Where have all the Free Trade folks gone....

Where are the "Free Trade" folks screaming about the US promoting protectionism?   When it comes to intellectual property rights and protecting the prosperity of CEO's we forget about our attachment to Free Trade.  When it comes to the livelihoods of working families we get lectures about the importance of free trade and open markets...

 

Bloomberg:

Treasury Secretary Timothy F. Geithner said he will urge China to ensure a “level playing field” for U.S. companies trying to invest in the world’s third-largest economy.

China should do more to protect intellectual-property rights and revise procurement proposals giving preferential treatment to Chinese companies, Geithner said yesterday in a speech in Tacoma, Washington. He and Secretary of State Hillary Clinton are due to meet May 24-25 with their Chinese counterparts as part of the annual U.S.-China Strategic and Economic Dialogue.

Yesterday’s remarks indicate that access to China’s market is sharing the stage with pressure for an end to the yuan peg for U.S. officials. Geithner has sought to address the currency issue multilaterally through the Group of 20, which Canadian Finance Minister Jim Flaherty said yesterday will discuss the yuan at a gathering next month.

“Our agenda in Beijing will focus on reducing the challenges faced by American companies trying to export to China and to produce in China,” Geithner said in prepared remarks for delivery at the Port of Tacoma. He criticized China’s “indigenous innovation” proposals that he said would favor locally owned companies.

Trade Representative Ron Kirk said in a speech to the U.S. Chamber of Commerce in Washington yesterday that “innovation is no excuse for discrimination.” Geithner said the administration shares the concerns of American companies that “this approach has the potential to discriminate against foreign-made products and could disadvantage American exporters.”

Gradual Moves

The Treasury chief also yesterday reiterated his call that China will abandon its exchange-rate peg. The government is moving toward changes in currency policy that would allow market forces to play a greater role, he told reporters after the speech.

“It’s in their interest to let it gradually move over time,” Geithner said. China has held the yuan at about 6.83 to the dollar since July 2008, after allowing it to appreciate by 21 percent over the previous three years. He declined to comment on the euro, which yesterday fell below $1.22 for the first time since April 2006.

Former Hong Kong Monetary Authority head Joseph Yam said today that the Chinese currency will move “sooner or later,” with the timing dictated by economic and financial conditions rather than political events.

‘Sensible Position’

“I don’t think the U.S. administration has been talking about a revaluation or an appreciation of the renminbi,” Yam said in a speech in Singapore, using another term for the Chinese currency. “They are pushing for the reintroduction of flexibility, and after the reintroduction of flexibility, let the market decide on the exchange rate.”

He said that was a “sensible position,” which contrasted with some politicians advocating a one-time 20 percent revaluation.

Senator Charles Schumer, a New York Democrat, said that he isn’t “optimistic that these high-level meetings will generate any significant breakthrough” on the yuan. He made the remarks in a letter with nine other senators to Geithner days before the secretary departs for his meetings in Beijing. Geithner and Clinton will meet with counterparts Vice Premier Wang Qishan and State Councilor Dai Bingguo during the annual bilateral talks.

Geithner said China needs to show evidence that it’s listening to the concerns of its trading partners. “China just needs to demonstrate to the world they’ll take action,” he told reporters.

Posted via email from Jim Nichols