Archives



Freight News, Business


Opinion: Without A Strong Ex-Im Bank, America Stands to Fall Behind Foreign Competition

[ November 24, 2017   //   ]

The president’s recent tour across Asia highlighted America’s need for a robust export credit agency to support American businesses in an increasingly competitive global marketplace. Paired with poor leadership, a weak Export-Import (Ex-Im) Bank poses a huge risk to the competitiveness of American exporters.

In a recent opinion piece published in The Hill, American Action Forum Director of Financial Services Policy Meghan Milloy notes how the U.S. is positioned to fall behind in major markets while other countries enjoy far greater support from their export credit agencies. A robust Ex-Im Bank is crucial for the health of American manufacturing, and a lack of critical support for the Bank will cause Americans to “see more jobs move overseas,” she warns.

American businesses and families deserve a fully functioning Ex-Im Bank, and we continue to support the nominations of Kimberly Reed, Judith Pryor, Claudia Slacik, and Spencer Bachus. However, Scott Garrett’s repeated attempts to shutter the Bank make him unfit to serve as its chairman.

Meghan Milloy, Director Of Financial Services Policy At The American Action Forum, Explains “A Fully Functional Ex-Im Bank Is Important To Strengthen American Competitiveness Abroad.” “A fully functional Ex-Im Bank is important to strengthen American competitiveness abroad. There are 27 countries that require support from an export credit agency before they will even consider a bid from an international company.” (Meghan Milloy, “America Needs A Strong Ex-Im Bank,” The Hill,11/21/17)

Meghan Milloy, Director Of Financial Services Policy At The American Action Forum, Notes That Other Countries Are Considerably Ahead In Supporting Their Manufacturers. “Of the five countries the president visited, three have export credit agencies that are significantly outperforming our own: China, South Korea and Japan, which have lent $1.23 trillion, $452.77 billion and $181.13 billion, respectively, over the last two years. By comparison, the U.S. Ex-Im Bank has lent only $33.61 billion in the same timeframe. As a percentage of gross domestic product, that translates to 3.75 percent, 10.77 percent and 1.28 percent for the Asian countries, with the total for the United States coming in at just 0.06 percent.” (Meghan Milloy, “America Needs A Strong Ex-Im Bank,” The Hill,11/21/17)

Meghan Milloy, Director Of Financial Services Policy At The American Action Forum, Highlights How A Lack Of Quorum Has Left Deals In The Pipeline And Put American Jobs At Serious Risk. “In January, Ex-Im’s 2016 annual report showed that its lending was at its lowest point in 40 years, having authorized only $5 billion in financing and leaving 40 deals worth over $30 billion while stuck waiting on a quorum. Using data from Ex-Im’s 2014 annual report, the last full calendar year that Ex-Im was fully functional, research by the American Action Forum found that the shutdown and lack of a quorum allowed 7,768 loans totaling $42.56 billion to go unauthorized, with 6,941 of those loans totaling $10.59 billion prevented from going directly to American small businesses.” (Meghan Milloy, “America Needs A Strong Ex-Im Bank,” The Hill, 11/21/17)

Tags: