WASHINGTON, DC - Representatives Mike Michaud (D-ME), Chairman
of the House Trade Working Group, and Robert Dold (R-IL), member of the
House Financial Services Committee, were joined by 38 of their
congressional colleagues in sending a letter to House leadership urging
immediate consideration of legislation to reauthorize the Export-Import
Bank for four years. Information on Maine export-import recipients can
be found here. From 2007-2012, the Export-Import Bank supported
approximately $255,452,287 in export sales from Maine businesses.
"The Ex-Im Bank is an important tool in making U.S. companies more
competitive. At no cost to taxpayers, it ensures that American
businesses have the export financing they need to sell their products
around the world," said Michaud. "It's critical that House leaders act
immediately to reauthorize the Bank so that our companies can compete on
a level playing field against foreign competitors in countries like
Germany and China, whose governments provide billions more than the U.S.
in export financing each year."
"The Ex-Im Bank is critical to helping small businesses across the
country expand and reach new markets - and that means more jobs here at
home," said Dold. "This is a bipartisan priority that we should move
forward immediately in order to ensure that our small businesses are
competitive globally and have the resources they need to expand and spur
the economy."
The Ex-Im Bank provides export assistance to U.S. manufacturers.
Through pre-export and export financing, export credit insurance, loan
guarantees, and direct loans, the Ex-Im Bank enables firms to sell
additional products abroad and create jobs here at home. Since it was
founded in 1934, the Bank has provided assistance to more than $474
billion of U.S. exports. In FY 2011 it supported 290,000 export-related
American jobs by providing more than $32 billion in financing to more
than $40 billion of exports at more than 3,600 U.S. companies
nationwide.
The full text of the letter.
April 16, 2012
Dear Speaker Boehner, Leader Pelosi, Leader Cantor and Whip Hoyer:
We write to urge you to bring legislation to the House floor to
reauthorize the Export-Import (Ex-Im) Bank before the Bank meets its
authorized credit limit. We also ask that you include a higher lending
limit to support further expansion of the Bank's export financing
efforts and allow more American companies to receive export financing.
The Bank is self-sustaining and receives a net zero appropriation from
Congress, meaning the fees it charges foreign buyers cover all of the
Bank's administrative expenses and loan loss reserves. The Bank actually
makes money for the U.S. taxpayers, having made nearly $2 billion over
the past five years. A four-year reauthorization of the Ex-Im Bank
should be considered before its credit authorization limit is reached in
the next month or so.
The Ex-Im Bank enhances the competitiveness of American companies in
an increasingly global economy by providing an important source of
export assistance to U.S. manufacturers. Through pre-export and export
financing, export credit insurance, loan guarantees, and direct loans,
the Ex-Im Bank enables more firms to sell additional products abroad and
create jobs here at home. Since it was founded in 1934, the Bank has
provided assistance to more than $474 billion of U.S. exports. In FY
2011 it supported 290,000 export-related American jobs by providing more
than $32 billion in financing to more than $40 billion of exports at
more than 3,600 U.S. companies nationwide.
The Bank's export financing is also imperative to maintaining and
enhancing the competitiveness of American companies. Countries like
China and Germany provide far more export financing than the U.S. China
has provided $145.3 billion more than the U.S. in export financing since
2007. Over the same period, Germany provided $10.6 billion more than
the U.S. in medium- and long-term export credit. Moreover, even though
Germany's economy is less than a quarter of the size of the U.S.
economy, Berlin's export financing limit is 158% higher than the Ex-Im
Bank's financing cap.
Increasing the Bank's authorization levels will allow the
institution to better compete with other country's export financing and
better combat illegal subsidies offered by foreign governments. Recently
Pakistan's national railroad authority issued a $500 million
solicitation bid for 150 trains. Although Pakistan preferred General
Electric's locomotives, a Chinese company's offer was more attractive
due to illegal subsidies from the Chinese government. In this case, the
Ex-Im Bank was able to neutralize China's advantage by offering a
competitive financial assistance package.
The Ex-Im Bank plays a critical role in helping our manufacturers
send their products overseas and leveling the playing field when foreign
governments use illegal subsidies to out-compete U.S. companies. As
Congress continues to work to get our economy back on track, we must
ensure that our manufacturers have all of the resources they need to
export abroad and grow here at home. That is why we urge you to bring to
the House floor legislation reauthorizing the Ex-Im Bank at higher
levels and before it exhausts its lending authority next month.
Sincerely,
MICHAEL H. MICHAUD & ROBERT J. DOLD
