Export-Import Bank: Chapter Two

Posted on Posted in Reflections, Uncategorized

worldIn the April, 2015 edition of Reflections, I highlighted the benefits of the Export-Import Bank.

I pointed out that the bank has helped create and maintain high paying jobs in the USA for 80 years.

Unfortunately, many key Republicans are against the bank. They are leading efforts to NOT renew the bank’s charter. They claim the bank is nothing more than corporate welfare.

We are now seeing the negative impact on US businesses and jobs that defunding the bank is having.

Both Boeing and General Electric have announced significant loss of business and US jobs as a result. As reported in the New York Times, Boeing recently lost two multi-million dollar Asian satellite deals because of a lack of Ex-Im financing. As a result, layoffs in the hundreds could occur in the company’s satellite division. Meanwhile, GE is creating up to 1,500 new jobs in France, Hungary and China because it can take advantage of European export credit agencies rather that Ex-Im credits here at home.

Renewal of the Ex-Im bank charter has broad support from Democrats, some Republicans and the President.

As background, the Ex-Im Bank does two critical things to expedite trade.

  1. It offers loans and loan guarantees to foreign purchasers of U.S. manufactured goods. These borrowers must meet strict lending qualifications when private-sector lenders can’t or won’t provide financing.
  2. It provides credit insurance for U.S. exporters to reduce commercial and political risks. U.S. exporters pay a fee for the bank to insure them if something happens to a foreign buyer like a conflict, war or bankruptcy. Ex-Im, by law, cannot compete with commercial lenders. Its mission is to fill gaps in commercial financing.

A Key Question – How many government programs help create and support high paying U.S. union jobs???

It is time for our Congress to do the right thing and renew the Export-Import Bank’s charter NOW!!!

We need to keep these high paying jobs in the U.S.A.
If Congress cannot support a win-win program like this, we need new leadership in Congress.

Summary

Write your Congressman and Senators. Demand they vote YES on renewing the Export-Import Bank Charter. The bill will pass with bipartisan support. Remind them that leadership means doing the right thing at the right time.