One story we haven’t heard much about so far this year is that of the Export-Import Bank. The Bank’s charter expired at the end of 2011 and it’s currently working off a temporary extension which is far from adequate.
Ex-Im plays an important role in manufacturers’ ability to export. If the Bank isn’t reauthorized the ripple effect will spread all the way down the supply chain to even the smallest companies.
Manufacturers are urging Congress to act now to reauthorize the Bank. Ex-Im will have to play an important role if we are going to meet the President’s goal of doubling exports by 2014. Reauthorization should be an easy decision for Congress as it doesn’t come with a large price tag, the Bank is funded through fees on its loans.
Loren Thompson a contributor for Forbes tells the story of Ex-Im in a recent column. Below is an excerpt. It’s time for Congress to move forward with reauthorization before we lose out to our competitors.
“The other, more recent, reason why the government needs to help U.S. exporters with financing is that other countries have greatly expanded their own financial assistance to exporters. For instance, as a percentage of GDP, China extends 17 times more credit assistance to its exporters than America does, and other emerging countries like Brazil and India are not far behind.”
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