Major US companies warn of impact of Ex-Im Bank’s demise
The Wall Street Journal (6/10, Timiraos, Mann, Subscription Publication) reports that US companies including Boeing, General Electric, and Westinghouse warn that major contracts abroad could be at risk if the Export-Import Bank charter is not renewed. They also said that they may relocate overseas if the Ex-Im Bank and its guarantees of financing disappear. Some business executives have voiced concerns that ending the Ex-Im Bank puts US trade at risk since many other nations use state-backed credit agencies for exports. The Journal adds that Ex-Im Bank supporters, including the president and almost all Democrats, believe they have the votes to pass a reauthorization bill. The Morningstar (6/10, Timiraos, Mann) also ran this article.
Ex-Im Bank Helps Strengthen The “Foundations Of American Power.” In an opinion piece for the National Interest(6/10, Petraeus, O’Hanlon), KKR Global Institute member David Petraeus and Brookings Institution senior fellow Michael O’Hanlon argue that “economic and national security concerns argue strongly” for the continuation of Ex-Im Bank funding. Petraeus and O’Hanlon break down how renewing the Bank helps in “strengthening the foundations of American power” and how it will help manufacturing. The piece argues that “it is crucial for an advanced economic and military power to have a robust, diverse manufacturing sector.” As such, Petraeus and O’Hanlon argue that the choice to continue funding the Ex-Im Bank is “an easy call. It should receive continued funding.”
McCarthy: “Ex-Im Provides Cover” For American Businesses. In an op-ed for the Sierra Vista (AZ) Herald (6/8), Dennis McCarthy, Chief Financial Officer of Competitive Engineering, states that “killing Ex-Im is basically a unilateral disarmament putting American companies at a disadvantage,” noting that 59 other countries have credit agencies that support business exports like the Ex-Im Bank. McCarthy also argues that the Ex-Im Bank does not intrude on the private market since the Bank is “barred by law from competing against commercial banks.” According to McCarthy, without the Ex-Im Bank, his “company probably wouldn’t be in business” as the financing it provides is unavailable elsewhere. Consequently, he urges his lawmakers to support the Ex-Im Bank and the 9,000 businesses and 1.2 million jobs that the Bank has “directly” supported.
Gossett: Ex-Im Closure Risks Hurting South Carolina’s Economic Success. In an op-ed for the Greenville (SC) News (6/9), Lewis Gossett, President and CEO of the South Carolina Manufacturers Alliance, states that as the manufacturing sector helps “[lead] the way” in South Carolina’s economic gains, the “bright future for continued growth is at risk if a minority of folks in Congress are successful in killing the Export-Import Bank.” Gossett notes his surprise at “the lengths” that some of his state’s congressmen are going “to harm…American jobs to the benefit of foreign competitors.” Gossett argues that concerns about impacts on tax payers are unwarranted because the Bank “runs annual surpluses” and notes that foreign nations have similar banks to aid their business exports. Gossett urges his lawmakers to support Ex-Im Reauthorization legislation.