Features
    Research & Policy
    Reauthorize the Export-Import Bank
    September 16, 2014

    Congress this fall will consider ‘reauthorization’ of the Export-Import Bank of the United States, in an environment in which the 80-year-old Bank has received closer scrutiny than ever before. The Bank’s critics are mistaken. Its mission remains valid and its operations remain important. On four grounds of good public policy and for legitimate national self-interest, Congress should approve the reauthorization and renew the Bank’s charter:

    1. In the short term, Ex-Im has an important role in ensuring sustained export-based growth for the U.S., with domestic demand still weak in the aftermath of the financial crisis.

    2. Over longer periods, a well-managed public export credit program helps meet unique and carefully defined needs when private credit is scarce, such as for some smaller businesses newly involved in exporting and long-term developing-country imports for power, aviation, and urban infrastructure.

    3. Ex-Im is a useful insurance policy against future crises in which private credit may again become unavailable.

    4. And in a world of 60 export credit agencies worldwide, in which export credit agencies in China, Germany, Japan,, France, Brazil, and all other major economies provide at least $300 billion in commitments of loans, credit guarantees, insurance, tied aid, and other supports,  the United States has a legitimate and strong self interest in averting the systemic disadvantage that could emerge for American exporting businesses and their workers should the Ex-Im Bank be closed.

    For the full text of the paper: