On Ex-Im, House GOP Extremism Failing American Workers
"Ex-Im – that has failed now, and it should stay failed. I fought hard [to shut down Ex-Im], and I'll continue to fight."
Leader McCarthy: the only thing that has "failed" is the House GOP's radical agenda – which is costing American jobs and abandoning thousands of export-reliant workers and businesses.
- Wall Street Journal: Shutdown of U.S. Ex-Im Bank Puts Companies in a Financing Bind
Amid a clash over spending priorities, congressional Republicans effectively shut down the U.S. Ex-Im Bank by failing to reauthorize the agency at the end of June. That means the bank can't make new loans or provide loan guarantees to foreign companies so they can buy American products and services.And American companies can't renew their export-credit insurance policies.
The shutdown was a blow to many companies in the U.S. and abroad that are fighting for revenue in a sluggish global economy. Many foreign companies like Ethiopian Airlines are looking to do business with trusted American suppliers, while U.S. companies are searching abroad for new customers…
… Meanwhile, small U.S. companies, which can't relocate or move jobs overseas, are feeling the brunt of the bank's closure. W.S. Darley & Co., a maker of firetrucks and related gear, said the shutdown already has cost it a contract worth about $7 million.
The customer's loan didn't get final Ex-Im Bank approval, and since W.S. Darley's contract was contingent on that financing, "that sale could just be gone," said Chief Operating Officer Peter Darley.
With projects falling out of the pipeline, employees at the Itasca, Ill., company are worried about their jobs, he said. "It hurts us. We had a lot of good momentum," he said, referring to building firetrucks for foreign cities and towns.
"We might be losing projects we're not aware of," he said. "If a buyer knows that Americans don't have an open Ex-Im, they might not even knock on the door, or invite us to the bid table."
- Louis Post-Dispatch: Loss of Ex-Im Bank is starting to cost U.S. jobs
The Tea Party folks argued that private-sector banks would fill the void after the Ex-Im Bank's lending authority lapsed on July 1. That might happen in an ideal world, but in the real world we're competing with other governments that are happy to finance their exporters…
"Some specific sectors and industries are really going to be hurt by this," says Caroline Freund, a senior fellow at the Peterson Institute for International Economics. "And for some small businesses, any exports they do really need the Ex-Im Bank."
… 90 percent of the agency's transactions were with small companies. Semi-Bulk Systems, a Fenton maker of systems for processing dry and bulk materials, was one of them.
Al Moresi, Semi-Bulk's controller, said the company hasn't had any export transactions since July. "Itwill be problematic if they never approve the Ex-Im Bank again, because we would have to go to somebody who charges higher fees," he said.
… it seems odd that the small-government forces have singled out a small…agency that doesn't even add to the deficit. Last year, the Ex-Im Bank returned $675 million in profit to the Treasury.
- Pittsburg Post-Gazette: The Ex-Im Bank is a critical tool for our economy
Encouraging domestic export of products and goods has been, for a number of years, one of those commonsense policies that drew bipartisan support. Today, support of thoughtful policies that enable American companies to fully maximize their export potential is as vital as ever.
Reauthorization of the Export-Import Bank of the United States is such a policy. Ex-Im directly supports American jobs, and it operates at no cost to the U.S. taxpayer. Unfortunately, today it sits unauthorized, in a state of limbo…
The Ex-Im Bank provides critical support for U.S. exporters by leveling the playing field with competitors around the world. The negative ramifications are already being felt. GE recently announced that it will relocate 500 jobs overseas, citing Congress' failure to reauthorize Ex-Im.
Ex-Im is a critical tool in ensuring that Pittsburgh area companies are selling their products around the world and growing jobs back home. Congress should reauthorize the bank with a long-term commitment.
- Washington Examiner: The consequences of abolishing the Export-Import Bank
So does the idea that Ex-Im Bank should not exist come with costs? In our global economy, where growth markets are not in the U.S. but outside our borders, businesses need government-backed lines of credit and loan guarantees to remain competitive, which is what Ex-Im provides. When these lines of credit are lost, American competitiveness is also lost, translating directly into reduced job creation and job loss. Make no mistake – the loss of jobs in South Carolina and across the nation will be a consequence of doing away with this important institution.
The tangible cost of Ex-Im's expiration is a reduced quality of life for potentially hundreds of thousands of people. This isn't about big corporations, it's about the suppliers to those companies and small businesses trying to expand their markets…
Abolishing Ex-Im will not reduce government spending. It will not create private sector jobs. It will not reduce the deficit. In fact, it will do the exact opposite. Ex-Im provides loan guarantees that businesses pay back. The interest from Ex-Im loan guarantees is put toward paying down the deficit. Private sector business, including Ex-Im customers, are the engines that create good jobs for everyday Americans.
This is the fundamental mistake of conservative opposition to Ex-Im. It is the placement of a priority on an idea over the idea's impact on individuals. And the impact to individuals is tangibly detrimental.
- Hartford Business Journal: Ex-Im Bank freeze creates trade barriers for CT firms
Congress's failure to reauthorize the U.S. Export-Import Bank is affecting more Connecticut companies than just General Electric, according to a trade official in the state.
Uncertainty has been cast over export financing and insurance for other in-state firms as well, forcing some to consider alternative options…
"Most other countries have [entities similar to] EX-IM Bank and it makes it difficult for U.S. companies to compete when we don't have the same tools other countries have," said Anne Evans, district director of the U.S. Department of Commerce in Connecticut…
…"What is difficult is that we're out here competing in the international economy and we need to give our companies every tool that's possible to make sure that they can compete," Evans said.
In many cases, Connecticut companies' competition isn't in another state, she said.
"It's in Germany or Japan, or someplace overseas where those tools are provided to them and we need to make sure that we're giving our companies every tool possible for them to grow their business," Evans said.