Legislation to Give U.S. Exports a Boost Passes the House
WASHINGTON, DC – The House of Representatives today approved legislation to aid U.S. exporters by passing the Export-Import Bank Reauthorization (S. 3938). With this action, the House not only moved to reauthorize the Export-Import Bank, but at the same time it approved new provisions to protect the U.S. export economy from being threatened by China, which is effectively subsidizing its exports, and to stoke small business exporting.
Rep. Carolyn Maloney, the senior Democrat on the Domestic and International Monetary Policy, Trade and Technology Subcommittee, said today that Congress’s action will help to address the U.S. trade imbalance.
“The reauthorization of the Ex-Im Bank itself was very necessary, and the added provisions deal with important issues in our export economy,” said Maloney. “When they have to compete with Chinese firms benefitting from unfair trade practices, U.S. exporters are operating with one hand tied behind their backs. We have tried to remedy that. The emphasis on small businesses in this legislation will provide a lift to typically underserved American business owners that want to export goods or services.”
The reauthorization legislation gives the Export-Import Bank greater authority to use the Tied Aid Fund, established several years ago by Congress, to specifically combat unfair export practices by other countries, including China.
The bill also creates a Small Business division within the Export-Import Bank, small business specialists to focus on small business loans and guarantees, a Small Business Committee and an office charged with expanding outreach to socially and economically disadvantaged small businesses and small businesses owned by women.
The Export-Import Bank is an independent U.S. government agency that assists in financing the export of U.S. goods and services to markets around the world, through export credit insurance, loan guarantees, and direct loans.
S. 3938 passed the Senate in late September. The negotiated version passed today by the House closely reflects the House reauthorization bill, H.R. 5068, which passed in July and was sponsored by Reps. Deborah Pryce (R-OH), Maloney, Financial Services Chairman Michael Oxley (R-OH), and Financial Services Senior Democrat Barney Frank (D-MA). The Senate is expected to take up the negotiated bill this week.