Editor’s note: The Currency Exchange Rate Oversight Reform Act of 2011 (S. 1619) would establish US tariffs on imports from countries with undervalued currencies. The US Senate approved the bill on October 11, 2011, by a vote of 63-35. As of this writing, no vote has come from the House of Representatives. The bill calls for the Treasury Department to identify countries whose currencies are undervalued, and then instruct the Commerce Department to impose duties on imports from those aforementioned countries. Rick Bridges, President Coalition of New England Companies for Trade (CONECT) Hopefully I am not alone in seeing through the cheap façade of the Currency Exchange Rate Oversight Reform Act of 2011 Bill sponsored by Senators Brown (OH), Schumer (NY), Gillibrand (NY), and others. While perhaps initially well intentioned, this is a bad bill for many reasons and here are just a few that come to the surface. First, this is not a jobs bill. It will do nothing to create jobs in America. Most of the goods manufactured in China will never be produced in the US and even if they were, most US consumers would not be able to afford them. The bill seeks to punish the Chinese through penalties on their exports to the US and any action by way of imposing duties or taxes on Chinese goods will serve as tax on American families who rely on these goods to live their lives. Consider a pair of children’s sneakers, most of which are made in China, cost around $50.00. How many families could afford to pay $100 for the same pair if made in the US? Now let your mind stroll the aisles at Walmart, Kohl’s, or Macy’s and consider how much is really made in China and elsewhere. Let us not forget, freedom of choice what this country was built on and it should be the consumer who ultimately decides what they buy, not politicians in Washington. While it’s a pipe dream to consider that most Chinese produced goods will someday be produced domestically, the US has been enjoying increased exports due to the weak US dollar. The US-China Business Council claims US exports to China grew 4 times faster than exports to the rest of the world from 2000 to 2010. China has already responded with threats of retaliation should this Bill pass so for the employees of US manufacturers who are selling to China, their jobs and the jobs of their second and third tier suppliers are now threatened by the sponsors of this bill. To make matters worse, in a recent Congressional report, the Pentagon finds that our military is dependent upon rare earth minerals from China. While this may not have been a consideration during the drafting of the China Currency bill, sponsors should now consider whether their rather hollow chest beating is worth destabilizing the security of the US. Supporting this bill will be individuals who choose to take the easy way out and give the impression that they are looking tough in the face of China’s currency manipulation when in reality they will be hurting their constituents and America. A better solution is out there; it just may take a little work in DC to get it done. Senators Hatch of Utah and Camp of Michigan have floated alternatives to the Currency Exchange Rate Oversight Reform Act of 2011 that take a more sensible and calculating approach and also seek other countries support and leverage. Politics and special interest groups should not be what drives this issue. Rick Bridges is Vice President, Roanoke Trade Services, Inc., New England Office. Rick Bridges President – Coalition of New England companies for Trade