22 U.S.C. § 5305 — Reporting requirements

Page 1646 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE § 5305 trade. If the Secretary considers that such ma- nipulation is occurring with respect to countries that (1) have material global current account surpluses; and (2) have significant bilateral trade surpluses with the United States, the Sec- retary of the Treasury shall take action to ini- tiate negotiations with such foreign countries on an expedited basis, in the International Mon- etary Fund or bilaterally, for the purpose of en- suring that such countries regularly and promptly adjust the rate of exchange between their currencies and the United States dollar to permit effective balance of payments adjust- ments and to eliminate the unfair advantage. The Secretary shall not be required to initiate negotiations in cases where such negotiations would have a serious detrimental impact on vital national economic and security interests; in such cases, the Secretary shall inform the chairman and the ranking minority member of the Committee on Banking, Housing, and Urban Affairs of the Senate and of the Committee on Banking, Finance and Urban Affairs of the House of Representatives of his determination. (Pub. L. 100–418, title III, § 3004, Aug. 23, 1988, 102 Stat. 1373.) Statutory Notes and Related Subsidiaries CHANGE OF NAME Committee on Banking, Finance and Urban Affairs of House of Representatives treated as referring to Com- mittee on Banking and Financial Services of House of Representatives by section 1(a) of Pub. L. 104–14, set out as a note preceding section 21 of Title 2, The Con- gress. Committee on Banking and Financial Services of House of Representatives abolished and replaced by Committee on Financial Services of House of Rep- resentatives, and jurisdiction over matters relating to securities and exchanges and insurance generally trans- ferred from Committee on Energy and Commerce of House of Representatives by House Resolution No. 5, One Hundred Seventh Congress, Jan. 3, 2001. NEGOTIATIONS ON CURRENCY EXCHANGE RATES Pub. L. 100–418, title I, § 1124, Aug. 23, 1988, 102 Stat. 1146, provided that: ‘‘(a) FINDINGS.—The Congress finds that— ‘‘(1) the benefit of trade concessions can be ad- versely affected by misalignments in currency, and ‘‘(2) misalignments in currency caused by govern- ment policies intended to maintain an unfair trade advantage tend to nullify and impair trade conces- sions. ‘‘(b) NEGOTIATIONS.—Whenever, in the course of nego- tiating a trade agreement under this subtitle [subtitle A (§§ 1101 to 1125) of title I of Pub. L. 100–418, see Tables for classification], the President is advised by the Sec- retary of the Treasury that a foreign country that is a party to the negotiations satisfies the criteria for initi- ating bilateral currency negotiations listed in section 3004(b) of this Act [22 U.S.C. 5304(b)], the Secretary of the Treasury shall take action to initiate bilateral cur- rency negotiations on an expedited basis with such for- eign country.’’ § 5305. Reporting requirements (a) Reports required In furtherance of the purpose of this chapter, the Secretary, after consultation with the Chairman of the Board, shall submit to the Committee on Banking, Finance and Urban Af- fairs of the House of Representatives and the Committee on Banking, Housing, and Urban Af- fairs of the Senate, on or before October 15 of each year, a written report on international eco- nomic policy, including exchange rate policy. The Secretary shall provide a written update of developments six months after the initial re- port. In addition, the Secretary shall appear, if requested, before both committees to provide testimony on these reports. (b) Contents of report Each report submitted under subsection (a) shall contain— (1) an analysis of currency market develop- ments and the relationship between the United States dollar and the currencies of our major trade competitors; (2) an evaluation of the factors in the United States and other economies that underlie con- ditions in the currency markets, including de- velopments in bilateral trade and capital flows; (3) a description of currency intervention or other actions undertaken to adjust the actual exchange rate of the dollar; (4) an assessment of the impact of the ex- change rate of the United States dollar on— (A) the ability of the United States to maintain a more appropriate and sustain- able balance in its current account and mer- chandise trade account; (B) production, employment, and nonin- flationary growth in the United States; (C) the international competitive perform- ance of United States industries and the ex- ternal indebtedness of the United States; (5) recommendations for any changes nec- essary in United States economic policy to at- tain a more appropriate and sustainable bal- ance in the current account; (6) the results of negotiations conducted pur- suant to section 5304 of this title; (7) key issues in United States policies aris- ing from the most recent consultation re- quested by the International Monetary Fund under article IV of the Fund’s Articles of Agreement; and (8) a report on the size and composition of international capital flows, and the factors contributing to such flows, including, where possible, an assessment of the impact of such flows on exchange rates and trade flows. (Pub. L. 100–418, title III, § 3005(a), (b), Aug. 23, 1988, 102 Stat. 1374.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in subsec. (a), was in the original ‘‘this title’’, meaning title III of Pub. L. 100–418, Aug. 23, 1988, 102 Stat. 1372, which enacted this chapter and section 262q of this title, amended sections 225a, 635, 635i–3, 1843, and 3912, of Title 12, Banks and Banking, and enacted provisions set out as notes under section 262q of this title and sections 635, 635i–3, and 1841 of Title 12. For complete classification of title III to the Code, see Tables. Statutory Notes and Related Subsidiaries CHANGE OF NAME Committee on Banking, Finance and Urban Affairs of House of Representatives treated as referring to Com- Page 1647 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE § 5323 mittee on Banking and Financial Services of House of Representatives by section 1(a) of Pub. L. 104–14, set out as a note preceding section 21 of Title 2, The Con- gress. Committee on Banking and Financial Services of House of Representatives abolished and replaced by Committee on Financial Services of House of Rep- resentatives, and jurisdiction over matters relating to securities and exchanges and insurance generally trans- ferred from Committee on Energy and Commerce of House of Representatives by House Resolution No. 5, One Hundred Seventh Congress, Jan. 3, 2001. § 5306. Definitions As used in this subchapter: (1) Secretary The term ‘‘Secretary’’ means the Secretary of the Treasury. (2) Board The term ‘‘Board’’ means the Board of Gov- ernors of the Federal Reserve System. (Pub. L. 100–418, title III, § 3006, Aug. 23, 1988, 102 Stat. 1375.) Editorial Notes REFERENCES IN TEXT This subchapter, referred to in text, was in the origi- nal ‘‘this subtitle’’, meaning subtitle A (§§ 3001–3006) of title III of Pub. L. 100–418, Aug. 23, 1988, 102 Stat. 1372, which is classified principally to this subchapter. For complete classification of subtitle A to the Code, see Tables. SUBCHAPTER II—INTERNATIONAL DEBT PART A—FINDINGS, PURPOSES, AND STATEMENT OF POLICY § 5321. Short title This subchapter may be cited as the ‘‘Inter- national Debt Management Act of 1988’’. (Pub. L. 100–418, title III, § 3101, Aug. 23, 1988, 102 Stat. 1375.) Editorial Notes REFERENCES IN TEXT This subchapter, referred to in text, was in the origi- nal ‘‘this subtitle’’, meaning subtitle B (§§ 3101–3123) of title III of Pub. L. 100–418, Aug. 23, 1988, 102 Stat. 1375, which is classified principally to this subchapter. For complete classification of subtitle B to the Code, see Tables. § 5322. Findings The Congress finds that— (1) the international debt problem threatens the safety and soundness of the international financial system, the stability of the inter- national trading system, and the economic de- velopment of the debtor countries; (2) orderly reduction of international trade imbalances requires very substantial growth in all parts of the world economy, particularly in the developing countries; (3) growth in developing countries with sub- stantial external debts has been significantly constrained over the last several years by a combination of high debt service obligations and insufficient new flows of financial re- sources to these countries; (4) substantial interest payment outflows from debtor countries, combined with inad- equate net new capital inflows, have produced a significant net transfer of financial re- sources from debtor to creditor countries; (5) negative resource transfers at present levels severely depress both investment and growth in the debtor countries, and force debt- or countries to reduce imports and expand ex- ports in order to meet their debt service obli- gations; (6) current adjustment policies in debtor countries, which depress domestic demand and increase production for export, help to depress world commodity prices and limit the growth of export markets for United States indus- tries; (7) the United States has borne a dispropor- tionate share of the burden of absorbing in- creased exports from debtor countries, while other industrialized countries have increased their imports from developing countries only slightly; (8) current approaches to the debt problem should not rely solely on new lending as a so- lution to the debt problem, and should focus on other financing alternatives including a re- duction in current debt service obligations; (9) new international mechanisms to im- prove the management of the debt problem and to expand the range of financing options available to developing countries should be ex- plored; and (10) industrial countries with strong current account surpluses have a disproportionate share of the world’s capital resources, and bear an additional responsibility for contributing to a viable long-term solution to the debt problem. (Pub. L. 100–418, title III, § 3102, Aug. 23, 1988, 102 Stat. 1375.) § 5323. Purposes The purposes of this subchapter are— (1) to expand the world trading system and raise the level of exports from the United States to the developing countries in order to reduce the United States trade deficit and fos- ter economic expansion and an increase in the standard of living throughout the world; (2) to alleviate the current international debt problem in order to make the debt situa- tion of developing countries more manageable and permit the resumption of sustained growth in those countries; and (3) to increase the stability of the world fi- nancial system and ensure the safety and soundness of United States depository institu- tions. (Pub. L. 100–418, title III, § 3103, Aug. 23, 1988, 102 Stat. 1376.) Editorial Notes REFERENCES IN TEXT This subchapter, referred to in text, was in the origi- nal ‘‘this subtitle’’, meaning subtitle B (§§ 3101–3123) of title III of Pub. L. 100–418, Aug. 23, 1988, 102 Stat. 1375, which is classified principally to this subchapter. For complete classification of subtitle B to the Code, see Tables.