ICYMI: Foreign ECAs Willing To Do Anything To Win Business
In sworn testimony to the House Financial Services Committee today, Ex-Im Chairman Fred Hochberg said, “Foreign export credit agencies have said point blank they will do whatever it takes to increase their exports and increase their trade.”
Hochberg went on to emphasize that, “China has up to four different export credit agencies… with not a lot of transparency and not a lot of accountability.”
He also noted that increases from foreign ECAs in short term lending will only put more competitive pressure on American small businesses trying to compete abroad.
Below are more examples of foreign ECAs indicating that if Ex-Im goes away, they will only continue to expand their export credit assistance.
Ian Katz, Kevin Hamlin And Brian Parkin Report That The Ex-Im Bank Is “U.S. Is Already Outgunned By Its Competitors.” “Ex-Im says the U.S. is already outgunned by its competitors. In a report last week citing official data from foreign governments, Ex-Im said China financed $111 billion in long- and medium-term export credit last year, Japan furnished $33 billion and South Korea $24 billion, while the U.S. provided $15 billion.” (Ian Katz, Kevin Hamlin And Brian Parkin, ” Rivals Already Outgun U.S. on Trade Subsidies as Ex-Im Imperiled,” Bloomberg,6/30/14)
The UK Export Finance Agency Is Actively Expanding Its Export Financing Operations. “With companies such as Barclays, Citi, Deutsche Bank, HSBC and RBS all winning awards in the trade finance and global trade finance sectors of theGTR Leaders in Trade 2014, the award puts UKEF in good company. It also follows UKEF’s delivery of innovations that include the launch of both the Direct Lending Facility, which supported its first loan in early October, and the Export Refinancing Facility, as well as the extension of guarantees for offshore Renminbi-denominated loans – a first for an ECA. At the same time,UKEF has strengthened its short term product offering, supporting contracts worth over £1 billion already in 2014, with over 200 companies and contracts worth over £2 billion supported since their launch.”(“UK Export Finance Voted Best Export Credit Agency,” GOV.UK, 12/5/14)
Duk-Hoon, CEO Of Korea’s Export-Import https://exportersforexim.org/files/2015/06/bank, says it plays “A Leading Role” In Promoting Korean Competitiveness. “As a state-run bank, Eximbank is to play a leading role in promoting the export competitiveness of Korean companies and boosting Korea’s economy into the ranks of developed nations.” (Lee Duk-Hoon, “Eximbank Chief Takes Office Despite Union Protest,” Korea Herald, 3/11/14)
The ECA Of Japan Has Been Playing A Vital Role In The Success Of Japanese Businesses, Says CEO Of NEXI. “NEXI … has played a dominant role within Japan in providing trade insurance, a vital instrument for facilitating Japanese exports and overseas investments and for realizing sustainable development of our economy. Since its establishment in April 2001, NEXI has been providing its export and investment insurance to ensure Japanese businesses against risks overseas that cannot be covered by private-sector insurance.” (Kazuhiko Bando, “Message From The Chairman,” Nippon Export And Investment Insurance (NEXI))
The National Export Credit Insurer Of India Is Crucial For Indian Exporters. “[T]he role of ECGC, the national export credit insurer of India, continues to be very important and crucial as exporting without suitable credit insurance is fraught with huge risks.” (ECGC, “Press Release,” ECGC, 5/19/14)