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The Export-Import Bank benefits just a handful of American companies and is weighed down by corruption, writes Ryan Young of the Competitive Enterprise Institute.
August 8 -
The House Financial Services Committee remains divided, largely along party lines, over whether to renew the charter of the Export-Import Bank of the United States.
June 25 -
A confluence of events, including the defeat of House Majority Leader Eric Cantor, has increased the chance that Congress won't renew the charter of the Export-Import Bank. Private banks receive billions of dollars in U.S. support for loans made to promote American exports.
June 24 -
Senate Democrats plan to introduce to an amendment to a new jobs bill that would extend the charter of the Export-Import Bank for another four years and raise the bank's lending limit by 40%, to $140 billion.
March 15
There is much in our government that doesn't seem to work as effectively as it should. So it is ironic that some have trained their fire on a government agency that works well: the Export-Import Bank.
Ex-Im's mission is to ensure that U.S. companies large and small have access to the financing they need to sell their goods and services to customers all over the world. Ex-Im does not compete with the private sector. It fills gaps in trade finance by working with financial institutions to ensure that U.S. businesses operate on a level playing field as they compete for international business.
Ex-Im's opponents including the Competitive Enterprise Institute's Ryan Young, who argued for the closure of the bank
Export credit agencies are recognized throughout the world as an important source of trade finance that supports domestic jobs. Sixty official export credit agencies have poured more than $1 trillion into trade finance in recent years, reducing the cost of their countries' products for buyers in other nations, according to the Organization for Economic Cooperation and Development. Moreover, a
American companies need access to the
Moreover, Ex-Im hardly poses a risk to taxpayers: it has
Ex-Im's detractors label its activities "corporate welfare," arguing that a few large corporations monopolize resources made possible by taxpayer guarantees. However, in fiscal year 2013, Ex-Im financed a record 3,413 small business authorizations
It is true that iconic American companies such as Boeing and General Electric account for a significant chunk of Ex-Im's total dollar financing. Tens of thousands of high-tech and manufacturing jobs across the country are sustained through the international business that results from these transactions. And the jobs are not only with Boeing and GE, but with hundreds of small- and medium-sized vendors, subcontractors and service providers.
If the Ex-Im charter is not renewed by September, there will be real economic ramifications. Dismantling this productive government agency will hurt the
Tod Burwell is president and chief executive of BAFT, the international transaction banking association.