Speech

REMARKS BY
EDUARDO AGUIRRE, JR., VICE CHAIRMAN
EXPORT IMPORT BANK OF THE UNITED STATES
AMERICAN CHAMBER OF COMMERCE IN THAILAND
BANGKOK, THAILAND
FEBRUARY 27, 2003

INTRODUCTION

Thank you for your gracious introduction.

I'm delighted to be here today to talk to you about opportunities to expand commercial ties between the United States and Thailand.

Our $20 billion in annual two-way trade (in 2001) benefits both of our countries -- sustaining U.S. jobs while contributing to Thailand's economic growth and infrastructure development.

As we work together for our mutual success, Ex-Im Bank wants to do its part to ensure that U.S. products -- which we believe are the best in the world -- are available to Thai companies.

Ex-Im Bank supports everything from Thai purchases of large U.S. commercial aircraft to small shipments of U.S. cotton goods.

Today, I'd like to give you an overview of what Ex-Im Bank is doing in Thailand and the outlook for expanded commercial relations.

And I want to hear from you -- Thai companies, and U.S. firms that are active in the Thai market. I want to know what your needs are and the challenges you face, so that we can better serve you.

ASEAN, APEC AND STAR

First let me say a few words about the Bush Administration's policy toward the ASEAN region.

The 10 ASEAN nations, with a half billion people, are very important to the United States for a number of reasons.

Security. We have historic security ties with ASEAN. These ties have only been strengthened by the global war against terrorism.

The region was quick to join the fight against terrorism after the attacks of Sept. 11, 2001. And ASEAN will continue to be critical to secure trade in the region and globally.

The STAR initiative by the APEC Pacific Rim countries is another demonstration of secure trade cooperation. It seeks to build another bridge between the U.S. and APEC economies - not a barrier. It is a way of deepening ties, not restricting them.

Thailand is hosting the current STAR conference here. This underscores Thailand's key role in establishing a regional security environment that supports trade.

Trade. The Bush Administration is committed to significantly expanding trade with ASEAN.

Last October President Bush met with ASEAN leaders in Mexico and announced the Enterprise for ASEAN Initiative.

Its aim is to increase trade and investment by providing a roadmap for reaching bilateral free-trade agreements with ASEAN countries.

Free trade agreements obviously can be a tremendous spark to economic growth for all participants.

That is why President Bush is calling for tariff reductions and free trade agreements around the globe.

Singapore has concluded the first bilateral free trade agreement by an ASEAN country with the U.S.

THE THAILAND MARKET

Thailand already has expressed interest in such an agreement. And we look forward to talks on this.

The current economic outlook in Thailand is positive. As you know, Thailand has made significant progress in recovering from the financial crisis of the late 1990s.

Its current account balance and foreign currency reserves have increased and its growth rate is positive.

The banking system has undergone restructuring and recapitalization.

Additional economic reforms - including corporate debt restructuring - will further strengthen Thailand's financial system, and its ability to weather external shocks.

Reforms of the legal system also would further encourage U.S. interest in doing business with Thailand.

EX-IM BANK

Ex-Im Bank fills an important role in U.S.-Thailand commerce.

For those who do not know, we are the United States' official export credit agency.

In emerging markets where there is risk, that's where Ex-Im Bank can help.

We support exports to developing markets where commercial bank financing is unavailable or insufficient.

We also help level the playing field to keep U.S. companies competitive in the global marketplace in the face of government-supported foreign competition.

Small businesses. While Ex-Im Bank supports U.S. exporters of all sizes, we spend a great deal of time, energy and resources to support small and medium-sized U.S. businesses.

They are the engine of economic expansion, technical innovation and job creation.

Likewise, development of the small and medium-sized business sector is important to Thailand's economic growth.

One of the most critical hurdles to such development is the lack of affordable financing to expand production and increase market share and distribution networks.

Ex-Im Bank financing tools can enable us to reach more small businesses here.

In fiscal year 2002, Ex-Im Bank supported $13 billion in sales of U.S. goods and services to foreign markets.

Our financing products include:

· loan guarantees and direct loans that provide foreign buyers with competitive financing to purchase U.S. goods and services, and

· export credit insurance to protect U.S. exporters and banks against the political and commercial risks of a foreign buyer defaulting on payment. Our short-term insurance is especially helpful to small businesses.

Ex-Im Bank working capital guarantees enable small and medium-sized U.S. companies to get the financing they need to fill foreign orders.

They cover 90 percent of the principal and interest on commercial working capital loans.

They also cover standby letters of credit serving as bid bonds, performance bonds and advance payment guarantees.

Project Finance. Ex-Im Bank's project financing helps finance U.S. exports to large projects in developing countries, including infrastructure and natural resource extraction and development.

In limited recourse project finance, repayment is based on revenues from the project rather than on a guarantee of the debt by the host country government or corporations.

This financing helps developing countries to limit their government debt, and helps U.S. exporters to compete for oil and gas and power-sector projects.

We have supported about $1 billion a year in power projects on a limited recourse basis since the mid-1990s.

Environmental exports. Ex-Im Bank also helps finance U.S. exports of environmentally beneficial goods and services.

The Bank has a special Environmental Exports Program that provides enhanced support for a broad range of environmental exports.

We have backed nearly $700 million in renewable energy exports during the last decade.

Trade security. I also took the opportunity of the current APEC STAR conference to spread the word about Ex-Im Bank's willingness to support U.S. exports to enforce trade security. This includes equipment, technology and services -- ranging:

· From gamma ray detection technology

· to biometrics, such as fingerprint identification equipment - and beyond,

· to airport security systems.

EX-IM BANK IN THAILAND

Ex-Im Bank wants to do more in Thailand.

We have $1.2 billion of exposure in this market.

We have authorized more than $1.1 billion to support exports to Thailand over the last three years.

This has included support for the export of wide-body Boeing aircraft to Thailand's government-owned flag carrier, Thai Airways International.

We've supported large telecommunications projects.

We've also supported numerous small business transactions:

· Greenfield World Trade, a small restaurant equipment exporter in Fort Lauderdale, Florida, used an Ex-Im Bank working capital guarantee to export $4.5 million of restaurant equipment to Thailand.

· Marketing Services of Greenville, Mississippi used a working capital guarantee to support sales of $3 million of cotton goods to Thai buyers.

CONCLUSION

These are but a few examples of Ex-Im Bank's commitment to U.S. exports to Thailand -- large and small.

We want to do what we can to help U.S. businesses like yours to successfully do business in the important and growing Thai market.

We want to make sure that Thai companies large and small have access to cutting-edge U.S. products and technology.

The time is right. We have the financing tools.

Now I want to hear more about what your interests are.

I'd be happy to entertain questions.