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China's exchange rate policy not violate WTO
(Xinhua)
Updated: 2004-02-26 15:54

China's exchange rate policy does not violate the rules of the World Trade Organization (WTO), US Trade Representative Robert Zoellick said on February 25.

"There's really no WTO obligation not to have a fixed exchange rate," Zoellick told reporters before giving a speech to the Asia Society.

Zoellick said he did not think China's pegged exchange rate violates the WTO.

"You will recall the United States had a fixed exchange rate until 1971, when we were a member of the GATT," Zoellick said. The GATT was the predecessor organization to the WHO.

The National Association of Manufacturers and other members of the Fair Currency Alliance plan to file a "section 301" petition in coming weeks to ask Zoellick's office to investigate whether a case could be brought against China's currency practices at the WTO.

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