Wes Hickman (202) 224-5972 or Kevin Bishop (864) 250-1417

WASHINGTON -- U.S. Senator Lindsey Graham (R-South Carolina) today announced he supports invoking the China safeguard for textiles. The American Manufacturing Trade Action Coalition hosted a press conference this morning to announce American textile companies will file a petition calling for the implementation of the China safeguard for textiles. Senator Graham first expressed his support for this action last week in a private meeting with Secretary of Commerce Don Evans. As part of the China Accession agreement to the World Trade Organization (WTO), the U.S. has the ability to utilize a special textile safeguard that would allow the reinstitution of quotas in categories where Chinese imports are surging. China’s access to the U.S. textile and apparel market more than doubled in 2002, growing by an astounding 117 percent and is up an additional 114 percent so far in 2003, according to recent numbers from the American Textile Manufacturers Institute. The safeguard would re-establish a quota on unrestricted textile or apparel categories -- such as knit fabric, dressing gowns and robes, and cotton gloves -- for a period of one year and could be expanded for two additional one-year periods. “I have long maintained that China cheats on trade agreements,” said Graham. “The practices of Chinese companies and the policies of the Chinese government are illegal and give them an unfair advantage in the textile market. American textile companies produce superior products and do so in a fair and humane way. Given a fair playing field, they can compete with any foreign producer. That is all we are asking.” Graham noted Secretary Evans’s support for investigating and taking appropriate action against China. “I was encouraged by the response from Secretary Evans,” said Graham. “He shared our view that China’s behavior is out of bounds. The Secretary’s office is working with manufacturing industries to validate what we believe to be abuses by the Chinese government toward the American manufacturing industry, especially textiles. The Administration is willing to do that for the textile companies.” Graham also noted there is strong evidence that China is intentionally undervaluing its currency to drive down the price of its exports and to hurt U.S. manufacturers. WTO and International Monetary Fund rules prohibit currency manipulation for the purpose of gaining an export advantage. Last week, Graham signed a letter to Treasury Secretary John Snow asking the department to determine if China’s currency is undervalued and if so to take appropriate action. The letter was also signed by Senators Charles Schumer (D-NY), Elizabeth Dole (R-NC), and Evan Bayh (D-IN). The Chinese yuan has been tightly pegged to the US dollar in a range of 8.3 yuan per dollar since 1994. Given China's enormous growth since 1994, this fixed level most likely does not reflect its true value. Economists at Goldman Sachs have estimated that the yuan may be undervalued by 15 percent and other experts say that number could be as high as 40 percent, meaning that the Chinese intentionally lower their currency's value to make their goods and services cheap internationally. This means that when Chinese manufacturers export a product, they effectively receive a 15 percent to 40 percent subsidy on their exports, providing them with a nearly insurmountable advantage over U.S. producers. “The Treasury Department needs to look into this issue and take appropriate action to ensure the Chinese aren’t allowed to continue devaluing their currency to the detriment of our domestic industries,” concluded Graham. ####

Wes Hickman (202)224-5972 or Kevin Bishop (864) 250-1417

WASHINGTON – A bipartisan group of lawmakers today announced six members of the Senate and ten members of the House of Representatives have agreed to a cease-fire on Social Security. The bipartisan group, led by U.S. Senator Lindsey Graham (R-South Carolina) and Congressman Charlie Stenholm (D-Texas) and Jim Kolbe (R-Arizona), addressed the letter to the chairs of the Republican and Democratic congressional and senatorial campaign committees. “We pledge to defend candidates – Republican or Democrat – who support Social Security modernization and are willing to make tough choices to address the fiscal challenges facing Social Security. We will no longer turn a blind eye to political attack ads that accuse responsible reform advocates of wanting to dismantle Social Security or slash benefits of current retirees,” wrote the group. “The white-hot rhetoric surrounding Social Security modernization is creating an environment that punishes those who discuss reform options openly and honestly,” they said. “The American people deserve a modernized Social Security system that provides true retirement security for all Americans, while reducing the pressure on future taxpayers and on other budgetary priorities.” In a letter from the White House, President Bush’s senior economic team, Stephen Friedman, Assistant to the President for Economic Policy, Joshua Bolton, Director, Office of Management and Budget, and N. Gregory Mankiw, Chairman, Council of Economic Advisors praised the bipartisan initiative and pledged to push forward with efforts to save Social Security. “We commend you for taking a stand against politicized rhetoric that too often interferes with bipartisan cooperation on behalf of millions of participants in the Social Security program,” wrote the presidential advisors. “The President believes modernizing Social Security to enhance its fiscal sustainability and to allow younger workers the choice to have a personal Social Security account is an important national priority.” The elected officials noted Social Security faces what some experts have called a ‘demographic train wreck’ in the coming years as the nation ages. The number of workers paying taxes to support Social Security dropped from 16-to-1 in 1950 to 3-to-1 today. Within a generation there will be only 2 workers to support each retiree. The oldest baby boomers will be eligible to retire in just 5 short years and between 2011 and 2030, the number of beneficiaries will increase 65 percent while the working, taxpaying population will increase only 8 percent. According to the programs own trustees, Social Security begins paying out more in benefits than it takes in as taxes in 2018. By 2042, Social Security will be broke and unable to pay full benefits to retirees. “It’s time for the demagoguery to stop,” said Graham. “Social Security modernization will only be achieved if we make a commitment to discuss the need for reform candidly. It is time for this Congress and President to solve the problems facing Social Security. Inaction is no longer an option. The longer we wait, the harder the task becomes.” “We must begin to talk honestly and directly about the tough choices that must be made to strengthen Social Security,” said Stenholm. “This issue is so important we cannot resort to, cannot tolerate, partisan attacks, demagoguery or irresponsible, empty rhetoric. The future of Social Security is too important for it to be used for partisan political purposes.” “As Members who have dedicated ourselves to promoting an honest and open debate on the issue of Social Security, we call on the chairs of the respective House and Senate campaign committees to engage in a responsible dialogue about the future of the Social Security system,” said Kolbe. “Demagoguery by both parties do little more than fan political fires and contribute to the skepticism many Americans have about Congress's ability to tackle tough issues.” #####