Friday January 30, 2009
Export-Import Bank
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See also: The Export-Import Bank (also known as the Ex-Im Bank) was established in 1934 as the official export credit agency of the United States. It helps U.S. companies, small and large, by providing loans, guarantees and insurance to finance the sale of U.S. exports.
In the five years covering fiscal years 2004 to 2008, Ex-Im Bank supported firms in communities from Coeur d'Alene to Pocatello for a total of $127.57 million in export value.
In 2006, as the chairman of the Senate Finance subcommitee with jurisdiction over the Ex-Im Bank, I authored legislation (passed in September of 2006) to reauthorize the Bank's authority through September 30, 2011.
The last reauthorization changed the economic impact procedures to include the effect of outstanding trade orders, preliminary injury determinations, and section 201 investigations before determining the Bank’s financing of exports. This was an attempt to ensure that the Bank support for transactions not only helps U.S. exporters, but does not negatively impact domestic companies.
Read statements related to the Ex-Im Bank:
Hearing on Jim Lambright's nomination to be Chairman & President of the Ex-Im Bank
Hearing on Economic Impact Issues in Ex-Im Bank Reauthorization
The current system still has problems and tensions continue between the companies on both sides of the issue. This has been demonstrated on loan guarantees involving steel, semiconductors, ethanol and soda ash.
Although the vast majority of loan guarantees before the Bank should not be delayed, some of the larger and more controversial loan guarantees do need to be better vetted. Otherwise groups that believe they will be harmed by the loan guarantee will come to Congress and ask us for intervention.
A better approach would be to establish a process which is fair and perceived to be fair by everybody, so that the facts are all well presented to the board and they can act accordingly.
Useful Links
Congressional Research Service report on "The Export-Import Bank: Background and Legislative Issues."
Idaho's pledge to be an Ex-Im Partner. Read more about that pledge here.
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