Failure to Reauthorize Ex-Im Bank Called a “Missed Opportunity”
Congress is being scolded for passing on an opportunity to “support thousands of American jobs at firms across the nation that are striving to compete in a global marketplace” by reauthorizing the U.S. Export-Import Bank (Ex-Im).
“Despite the Export-Import Bank of the United States having the support of broad bipartisan majorities in both chambers of Congress, a small minority has prevented a vote reauthorizing this important export financing tool for U.S. exporters,” said David F. Melcher, president and CEO of the 321-member, Arlington, Virginia-headquartered Aerospace Industries Association.
According to its charter, Ex-Im is able to continue operating for now, but is unable to support any new projects until it is reauthorized.
Melcher cited a comment made by a top-level official at the Bank of China in Beijing who was quoted last week as saying that the failure by Congress to reauthorize Ex-Im was “a good thing” in light of the competition in strategy and policies between the U.S. and China.
“The Chinese export credit agency and agencies like it around the world will be eager to step in on behalf of America’s competitors and snatch the trade opportunities that would otherwise support jobs at American firms,” says Melcher. “Every day that goes by sends the message to potential overseas customers that they are better served buying products from countries other than ours.”
Thousands of businesses “from small mom-and-pop shops to large corporations benefit both directly and indirectly from the Bank’s loan guarantees,” he said, adding that “failure to restore the Bank will strike a blow at companies across the American economy, putting their employees at risk while handing our foreign competitors a huge advantage.”