Export-Import Bank Vote Coming Soon
H. R. 2072 to reauthorize the Export-Import Bank of the United States is expected to come up for a vote in Congress in the next week or two.
Previously the TPP has published an article on the Export-Import Bank as part of the Government Accountability News.
Proponents of the Export-Import Bank claim the Bank merely levels the playing field for US exporters because other countries offer similar financing. Congressman Miller’s office makes the following additional points:
- To create jobs, American companies need to be competitive with foreign companies that have access to export credit.
- The House Republican bill includes strong language to ensure that surpluses the Ex-Im Bank returns to the Treasury ($3.4 billion since 2005) are continued into the future.
- The bill ensures that the Bank stays true to its purpose as a lender of last resort, and does not compete against private sector commercial banks.
- The bill includes language to keep default rates low.
The National Review On-Line and editors of the Wall Street Journal (Saturday/Sunday March 3-4, 2012) recently came out with a different take on the Export-Import Bank, making arguments for not raising taxpayer exposure and ending the operation of the Bank altogether. Among their arguments:
- Why should taxpayers bear risks that private banks are unwilling to take?
- Subsidies benefiting foreign companies’ purchase of American exports has the unintended consequence of hurting American firms as exemplified by Delta Airlines that claims losses of 7500 jobs and $684 million a year due to the Bank’s subsidies of its foreign competitors (Air China and Air India).
- The Bank distorts free markets in picking winners and losers.
- US goods and services exports in 2011 totaled $2.1 trillion, of which the Bank’s contribution was negligible.