CHART: United States Ranks Last In Share Of National Exports Supported By Export Credit Assistance
The United States ranks last in share of national exports supported by export credit assistance. Even before the Export-Import (Ex-Im) Bank lapsed, U.S. exporters were already at a competitive disadvantage thanks to lavish foreign spending. Of countries who self reported their ECA data, the U.S. trails behind its foreign competitors, supporting less than a fifth of the percentage of exports supported by China.
Ex-Im was one tool that helped level the playing field, but since Congress allowed it to lapse this summer, U.S. job creators are at more of a disadvantage in the international marketplace.
Below, please find additional information on how Ex-Im helps U.S. companies grow jobs and export abroad.
In A World Without The Ex-Im Bank, U.S. Companies Will Have To Turn To Foreign Financing. “The Bank’s critics also miss the point that in a globally interconnected world, companies have choices in their financing. Since our major competitors all have counterpart institutions, there is little to prevent a U.S. company from obtaining foreign financing if there is no U.S. Ex-Im Bank to help.” (Bill Reinsch, “Guest Blog: Ex-Im Bank Reauthorization: Same Ol’ Criticisms Neglect Bank’s Economic Value,” Wilson Center America’s Trade Policy Blog, 7/8/14)
Shutting Down The Bank Produces A “Double Whammy” Of Lost Exports And Jobs. “Of course, there is a price for that – a percentage of foreign content in the finished product high enough to qualify for another country’s financing. So, shutting down the Bank produces a double whammy. Not only will we lose exports directly, but our manufacturers will have no choice but to design out American parts and design in foreign content.” (Bill Reinsch, “Guest Blog: Ex-Im Bank Reauthorization: Same Ol’ Criticisms Neglect Bank’s Economic Value,” Wilson Center America’s Trade Policy Blog, 7/8/14)
Former Secretary Of The Treasury Larry Summers Warns That Closing The Bank Is “Unilateral Disarmament.” “At a time when authoritarian mercantilism has emerged as the principal alternative to democratic capitalism, the US Congress is flirting with eliminating the Export-Import https://exportersforexim.org/files/files/bank that, at no cost to the government, enables us exporters to compete on a more level playing field with those of competitor nations, all of whom have similar vehicles…Eliminating the Export Import https://exportersforexim.org/files/files/bank without extracting any concessions from foreign governments would be the economic equivalent of unilateral disarmament.” (Lawrence Summers, “Put American Foreign Policy Back On The Pitch,’” Financial Times, 7/6/14)