The Hill: "The arguments for Ex-Im no one can rebut"
Following months of inaction to keep the Export-Import Bank open, House Republicans have decided to shut down the Bank tomorrow, June 30, putting thousands of American jobs at risk. We wanted to make sure you saw today’s blog post in The Hill by senior vice president of International Policy for the U.S. Chamber of Commerce, John Murphy, on why the Ex-Im Bank is critically important to businesses throughout the country and reiterating the Chamber’s position that reauthorization of the Bank deserves a vote:
“As the June 30 expiration of Ex-Im’s charter nears, the U.S. Chamber of Commerce would like to reiterate these concerns and urge Congress to give Ex-Im reauthorization the vote it deserves. Failure to do so would go against the will of a clear majority of members of Congress who have already indicated they support reauthorization.”
“First, Ex-Im is necessary because—in the case of many small businesses—commercial banks often refuse to accept foreign receivables as collateral for a loan without an Ex-Im guarantee.”
“Second, Ex-Im is necessary because ECA [export credit agency] support is often required even to bid on a wide variety of foreign business opportunities… In a world where competition in global markets is already fierce, it would be a rude awakening for American businesses to find themselves completely excluded from opportunities such as these.”
“Third, Ex-Im is necessary because it is par for the course for expensive capital goods to be sold worldwide with unashamed ECA backing—the support of which can make or break a deal.”
“Refusing to reauthorize Ex-Im would put U.S. companies selling expensive capital goods such as aircraft, locomotives, and turbines at a unique competitive disadvantage because their foreign competitors all enjoy ample financing from their home-country ECAs—enough to easily knock U.S. companies out of the competition. For some industries, executives will face the question of whether to shift production to locations where ECA support is available.”
“As Rep. Bill Huizenga (R-Mich.) said at the hearing, ‘Once again the shifting sands of political expediency have reared their ugly head.’ At a time when other trading nations are dramatically expanding the export finance they make available through their national ECAs, Congress should consider carefully the companies and industries that have no alternative to Ex-Im.”
“As I told the committee, hope is not a strategy. These issues must be addressed, or those campaigning to close Ex-Im will ‘own’ the job losses that will certainly follow in the weeks ahead.”