addition to the measures specified in section 6(b), the following measures shall apply with respect to the country until a notification described in subsection
(b)is published in the Federal Register: The United States Trade Representative shall request consultations in the World Trade Organization with the country regarding the consistency of the actions of the country with its obligations under the WTO Agreement. The Secretary shall consult with the Board of Governors of the Federal Reserve System to consider undertaking remedial intervention in international currency markets in response to the fundamental misalignment of the currency designated for priority action, and coordinating the intervention with other monetary authorities and the International Monetary Fund. In doing so, the Secretary shall consider the impact of the intervention on domestic economic growth and stability, including the impact on interest rates. At the same time the Secretary takes action under clause (i), the Secretary shall notify the country that issues the currency of the consultations under clause (i). The Secretary shall promptly notify Congress when a country that issues a currency designated for priority action pursuant to section 4(a)(3) adopts appropriate policies, or takes identifiable action, to eliminate the fundamental misalignment, and publish notice of the action of that country in the Federal Register. The President may waive any action provided for under this section, or extend any waiver provided for under section 6(c), if the President determines that— taking the action would cause serious harm to the national security of the United States; or it is in the vital economic interest of the United States to do so, and that taking the action would have an adverse impact on the United States economy substantially out of proportion to the benefits of the action. The President shall promptly notify Congress of a determination under paragraph
(1)(and the reasons for the determination, if made under paragraph (1)(B)) and shall publish notice of the determination (and the reasons for the determination, if made under paragraph (1)(B)) in the Federal Register. If the President waives an action pursuant to subsection (c)(1)(B), or extends a waiver provided for under section 6(c)(1)(B), the waiver shall cease to have effect upon the enactment of a resolution of disapproval described in section 8(a)(2). The Secretary shall describe any action or determination pursuant to subsection (a), (b), or
(c)in the first semiannual report required by section 3 after the date of such action or determination.