Ex-Im Bank has authority to support SMEs
and transactions less than $10 million.
The Coalition for Employment through Exports (CEE) comments on timely issues involving the U.S. export promotion programs, including U.S. export and development finance.
Small businesses and mid-market companies benefit from U.S. government export and development finance, enabling them to expand their business and support more U.S. Jobs.
As competitor Export Credit Agencies (ECAs) become more aggressive in support of their country’s exports, Ex-Im Bank needs to remain competitive to maintain a level playing field for U.S. exporters.
CEE represents the business community on export finance issues including environmental concerns such as ECA support for coal fired power generation and the rail sector.
Washington D.C. – John Hardy, President of the Coalition for Employment through Exports (CEE), released the following statement on the President’s proposed 2018 Budget for the Export-Import Bank of the United States which, if enacted, would reduce the Bank’s operating expenses by 10% and rescind $165 million held in the Bank’s Tied Aid War Chest, a critical tool in the protection of U.S. exports.
“President Trump has made it a priority to support manufacturing jobs across the country, and this proposal would severely limit the Bank’s ability to improve competitiveness of U.S. manufacturers through aggressive export financing.”
“The 10% reduction in operating expenses will deprive the bank of the necessary resources to support small and medium sized business transactions as required under the 2015 legislation reauthorizing the Bank. The rescission of funds in the Tied War Chest will drastically limit the Bank’s ability to deter the use of concessional financing by U.S. foreign export competitors.”
“CEE opposes emptying the Tied Aid War Chest. Doing so runs contrary to the President’s plan to make American exports competitive against other nations’ unsavory trade practices and will harm the ability of U.S. exporters to compete in world markets.”
Unlike the proposed 2018 budget, the Tied Aid War Chest has been fully funded under previous budgets because of its importance as an export driver.
The Tied Aid War Chest allows the U.S. to challenge offers of foreign concessional financing by threatening to match them with Bank funds. This threat has saved several billion dollars of U.S. exports by forcing other nations to back down from concessional financing and allowing U.S. exports to compete on an equal playing field.
The use of Tied Aid dropped precipitously during the nineties and aughts because Congress created this fund. However, China’s use of Tied Aid in the past decade has revitalized the practice among many nations and has again threatened U.S. exports.
NFTC, CEE Release Comparative ECA Finance Graph
The National Foreign Trade Council (NFTC) and the Coalition for Employment through Exports (CEE) today released a 'Comparative ECA Finance Graph,' comparing export credit agency (ECA) and market windows financing provided by major exporting countries in 2015 in support of their national exporters.
Trump picks critic of Ex-Im Bank to lead it
President Donald Trump on Friday announced his intent to nominate former Rep. Scott Garrett, a Republican from New Jersey, for president of the Export-Import Bank.