[Congressional Record Volume 148, Number 52 (Wednesday, May 1, 2002)]
[House]
[Pages H1773-H1792]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
EXPORT-IMPORT BANK REAUTHORIZATION ACT OF 2001
Mrs. MYRICK. Mr. Speaker, by direction of the Committee on Rules, I
call up House Resolution 402 and ask for its immediate consideration.
The Clerk read the resolution, as follows:
H. Res. 402
Resolved, That any time after the adoption of this
resolution the Speaker may, pursuant to clause 2(b) of rule
XVIII, declare the House resolved into the committee of the
Whole House on the state of the Union for consideration of
the bill (H.R. 2871) to reauthorize the Export-Import Bank of
the United States, and for other purposes. The first reading
of the bill shall be dispensed with. All points of order
against consideration of the bill are waived. General debate
shall be confined to the bill and shall not exceed one hour
equally divided and controlled by the chairman and ranking
minority member of the Committee on Financial Services. After
general debate the bill shall be considered for amendment
under the five-minute rule. It shall be in order to consider
as an original bill for the purpose of amendment under the
five-minute rule the amendment in the nature of a substitute
recommended by the Committee on Financial Services now
printed in the bill. The committee amendment in the nature of
a substitute shall be considered as read. All points of order
against the committee amendment in the nature of a substitute
are waived. No amendment to the committee amendment in the
nature of a substitute shall be in order except those printed
in the report of the Committee on Rules accompanying this
resolution. Each such amendment may be offered only in the
order printed in the report, may be offered only by a Member
designated in the report, shall be considered as read, shall
be debatable for the time specified in the report equally
divided and controlled by the proponent and an opponent,
shall not be subject to amendment, and shall not be subject
to a demand for division of the question in the House or in
the Committee of the Whole. All points of order against such
amendments are waived. At the conclusion of consideration of
the bill for amendment the Committee shall rise and report
the bill to the House with such amendments as may have been
adopted. Any Member may demand a separate vote in the House
on any amendment adopted in the Committee of the Whole to the
bill or to the committee amendment in the nature of a
substitute. The previous question shall be considered as
ordered on the bill and amendments thereto to final passage
without intervening motion except
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one motion to recommit with or without instructions.
Sec. 2. After passage of H.R. 2871, it shall be in order to
take from the Speaker's table S. 1372 and to consider the
Senate bill in the House. All points of order against the
Senate bill and against its consideration are waived. It
shall be in order to move to strike all after the enacting
clause of the Senate bill and to insert in lieu thereof the
provisions of H.R. 2871 as passed by the House. All points of
order against that motion are waived. If the motion is
adopted and the Senate bill, as amended, is passed, then it
shall be in order to move that the House insist on its
amendment to S. 1372 and request a conference with the Senate
thereon.
The SPEAKER pro tempore (Mr. Gutknecht). The gentlewoman from North
Carolina (Mrs. Myrick) is recognized for 1 hour.
Mrs. MYRICK. Mr. Speaker, for the purposes of debate only, I yield
the customary 30 minutes to the gentleman from Florida (Mr. Hastings);
pending which I yield myself such time as I may consume. During
consideration of this resolution, all time yielded is for the purpose
of debate only.
Yesterday, the Committee on Rules met and granted a structured rule
providing for consideration of the bill H.R. 2871, the Export-Import
Bank Reauthorization Act of 2001. The rule waives all points of order
against consideration of the bill and provides for 1 hour of general
debate equally divided and controlled by the chairman and ranking
member of the Committee on Financial Services.
The rule further provides the amendment in the nature of a substitute
recommended by the Committee on Financial Services now printed in the
bill shall be considered as an original bill for the purpose of
amendment and shall be considered as read. It waives all points of
order against the bill as amended and makes in order only those
amendments printed in the report of the Committee on Rules accompanying
the resolution.
H. Res. 402 provides that the amendments printed in the report shall
be considered only in the order printed in the report, may be offered
by a Member designated in the report, shall be considered as read,
shall be debatable for the time specified in the report equally divided
and controlled by the proponent and an opponent, shall not be subject
to an amendment, and shall not be subject to a demand for division of
the question in the House or in the Committee of the Whole.
The rule also waives all points of order against the amendments
printed in the report and provides one motion to recommit with or
without instructions.
Finally, it provides that after the passage of H.R. 2817, it shall be
in order to take from the Speaker's table S. 1372, consider it in the
House, and move to strike all after the enacting clause and insert the
text of H.R. 2871 as passed by the House. It waives all points of order
against consideration of the Senate bill and the motion to strike and
insert.
If the motion is adopted and the Senate bill, as amended, is passed,
then it shall be in order to move that the House insist on its
amendments and request a conference.
H. Res. 402 is a bipartisan, fair rule; and it allows for four
Democrat amendments.
Mr. Speaker, the Export-Import Bank Reauthorization Act of 2001
reauthorizes the bank for 4 years and has important provisions that
encourage small business transactions; and it allows other key changes
that will improve the operations of Ex-Im.
The mission of Ex-Im is to support export financing of U.S. goods and
services. Ex-Im is designed to help U.S. exporters match competition
from foreign export credit agencies in Japan, Germany, France, and
other countries.
By law, Ex-Im is intended only to fill gaps in commercially available
financing for U.S. exports by serving as a lender of last resort and
not competing with private lenders. Ex-Im is also required by law to
work towards securing international agreements to reduce government-
subsidized export financing, thereby promoting free and fair trade.
I want to commend my colleague, the gentleman from Nebraska (Mr.
Bereuter), for responding to concerns about the dumping of steel
products on the U.S. markets. He has included a provision that directs
Ex-Im to reevaluate the adverse-impact test it performs. This bill now
seeks to ensure the bank takes into account the interest of U.S.
industries before approving a transaction.
H.R. 2871 is a strong piece of legislation that will help American
manufacturers, American workers, and the American economy. This bill
was crafted with substantial Democrat input and was reported out of the
Committee on Financial Services on a bipartisan vote. I urge my
colleagues to support this rule and to support the commonsense
legislation that it underlies.
Mr. Speaker, I reserve the balance of my time.
Mr. HASTINGS of Florida. Mr. Speaker, I yield myself such time as I
may consume. I would like to thank my good friend, the gentlewoman from
Charlotte, North Carolina (Mrs. Myrick), for yielding me this time.
Mr. Speaker, this bill reauthorizes the Export-Import Bank of the
United States through fiscal year 2005. It mandates changes in bank
programs and creates a new division in the Bank for Africa. And I would
like to personally extend my thanks to my colleague and good friend,
the gentleman from Nebraska (Mr. Bereuter), for enhancing this bill
through working with our colleagues to provide that provision.
The Export-Import Bank operates under a renewable charter, the
Export-Import Bank Act of 1935, and was last fully authorized in 1997
through September 30, 2001. A short-term extension through April 30,
2002, was passed by voice vote on March 19. I supported that measure in
1997 and likely will support the base bill today.
But, Mr. Speaker, although some amendments were permitted, five, and
I think each of them highlights concerns that our Congress Members
have, certainly I do, of the many amendments that were not accepted,
one in particular, in my judgment, should have been. That amendment,
authored by the gentlewoman from Illinois (Ms. Schakowsky), represented
the creation of a Human Rights Impact Assessment Office within the
bank. That office would have been tasked to ensure that the bank
identify human rights' concerns when projects were considered for
financing.
In addition, the amendment would have directed that the new office
would report to the President and the Congress on the potential human
rights impact of every proposed project of $10 million or more.
Mr. Speaker, if the bank is using taxpayer dollars to fund projects,
it should also have at its disposal the tools to ensure that those
projects do not violate human rights. In my view, this should be a
minimum expectation.
On the subject of human rights, one amendment has been permitted to
be considered. It was also authored by the gentlewoman from Illinois
(Ms. Schakowsky). It states the sense of the Congress that the bank
should have available to them an assessment of each financed project's
potential impact on human rights.
This is a good start, Mr. Speaker; but it does not direct the bank to
report on the human rights impacts of its projects, nor does it
identify where the bank will get this data.
{time} 1030
Mr. Speaker, another important amendment accepted for consideration
with this bill was introduced by the gentleman from Vermont (Mr.
Sanders). This incredibly thoughtful amendment would prohibit companies
from receiving future Export-Import Bank assistance if they lay off a
greater percentage of workers in the United States than they lay off in
foreign countries.
Mr. Speaker, the original bill was introduced in 1935 to create jobs
in the midst of the Great Depression. We need to make sure that the
bank fulfills that mission, and does not simply finance large
corporations with little or no thought to American workers.
An investigation in the other Chamber recently revealed that over
$650 million loans were given to Enron. We still do not know if those
loans will be defaulted at the taxpayers' expense. Once again, a major
corporation, Enron, had a party, and the American people may have a
hangover.
Mr. Speaker, this bill does take some positive steps, but in my view
it does not go nearly far enough. These two amendments that I just
mentioned address human rights and American workers issues which are
critical to the
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original intent of the bill. I urge my colleagues to support these
amendments, and give active attention to the debate as it progresses
today.
Mr. Speaker, I reserve the balance of my time.
Mrs. MYRICK. Mr. Speaker, I yield 4 minutes to the gentleman from
Nebraska (Mr. Bereuter), the chairman of the Subcommittee on
International Monetary Policy and Trade.
Mr. BEREUTER. Mr. Speaker, I rise in strong support of H. Res. 402,
which is a rule under which the Export-Import Bank Reauthorization Act
of 2001 will be debated, and I thank the gentlewoman for yielding me
this time, and for the effort of the gentleman from Florida (Mr.
Hastings) as well. And the whole Rules Committee and especially the
chairman and ranking member of the committee, the gentleman from
California (Mr. Dreier) and the gentleman from Texas (Mr. Frost) and
their staff are owed great credit and appreciation for their assistance
in crafting the rule.
The gentleman from Florida (Mr. Hastings) is exactly right, as the
gentlewoman from North Carolina (Mrs. Myrick) also recognized, that the
legislation covered by this Rule comes to the House through a
bipartisan effort, with substantial input from numerous members. In
fact, I think the very complete input from both sides of the aisle, and
the democratic process certainly had its positive impact at both the
subcommittee and the committee level.
The Export-Import Bank is an independent U.S. Government agency that
creates and sustains American jobs by providing direct loans to buyers
of U.S. exports, guarantees to commercial loans to buyers of U.S.
products, and insurance products which greatly benefit short-term small
business sales. The Export-Import Bank finances exports such as
civilian aircraft, electronics, engineering services, vehicles,
agricultural equipment, and so on. It is also important to note that
the Export-Import Bank charges risk-based interest and fees on the
users of its credit products. As a result, last year, the Export-Import
Bank generated $1 billion of net income to the U.S. Government.
To illustrate the importance of the bank, in fiscal year 2000, they
supported $15.5 billion in U.S. exports through an appropriation of
$759 million. Moreover, in the past 60 years, the Export-Import Bank
has supported more than $300 billion in U.S. exports. It also needs to
be noted that the Ex-Im Bank is only intended to be the lender of last
resort, and the Bank is not intended to compete with private lenders.
Mr. Speaker, this legislation is not simply a reauthorization. While
the executive branch, regardless of who is in the White House, always
seems simply to want a straightforward reauthorization of everything,
this committee has taken the time and made the effort to give us some
basic reforms.
For example, we provide in greater detail how the following subjects
will be addressed, to enhance the role of small and medium-sized
businesses in using the bank, to have a dramatic outreach program, and
to increase the percentage of the total resources that go to small and
medium-sized businesses. The gentleman from Florida (Mr. Hastings) has
mentioned our special effort with respect to Africa, both the
reauthorization of the advisory committee for Sub-Saharan Africa, and
the creation of an Office of Africa within the bank, and the latter
comes from one of our Member's initiatives.
The gentleman from Pennsylvania (Mr. Toomey) has taken the
controversial Ex-Im Bank transaction for American exporters to Benxi
Iron and Steel firm, and he has given us some very important reform
legislation which is a part of the bill today. It relates to American
exports to those businesses abroad that are parts of sectors for which
a 201 case has been made under the International Trade Commission or
where dumping is formally ruled to be taking place.
Finally, the gentleman from Florida (Mr. Hastings) made one point
about the initiative of the gentlewoman from Illinois (Ms. Schakowsky),
a distinguished member of the subcommittee and committee. The only
disagreement this Member has had with her approach is that she would
mandate a special human rights report to be made by the Export-Import
Bank. In fact, the State Department issues such country human rights
reports, and we have in this legislation recognized it the key agency
to provide human rights information to all of the agencies of the
Federal Government.
The gentlewoman's alternative amendment, which is made in order,
certainly is one I can support. And, in fact, we can strengthen it by
insisting that the State Department's human rights country report for
the particular country that would be the destination for an American
export be considered by the Export-Import Bank by report language
during a House-Senate Conference.
Mr. Speaker, I urge support of the legislation.
Mr. HASTINGS of Florida. Mr. Speaker, I yield myself 1 minute.
Mr. Speaker, to respond to the gentleman with reference to the
amendment offered by the gentlewoman from Illinois (Ms. Schakowsky), my
feeling is that the human rights division of the State Department does
cover many of these measures; but I do believe that they would have to
rely upon the information that they receive from the Export-Import
Bank. If the Export-Import Bank does like some agencies do, then they
very well may not have a full report.
Mr. BEREUTER. Mr. Speaker, will the gentleman yield?
Mr. HASTINGS of Florida. I yield to the gentleman from Nebraska.
Mr. BEREUTER. Mr. Speaker, maybe I was not clear. I expect to support
and urge support for the gentlewoman's amendment that has been made in
order, and to strengthen provisions of her amendment by the report
language.
Mr. HASTINGS of Florida. Mr. Speaker, I yield 4 minutes to the
gentleman from Vermont (Mr. Sanders), the former mayor of Burlington,
Vermont, who has particularly keen insight into the matter the
gentleman is about to discuss.
Mr. SANDERS. Mr. Speaker, I thank the Committee on Rules for making
my amendment in order which we will be debating later today, and I
especially thank the subcommittee chairman, the gentleman from Nebraska
(Mr. Bereuter), who promised me that he would support getting that
amendment on the floor, and he did.
Mr. Speaker, I rise as the ranking member of the relevant
subcommittee, and I must say, unlike many others, and perhaps as one of
two independents in the House of Representatives, I have some very,
very strong concerns about the direction of the Export-Import Bank. It
is my belief that unless we make fundamental changes in that bank and
the way that it functions, that we should eliminate it because as
presently constituted, it amounts to huge corporate welfare for some of
the largest multinational corporations in America.
The truth of the matter is, and I think it is high time Congress woke
up to it, and this goes well beyond the Export-Import Bank, the trade
policy of the United States is a failure.
Mr. Speaker, we have a $300-plus billion trade deficit. It is not
just steel, it is not just textiles. All over America, in rural
America, in my State, small manufacturing plants are going out of
business because they cannot compete with imports that come into this
country made in China where workers are being paid 20 cents an hour.
The big untold story of trade policy is that corporate America has sold
out American workers, sold out the American people, laid off millions
of American workers in search of cheap labor all over the world. We
have a $360 billion trade deficit, tell me how our trade policy is
successful. The mythology out there is we do not have to worry about
old manufacturing jobs, steel, textiles, cars, those are not good jobs.
All of our young people are going to have high tech, computer jobs,
minimum $50,000 a year, let the Mexicans and the Chinese have those
other jobs. What a terrible thing to say to millions of workers.
The result is that high school graduates today who go into the job
market are making 20 percent less than was the case 25 years because
the factory jobs are not there, and what is there are McDonald's and
Burger King, low wages, part-time, no benefits. We have to rebuild
manufacturing in this country and create decent paying jobs for our
working people.
Export-Import Bank is part of the problem, not the cause. Check the
record. Over 80 percent of the money
[[Page H1776]]
that comes from Export-Import Bank goes to large, Fortune 500
corporations. We give them the money, and General Electric and Motorola
and Boeing say thanks, taxpayers. By the way, we are laying off
American workers because we are off to China and Mexico; but give us
some more money.
Some of us have a radical idea. We think before we give taxpayer
money out to large, multinational corporations, maybe, just maybe, we
might want to insist that they do something about creating jobs in the
United States of America. I know that that is a very radical idea, that
taxpayer money be used to create jobs in America. The bottom line is
that if we are going to give these Fortune 500 companies money, let
them sign on the line and work on ways to create jobs in America. The
major companies that have received Ex-Im money are the major job
cutters in America. I want somebody to explain that to the workers in
America that have been laid off, that their tax dollars go to precisely
the companies that are laying off more workers than anyone else. It is
absurd on the surface.
Mr. Speaker, I have an amendment that will address it, and I hope we
will get strong bipartisan support. It is time that we change the trade
policy in America. This is a good way to start.
Mr. HASTINGS of Florida. Mr. Speaker, I yield back the balance of my
time.
Mrs. MYRICK. Mr. Speaker, I yield back the balance of my time, and I
move the previous question on the resolution.
The previous question was ordered.
The resolution was agreed to.
A motion to reconsider was laid on the table.
The SPEAKER pro tempore (Mrs. Myrick). Pursuant to House Resolution
402 and rule XVIII, the Chair declares the House in the Committee of
the Whole House on the State of the Union for the consideration of the
bill, H.R. 2871.
{time} 1042
In the Committee of the Whole
Accordingly, the House resolved itself into the Committee of the
Whole House on the State of the Union for the consideration of the bill
(H.R. 2871) to reauthorize the Export-Import Bank of the United States,
and for other purposes, with Mr. Gutknecht in the chair.
The Clerk read the title of the bill.
The CHAIRMAN. Pursuant to the rule, the bill is considered as having
been read the first time.
Under the rule, the gentleman from Ohio (Mr. Oxley) and the gentleman
from New York (Mr. LaFalce) each will control 30 minutes.
The Chair recognizes the gentleman from Ohio (Mr. Oxley).
Mr. OXLEY. Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, I rise today to urge my colleagues to support H.R.
2871, the Export-Import Bank Reauthorization Act of 2001. This is an
extremely important piece of legislation for American manufacturers,
American workers and the American economy. By reauthorizing the Export-
Import Bank, we will demonstrate our commitment to promoting U.S. goods
throughout the world. This legislation reauthorizes the Export-Import
Bank for 4 years, and makes several important changes in how Ex-Im
operates.
This is the first major piece of legislation relating to
international trade to come out of the Committee on Financial Services.
H.R. 2871 was reported by voice vote with strong bipartisan support on
October 31 of last year. I am proud of all of the hard work by the
committee on this bill, and I would like to take this opportunity to
thank the chairman of the subcommittee on International Monetary Policy
and Trade, the gentleman from Nebraska (Mr. Bereuter), for his
leadership and dedication in crafting this bill. The gentleman has
invested a lot of time and energy ensuring that Export-Import Bank
remains true to its mission of supporting U.S. exports and sustaining
U.S. jobs.
Mr. Chairman, reducing the trade deficit is critical to aiding the
economic recovery of the United States. Our manufacturers currently
face stiff competition from foreign companies seeking to expand the
sale of their goods overseas.
{time} 1045
There is little argument that goods made in the U.S. are of the
highest quality and are in great demand. At the same time, however,
foreign companies are getting lots of assistance from their export
credit agencies in finding markets and negotiating prices for their
goods. Without Ex-Im, U.S. importers would be forced to compete in this
international marketplace with one hand tied behind their backs. Ex-Im
levels the playing field of international trade by allowing U.S.
companies to compete on the quality of their product.
In a perfect world we would not need export credit agencies and the
free market would operate without market distortions. However, because
foreign governments are in the practice of aiding their manufacturers
through export credit agencies, the United States must fight fire with
fire. Ex-Im works to ensure that U.S. manufacturers receive equal
treatment and serves to promote U.S. exports overseas. Currently some
70 governments around the world have export credit agencies like Ex-Im
providing about $500 billion a year in government-backed financing.
Mr. Chairman, as long as foreign governments are financing export
credit agencies, we must support Ex-Im to ensure that our manufacturers
and workers remain competitive in the global marketplace.
Increasingly, financing is a key to winning export sales. In many
emerging markets, where the greatest export growth opportunities now
exist, commercial banks are often unwilling to provide financing, even
for creditworthy customers. In those cases, government export credit
agencies step in to finance the sales, either through direct loans to
the customer or through guarantees and insurance that a commercial
lender will be repaid by the customer. With guarantees and insurance,
commercial banks are willing to provide financing. A key role that Ex-
Im plays is to help open markets to U.S. exporters and promote follow-
on sales. Ex-Im has led the way in several markets, resulting in a
return of commercial financing for transactions.
A good example is the efforts Ex-Im undertook in Asia after the
currency crisis that that region experienced in the 1990s. When
commercial banks saw that Ex-Im was able to effectively transact
business in this region, they reentered this market, which contributed
to Asia's economic recovery.
Many critics of Ex-Im claim that it is a giveaway for large
corporations. That is simply not accurate, for several reasons. First,
approximately 90 percent of Ex-Im's transactions are with small
businesses. Those businesses rely on Ex-Im to help them reach overseas
markets that they would otherwise not be able to reach.
Secondly, while many of Ex-Im's higher dollar transactions go to
larger companies, we should remember that those large companies utilize
supplies from many small and medium-sized businesses in order to create
their products.
Finally, Ex-Im serves as the lender of last resort for U.S. exporters
when commercial financing is not available for export sales and when
the U.S. exporter is confronted with foreign competitors with financing
available from their own government.
Ex-Im charges interest on its direct loans and premiums for its
guarantees and insurance costs that the U.S. exporter usually passes
through to its overseas customer. Those charges usually range from 5 to
17 percent of the financing obtained, depending on the risk.
From the exporters' and customers' point of view, the bank does not
subsidize the cost of financing an export transaction. Ex-Im is no less
expensive to use than a commercial bank or other financial
intermediary.
I will defer to my colleague, the gentleman from Nebraska (Chairman
Bereuter), to describe the details of this legislation. However, I
would like to highlight some of the key provisions.
First, in this bill we seek to greatly expand the use of Ex-Im by
small businesses. That is achieved by expanding the required volume of
small business transactions from 10 percent to 18 percent, which will
ensure that more Ex-Im-related funds are getting to more local
businesses. The bill also authorizes more funds to be used to increase
[[Page H1777]]
small business outreach efforts and improve technology so that more
people can effectively use Ex-Im.
Second, H.R. 2871 contains strong provisions relating to U.S. trade
laws that will ensure Ex-Im adheres to U.S. policies and does not
contribute to overcapacity or dumping of goods on U.S. markets.
Third, this measure modifies a Tied Aid Credit Program by renaming it
the Export Competitiveness Program and Fund and outlining its
operation. The Secretary of the Treasury is empowered to establish how
this fund will operate and the Ex-Im Bank Board will have the final
determination of when the fund is used, thus maintaining the co-equal
roles of Treasury and Ex-Im.
The fund will be used to combat tied aid, untied aid and market
windows, all of which are tools that have been commonly used by foreign
governments to subvert export pricing agreements.
Finally, H.R. 2871 makes many important policy changes to Ex-Im's
charter. The bill contains provisions encouraging renewable energy
programs and efforts to combat corruption and terrorism, and requires
the Universal Declaration of Human Rights, as adopted by the UN, to be
the standard by which Ex-Im's transactions are reviewed.
The committee held its first hearing on the reauthorization of Ex-Im
one year ago tomorrow. At that hearing the administration submitted its
authorization request for a basic 4-year reauthorization. After an
additional hearing and intensive investigation, the gentleman from
Nebraska (Chairman Bereuter) crafted H.R. 2871 to reauthorize Ex-Im and
make important changes in how the bank operates.
This past fall the subcommittee and the full committee reported this
bill by voice vote with strong bipartisan support. Since that time, the
committee and the gentleman from Nebraska (Chairman Bereuter) have been
working diligently to remedy some concerns the administration had with
the original text. The results of these discussions is the manager's
amendment, which makes several technical changes requested by the
administration.
Mr. Chairman, Ex-Im provides assistance to both large and small
corporations across the United States. Without the guarantees,
insurance and direct loans provided by Ex-Im, many of those businesses
would not reach high risk or emerging markets with their products. As a
result, production levels would be lowered, the U.S. trade deficit
would be larger and fewer Americans would be employed in high paying
manufacturing jobs.
Mr. Chairman, I strongly urge my colleagues to vote in favor of U.S.
manufacturers, in favor of U.S. workers, and in favor of the U.S.
economy by voting yes on H.R. 2871.
Mr. Chairman, I reserve the balance of my time.
Mr. LaFALCE. Mr. Chairman, I yield myself such time as I may consume.
(Mr. LaFALCE asked and was given permission to revise and extend his
remarks.)
Mr. LaFALCE. Mr. Chairman, I am very pleased that the Committee on
Financial Services, under the able leadership of my friends, the
gentleman from Ohio (Mr. Oxley) and, on this particular bill, the
gentleman from Nebraska (Mr. Bereuter) was able to complete its work on
H.R. 2871 and bring it to the floor of the House, the Export-Import
Bank Reauthorization Act. One difficulty with it is its title, of
course, because it has nothing to do with imports, it only has to do
with exports, and one of these days we ought to change the name of the
bank to the Export Bank of the United States, or the United States
Export-Other Countries Import Bank. It would avoid needless confusion.
The bill, very importantly, reauthorizes Ex-Im Bank for 4 years. We
have to get over the 30 days, we have to get over the 1 year, 2 year.
We need a multiyear reauthorization, and 4 years is a good time frame.
But, most importantly, it also contains very important provisions that
could better define and guide Ex-Im's policies and programs.
Before I go into that, I want to give credit to another individual,
and that is the ranking Democrat on the relevant subcommittee, the
gentleman from Vermont (Mr. Sanders), who has attempted to even better
define its mission, its policies and its programs so that it could work
in the best interests of working Americans.
While we may agree or disagree on a specific prescription, we surely
agree on his intent and motivations, and I am hoping that, to the
maximum extent possible, Ex-Im Bank officials will work to implement
the existing and future laws in a manner that will effectuate those
shared goals.
Some individuals suggest that Ex-Im transactions are nothing more
than corporate subsidies, no better than some of the worst corporate
handouts contained in the Tax Code. That is not quite true.
First, Ex-Im operates in a very competitive international
environment, an environment in which export credit agencies in other
countries have become increasingly aggressive in supporting the exports
of the companies from their countries, our competitors. So it is
critical to have Ex-Im to counter those transactions, and, in doing so,
to provide leverage for the United States to negotiate a gradual
reduction in export subsidy activities amongst OECD Members. That must
work hand in hand. The United States must become ever more aggressive
in negotiating those reductions in subsidies, but, of course, this must
be done on a multilateral basis.
In short, absent the United States Ex-Im Bank, U.S. exporters would
find themselves competing at a significant disadvantage against foreign
exporters, who do enjoy government subsidies. With the loss or
diminution of key export markets would also come the loss of export-
oriented jobs in the United States, jobs which pay 18 percent more on
average than non-export jobs.
Ex-Im also has the charge of providing critical export financing in
cases where there is a market failure in private lending. Frequently
these failures relate to the nature of the exporter; very often, for
example, small businesses who face difficulties obtaining private
credit for export transactions. As a result, Ex-Im has been a very
important source of support for small business exporters nationwide.
With the advent of the Internet and Internet marketing, this becomes
ever more important for the small business person.
Market failures also relate to the nature and vocation of export
markets. Markets in Sub-Saharan Africa and elsewhere in the developing
world are frequently overlooked by private export credit, and Ex-Im
goes where private lenders are unwilling to go, to the ultimate benefit
of not only our exporters, but to the ultimate benefit of these
developing countries.
That Ex-Im is charged to go into underserved markets is particularly
relevant today when economic engagement with other countries is an
essential element of foreign policy and national security. In the
months since last September we have had to move very quickly to
determine how best to reach out to countries and people who were
previously of too little interest to the United States and other
wealthy industrialized countries. Certainly much has been achieved
already in the war on terrorism by high level engagement between the
Bush administration and foreign leaders, but top level diplomacy will
ultimately fail if it is not supported by bottom-up engagement in the
political, the social, and the economic spheres. It is here where
institutions like the Ex-Im Bank have a critical role to play.
With each export transaction supported by the bank, we have made a
new connection. We have developed a new familiarity with a market, a
people, and a country that had been previously slightly more foreign to
us. With thousands of these transactions, we can take 1,000 steps
forward toward a world of interdependence and prosperity; in short, a
world in which terrorism would find it much more difficult to exist.
Let me describe just a few of the key elements of H.R. 2871. I am
particularly pleased that the reauthorization bill emphasizes the need
to expand outreach to small businesses. We spent a great deal of time
assessing the barriers to Ex-Im assistance for small business, and I
became convinced that technology enhancements, as I mentioned earlier,
would be critical to any meaningful effort to expand services for that
sector.
For Ex-Im's large clients, user-friendliness is not a significant
issue. Large corporations have adequate resources and knowledge in-
house to
[[Page H1778]]
interact with Ex-Im rather smoothly. But for small businesses, working
with Ex-Im could be a daunting prospect, so we drafted the legislation,
convinced that Ex-Im could go even further toward bringing in new small
businesses and serving them better by expanding the use of technology
throughout the transaction process. As a result, the legislation
expands the budget authority for technology upgrades, and provides
guidance to Ex-Im on the implementation of new technologies.
But the bill creates important improvements on bank policies in a
number of other areas, too. In drafting the legislation, we took very
seriously concerns about the condition of the United States steel
industry and Ex-Im activities that may have exacerbated problems in the
industry.
So the bill establishes meaningful standards to ensure that Ex-Im
does not support transactions that would contradict existing
countervailing duty or anti-dumping orders. The bill also raises the
bar of scrutiny for transactions that may have the effect of
contributing to any material injury of a U.S. industry.
{time} 1100
Finally, I would like to emphasize that the bill increases
authorizations for the bank's administrative expenses and for the
allotment ceiling on the total amount of lending and credit the bank is
authorized to have outstanding. As we require the bank to expand its
assistance and outreach to small businesses, we must, in turn, be
providing more, not less, funding for the administrative expenses that
necessarily come with this effort.
Mr. Chairman, I reserve the balance of my time.
Mr. OXLEY. Mr. Chairman, it gives me great pleasure to yield 5
minutes to the gentleman from Nebraska (Mr. Bereuter) who has
undertaken a very difficult task and done it superbly.
(Mr. BEREUTER asked and was given permission to revise and extend his
remarks.)
Mr. BEREUTER. Mr. Chairman, I rise in strong support of the Export-
Import Bank Reauthorization Act of 2001.
Mr. Chairman, I want to particularly thank the gentleman from Ohio
(Mr. Oxley), the chairman of the full committee, and the gentleman from
New York (Mr. LaFalce), the ranking minority member, for their
assistance in bringing this legislation to the floor. It has not been
easy, but we have, of course, attempted to do something that is not
always done around here, and that is to make some basic reforms in the
authorizing legislation. It is oftentimes resisted by the executive
branch. But I think it is true that the members of the subcommittee and
committee have worked together in trying to bring the necessary reforms
to that agency in order to help our business sector and, particularly,
to help the employees of our business sectors that are involved in
exports. We have done that with this bill.
Both Members, the chairman and ranking member, are quite familiar
with this program. They have outlined very, very well and in excellent
fashion the provisions of the bill, particularly those that are new or
which are reform measures.
I would say, thinking back about the comments of the gentleman from
New York about the title of the agency, that he is absolutely right. We
would be better off to call it the Export Agency, because that is the
only part of the trade subject for which they have authorization. It is
easy to make the statutory change of the agency's name, but not so easy
to make all the legal changes necessary to change the name. He and the
gentleman from Massachusetts (Mr. Frank), are probably the 2 Members
that, along with me, have worked the longest on legislation on this
bank over the years. But to the gentleman from Vermont (Mr. Sanders),
the ranking member of the subcommittee, I want to particularly thank
him for his role in crafting this legislation, as we have worked
together from the beginning on it. I am also appreciative of all of the
members of the subcommittee, and the committee as well, who have
offered their ideas about how to make this legislation better.
I would reiterate that the Export-Import Bank is an independent U.S.
Government agency that creates and sustains American jobs by providing
direct loans to buyers of U.S. exports, guarantees to commercial loans
to buyers of U.S. products, and insurance products which greatly
benefit short-term small business sales. For example, with respect to
small business, already 86 percent of the transactions of the Ex-Im
Bank in FY 2000 are with small or medium-sized American export firms.
This bill pushes the envelope even farther for even more assistance to
small business exporters through the efforts of the gentleman from
Vermont (Mr. Sanders), this Member, the chairman, and ranking minority
member of the committee, and others.
The bill has been well explained already, particularly the new parts
of it, but I would just briefly summarize six provisions of this
legislation. First, of course, it reauthorizes the program and
administrative budgets and it moves them along towards implementing
greater information and office technology in the Export Import Bank,
and that would be a particular benefit to small businesses as they do
not always have the capability to take advantage of the programs of the
Export Import Bank without improved information access.
Secondly, it reauthorizes the Sub-Saharan Africa Advisory Committee
and provides additional emphasis on our businesses' interest in
exporting to Africa.
Third, it provides for small business increases, pushing them to
require at least 20 percent of the financial resources to go to small
and medium-sized businesses.
Fourth, it increases the Ex-Im Bank's statutory ceiling for loans,
grants and insurance assistance.
Fifth, it addresses the Tied Aid War Chest, and this is, of course,
the most contentious part of the bill as far as the administration was
concerned. In this bill we have made necessary changes so that
ideologues in Treasury, Ex-Im or OMB, regardless of what administration
is in office, do not misuse the fund, but to instead focus it on really
helping our exporters and consistently doing that.
Sixth, it addresses the Ex-Im Bank transaction with Benxi Iron and
Steel Company in China. American exporters provided exports to that
company which undoubtedly increased that Chinese firm's efficiency in
making steel. The gentleman from Pennsylvania (Mr. Toomey) has given us
an amendment for part of the bill that is a very important advance.
This bill, of course, reauthorizes the bank through September 30 of
2005. As a result of this provision, the program budget which supports
loans, guarantees and insurance products of Ex-Im Bank, is effectively
authorized for such sums as are appropriated through fiscal year 2005.
During the subcommittee's first hearing on the subject, the Ex-Im
Bank personnel testified that they were in desperate need of technology
upgrades which would particularly benefit small business users of the
Ex-Im Bank. As a result, this legislation authorizes $80 million for
the administrative budget, which includes funding for information
technology for fiscal year 2002, and indexes this authorization level
for inflation between fiscal year 2003 through fiscal year 2005. Also,
as I mentioned, among other changes, we make important changes to focus
the Ex-Im Bank even more on exports to Africa. More detail on that will
come out in the ensuing debate on this legislation.
Mr. Chairman, I urge my colleagues to support this legislation. It is
reform legislation. It moves us in the right direction.
Mr. OXLEY. Mr. Chairman, I ask unanimous consent that the gentleman
from Nebraska (Mr. Bereuter) be permitted to control the time for
general debate on our side.
The CHAIRMAN. Is there objection to the request of the gentleman from
Ohio?
There was no objection.
Mr. LaFALCE. Mr. Chairman, I yield 3 minutes to the gentlewoman from
Texas (Ms. Jackson-Lee).
(Ms. JACKSON-LEE of Texas asked and was given permission to revise
and extend her remarks.)
Ms. JACKSON-LEE of Texas. Mr. Chairman, I thank the distinguished
ranking member for yielding me this time.
Mr. Chairman, let me congratulate the committee and its chairman and
[[Page H1779]]
subcommittee chair and full committee chair and full committee ranking
member, and certainly the gentleman from New York (Mr. LaFalce), the
full committee ranking member, and also as well, the ranking
subcommittee member, whose leadership we appreciate greatly. Let me add
my support to this legislation today. I think in coming to Congress,
coming from Houston, Texas that has one of the largest numbers of
consular offices, it has an enormously international community and, as
well, it is a community that believes in the opportunities for creating
vehicles to create American jobs and, as well, to insist and to help
American businesses. That is what Ex-Im Bank, I think, is most
successful at. Supporting U.S. jobs through exports is Ex-Im Bank's
core mission.
I also want to congratulate the new chairman, Eduardo Aguirre from
Houston who I believe will foster that mission and help small and
minority businesses access Ex-Im Bank.
Ex-Im Bank is an independent Federal agency that helps to finance the
export of American products and services that would otherwise not go
forward, and I think that is an important statement, because there is
great concern when we begin to talk internationally, it is important
for the Nation to understand that this is an advocate for jobs going to
Americans, but products and services going internationally. And in its
68-year history, Ex-Im Bank has supported over $400 billion of U.S.
exports, sustaining and creating millions of jobs.
One of the other important points is that it sustains and creates
thousands and tens upon thousands of jobs, so jobs that are here, it
helps to hold them.
It is a great supporter of small businesses, and that is one of the
reasons I rise today, because my community, the 18th congressional
district, is a community that thrives with small businesses and it is
also a community in which I encourage small business to utilize
services such as OPIC and Ex-Im Bank.
Ex-Im Bank authorized more than $1.6 billion in support of small
business exports, nearly 18 percent of total dollar value of its
authorization, and they supported $4 billion in exports during this
same time. Ex-Im Bank's dedication to small businesses becomes even
more dramatic when we look at the Ex-Im Bank's finance transactions for
the year. Ex-Im Bank approved 2,124 small business transactions in
fiscal year 2001, 90 percent of their total number of transactions.
That is why I would like to support and agree with the gentleman from
New York (Mr. LaFalce) on the expanded help that this new legislation
gives to small businesses, by giving them access to technology
resources, giving more funding for technology resources to help small
businesses. Then again, I appreciate the fact that there is language
that prevents the dumping of foreign products in conflict to our laws,
particularly with respect to the steel industry.
Let me just simply say, Mr. Chairman, that this is a bill that helps
the continent of sub-Saharan Africa, also wih greater investment for
those countries. This is a bill that I believe will help create more
jobs.
Might I just conclude by saying that I do believe the amendments by
the gentleman from Oregon (Mr. DeFazio), the gentleman from Ohio (Mr.
Kucinich), the gentleman from Vermont (Mr. Sanders) and the gentlewoman
from Illinois (Ms. Schakowsky) will be helpful in the debate and I will
be rising to support those amendments as well.
Corporations that benefit from the Ex-Im Bank should not engage in
corruption.
Mr. Chairman, I ask my colleagues to support this legislation.
Mr. BEREUTER. Mr. Chairman, it is my pleasure to yield 3 minutes to
the gentlewoman from New York (Mrs. Kelly), a small businesswoman
herself.
Mrs. KELLY. Mr. Chairman, I thank the gentleman from Nebraska for
yielding me this time.
Mr. Chairman, I rise in strong support for H.R. 2871, the Export
Import Bank Reauthorization Act. This legislation needs to be passed
for one simple reason: saving U.S. jobs.
The core mission of the Ex-Im Bank is support for U.S. jobs. The bank
does this by providing credit guarantees for U.S. exports deemed too
risky by private lenders. In addition, Ex-Im will make loans, offer
financing, and offer insurance on U.S.-made products.
In our global economy, companies must constantly be seeking new
markets for our products, and our government must support these
efforts, because it supports U.S. jobs. Unfortunately, we do not live
in a world in which our trading partners play fair with U.S. businesses
and our U.S. businesses must compete with nations which directly
subsidize their competitors. In order to add some level of fairness, we
created the Ex-Im Bank.
Last year, Ex-Im supported $12.5 billion of U.S. exports. In my area
of New York, this translated to over $70 million, which benefited a
total of 12 large and small businesses involving thousands of jobs in
my district alone, and tens of thousands of jobs in New York State.
As we have heard today, 90 percent of the total number of Ex-Im
Bank's transactions were in support of small businesses. This is good,
but we must also work to increase the amount of funds which are used by
small businesses. In this committee's review of the Ex-Im's
performance, we determined that a greater effort must be made to
increase the amount of funds which go to these small businesses. Hence,
this legislation requires a 10 percent increase in the volume of funds
going to small businesses, and that is good for our small businesses in
the United States. Ex-Im Bank cannot stop there, however. We have
challenged them to go even further.
I strongly support the committee's work to improve the operation of
the Tied Aid Credit Program. I believe the changes the committee has
made to this program in this bill will permit the program to operate
more efficiently and effectively, while maintaining the coequal role of
Ex-Im and the Treasury Department.
Ex-Im provides an invaluable service to U.S. workers. Many U.S.
products and services would never have been able to find new buyers in
the global marketplace without the assistance of the Ex-Im. The
international market presents many new problems for the U.S. businesses
that are seeking new opportunities, and we have to work to alleviate
these problems for U.S. employers, or the incentives to move jobs
overseas will only grow and the pressure will be strong. One way we
ensure that more products bear the ``made in the USA'' label abroad is
by supporting this legislation. I urge my colleagues on both sides of
the aisle to support this legislation.
Mr. LaFALCE. Mr. Chairman, I yield 3 minutes to the distinguished
gentleman from Texas (Mr. Hinojosa).
Mr. HINOJOSA. Mr. Chairman, I thank the gentleman from New York (Mr.
LaFalce) for yielding me this time.
I rise in support of H.R. 2871, the Export Import Bank
Reauthorization Act. As a businessman from the United States-Mexico
border region, I know how important exports are to our economy and to
businesses, both large and small and medium. The Export Import Bank has
been an important partner in helping companies find foreign markets and
to export their goods.
In the 15th congressional district of Texas that I represent, the
Export-Import Bank has provided over $145 million of assistance in the
form of loan guarantees, insurance, and working capital. Access to
capital means expansion of business firms who create many jobs in
neglected regions like mine where the unemployment rate was in double
digits for over 3 decades.
The Export-Import Bank is partially responsible for helping reduce
the rate from 20 percent to only 10.5 percent in Hidalgo County in
south Texas. One company, for example, Hermes Trading Company in Pharr,
Texas, is a small company that sells musical instruments. The
assistance from the Ex-Im Bank has allowed them to expand their
business into new markets, and they have doubled their sales. I agree
with the gentleman from New York (Mr. LaFalce), the ranking member, in
his efforts to raise the level of awareness and importance of this
important bank.
Mr. Chairman, I urge my colleagues to support this bill and
reauthorize the Export Import Bank.
Ms. JACKSON-LEE of Texas. Mr. Chairman, will the gentleman yield?
Mr. HINOJOSA. I yield to the gentlewoman from Texas.
[[Page H1780]]
Ms. JACKSON-LEE of Texas. Mr. Chairman, the gentleman mentioned his
community that the Export-Import Bank has impacted. I represent a
district that has a large percentage of minority businesses and I have
seen the impact there.
Does the gentleman believe that this legislation will help generate
more opportunities for minority businesses?
Mr. HINOJOSA. Yes, Mr. Chairman, I agree with the gentlewoman. I can
tell my colleague that in south Texas, three out of every four
businesses are owned by minority businesses and they are benefitting a
great deal from this bank.
{time} 1115
My region is one of the areas that has grown 48 percent from 1990 to
2000, and has created, with the help of the bank and the Small Business
Administration, the Women's Development Center, hundreds of new small
businesses, creating four and five jobs in each one, and that is what
is helping drive down the unemployment rate to my region.
Ms. JACKSON-LEE of Texas. Mr. Chairman, I know the work the gentleman
has done, and I think this new emphasis on small businesses will be
very helpful to encourage our minority businesses to utilize this.
I do want to note that the President selected Eduardo Aguirre from my
congressional community to be the chairperson, who has a sensitivity to
expanding the outreach to small businesses.
I hope that, with the passage of this legislation, we will be able to
do more outreach to small businesses and minority businesses to take
advantage of helping to create this income trail, if you will,
internationally. I thank the gentleman.
Mr. HINOJOSA. I thank the gentlewoman for helping us crystallize the
importance of this bank in areas like ours, Houston, and, of course,
San Antonio, and the Rio Grande valley of south Texas.
Mr. BEREUTER. Mr. Chairman, it is my pleasure to yield 2 minutes to
the gentlewoman from Washington (Ms. Dunn), a member of the
Subcommittee on Trade of the Committee on Ways and Means and a person
very much involved in exports.
Ms. DUNN. Mr. Chairman, I thank the gentleman for yielding time to
me.
Mr. Chairman, I rise in support of H.R. 2871, the Export-Import Bank
Reauthorization Act. It is a vital program that helps United States
exporters compete overseas.
For most United States companies, access to foreign markets is no
longer an optional business practice, but it is a necessity in order to
survive. To compete and succeed in a global market, U.S. companies must
have access to financing resources.
This is exactly why the Export-Import Bank is very important to us.
By providing guarantees, loans, and insurance to American companies,
the Export-Import Bank helps to reduce the risks involved in exporting
and ensure that our exporters have access to credits that may not be
available in the private sector.
The Export-Import Bank helps both small and large businesses, as we
have already heard in this debate. In 2001, 90 percent of the tax
credits, representing 18 percent of the Ex-Im Bank's dollar volume,
directly benefited small business; and in my State of Washington, Ex-Im
Bank helped 56 small companies export $16.8 million in goods and
services over the past 5 years.
Large exporters, like the Boeing Company in Washington State, also
benefit from Export-Import Bank. Over the past 5 years, Boeing and its
workers have benefited from $19.5 billion of loans for the sales of our
aircraft overseas. Traditionally, half of the Boeing aircraft sales are
for overseas customers, and this is a trend that will continue, if not
increase, in the future.
Of the planes that are sold to foreign airlines, over 20 percent are
financed by the Export-Import Bank. This program not only benefits
Boeing, but it also benefits thousands of other United States companies
that provide supplies and parts needed to manufacture commercial
aircraft.
In a State like mine, where one out of three jobs are related to
trade, the Ex-Im Bank is critical in keeping Puget Sound businesses
competitive overseas while helping to create jobs, those jobs that are
so dearly needed to stimulate our economic recovery.
I ask my colleagues to support this fine legislation to reauthorize
the Ex-Im Bank.
Mr. LaFALCE. Mr. Chairman, I reserve the balance of my time.
Mr. BEREUTER. Mr. Chairman, it is my pleasure to yield 3 minutes to
the distinguished gentleman from Illinois (Mr. Manzullo), chairman of
the Committee on Small Business and a member of the Committee on
Financial Services, very much committed and interested in trade issues.
Mr. MANZULLO. Mr. Chairman, our Nation's small manufacturer exporters
are hurting across the Nation. The main city in the district I
represent, Rockford, Illinois, has an economy based on 35 percent
manufacturing, double the average of most U.S. cities. They already
experience thin profit margins from stiff foreign competition, both
here at home and in markets abroad.
They have a problem with the strong American dollar; and in addition,
those who use steel in their production now have to pay up to 30
percent more for the price of this raw material.
There are very few banks that extend international finance; and for
those that do, credit standards have tightened over the past year. This
is on top of the huge regulatory and tax burden that they already face.
Ex-Im Bank was one of the few government programs that actually serve
small businesses. The number of small business exporters increased by
more than three-fold between 1987 and 1999, going from 66,000 to
224,000. I am proud the Committee on Financial Services has greatly
enhanced more of these loans that will be going to small businesses.
This is not just about money going directly to Boeing to help that
company; but when money goes for Boeing aircraft, it goes to 60
subcontractors in the district that I represent that provide $232
million worth of goods and services. That is good news for the
employees at Dip Seal Plastics; Wells Manufacturing; Eclipse,
Incorporated; and Ipsen International.
There are also some new aspects of Ex-Im financing. United Parcel
Service, which has the Midwest hub in Rockford, Illinois, owns a bank,
and they are one of the largest volume dealers of export-import
financing. UPS helps make the match between the foreign manufacturer
and the American company. They do the documentation for financing, if
necessary. They will do domestic financing and then factor in the
international agreement. If international financing is necessary, they
will provide the Ex-Im Bank. They do the collection, and then they do
the transportation.
So the Ex-Im Bank provides a very useful tool by which small
businesses across the Nation, especially those involved in
manufacturing, really have the opportunity in this tremendous economy
that we have. With regard to the challenges that face small business
people, Ex-Im provides that opportunity to get involved in more
exports.
I would respectfully request that the Members will take a look at
what is going on with Ex-Im in their home districts and then vote to
reauthorize the bill.
Mr. BEREUTER. Mr. Chairman, it is my pleasure to yield 3 minutes to
the gentleman from Pennsylvania (Mr. Toomey), who has taken an issue, a
controversial issue, addressed it by amendment, and dramatically
improved this bill.
Mr. LaFALCE. Mr. Chairman, I yield 1 minute to the gentleman from
Pennsylvania (Mr. Toomey).
The CHAIRMAN. The gentleman from Pennsylvania (Mr. Toomey) is
recognized for 4 minutes.
Mr. TOOMEY. Mr. Chairman, I thank the distinguished gentlemen for
yielding time to me. I also thank the full committee chairman and the
full committee ranking member for their important work on this bill.
I really want to commend the gentleman from Nebraska (Mr. Bereuter)
for crafting a very good bill, making Export-Import Bank more
accountable to taxpayers.
Specifically, I thank the gentleman from Nebraska for working with me
to be sure Export-Import Bank does not reward foreign industries and
companies that are in violation with U.S. trade law with money from the
pockets of U.S. taxpayers.
[[Page H1781]]
As most of us appreciate, the domestic steel industry has simply been
devastated by a global steel overcapacity. Since 1997, at least,
perhaps further back, the domestic steel industry has been overwhelmed
by a flood of imports. Foreign governments subsidize their steel
production. That creates overcapacity, which in turn leads to a glut of
steel on the international markets. That, of course, depresses prices;
and the result has been devastating.
Nobody disputes that this has happened. Our own Commerce Department
and the ITC have confirmed this, and the result has been that over 33
American steel companies have been forced into bankruptcy since 1997.
Bethlehem Steel, headquartered in my district, filed Chapter 11 last
year and joined that long list of companies devastated by this
phenomenon.
Of course, the result of all these bankruptcies is an uncertain
future, at best, for over 72,000 steelworkers, their communities, and
their families. But it has also jeopardized the retirement security of
hundreds of thousands of steel retirees, who are also dependent on the
continued success of American steel companies for their health care
benefits, for their pension. There are tens of thousands of such steel
retirees in my district about whom I am very concerned.
Well, despite the recognized problem, widely acknowledged problem of
global overcapacity, in early 2000, in the midst of this entire crisis
Export-Import Bank granted a loan to a Chinese steel producer, which
further increased by 1.5 million metric tons the world's excess steel
capacity.
In taking this action, the Export-Import Bank ignored on-the-record
objections from the Secretary of the Treasury, the Secretary of
Commerce, the Steel Caucus, the entire steel industry. What this tax
credit really amounted to was the Ex-Im Bank using American taxpayer
dollars to subsidize a foreign company, making a serious American
economic problem worse.
That is why I offered my amendment in the Committee on Financial
Services, and I am delighted the committee adopted my amendment. The
language is in this bill.
What the amendment is is a bipartisan, long-term solution to prevent
a similar situation to that loan guarantee that went to the Benxi Iron
and Steel Company from ever recurring in steel or any other industry.
Specifically, it would prohibit the Export-Import Bank from extending
loans to foreign companies that are in violation of U.S. trade law. It
would do that by prohibiting the extension of financial assistance to
an entity for the production of a product that is subject to a
countervailing duty or antidumping order, and it would also prohibit
the extension of a loan or guarantee to any entity subject to a
definitive conclusion by the ITC under section 201 of our trade laws.
In other words, we would not grant loans to companies that are
already proven to be violating U.S. laws and harming American
industries.
I think this is a very balanced approach. We worked this out in the
committee, discussed various ways of addressing the difficult and
challenging issue. We have set a significant hurdle that has to be
overcome before this prohibition would be invoked, and I think we have
reached a very reasonable conclusion on this.
I appreciate the cooperation on both sides of the aisle, especially
from the subcommittee chairman, the gentleman from Nebraska (Mr.
Bereuter). I would also like to thank the American Iron and Steel
Institute, the United Steelworkers of America, and the Congressional
Steel Caucus for their support of this provision.
Mr. Chairman, I include for the Record their letters of support, and
I urge my colleagues to support this bill, because this does not merely
extend authorization for the Export-Import Bank, but it makes
substantive, positive reforms in that authorization.
I would like to commend my colleagues for a job well done.
The material referred to is as follows:
United Steelworkers of America,
Washington, DC, October 30, 2001.
House Financial Services Committee,
U.S. House of Representatives, Washington, DC.
Dear Representative: The United Steelworkers of America
wishes to express its support for an amendment to the Export-
Import Bank Reauthorization Bill which will be marked up in
the Financial Services Committee tomorrow.
This amendment addresses a very serious issue which affects
the economic recovery and viability of the America steel
industry. First, the amendment would prohibit Ex-Im Bank
loans and guarantees to companies found to be in violation of
U.S. trade laws. Second, the amendment would prohibit any
transaction which adds to the production of a product in
oversupply where the U.S. government has determined that
there is a glut of imports causing serious domestic injury.
In December, 2000, the Ex-Im Bank approved a loan guarantee
for a project which will increase China's hot-rolled steel
capacity at the Benxi Iron and Steel Company by 1.5 million
metric tons. This action was taken by the Bank at a time when
the Organization for Economic Co-Operation and Development
(OECD) has found over 300 million tons of excess steelmaking
capacity worldwide. China is already the largest steel
producer in the world.
The American steel industry and our steelworkers are
reeling from a collapse in domestic steel prices directly
attributable to the flood of foreign steel being imported to
the U.S., including foreign steel which has been ``dumped''
into the U.S. market in violation of our trade laws. Since
1998, 23 American steel companies have filed for bankruptcy.
Six of these have ceased operations. Some 27,000 steelworkers
have lost their jobs.
The Ex-Im Bank's loan to China is an example of gross
insensitivity to the plight of American steel companies and
steelworkers. We urge you to vote for the amendment when it
comes up for a vote.
Sincerely,
William J. Klinefelter,
Assistant to the President, Legislative and Political
Director.
____
American Iron and Steel Institute,
Washington, DC, September 19, 2001.
PLEASE SUPPORT THE TOOMEY AMENDMENT TO H.R. 2871, THE EXPORT-
IMPORT REAUTHORIZATION BILL.
To: Members of the Subcommittee on International Monetary
Policy and Trade.
Background: In December 2000, the Export-Import Bank (EXIM)
approved a loan guarantee for a project that will increase by
1.5 million tons the hot-rolled steel capacity of China. At a
time of massive world steel overcapacity and crisis in the
U.S. and world steel industry, EXIM made their decision--over
the strong objection of the Commerce Department, many Members
of Congress and the U.S. steel industry--to provide $18
million in official financing support. While ill-advised,
misguided and almost certainly harmful to U.S. industry, the
decision was technically permissible under the Bank's
authorizing law and its rules of practice.
Situation: On Friday, September 21, the House Subcommittee
on International Monetary Policy and Trade will be marking up
H.R. 2871, the Export-Import Reauthorization Bill.
Representative Pat Toomey (R-PA) will offer an amendment to
establish reasonable and adequate safeguards to ensure that
the EXIM take into account any serious adverse effect its
loans and guarantees would have on U.S. industry and
employment.
Argument: While the AISI position on steel project EXIM
requests has been shaped by the crisis in the steel sector
and by the role of world steel overcapacity in helping to
cause the crisis, it is important to understand that AISI is
not anti-EXIM. To the contrary, we have always supported--and
we continue to support--the authorization and appropriation
of adequate EXIM resources to help U.S. manufacturers compete
worldwide. We do however have a recognized, persistent
problem, which is massive world steel overcapacity,
perpetuated and exacerbated by governments assistance for
additional, unneeded steel capacity buildups. AISI cannot
support taxpayer dollars being used to harm U.S. industry and
employment.
Action Requested: Please support Rep. Toomey's amendment to
be offered this Friday (September 21) at the Subcommittee
markup of H.R. 2871, the Export-Import Reauthorization Bill.
Please contact Gregg Richard in Rep. Toomey's Office (x5-
6411) for more detailed information.
Thank you for your continued support on behalf of the
American steel industry.
Andrew G. Sharkey III,
President and CEO.
Mr. BEREUTER. Mr. Chairman, I yield myself 15 seconds.
Mr. Chairman, just one clarification or point for emphasis. The
credit instruments of the Export-Import Bank can only go to American
exporters in any case; but in the case of the Benxi Steel, the kind of
assistance that went to an American exporter ended up helping Benxi
Steel. That is something the gentleman's amendment has stopped for all
time.
Mr. Chairman, I am pleased to yield 2 minutes to the gentleman from
California (Mr. Rohrabacher), a distinguished member of the House who
may have a different view on this.
Mr. LaFALCE. Mr. Chairman, I yield 1 minute to the gentleman from
California (Mr. Rohrabacher).
The CHAIRMAN. The gentleman from California (Mr. Rohrabacher) is
recognized for 3 minutes.
[[Page H1782]]
Mr. ROHRABACHER. Yes, I do, Mr. Chairman, have a different view. I
rise in strong opposition to reauthorizing the Export-Import Bank.
We in Congress have had little hesitation to get ordinary American
citizens off of welfare after 5 years, but we cannot seem to get our
biggest corporations off of welfare after 5 years. We authorize the
Export-Import Bank.
We just heard an example a moment ago of how our tax dollars were
going to destroy American jobs. The last time we reauthorized the
Export-Import Bank, we were told that was impossible, that is not what
is going on; we are actually subsidizing exports of American goods, and
we were not putting people out of work.
Surprise, surprise. After all these years, we find out right here in
the debate an example of how Export-Import money has eliminated U.S.
jobs. Let me contend that that will still go on and go on.
We keep hearing that the money is going to be going to small
businesses, and that never changes. Apparently only 18 percent of the
Export-Import Bank loans go to small businesses, or their funds go to
small businesses.
Time Magazine suggests that the top five recipients of the Export-
Import Bank subsidies receive 60 percent of all funds. Just to let
Members know, of those five major recipients, they, in total, have
reduced their workforce by 38 percent over the last decade.
Now, why is that? That is because much of the money that we are being
told is creating jobs here, that is not creating jobs here. What we are
doing is subsidizing and guaranteeing loans for American businesses to
set up factories in other countries. That is what is going on.
Many of these loans about so-called selling our own products end up
with little clauses in them. They say, yes, we will buy your product,
and the Export-Import Bank will actually subsidize it or guarantee the
loan, but you are going to have to, in order to sell us the product,
build a factory in our country. This is common practice.
So what do we have here? We have a situation where, in the name of
selling vacuum cleaners or whatever it is to a country like China, we
end up subsidizing the creation of a vacuum factory in China.
{time} 1130
And then what do they do? They do not sell those vacuums, by the way,
just in China. They end up exporting them to the United States and
putting our people out of work. And we just heard an example of how
that was happening just a few moments ago by a proponent of this
legislation. But that has all been cleared up now. That has not been
cleared up. You can mark my words that has not been cleared up. Five
years from now we will find lots of other examples of just that very
same thing, maybe not the steel industry but other industries.
Come on. It is time to realize that when the government starts giving
away money in terms of subsidies and loan guarantees, you are going to
have very wealthy and powerful interests manipulating that for their
own benefit. And that is what is happening with the Export-Import Bank.
Yes, there are a few little guys who get help but the vast majority of
funds, not the vast majority of loans, goes to the very wealthiest
corporations to create jobs overseas. I am against the Export-Import
Bank. Let us not reauthorize it.
Mr. LaFALCE. Mr. Chairman, how much time is remaining?
The CHAIRMAN. The gentleman from New York (Mr. LaFalce) has 13\1/2\
minutes remaining.
Mr. LaFALCE. Mr. Chairman, I yield 3 minutes to the distinguished
gentleman from Oregon (Mr. Blumenauer).
Mr. BLUMENAUER. Mr. Chairman, I appreciate the gentleman's courtesy
in permitting me to speak on this bill.
Mr. Chairman, I take modest exception with my colleague from
California. Over time the majority of the loans have gone to small
business, but at issue for me is not small business, large business, it
is whether or not we are going to be able to help American companies
penetrate difficult markets around the world. I have had an example in
my own community.
We have a company, a freight liner, that is the largest manufacturer
of heavy trucks in the country. It employs all union employees,
primarily machinists. They are paid family wages in order to do their
work. But they are undergoing tough times in Oregon. They have been
involved with significant layoffs. They have benefitted from a loan
from the Ex-Im Bank to be able to transact a shipment of 10 trucks to
Chile, it would not have happened without that loan. It would have gone
to somebody else. It kept people in my community working and it helped
us penetrate the market.
There are lots of subsidies that we know around the world. In fact,
that is one of the problems that American companies face as they
attempt to compete internationally, that other countries have subtle
ways of subsidizing activities for other companies. This is a way for
us to be able to give access to capital for American companies going
into tough markets to be able to secure their place in the market
place. I would rather, frankly, have the Chinese dealing with Boeing
than Airbus. I understand that there is some difficult issues that are
going on there.
I listen to some of my friends from the other side of this issue, but
it is pretty stark. We are going to be a lot worse off if we are not
able to penetrate those markets around the world. I strongly urge that
we reauthorize the Ex-Im Bank.
I hope that each year as we come up with issues here that raise
questions, there are areas of refinements. I think we ought to increase
their sensitivity in terms of the application of those loans to the
environment, to worker rights, to be able to make sure that we are
targeting where we want it the most. But the Ex-Im Bank, OPIC, these
are tools that have made a difference in my community. I have seen it
for small and medium size businesses, I have seen it for large
businesses that are struggling, when we are trying to compete around
the world when we are facing some difficult economic times at home.
This is not the time to turn our back on it. I strongly urge support
for the legislation.
Mr. BEREUTER. Mr. Chairman, I yield 2 minutes to the distinguished
gentleman from Texas (Mr. Paul), a member of the committee.
(Mr. PAUL asked and was given permission to revise and extend his
remarks.)
Mr. PAUL. Mr. Chairman, I thank the gentleman for yielding me time.
Mr. Chairman, we are here today to reauthorize the Export-Import
Bank, but it has nothing to do with a bank, do not mislead anybody.
This has to do with an agency of the government that allocates credit
to special interests and to the benefit of foreign entities. So it is
not a bank in that sense. To me it is immoral in the fact that it takes
from some who cannot defend themselves to give to the rich who get the
benefits. And I just do not see that as being a very good function and
a very good program for the U.S. Congress. Besides, I would like to see
where somebody gives me the constitutional authority for doing what we
do here and we have been doing, of course, for a long time.
But I do not want to talk about the immorality of this so-called bank
or the unconstitutionality of it. I want to talk just a second or two
about the economics of it. It is really bad economics. It is pointed
that it helps a company here or there, but what it has never talked
about what you do not see. This is credit allocation.
In order to take billions of dollars and give it to one single
company, it is taken out of the pool of funds available. And nobody
talks about that. There is an expense. Why would not a bank loan when
it is guaranteed by the government? Because it is guaranteed. So if you
are a smaller investor or a marginal investor, there is no way that you
are going to get the loan. For that investor to get the loan, the
interest rates have to be higher.
So it is a form of credit allocation, and it is also a form of
protectionism. We do a lot of talk around here about free trade. Of
course, there is a lot of tariff activity going on as well, but this is
a form of protectionism. Because some argue, well, this company has to
compete and another government subsidizes their company so, therefore,
we have to compete. So it is competitive subsidization of special
interest corporations in order to do this.
Now, it seems strange that we here in the Congress are willing to
give the beneficiary China the most number of
[[Page H1783]]
dollars. They qualify for nearly $6 billion worth of credits. And that
just does not seem like the reasonable thing for us to do. So I
strongly urge a no vote on this bill.
Mr. Chairman, Congress should reject H.R. 2871, the Export-Import
Reauthorization Act, for economic, constitutional, and moral reasons.
The Export-Import Bank (Eximbank) takes money from American taxpayers
to subsidize exports by American companies. Of course, it is not just
any company that receives Eximbank support; the majority of Eximbank
funding benefit large, politically powerful corporations.
Enron provides a perfect example of how Eximbank provides
politically-powerful corporations competitive advantages they could not
obtain in the free market. According to journalist Robert Novak, Enron
has received over $640 million in taxpayer-funded ``assistance'' from
Eximbank. This taxpayer-provided largesse no doubt helped postpone
Enron's inevitable day of reckoning.
Eximbank's use of taxpayer funds to support Enron is outrageous, but
hardly surprising. The the vast majority of Eximbank funds benefit
Enron-like outfits that must rely on political connections and
government subsidies to survive and/or multinational corporations who
can afford to support their own exports without relying on the American
taxpayer.
It is not only bad economics to force working Americans, small
business, and entrepreneurs to subsidize the export of the large
corporations: it is also immoral. In fact, this redistribution from the
poor and middle class to the wealthy is the most indefensible aspect of
the welfare state, yet it is the most accepted form of welfare. Mr.
Speaker, it never ceases to amaze me how members who criticize welfare
for the poor on moral and constitutional grounds see no problem with
the even more objectionable programs that provide welfare for the rich.
The moral case against Eximbank is strengthened when one considers
that the government which benefits most from Eximbank funds is
communist China. In fact, Eximbank actually underwrites joint ventures
with firms owned by the Chinese government! Whatever one's position on
trading with China, I would hope all of us would agree that it is wrong
to force taxpayers to subsidize in any way this brutal regime.
Unfortunately, China is not an isolated case: Colombia and Sudan
benefit from taxpayer-subsidized trade, courtesy of the Eximbank!
At a time when the Federal budget is going back into deficit and
Congress is once again preparing to raid the Social Security and
Medicare trust funds, does it really make sense to use taxpayer funds
to benefit future Enrons, Fortune 500 companies, and communist China?
Proponents of continued American support for the Eximbank claim that
the bank ``creates jobs'' and promotes economic growth. However, this
claim rests on a version of what the great economist Henry Hazlitt
called, the ``broken window'' fallacy. When a hoodlum throws a rock
through a store window, it can be said he has contributed to the
economy, as the store owner will have to spend money having the window
fixed. The benefits to those who repaired the window are visible for
all to see, therefore it is easy to see the broken window as
economically beneficial. However, the ``benefits'' of the broken window
are revealed as an illusion when one takes into account what is not
seen: the businesses and workers who would have benefited had the store
owner not spent money repairing a window, but rather had been free to
spend his money as he chose.
Similarly, the beneficiaries of Eximbank are visible to all. What is
not seen is the products that would have been built, the businesses
that would have been started, and the jobs that would have been created
had the funds used for the Eximbank been left in the hands of
consumers.
Some supporters of this bill equate supporting Eximbank with
supporting ``free trade,'' and claim that opponents are
``protectionists'' and ``isolationists.'' Mr. Chairman, this is
nonsense, Eximbank has nothing to do with free trade. True free trade
involves the peaceful, voluntary exchange of goods across borders, not
forcing taxpayers to subsidize the exports of politically powerful
companies. Eximbank is not free trade, but rather managed trade, where
winners and losers are determined by how well they please government
bureacrats instead of how well they please consumers.
Expenditures on the Eximbank distort the market by diverting
resources from the private sector, where they could be put to the use
most highly valued by individual consumers, into the public sector,
where their use will be determined by bureaucrats and politically
powerful special interests. By distorting the market and preventing
resources from achieving their highest valued use, Eximbank actually
costs Americans jobs and reduces America's standard of living!
Finally, Mr. Chairman, I would like to remind my colleagues that
there is simply no constitutional justification for the expenditure of
funds on programs such as Eximbank. In fact, the drafters of the
Constitution would be horrified to think the Federal Government was
taking hard-earned money from the American people in order to benefit
the politically powerful.
In conclusion, Mr. Chairman, Eximbank distorts the market by allowing
government bureaucrats to make economic decisions in place of
individual consumers. Eximbank also violates basic principles of
morality, by forcing working Americans to subsidize the trade of
wealthy companies that could easily afford to subsidize their own
trade, as well as subsidizing brutal governments like Red China and the
Sudan. Eximbank also violates the limitations on congressional power to
take the property of individual citizens and use it to benefit powerful
special interests. It is for these reasons that I urge my colleagues to
reject H.R. 2871, the Export-Import Bank Reauthorization Act.
Mr. LaFALCE. Mr. Chairman, I yield 4 minutes to the distinguished
gentlewoman from New York (Mrs. Maloney).
Mrs. MALONEY of New York. Mr. Chairman, I thank the ranking member
from the great State of New York for giving me the time and for his
leadership on this important bill.
Mr. Chairman, after a successfully passing two 30-day
reauthorizations of the Ex-Im Bank in the last month, I am pleased to
rise today to support the reauthorization of the Ex-Im Bank through
2005.
As my colleagues have stated, the Export-Import Bank is a successful
government entity that facilitates and supports American business and
worker interest by making exports possible to areas of the world that
would otherwise be closed to U.S. companies. Through its loan
guarantee, insurance and direct lending programs, the Ex-Im Bank
supported over $15.5 billion in U.S. exports on a subsidy of $759
million in fiscal year 2000.
While a small fraction of U.S. exports, the bank acts very much as a
lender of last resort supporting U.S. exports and U.S. jobs that
otherwise would fail to, would go to foreign competitors. The Ex-Im
allows U.S. exporters to match competition from foreign export credit
agencies. Japan, Germany, France, Canada, and other countries. This
support is especially critical in today's global economy which is
increasingly dependent on trade.
While the bank is a proven success, the changes in the
reauthorization will make a positive impacts on its future. The
reauthorization contains new provisions ensuring that Ex-Im complies
with U.S. anti-dumping and countervailing duty laws. It includes an
amendment I offered in the Committee on Financial Services giving the
bank explicit authority to turn down an application for Ex-Im bank
support for companies that have a history of engaging and fraudulent
business practices. The reauthorization also continues the banks
commitment to small business and to working with African countries.
Across the country, Ex-Im Bank support goes to businesses both large
and small. In my district, the bank has supported over 70 different
businesses with exports valued at over $1 billion since 1995. The work
of the Ex-Im Bank is highly complex, and shepherding this
reauthorization to the House floor has proven very challenging. I want
to compliment the leaders of the Committee on Financial Services for
moving the bill to this point today.
The ranking member, the gentleman from New York (Mr. LaFalce) has
been an extremely thoughtful and effective leader on the Democratic
side. My good friend and subcommittee chairman, the gentleman from
Nebraska (Mr. Bereuter) and his staff likewise have worked tremendously
hard to produce this bill today.
In the hearings we heard testimony from the bank, the business
community, labor and environmental organizations. The final product
that we are considering today benefitted from all of this input and
puts the bank on solid footing for the next 4 years. I further
appreciate the work in making sure is that we have a fair rule today,
that the Republican party did allow important amendments from the
ranking member, the gentleman from Vermont (Mr. Sanders) and the
gentleman from Ohio (Mr. Kucinich). I believe that that is fair and I
support the rule and I support the bill.
The CHAIRMAN. The Chair would announced that the gentleman from
[[Page H1784]]
Nebraska (Mr. Bereuter) has 2\1/4\ minutes remaining. The gentleman
from New York (Mr. LaFalce) has 7 minutes remaining.
Mr. BEREUTER. Mr. Chairman, I yield 1\1/2\ minutes to the gentleman
from California (Mr. Gary G. Miller) a distinguished member of the
committee.
Mr. GARY G. MILLER of California. Mr. Chairman, I would like to
acknowledge the gentleman from Nebraska (Mr. Bereuter) for his efforts
on H.R. 2871, the Export-Import Bank Reauthorization Act.
Mr. Chairman, in my opinion, many government programs do not work.
However, that is not the case with the Export-Import Bank.
Specifically, the Export-Import Bank benefits California. During the
fiscal years 1996 to 2000, 722 California companies benefitted, 225
communities benefitted. The value of exports was $8.5 billion from
California and there were 120,403 jobs sustained.
Some try to make you believe this only benefits large businesses but
that is not the fact. 72 percent of the transactions benefitted small
businesses and those are nice figures but let us put a face on those
figures.
ZMG Enterprises in Walnut, California owned by Mr. Joe Gomez is a
longstanding user of the bank's short term multi-buyer insurance policy
to cover to sale of nearly $11 million in annual sales of canned
vegetables, fruits and table sauces, primarily to Mexico. Mexico has
benefitted on this and we have because our products are going there.
Mexico has been a traditional COD country, and the insurance policy
backed by the bank enables Mr. Gomez to offer short-term credit to
Mexican supermarkets so the grocers can purchase more of his products
in a single sale.
That benefits small businesses. And there is an old saying that I
really believe in and it boils down to the simple fact that when you
help small businesses, you help American.
Mr. LaFALCE. Mr. Chairman, I have no further requests for time, and I
yield back the balance of my time.
Mr. BEREUTER. Mr. Chairman, I yield myself such time as I may
consume.
Mr. Chairman, I would like to make about three points in reference to
comments that have been made by members in opposition.
First of all, there is no credit assistance extended by the Ex-Im
Bank to a foreign country. They are extended only to American
exporters. It happens, in fact, that we have huge market potential in
China, so a large number of our people want to export to China, and the
kind of products that can be exported is controlled under the Export
Administration Act.
Secondly, I would note that 86 percent of all transactions go to
small and medium-sized businesses. That is about 18 percent of the
total financial assistance from its Ex-Im Bank and we are pushing them
to do more and they will.
Finally, I want to say, the gentleman from California (Mr.
Rohrabacher) has kind of turned the argument on the Ex-Im Bank purposes
on its head either unintentionally or cleverly. American and other
countries' corporations are really footloose today. What this
legislation does is give an incentive to Americans to continue to
produce the exports here. Instead of moving plants and jobs abroad,
they will continue to have an opportunity, under the Export-Import
Bank, to compete with foreign countries for those exports and that will
keep American jobs here, not send them abroad. It will help keep them
here.
We reduce the incentives for American firms to export part of their
operations abroad by the passage of this legislation. I ask for my
colleagues to give this bill a strong vote of support.
Aerospace Industries Association, American Business
Council of the Gulf Countries, AMT--The Association for
Manufacturing Technology, Bankers Association for
Finance and Trade, Coalition for Employment Through
Exports, Emergency Committee for American Trade,
International Energy Development Council, National
Association of Manufacturers, National Foreign Trade
Council, Small Business Exporters Association, U.S.
Chamber of Commerce, U.S.-China Business Council, U.S.
Council for International Business, U.S.-Russia
Business Council,
April 26, 2002.
Re: House action on H.R. 2871, Ex-Im Bank Reauthorization
Hon. Doug Bereuter,
2184 RHOB, Washington, DC.
Dear Representative Bereuter: As the House prepares to
consider H.R. 2871, to reauthorize the Export-Import Bank, we
write to reiterate our strong support for the Bank. Our
collective members include many of the U.S. exporters and
financial institutions that rely on the Bank as the lender of
last resort in meeting the fierce competition for export
opportunities in world markets. In FY 2001 alone, the Bank
financed some 2,300 export transactions, 90 percent of which
were for small and medium-sized firms.
Ex-Im Bank plays a crucial role in supporting the export of
American-made goods and American-provided services in markets
where commercial financing is difficult to obtain and when
foreign competitors have the active support of their
governments' export credit agencies. In 2000 alone, the most-
active export credit agencies worldwide financed more than
$500 billion in exports. Ex-Im Bank financed $15.5 billion in
U.S. exports that year.
To deal with this increasingly aggressive foreign
competition, H.R. 2871 would authorize the Bank to respond to
new export financing programs offered by foreign governments,
including so-called ``market windows''. The bill also
provides the Bank with clear authority to use the tied-aid
war chest to respond aggressively to foreign governments' use
of foreign assistance to supplement their export credit
activities (so-called ``tied-aid'').
It is important to note that Ex-Im charges risk-based
interest, premiums and other fees for its loans, loan
guarantees and insurance. These fees are paid by exporters,
banks and overseas customers. Last year, the Bank's revenues
generated a $1 billion net income for the U.S. government.
Moreover, the Bank maintains some $10 billion in reserves to
protect against the risk of loss. The Bank's conservative
lending policies and aggressive loss-recovery efforts have
resulted in a very low 1.9 percent historical loss rate.
Amendments of concern
Two amendments may be offered which, in our judgement,
would impede the ability of U.S. exporters to effectively
utilize the Bank, thus weakening the Bank's programs and
causing a loss of U.S. exports and the jobs of American
workers. We urge you to oppose these amendments if offered
during House floor action:
(1) Rep. Sanders may offer an amendment to deny Ex-Im Bank
financing for U.S. companies that are growing
internationally. It would make the Bank completely unusable
for any U.S. exporter that is succeeding in world markets.
The proposal runs contrary to U.S. trade policy and market-
based economic growth. It would make no sense for the
Congress to seek open world markets, but then deny U.S. firms
access to one of the key tools to take advantage of these new
opportunities. Since Ex-Im Bank only finances U.S.-origin
goods and services, shutting off the Bank would only result
in making the Bank less effective in creating and keeping
U.S. jobs here at home.
(2) Rep. Schakowsky may offer an amendment to require a
human rights assessment of about 600 export transactions
supported by the Bank annually. This proposal is unnecessary
because the Export-Import Bank Act already includes a
procedure under which the Bank relies on the U.S. State
Department for human rights analysis. The amendment would
require the Bank to establish an unnecessary new bureaucracy
that would duplicate the long-established State Department
human rights office. The amendment would require U.S.
exporters to submit any proposed transaction over $10 million
to a costly and time-consuming notice and comment period,
which inevitably would lead to the loss of export sales to
our foreign competitors. The current, long-established,
process works well to ensure that human rights issues are
analyzed by the State Department's experts and included in
the Bank's consideration of export transactions.
We urge the House to approve H.R. 2871 and to oppose
amendments that would weaken the Bank and impede U.S.
exports.
Sincerely,
Don Carlson, President, AMT--The Association for
Manufacturing Technology.
Calman J. Cohen, President, Emergency Committee for
American Trade.
Timothy E. Deal, Senior Vice President, U.S. Council for
International Business.
John W. Douglass, President and CEO, Aerospace Industries
Association.
John Hardy, Chairman, Standing Committee, International
Energy Development Council.
Robert Kapp, President, U.S.-China Business Council.
Eugene Lawson, President, U.S.-Russia Business Council.
James Morrison, President, Small Business Exporters
Association.
John Pratt, Chairman, American Business Council of the Gulf
Countries.
William Reinsch, President, National Foreign Trade Council.
Edmund B. Rice, President, Coalition for Employment Through
Exports.
Consider W. Ross, Executive Director, Bankers Association
for Finance and Trade.
Franklin J. Vargo, Vice President, National Association of
Manufacturers.
Willard A. Workman, Senior Vice President, U.S. Chamber of
Commerce.
[[Page H1785]]
____
Date: April 30, 2002
To: Members of the United States House of Representatives
From: Donald G. Ogilvie, Executive Vice President, American
Bankers Association Consider W. Ross, Executive Director,
Bankers' Association for Finance and Trade
Re: Support H.R. 2871, Export-Import Bank Reauthorization Act
As the House prepares to consider H.R. 2871, the Export-
Import Bank Reauthorization Act, we write to urge you to vote
for the bill and oppose any amendments that would impede the
Bank's ability to assist American exports. The Export-Import
Bank is vitally important to our members that finance the
sale of U.S. products and services for their exporter
customers.
The Export-Import Bank supports only American-made goods
and American-supplied services. It is one of the few tools
available to help sustain export-related jobs in the United
States. Without the Export-Import Bank, the ability of U.S.
companies to compete for export sales would be reduced.
Our exporter customers need the Export-Import Bank because
overseas companies and banks are aggressively using their
export credit agencies to take sales from the United States.
Every major trading nation has a government export credit
agency. Those agencies together issue more than $500 billion
a year in export financing. By contrast, the U.S. Export-
Import Bank is small, supporting only $12-15 billion a year
in U.S. exports.
The Export-Import Bank is a fee-for-service agency. Fees
and interest are paid for the Export-Import Bank support. In
the last two years, the Export-Import's revenues have
generated a net $1.3 billion surplus for the U.S. Treasury.
The Bank has a very low 1.9 percent historical loss rate and
has $10 billion in reserves to protect the U.S. taxpayer.
Please support passage of H.R. 2871 so Congress can
complete the reauthorization of the Export-Import Bank and
help thousands of exporters compete on a more level playing
field in world markets.
Mr. RANGEL. Mr. Chairman, H.R. 2871, the Export-Import
Reauthorization Act, strengthens an important tool to promote U.S.
exports and U.S. jobs. By law, the Export-Import Bank finances only
exports made in the United States. In other words, the Bank supports
American jobs. Last year, the Bank supported $12.5 billion in U.S.
exports, which in turn supported tens of thousands of American jobs. In
the 67 years of its existence, the Bank has supported more than $400
billion of U.S. exports and the hundreds of thousands of jobs that
depend on those exports.
I would like to note my support for many of the important provisions
in the reauthorization. First, I am pleased to see the substantial
increase in the Bank's aggregate loan, guarantee, and insurance
authority. Second, I am particularly happy to see the new provisions
creating an Office of Africa within the Bank to promote exports to sub-
Saharan Africa. The Export-Import Bank's role in recent years in
strengthening the role and expanding the opportunities for U.S.
business in sub-Saharan Africa, particularly in the wake of passage in
2000 of the African Growth and Opportunity Act, has been critical.
Third, I am pleased to see the required increases in the Bank's lending
to small businesses, which often have difficulty accessing foreign
markets.
The Export-Import Bank is also important to help U.S. companies
compete abroad. The export banks in many other countries--including
Canada, the European countries, and Japan--often provide much higher
levels of assistance to exporters from those countries. If U.S. firms
and their workers did not have the Export-Import Bank, they would be at
a real disadvantage when competing in the international marketplace.
Moreover, the Export-Import Bank does its job efficiently. It is a fee-
for-service agency. In the last two years, the Bank's revenues have
generated a net $1.3 billion surplus for the U.S. Treasury.
In conclusion, the Export-Import Bank helps American exports and it
helps American jobs. We can debate about whether or not there are some
things wrong with U.S. trade policy, but the Export-Bank is not one of
them. I support its activities and I urge my colleagues to do the same.
Mr. BLUMENAUER. Mr. Chairman, one of my priorities in Congress is
strengthening the economies of my community and of nations around the
world. By supporting HR 2897, I support an institution that provides
assistance to businesses who often operate in riskier markets where
financing is not available from private banks.
The Bank has a strong record of supporting U.S. businesses. In
FY2001, Export-Import Bank (Ex-Im Bank) supported over $12.5 billion in
U.S. exports to markets worldwide. Some critics argue that these loans
primarily benefited large multinational corporations, however, in
reality the majority of the Bank's transactions--9 out of 10--benefited
small businesses.
The fact is that each year more than 2,000 American companies--large,
medium, and small--in almost every state utilize Ex-Im Bank services.
One of these small businesses in my district is Oxis International,
Inc.--a manufacturer of medical diagnostic equipment used to test
levels of therapeutic drugs in the blood. Oxis used Ex-Im Bank's
multibuyer short-term insurance policy for almost five years, and the
company's exports grew from one-third to approximately one-half of
sales. According to Jon Pitcher, chief financial officer of Oxis
International, Inc. ``As a result of using Ex-Im Bank's insurance
policy, we have been able to increase our sales, and these exports are
now the fastest-growing part of our business.''
In another instance, Pacific/Hoe Saw and Knife Company of Portland, a
manufacturer of saw blades, industrial saws, and wholesale sawmill
equipment, has used Ex-Im Bank's multibuyer short-term (up to 180 days)
insurance policy for 10 years to increase sales to South America,
Africa, Asia, Australia, and New Zealand. Following this successful
trend, last September Portland's Calbag Metal Company recently paid off
their $50 million loan to the Ex-Im bank on schedule. Finally
Freightliner LLC--a heavy-duty truck manufacturer that employs 14,000
people--benefited from a guarantee that made it possible for
Freightliner to transport ten trucks to Santiago, Chile where they were
sold. The prices for these trucks would have likely been undercut, the
trucks never shipped, and the jobs associated with building the trucks
never allocated, if Ex-Im Bank did not assist Freightliner.
Overall, the past five years Ex-Im Bank has supported $190 million in
exports for companies like Freightliner, Oxis, Calbag Metals, Pacific/
Hoe Saw and Knife Company that are based in Oregon. A closure of the
bank would feasibly reduce these companies' exports, jeopardize the
jobs that are associated with those sales, and make them unable to
counter export financing packages provided by foreign governments to
their own exporters.
I withhold my support of the Sanders Amendment. This provision
naively assumes that firms produce only one product when in reality
many corporations produce a variety of products that affect employment
levels across product lines in different ways. Because Freightliner,
for example, is a subsidiary of DaimlerChrysler, the amendment would
make Freightliner ineligible for Bank funding if a greater percentage
of their truck machinists are laid off in Portland than those who build
Mercedes-Benz's in Brazil. Clearly the semi-truck market and the luxury
automobile market are not related and should not be irrationally
penalized.
I urge my colleagues to support the overall bill. It helps strengthen
American businesses, create jobs, and improve critical trade relations
with foreign markets.
Mr. WATTS of Oklahoma. Mr. Chairman, I rise in support of H.R. 2871
the Export-Import Bank Reauthorization Act. I would like to commend Mr.
Oxley, the Chairman of the Financial Services Committee, and Mr.
LaFalce, the Ranking Member, and also the sponsor, Mr. Bereuter, for
crafting a bill that reauthorizes the Export-Import Bank, with several
significant improvements, and thereby enhances American competitiveness
in the global marketplace.
It is our responsibility in the U.S. Congress to foster an
environment where business, and therefore the nation's economy, can
flourish. The Importance of foreign trade to the U.S. economy and its
impact on American jobs is clear. The Export-Import Bank plays a
critical role in enabling our businesses to compete more effectively
overseas. In fact, according to USA Exports, a Coalition for Employment
through Exports, ``Ex-Im Bank returns to the U.S. economy an average of
$18 of export value for every $1 appropriated by the U.S. Congress--a
true ``bang for the buck.''
One element of this bill that I strongly support is the emphasis on
small business. Small business is the major job creator in America, and
it is where minorities and women are making their greatest economic
advances. In Oklahoma we call Small Business--Big Business. Enabling
such companies to engage in foreign trade benefits the nation.
In addition, Mr. Chairman, I strongly support the provision to create
an Office for Africa at the Export-Import Bank. Africa faces daunting
challenges. But during my two trips to the region last year, with
representatives of more than 30 U.S. companies, under the auspices of
the Trade-Aid Coalition, we witnessed significant efforts in several
countries to build an economic infrastructure. This foundation is
essential to future growth, and is based on their evolving appreciation
for the principles of open markets, free trade, and private enterprise.
Fostering this appreciation is the goal of the Trade-Aid Coalition. And
the efforts of U.S. business, supported by the Export-Import Bank, to
trade with these nations reinforce these positive developments.
I do understand that there is not unanimous agreement on all aspects
of this bill. It is my understanding that the current bill language
would remove the Treasury Department's ability to direct how funds for
the Tied Aid War Chest should be used. The Treasury Department has used
the Tied Aid War Chest since
[[Page H1786]]
1986 to successfully reduce subsidies by other governments.
This has saved taxpayers hundreds of millions of dollars and has
helped increase U.S. exports by an average of over $1 billion dollars a
year. It is my understanding that the Senate bill preserves the
Treasury's role in using the Tied Aid War Chest. I would urge that in
conference we find a satisfactory compromise that protects the
interests of U.S. taxpayers and does not undermine the Treasury's
ability to fight foreign subsidies or other trade distorting measures.
Mr. Chairman, as our nation adjusts to a changing world after
September 11th, we face two inescapable facts: First, we must focus on
economic security, by working to ensure a strong economy that creates
jobs for the American people. Second, we must reach out to developing
nations across the globe, often beset by forces of terror, and
demonstrate how free markets, open trade, and private enterprise under
the rule of law can lead to prosperity for their citizens. Our national
security improves when global stability prevails.
Reauthorizing the Export-Import Bank helps accomplish both of these
goals, and I encourage my colleagues to vote ``yes.''
Ms. VELAZQUEZ. Mr. Chairman, I rise in support of H.R. 2871, the
Export-Import Bank Reauthorization act of 2001.
When people think of American exports, most think of the cars,
computers, machinery and agricultural products made by major American
corporations. But this perception is only part of the reality. Just as
small businesses set the pace for the American economy, they also are
pioneers in international trade.
In fact, 88 percent of American exporters are small businesses with
fewer than 100 employees. That statistic, while impressive, does not
tell the whole story. The Department of Commerce also estimates that
only 2 percent of small manufacturers with export potential actually
engage in trade. Clearly, a great potential for expanding trade
opportunities exists with the many small businesses that may want to
export but are intimidated by those prospects.
The Export-Import Bank is one of the most powerful tools that we have
for growing the number of small business exporters. The export loans
and insurance programs provided by the Ex-Im Bank help to reduce both
anxiety and economic risk for potential small business exporters.
Since the Bank was established in 1945, it has supported billions of
dollars in small business exports. Last year, the Bank supported $1.6
billion in small business exports in 2,124 transactions. This
represented almost 18 percent of the total export loan volume and over
90 percent of total trade transactions. More importantly, the Bank
supported over $32 million in exports by women-owned businesses and $34
million in exports by minority-owned businesses.
While these are impressive achievements, more can--and should--be
done. The bill that we are considering this afternoon is a step in the
right direction. It would increase the target for small business loan
volume from 10 percent to 20 percent and create an office within the
Bank that is dedicated to making small business loans. Lastly, H.R.
2871 would authorize an additional $1 million to increase its small
business marketing activities.
Ex-Im Bank has had great success marketing its programs to small
businesses. This bill will go even further by recognizing those gains
while providing the Bank with a renewed small business emphasis and
additional resources to expand this mission.
While this bill will go a long way to increasing the Bank's focus on
small business exporters, it is only one step in the right direction.
We need to work with the Bank to improve service on small business
transactions.
Small businesses are particularly sensitive to delays in closing
deals. A three-week delay in obtaining transaction financing can be the
difference between a successful sale and a missed opportunity. Through
the creation of a small business office in the Bank, we will need to
continue to monitor how well small business needs are met.
To this end, we will need to harmonize the Capital Guarantee programs
of both the Ex-Im Bank and the Small Business Administration. There is
no reason that these programs, which can operate as one, should be
crushed by the weight of different rules, applications, uses, and
lenders. Two similar but competing programs only will confuse the small
business exporter. In the coming year, I hope to resolve the twin
problems of expedited service and harmonization of the capital
guarantee programs.
I appreciate the opportunity to speak in favor of this important
legislation. It is hard to underestimate the impact that small
businesses have in both the domestic and international marketplace, and
this bill is a huge leap in the right direction toward supporting
further small business participation in the global marketplace.
Mr. BENTSEN. Mr. Chairman, I rise today in strong support of H.R.
2871, the Export-Import (Ex-Im) Bank Reauthorization Act. As a senior
member of the House Financial Services Committees, I believe we need to
act to ensure that Ex-Im bank can continue to operate to ensure the
U.S. companies can export their products and services to foreign
countries. I believe that this legislation is necessary to ensure the
American companies enjoy the same export financing that other nations
provide for their companies.
In 2000, the Ex-Im bank helped to provide $12.6 billion in loans,
guarantees, and insurance for the export of the U.S.-made goods and
services which is equal to approximately 2 percent of U.S. exports
annually. In my congressional district, the Ex-Im bank has helped to
finance more than $130 million in projects during the past five years.
I am particularly pleased that this financing has helped many small
businesses in my district to sell their products and services to
foreign nations. For example, Hickham Industries in LaPorte, Texas is
using an Ex-Im bank loan and guarantees to sell $226,000 worth of their
products to other nations. I also believe it is important to highlight
that none of these financial mechanisms are available through our
capital markets. By law, the Ex-Im bank is the leader of last resort,
when no other commercial entity will help with a project.
I also want to highlight several reforms included in this legislation
to improve the Ex-Im Bank. For instance, this legislation would
establish an Office of Small Business Exporters so small businesses
could go directly to one location within the Ex-Im bank to explore
financing options. This Office would be required to conduct outreach to
small businesses. In addition, this bill requires the Ex-Im bank to
provide at least 8 percent of their financing to small businesses with
less than 100 employees and encourages the Ex-Im bank to increase its
percentage of small business transactions from 10 percent to 20
percent. In addition, this legislation direct the Ex-Im bank to make
certain technology improvements so small businesses can better access
information about the Ex-Im bank using the Internet and other
technologies.
This measure also included critically important provisions to ensure
that Ex-Im bank financing is not used in industries which are subject
to a countervailing duty or anti-dumping duty under U.S. trade laws. We
must ensure that the taxpayers funds are not used to supersede our
trade laws. This bill also encourages the Ex-Im bank to evaluate
whether a nation has been helpful in our efforts to eradicate
terrorism. I believe that all of these reforms will enhance the Ex-Im
bank.
By targeting financing gaps and officially supported competition, the
Ex-Im Bank supports export sales that otherwise could not move forward.
These export sales expand employment in sectors where jobs are among
the highest paid in the country, and has an important effect on the
overall strength of our economy. I urge my colleagues to support this
legislation which helps to create jobs an expands the markets for U.S.-
made products.
Mr. ROUKENA. Mr. Chairman, I have been a strong supporter of the Ex-
Im Bank since coming to Congress in 1981. The Bank plays a very
significant role in US trade policy. It ensures that US businesses will
not be denied access to overseas markets because of market
imperfections that prevent them from obtaining financing from the
private sector or because of unfair competition from foreign export
agencies. Ex-Im has initiated thousands of transactions in foreign
markets that commercial banks deem too risky to enter. Because of the
Ex-Im, U.S. businesses export more goods and develop new and stronger
trading relationships abroad. More intense need now in our global
incoming and with Trade Promotion Authority currently ready for
authorization.
The world of finance and the international trading system are
changing fast. Other countries are finding more sophisticated ways of
assisting their exporters and new financing mechanisms are being
developed. Instead of placing restrictions on the Ex-Im and cutting its
funding, we should be working to enhance the banks capabilities to
assist business abroad by making sure they have the tools necessary to
assist US exporters in this changing global economy.
In fiscal year 2001 Ex-Im Bank financed nearly $12.5 billion of US
exports world wide which supported millions of US jobs. Nearly 90
percent of Ex-Im Bank's transaction in fiscal year 2001 was on behalf
of small businesses.
In New Jersey alone, the Ex-Im Bank has suppported over 214 companies
and 138 communities. It is estimated that over 44,974 jobs are
sustained by Ex-Im efforts. For example, JB Williams Company located in
Glen Rock, New Jersey, is a small, 45-employee manufacturer of
specialty soaps and bath products that has been using Ex-Im Bank's
short-term export credit insurance sine 1998 to expand its exports to
Saudi Arabia, Poland, Korea, Colombia, and other countries.
H.R. 2871, the Export-Import Bank Reauthorization Act of 2001,
extends the charter of
[[Page H1787]]
the U.S. Export-Import Bank for 4 years and creates offices on Small
Business Exporters and on Africa within the Bank. The legislation also
increases the value of transactions that the Bank can hold in its
portfolio at any time, raises the percentage of small business
transactions the Bank should pursue, and improves the operation of the
Tied Aid Credit Program. This measure further mandates that the Bank
take into consideration U.S. trade laws when considering a transaction,
examine whether a recipient company has been involved in any corrupt
practices prior to a transaction's approval, and assess whether a
country has been helpful or unhelpful in U.S. efforts to combat
terrorism.
The Financial Services Committee authorized an increase in the
administrative expenses of Ex-Im to $80 million adjusted annually for
inflation. This budgetary increase was deemed necessary for Ex-Im to
retain qualified staff, to improve its technology infrastructure and
increase outreach to small businesses. The mandate for small business
activity will be raised from 10 percent to 20 percent of the total
value of Ex-Im transactions, with 8 percent of the total going to
businesses with less than 100 employees. H.R. 2871 also raises the
level of total Ex-Im portfolio (loans guarantees, and insurance)
outstanding at any one time from the current level of $75 billion to
$130 billion by FY 2005.
Consistent with and supplemental to the trade bills we have ``Fast
Track'' better known as Trade Promotion Authority.
The Ex-Im Bank improves America's competitiveness overseas promotes
small business and creates and sustains U.S. jobs. I urge my colleagues
to support HR 2871, the Export Import Bank Reauthorization Act.
Mr. SHAYS. Mr. Chairman, I rise in support of reauthorizing the
Export-Import Bank.
Exports are an extremely vital part of our nation's economic well-
being. The Export-Import Bank is a relatively modest investment that
promotes U.S. businesses abroad and creates jobs back home.
With financing moving across borders faster and faster and more
frequently than at any time in history, and with every corner of the
world touched by globalization, Ex-Im helps U.S. businesses stay
connected to emerging markets they would otherwise have difficulty
reaching.
For a variety of reasons, from currency devaluation to political
instability, U.S. firms find it difficult to secure financing for these
markets. Private-sector lenders, perceiving a risk, are oftentimes
reluctant to provide long-term financing to emerging markets and to
support small business exports. This is unfortunate because nearly 90
percent of the world's population is in these countries, and this is
where the greatest increase in economic growth will occur.
That's where the Ex-Im Bank steps in. The agency acts as a ``lender
of last resort,'' allowing U.S. goods to access hard-to-reach markets.
It places an emphasis on small business exports, and today's
legislation raises the statutory requirement for small business
financing from a minimum of 10 percent of Ex-Im's activities to 20
percent.
Mr. Chairman, last year, Ex-Im Bank authorized $9.2 billion in loans,
guarantees and export credit insurance, supporting $12.5 billion of
U.S. exports. I urge my colleagues to support this reauthorization
bill, so we can continue to expand U.S. exports and promote economic
growth.
Mr. BEREUTER. Mr. Chairman, I yield back the balance of my time.
The CHAIRMAN. All time for general debate has expired.
Pursuant to the rule, the committee amendment in the nature of a
substitute printed in the bill shall be considered as an original bill
for the purpose of amendment under the 5-minute rule and shall be
considered read.
The text of the committee amendment in the nature of a substitute is
as follows:
H.R. 2871
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Export-
Import Bank Reauthorization Act of 2001''.
(b) Table of Contents.--The table of contents of this Act
is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Clarification that purposes include United States employment.
Sec. 3. Extension of authority.
Sec. 4. Administrative expenses.
Sec. 5. Increase in aggregate loan, guarantee, and insurance authority.
Sec. 6. Activities relating to Africa.
Sec. 7. Small business.
Sec. 8. Technology.
Sec. 9. Tied Aid Credit Fund.
Sec. 10. Expansion of authority to use Tied Aid Credit Fund.
Sec. 11. Renaming of Tied Aid Credit Program and Fund as Export
Competitiveness Program and Fund.
Sec. 12. Annual competitiveness report.
Sec. 13. Renewable energy sources.
Sec. 14. GAO reports.
Sec. 15. Human rights.
Sec. 16. Steel.
Sec. 17. Correction of references.
Sec. 18. Authority to deny application for assistance based on fraud or
corruption by the applicant.
Sec. 19. Consideration of foreign country helpfulness in efforts to
eradicate terrorism.
Sec. 20. Outstanding orders and preliminary injury determinations.
Sec. 21. Sense of the Congress relating to renewable energy targets.
SEC. 2. CLARIFICATION THAT PURPOSES INCLUDE UNITED STATES
EMPLOYMENT.
Section 2(a)(1) of the Export-Import Bank Act of 1945 (12
U.S.C. 635(a)(1)) is amended by striking the 2nd sentence and
inserting the following: ``The objects and purposes of the
Bank shall be to aid in financing and to facilitate exports
of goods and services, imports, and the exchange of
commodities and services between the United States or any of
its territories or insular possessions and any foreign
country or the agencies or nationals of any such country, and
in so doing to contribute to the employment of United States
workers. To further meet the objective set forth in the
preceding sentence, the Bank shall ensure that its loans,
guarantees, insurance, and credits are contributing to
maintaining or increasing employment of United States
workers.''.
SEC. 3. EXTENSION OF AUTHORITY.
Section 7 of the Export-Import Bank Act of 1945 (12 U.S.C.
635f) and section 1(c) of Public Law 103-428 (12 U.S.C. 635
note; 108 Stat. 4376) are each amended by striking ``2001''
and inserting ``2005''.
SEC. 4. ADMINISTRATIVE EXPENSES.
(a) Limitations on Authorization of Appropriations.--
Section 3 of the Export-Import Bank Act of 1945 (12 U.S.C.
635a) is amended by adding at the end the following:
``(f) Limitations on Authorization of Appropriations for
Administrative Expenses.--
``(1) In general.--For administrative expenses incurred by
the Bank, including technology-related expenses to carry out
section 2(b)(1)(E)(x), there are authorized to be
appropriated to the Bank not more than--
``(A) for fiscal year 2002, $80,000,000; and
``(B) for each of fiscal years 2003 through 2005, the
amount authorized by this paragraph to be appropriated for
the then preceding fiscal year, increased by the inflation
percentage (as defined in section 6(a)(2)(B)) applicable to
the then current fiscal year.
``(2) Outreach to small businesses with fewer than 100
employees.--Of the amount appropriated pursuant to paragraph
(1), there shall be available for outreach to small business
concerns (as defined under section 3 of the Small Business
Act) employing fewer than 100 employees, not more than--
``(A) $2,000,000 for fiscal year 2002; and
``(B) for each of fiscal years 2003 through 2005, the
amount required by this paragraph to be made available for
the then preceding fiscal year, increased by the inflation
percentage (as defined in section 6(a)(2)(B)) applicable to
the then current fiscal year.''.
(b) Required Budget Subcategories.--Section 1105(a) of
title 31, United States Code, is amended by adding at the end
the following:
``(34) with respect to the amount of appropriations
requested for use by the Export-Import Bank of the United
States, a separate statement of the amount requested for its
program budget, the amount requested for its administrative
expenses, and of the amount requested for its administrative
expenses, the amount requested for technology expenses and
the amount requested for expenses for outreach to small
business concerns (as defined under section 3 of the Small
Business Act) employing fewer than 100 employees.''.
(c) Sense of the Congress on the Importance of Technology
Improvements.--
(1) Findings.--The Congress finds that--
(A) the Export-Import Bank of the United States is in great
need of technology improvements;
(B) part of the amount budgeted for administrative expenses
of the Export-Import Bank is used for technology initiatives
and systems upgrades for computer hardware and software
purchases;
(C) the Export-Import Bank is falling behind its foreign
competitor export credit agencies' proactive technology
improvements;
(D) small businesses disproportionately benefit from
improvements in technology;
(E) small businesses need Export-Import Bank technology
improvements in order to export transactions quickly, with as
great paper ease as possible, and with a quick Bank turn-
around time that does not overstrain the tight resources
of such businesses;
(F) the Export-Import Bank intends to develop a number of
e-commerce initiatives aimed at improving customer service,
including web-based application and claim filing procedures
which would reduce processing time, speed payment of claims,
and increase staff efficiency;
(G) the Export-Import Bank is beginning the process of
moving insurance applications from an outdated mainframe
system to a modern, web-enabled database, with new
functionality including credit scoring, portfolio management,
work flow and e-commerce features to be added; and
(H) the Export-Import Bank wants to continue its e-commerce
strategy, including web site development, expanding online
applications and establishing a public/private sector
technology partnership.
(2) Sense of the congress.--The Congress emphasizes the
importance of technology improvements for the Export-Import
Bank of the
[[Page H1788]]
United States, which are of particular importance for small
businesses.
SEC. 5. INCREASE IN AGGREGATE LOAN, GUARANTEE, AND INSURANCE
AUTHORITY.
Section 6(a) of the Export-Import Bank Act of 1945 (12
U.S.C. 635e(a)) is amended to read as follows:
``(a) Limitation on Outstanding Amounts.--
``(1) In general.--The Export-Import Bank of the United
States shall not have outstanding at any one time loans,
guarantees, and insurance in an aggregate amount in excess of
the applicable amount.
``(2) Applicable amount.--
``(A) In general.--In paragraph (1), the term `applicable
amount' means--
``(i) during fiscal year 2002, $100,000,000,000, increased
by the inflation percentage applicable to fiscal year 2002;
``(ii) during fiscal year 2003, $110,000,000,000, increased
by the inflation percentage applicable to fiscal year 2003;
``(iii) during fiscal year 2004, $120,000,000,000,
increased by the inflation percentage applicable to fiscal
year 2004; and
``(iv) during fiscal year 2005, $130,000,000,000, increased
by the inflation percentage applicable to fiscal year 2005.
``(B) Inflation percentage.--For purposes of subparagraph
(A) of this paragraph, the inflation percentage applicable to
any fiscal year is the percentage (if any) by which--
``(i) the average of the Consumer Price Index (as defined
in section 1(f)(5) of the Internal Revenue Code of 1986) for
the 12-month period ending on December 31 of the immediately
preceding fiscal year; exceeds
``(ii) the average of the Consumer Price Index (as so
defined) for the 12-month period ending on December 31 of the
2nd preceding fiscal year.
``(3) Subject to appropriations.--All spending and credit
authority provided under this Act shall be effective for any
fiscal year only to such extent or in such amounts as are
provided in appropriation Acts.''.
SEC. 6. ACTIVITIES RELATING TO AFRICA.
(a) Extension of Advisory Committee for Sub-saharan
Africa.--Section 2(b)(9)(B)(iii) of the Export-Import Bank
Act of 1945 (12 U.S.C. 635(b)(9)(B)(iii)) is amended by
striking ``4 years after the date of enactment of this
subparagraph'' and inserting ``on September 30, 2005''.
(b) Coordination of Africa Activities.--Section 2(b)(9)(A)
of the Export-Import Bank Act of 1945 (12 U.S.C.
635(b)(9)(A)) is amended by inserting ``, in consultation
with the Department of Commerce and the Trade Promotion
Coordinating Council,'' after ``shall''.
(c) Continued Reports to the Congress.--Section 7(b) of the
Export-Import Bank Reauthorization Act of 1997 (12 U.S.C. 635
note) is amended by striking ``4'' and inserting ``8''.
(d) Creation of Office on Africa.--Section 3 of the Export-
Import Bank Act of 1945 (12 U.S.C. 635a) is further amended
by adding at the end the following:
``(g) Office on Africa.--
``(1) Establishment.--There is established in the Bank an
Office on Africa.
``(2) Function.--The Office on Africa shall focus on
increasing Bank activities in Africa and increasing
visibility among United States companies of African markets
for exports.
``(3) Reports.--The Office on Africa shall, from time to
time not less than annually, report to the Board on the
matters described in paragraph (2).''.
SEC. 7. SMALL BUSINESS.
(a) In General.--Section 2(b)(1)(E)(v) of the Export-Import
Bank Act of 1945 (12 U.S.C. 635(b)(1)(E)(v)) is amended--
(1) by striking ``10'' and inserting ``20''; and
(2) by inserting ``, and from such amount, not less than 8
percent of such authority shall be made available for small
business concerns employing fewer than 100 employees'' before
the period.
(b) Outreach to Businesses Owned by Socially Disadvantaged
Individuals or Women.--Section 2(b)(1)(E)(iii)(II) of such
Act (12 U.S.C. 635(b)(1)(E)(iii)(II)) is amended by inserting
after ``Bank'' the following: ``, with particular emphasis on
conducting outreach and increasing loans to businesses not
less than 51 percent of which are directly and
unconditionally owned by 1 or more socially disadvantaged
individuals (as defined in section 8(a)(5) of the Small
Business Act) or women,''.
(c) Office for Small Business Exporters.--Section 3 of such
Act (12 U.S.C. 635a) is further amended by adding at the end
the following:
``(h) Office for Small Business Exporters.--
``(1) Establishment.--There is established in the Bank an
Office for Small Business Exporters.
``(2) Function.--The Office for Small Business Exporters
shall focus on increasing Bank activities to enhance small
business exports and to meet the unique trade finance
needs of small business exporters.
``(3) Reports.--The Office for Small Business Exporters
shall, from time to time not less than annually, report to
the Board on the how the Office for Small Business Exporters
is achieving the goals as described in paragraph (2).
``(4) Sense of congress.--It is the sense of the Congress
that the Bank should redirect and prioritize existing
resources and personnel to establish the Office for Small
Business Exporters.''.
SEC. 8. TECHNOLOGY.
(a) Small Business.--Section 2(b)(1)(E) of the Export-
Import Bank Act of 1945 (12 U.S.C. 635(b)(1)(E)) is amended
by adding at the end the following:
``(x) The Bank shall implement technology improvements
which are designed to improve small business outreach,
including allowing customers to use the Internet to apply for
all Bank programs.''.
(b) Electronic Tracking of Pending Transactions.--Section
2(b)(1) of such Act (12 U.S.C. 635(b)(1)) is amended by
adding at the end the following:
``(J) The Bank shall implement an electronic system
designed to track all pending transactions of the Bank.''.
(c) Reports.--
(1) In general.--During each of fiscal years 2002 through
2005, the Export-Import Bank of the United States shall
submit to the Committees on Financial Services and on
Appropriations of the House of Representatives and the
Committees on Banking, Housing, and Urban Affairs and on
Appropriations of the Senate an interim report and a final
report on the efforts made by the Bank to carry out
subsections (E)(x) and (J) of section 2(b)(1) of the Export-
Import Bank Act of 1945, and on how the efforts are assisting
small businesses.
(2) Timing.--The interim report required by paragraph (1)
for a fiscal year shall be submitted April 30 of the fiscal
year, and the final report so required for a fiscal year
shall be submitted on November 1 of the succeeding fiscal
year.
SEC. 9. TIED AID CREDIT FUND.
(a) Process and Standards.--Section 10(b) of the Export-
Import Bank Act of 1945 (12 U.S.C. 635i-3(b)) is amended--
(1) in paragraph (2)(A), by striking ``Secretary's
recommendations'' and all that follows and inserting
``process and standards developed pursuant to paragraph
(5);''; and
(2) by adding at the end the following:
``(5) Process and standards governing use of the fund.--
``(A) In general.--The Secretary shall develop a process
for, and the standards to be used in, determining how the
amounts in the Tied Aid Credit Fund could be used most
effectively and efficiently to carry out the purposes of
subsection (a)(6).
``(B) Content of process and standards.--
``(i) Consideration of certain standards.--In developing
the standards referred to in subparagraph (A), the Secretary
shall consider administering the Tied Aid Credit Fund in
accordance with the following standards:
``(I) The Tied Aid Credit Fund will be used to counter a
foreign tied aid credit confronted by a United States
exporter when bidding for a capital project.
``(II) Credible information about an offer of foreign tied
aid will be required before the Tied Aid Credit Fund is used
to offer specific terms to match such an offer.
``(III) The Tied Aid Credit Fund will be used to enable a
competitive United States exporter to pursue further market
opportunities made possible by the use of the Fund.
``(IV) Each use of the Tied Aid Credit Fund will be in
accordance with the Arrangement unless a breach of the
Arrangement has been committed by a foreign export credit
agency.
``(V) The Tied Aid Credit Fund will be used to defend
potential sales by United States companies to a project that
is environmentally sound.
``(VI) The Tied Aid Credit Fund will be used to
preemptively counter potential foreign tied aid offers
without triggering foreign tied aid use.
``(ii) Limitation.--The process and standards referred to
in subparagraph (A) shall not result in the Secretary having
the authority to veto a specific deal.
``(C) Initial report.--As soon as is practicable but not
later than 6 months after the date of the enactment of this
paragraph, the Secretary shall submit to the Committee on
Financial Services of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the
Senate a report on the process and standards developed
pursuant to subparagraph (A).
``(D) Transitional standards.--The standards set forth in
subparagraph (B)(i) shall govern the use of the Tied Aid
Credit Fund until the report required by subparagraph (C) is
submitted.
``(E) Update and revision; reports.--The Secretary should
update and revise, as needed, the process and standards
developed pursuant to subparagraph (A), and, on doing so,
shall submit to the Committee on Financial Services of the
House of Representatives and the Committee on Banking,
Housing, and Urban Affairs of the Senate a report on the
process and standards so updated and revised.''.
(b) Reconsideration of Board Decisions on Use of Fund.--
Section 10(b) of such Act (12 U.S.C. 635i-3(b)) is further
amended by adding at the end the following:
``(6) Reconsideration of decisions.--
``(A) In general.--Taking into consideration the time
sensitivity of transactions, the Board of Directors of the
Bank shall expeditiously reconsider a decision of the Board
to deny an application of the use of the Tied Aid Credit Fund
if the applicant submits the request for reconsideration
within 3 months of the denial.
``(B) Procedural rules.--In any such reconsideration, the
applicant may, but shall not be required to, provide new
information on the application.''.
SEC. 10. EXPANSION OF AUTHORITY TO USE TIED AID CREDIT FUND.
(a) Untied Aid.--
(1) Negotiations.--The Secretary of the Treasury shall seek
to negotiate an OECD Arrangement on Untied Aid. In the
negotiations, the Secretary shall seek agreement on
subjecting untied aid to the rules governing the Arrangement,
including the rules governing disclosure.
(2) Report to the Congress.--Within 1 year after the date
of the enactment of this Act, the Secretary of the Treasury
shall submit to the Committee on Financial Services of the
House of Representatives and the Committee on Banking,
Housing, and Urban Affairs of the Senate a report on the
successes, failures, and obstacles in
[[Page H1789]]
reaching the agreement described in paragraph (1).
(b) Market Windows.--
(1) Negotiations.--The Secretary of the Treasury shall seek
to negotiate an OECD Arrangement on Market Windows. In the
negotiations, the Secretary shall seek agreement on
subjecting market windows to the rules governing the
Arrangement, including the rules governing disclosure.
(2) Report to the congress.--Within 2 years after the date
of the enactment of this Act, the Secretary of the Treasury
shall submit to the Committee on Financial Services of the
House of Representatives and the Committee on Banking,
Housing, and Urban Affairs of the Senate a report on the
successes, failures, and obstacles in reaching the agreement
described in paragraph (1).
(c) Use of Tied Aid Credit Fund To Combat Untied Aid and
Market Windows.--Section 10 of the Export-Import Bank Act of
1945 (12 U.S.C. 635i-3) is amended--
(1) in subsection (a)--
(A) in paragraph (1), by inserting ``, and market windows
used by'' before ``other countries'';
(B) in paragraph (4), by striking ``and'' at the end;
(C) in paragraph (5), by inserting ``, or market windows,''
before ``for commercial'' the 1st and 3rd places it appears;
and
(D) by redesignating paragraph (5) as paragraph (6) as
inserting after paragraph (4) the following:
``(5) the Bank has, at a minimum, the following two tasks:
``(A)(i) First, the Bank should match, and even overmatch,
foreign export credit agencies when they engage in tied aid
outside the confines of the Arrangement and when they exploit
loopholes, such as market windows and untied aid;
``(ii) such matching and overmatching is needed to provide
the United States with leverage in efforts at the OECD to
reduce the overall level of export subsidies;
``(iii) only through matching or bettering foreign export
credit offers can the Bank buttress United States negotiators
in their efforts to bring these loopholes within the
disciplines of the Arrangement; and
``(iv) in order to bring market windows within the
discipline of the Arrangement, the Bank should sometimes
initiate highly competitive financial support when the Bank
learns that foreign market window support may be part of a
transaction; and
``(B) Second, the Bank should support United States
exporters when the exporters face foreign competition that is
consistent with the letter and spirit of the Arrangement and
the Subsidies Code of the World Trade Organization, but which
nonetheless is more generous than the terms available from
the private financial market; and''; and
(2) in subsection (b)(1)--
(A) in subparagraph (A), by inserting ``and market windows
used'' after ``extended''; and
(B) in subparagraph (B)(i), by inserting ``or market
windows'' after ``untied aid credits''.
(d) Definition of Market Window.--Section 10(h) of such Act
(12 U.S.C. 635i-3(h)) is amended by adding at the end the
following:
``(7) Market window.--The term `market window' means the
provision of export financing through an institution (or a
part of an institution) that claims to operate on a
commercial basis while benefiting directly or indirectly from
some level of government support.''.
SEC. 11. RENAMING OF TIED AID CREDIT PROGRAM AND FUND AS
EXPORT COMPETITIVENESS PROGRAM AND FUND.
Section 10 of the Export-Import Bank Act of 1945 (12 U.S.C.
635i-3) is further amended--
(1) by striking all that precedes paragraph (1) of
subsection (a) and inserting the following:
``SEC. 10. EXPORT COMPETITIVENESS FUND.
``(a) Findings.--The Congress finds that--'';
(2) in subsection (a)(6) (as so redesignated by section
9(c)(1)(D) of this Act), by striking ``tied aid program'' and
inserting ``export competitiveness program'';
(3) in the heading of subsection (b), by striking ``Tied
Aid Credit'' and inserting ``Export Competitiveness'';
(4) in subsection (b)(1)--
(A) by striking ``tied aid credit program'' and inserting
``export competitiveness program''; and
(B) by striking ``Tied Aid Credit fund'' and inserting
``Export Competitiveness Fund'';
(5) in subsection (b)(2), by striking ``tied aid credit
program'' and inserting ``export competitiveness program'';
(6) in subsection (b)(3)--
(A) by striking ``tied aid credit program'' and inserting
``export competitiveness program''; and
(B) by striking ``Tied Aid Credit Fund'' and inserting
``Export Competitiveness Fund'';
(7) in subsection (b)(5) (as added by section 9(a)(2) of
this Act), by striking ``Tied Aid Credit Fund'' each place it
appears and inserting ``Export Competitiveness Fund'';
(8) in subsection (b)(6) (as added by section 9(b) of this
Act), by striking ``Tied Aid Credit Fund'' and inserting
``Export Competitiveness Fund'';
(9) in subsection (c)--
(A) in the subsection heading, by striking ``Tied Aid
Credit'' and inserting ``Export Competitiveness''; and
(B) in paragraph (1), by striking ``Tied Aid Credit'' and
inserting ``Export Competitiveness'';
(10) in subsection (d), by striking ``tied aid credit'' and
inserting ``export competitiveness''; and
(11) in subsection (g)(2)(C), by striking ``Tied Aid
Credit'' and inserting ``Export Competitiveness''.
SEC. 12. ANNUAL COMPETITIVENESS REPORT.
(a) Timing.--
(1) In general.--Section 2(b)(1)(A) of the Export-Import
Bank Act of 1945 (12 U.S.C. 635(b)(1)(A)) is amended in the
4th sentence by striking ``on an annual basis'' and inserting
``on June 30 of each year''.
(2) Applicability.--The amendment made by paragraph (1)
shall apply to reports for calendar years after calendar year
2000.
(b) Additional Matters To Be Addressed.--Section 2(b)(1)(A)
of such Act (12 U.S.C. 635(b)(1)(A)) is amended by adding at
the end the following: ``The Bank shall include in the annual
report a description of the volume of financing provided by
each foreign export credit agency, and a description of all
Bank transactions which shall be classified according to
their principal purpose, such as to correct a market failure
or to provide matching support.''.
(c) Number of Small Business Suppliers of Bank Users.--
Section 2(b)(1)(A) of such Act (12 U.S.C. 635(b)(1)(A)) is
further amended by adding at the end the following: ``The
Bank shall estimate on the basis of an annual survey or
tabulation the number of entities that are suppliers of users
of the Bank and that are small business concerns (as defined
under section 3 of the Small Business Act) located in the
United States, and shall include the estimate in the annual
report.''.
(d) Outreach to Businesses Owned by Socially Disadvantaged
Individuals or by Women.--Section 2(b)(1)(A) of such Act (12
U.S.C. 635(b)(1)(A)) is further amended by adding at the end
the following: ``The Bank shall include in the annual report
a description of outreach efforts made by the Bank to any
business not less than 51 percent of which is directly and
unconditionally owned by 1 or more socially disadvantaged
individuals (as defined in section 8(a)(5) of the Small
Business Act) or women, and any data on the results of such
efforts.''.
SEC. 13. RENEWABLE ENERGY SOURCES.
(a) Promotion.--Section 2(b)(1) of the Export-Import Bank
Act of 1945 (12 U.S.C. 635(b)(1)), as amended by section 8(b)
of this Act, is amended by adding at the end the following:
``(K) The Bank shall promote the export of goods and
services related to renewable energy sources.''.
(b) Description of Efforts to be Included in Annual
Competitiveness Report.--Section 2(b)(1)(A) of such Act (12
U.S.C. 635(b)(1)(A)) is further amended by adding at the end
the following: ``The Bank shall include in the annual report
a description of the efforts undertaken under subparagraph
(K).''.
SEC. 14. GAO REPORTS.
(a) Potential of WTO To Remedy Untied Aid and Market
Windows.--Within 1 year after the date of the enactment of
this Act, the Comptroller General of the United States shall
submit to the Committee on Financial Services of the House of
Representatives and the Committee on Banking, Housing, and
Urban Affairs of the Senate a report that examines--
(1) whether a case could be brought by the United States in
the World Trade Organization seeking relief against untied
aid and market windows, and if so, the kinds of relief that
would be available if the United States were to prevail in
such a case; and
(2) the scope of penalty tariffs that the United States
could impose against imports from a country that uses untied
aid or market windows.
(b) Comparative Reserve Practices of Export Credit Agencies
and Private Banks.--Within 1 year after the date of the
enactment of this Act, the Comptroller General of the United
States shall submit to the Committee on Financial Services of
the House of Representatives and the Committee on Banking,
Housing, and Urban Affairs of the Senate a report that
examines the reserve ratios of the Export-Import Bank of the
United States as compared with the reserve practices of
private banks and foreign export credit agencies.
SEC. 15. HUMAN RIGHTS.
Section 2(b)(1)(B) of the Export-Import Bank Act of 1945
(12 U.S.C. 635(b)(1)(B)) is amended by inserting ``(as
provided in the Universal Declaration of Human Rights adopted
by the United Nations General Assembly on December 10,
1948)'' after ``human rights''.
SEC. 16. STEEL.
(a) Reevaluation.--The Export-Import Bank of the United
States shall re-assess the effects of the approval by the
Bank of an $18,000,000 medium-term guarantee to support the
sale of computer software, control systems, and main drive
power supplies to Benxi Iron & Steel Company, in Benxi,
Liaoning, China, for the purpose of evaluating whether the
adverse impact test of the Bank sufficiently takes account of
the interests of United States industries.
(b) Report to the Congress.--Within 1 year after the date
of the enactment of this Act, the Export-Import Bank of the
United States shall submit to the Committee on Financial
Services of the House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the Senate a report on
the re-assessment required by subsection (a).
SEC. 17. CORRECTION OF REFERENCES.
(a) Section 2(b)(1)(B) of the Export-Import Bank Act of
1945 (12 U.S.C. 635(b)(1)(B)) is amended by striking
``Banking and''.
(b) Each of the following provisions of the Export-Import
Bank Act of 1945 is amended by striking ``Banking, Finance
and Urban Affairs'' and inserting ``Financial Services'':
(1) Section 2(b)(6)(D)(i)(III) (12 U.S.C.
635(b)(6)(D)(i)(III)).
(2) Section 2(b)(6)(H) (12 U.S.C. 635(b)(6)(H)).
(3) Section 2(b)(6)(I)(i)(II) (12 U.S.C.
635(b)(6)(I)(i)(II)).
(4) Section 2(b)(6)(I)(iiii) (12 U.S.C. 635(b)(6)(I)(iii)).
(5) Section 10(g)(1) (12 U.S.C. 635i-3(g)(1)).
[[Page H1790]]
SEC. 18. AUTHORITY TO DENY APPLICATION FOR ASSISTANCE BASED
ON FRAUD OR CORRUPTION BY THE APPLICANT.
Section 2 of the Export-Import Bank Act of 1945 (12 U.S.C.
635) is amended by adding at the end the following:
``(f) Authority to Deny Application for Assistance Based on
Fraud or Corruption by Party to the Transaction.--In addition
to any other authority of the Bank, the Bank may deny an
application for assistance with respect to a transaction if
the Bank has substantial credible evidence that any party to
the transaction has committed an act of fraud or corruption
in connection with a transaction involving a good or service
that is the same as, or substantially similar to, a good or
service the export of which is the subject of the
application.''.
SEC. 19. CONSIDERATION OF FOREIGN COUNTRY HELPFULNESS IN
EFFORTS TO ERADICATE TERRORISM.
Section 2(b)(1) of the Export-Import Bank Act of 1945 (12
U.S.C. 635(b)(1)) is further amended by adding at the end the
following:
``(L) It is further the policy of the United States that,
in considering whether to guarantee, insure, or extend
credit, or participate in the extension of credit in
connection with the purchase of any product, technical data,
or information by a national or agency of any nation, the
Bank shall take into account the extent to which the nation
has been helpful or unhelpful in efforts to eradicate
terrorism. The Bank shall consult with the Department of
State to determine the degreee to which each relevant nation
has been helpful or unhelpful in efforts to eradicate
terrorism.''.
SEC. 20. OUTSTANDING ORDERS AND PRELIMINARY INJURY
DETERMINATIONS.
Section 2(e) of the Export-Import Bank Act of 1945 (12
U.S.C. 635(e)) is amended--
(1) in paragraph (2), by striking ``Paragraph (1)'' and
inserting ``Paragraphs (1) and (2)''; and
(2) by redesignating paragraphs (2) and (3) as paragraphs
(3) and (4) and by inserting after paragraph (1) the
following:
``(2) Outstanding orders and preliminary injury
determinations.--
``(A) Orders.--The Bank shall not provide any loan or
guarantee to an entity for the resulting production of
substantially the same product that is the subject of--
``(i) a countervailing duty or antidumping order under
title VII of the Tariff Act of 1930; or
``(ii) a determination under title II of the Trade Act of
1974.
``(B) Affirmative determination.--Within 60 days after the
date of the enactment of this Act, the Bank shall establish
procedures regarding loans or guarantees provided to any
entity that is subject to a preliminary determination of a
reasonable indication of material injury to an industry under
title VII of the Tariff Act of 1930. The procedures shall
help to ensure that these loans and guarantees are likely to
not result in a significant increase in imports of
substantially the same product covered by the preliminary
determination and are likely to not have a significant
adverse impact on the domestic industry. The Bank shall
report to the Committee on Financial Services of the House of
Representatives and the Committee on Banking, Housing, and
Urban Affairs of the Senate on the implementation of these
procedures.
``(C) Comment period.--The Bank shall establish procedures
under which the Bank shall notify interested parties and
provide a comment period with regard to loans or guarantees
reviewed pursuant to subparagraph (B).''.
SEC. 21. SENSE OF THE CONGRESS RELATING TO RENEWABLE ENERGY
TARGETS.
(a) Allocation of Assistance Among Energy Projects.--It is
the sense of the Congress that, of the total amount available
to the Export-Import Bank of the United States for the
extension of credit for transactions related to energy
projects, the Bank should, not later than the beginning of
fiscal year 2006, use--
(1) not more than 95 percent for transactions related to
fossil fuel projects; and
(2) not less than 5 percent for transactions related to
renewable energy and energy efficiency projects.
(b) Definition of Renewable Energy.--In this section, the
term ``renewable energy'' means projects related to solar,
wind, biomass, fuel cell, landfill gas, or geothermal energy
sources.
The CHAIRMAN. No amendment to that amendment is in order except those
printed in House Report 107-423. Each amendment may be offered only in
the order printed in the report, by a Member designated in the report,
shall be considered read, shall be debatable for the time specified in
the report, equally divided and controlled by the proponent and an
opponent, shall not be subject to amendment, and shall not be subject
to a demand for division of the question.
It is now in order to consider Amendment No. 1 printed in House
Report 107-423.
{time} 1145
Amendment No. 1 Offered by Mr. Bereuter
Mr. BEREUTER. Mr. Chairman, I offer an amendment.
The CHAIRMAN. The Clerk will designate the amendment.
The text of the amendment is as follows:
Amendment No. 1 offered by Mr. Bereuter:
Page 12, line 19, strike ``Process and'' and insert
``Principles, Process, and''.
Page 12, strike lines 22 through 25 and insert the
following:
(1) in paragraph (2), by striking subparagraph (A) and
inserting the following:
``(A) in consultation with the Secretary and in accordance
with the principles, process, and standards developed
pursuant to paragraph (5) of this subsection and the purposes
described in subsection (a)(5);''; and
Page 13, line 2, strike ``Process and'' and insert
``Principles, process, and''.
Page 13, line 4, after ``Secretary'' insert ``and the Bank
jointly''.
Page 13, line 5, insert ``principles and'' before
``standards''.
Page 13, line 10, strike ``process and'' and insert
``principles, process, and''.
Page 13, strike line 13 and insert ``principles and
standards.--In developing the principles and standards''.
Page 13, line 15, after ``retary'' insert ``and the Bank''.
Page 13, line 17, insert ``principles and'' before
``standards''.
Page 13, after line 17, insert the following:
``(I) The Tied Aid Credit Fund should be used to leverage
multilateral negotiations to restrict the scope for aid-
financed trade distortions through new multilateral rules,
and to police existing rules.''.
Page 13, line 18, strike ``(I)'' and insert ``(II)''.
Page 13, line 23, strike ``(II)'' and insert ``(III)''.
Page 14, line 3, strike ``(III)'' and insert ``(IV)''.
Page 14, line 6, insert ``on commercial terms'' after
``opportunities''.
Page 14, line 8, strike ``(IV)'' and insert ``(V)''.
Page 14, line 13, strike ``(V)'' and insert ``(VI)''.
Page 14, line 14, strike ``will'' and insert ``may only''.
Page 14, line 17, strike ``(VI)'' and insert ``(VII)''.
Page 14, line 18, strike ``will'' and insert ``may''.
Page 14, line 21, insert ``principles,'' before
``process''.
Page 15, line 1, strike ``report'' and insert ``principles,
process, and standards''.
Page 15, line 3, after ``Secretary'' insert ``and the
Bank''.
Page 15, line 7, strike ``report on the process'' and
insert ``copy of the principles, process,''.
Page 15, line 10, insert ``principles and'' before
``standards''.
Page 15, line 11, insert ``principles and'' before
``standards''.
Page 15, line 13, strike ``report'' and insert
``principles, process, and standards''.
Page 15, line 13, strike ``is'' and insert ``are''.
Page 15, line 15, strike ``; reports''.
Page 15, line 16, after ``Secretary'' insert ``and the bank
jointly''.
Page 15, line 17, strike ``process and'' and insert
``principles, process, and''.
Page 15, line 22, strike ``report on the process'' and
insert ``copy of the principles, process,''.
Page 16, line 8, after ``tiously'' insert ``pursuant to
paragraph (2)''.
Page 16, line 14, strike ``, but shall not''.
Page 16, line 22, strike ``shall'' and insert ``should''.
Page 17, line 7, after ``in'' insert ``initiating
negotiations, and if negotiations were initiated, in''.
Page 17, line 13, strike ``shall'' and insert ``should''.
Page 17, line 22, after ``in'' insert ``initiating
negotiations, and if negotiations were initiated, in''.
Page 17, line 25, strike ``and Market Windows''.
Page 18, strike lines 2 through 6 and insert ``amended in
subsection (a)--''.
Page 18, line 7, strike ``(B)'' and insert ``(A)''.
Page 18, line 9, strike ``(C)'' and insert ``(B)''.
Page 18, line 10, strike ``market windows'' and insert
``untied aid''.
Page 18, line 12, strike ``(D)'' and insert ``(C)''.
Page 18, line 13, strike ``as'' and insert ``and''.
Page 18, line 18, insert ``and aid agencies'' after
``agencies''.
Page 18, line 21, strike ``market windows and''.
Page 19, line 6, strike ``market windows'' and insert
``untied aid''.
Page 19, beginning on line 10, strike ``market window
support may be part of a transaction'' and insert ``untied
aid offers will be made''.
Page 19, line 19, strike ``; and'' and insert a period.
Page 19, strike lines 20 through 24.
The CHAIRMAN. Pursuant to House Resolution 402, the gentleman from
Nebraska (Mr. Bereuter) and a Member opposed each will control 5
minutes.
The Chair recognizes the gentleman from Nebraska (Mr. Bereuter).
Mr. BEREUTER. Mr. Chairman, I yield myself such time as I may consume
to explain the manager's amendment.
(Mr. BEREUTER asked and was given permission to revise and extend his
remarks.)
Mr. BEREUTER. Mr. Chairman, the changes in the manager's amendment
are to the Tied Aid War Chest section of the legislation and are the
result of negotiations with the administration.
[[Page H1791]]
As a way of background, this legislation would make important
clarifications in the administration of the Tied Aid War Chest which
finances tied aid transactions. The Tied Aid War Chest was intended to
be used by the Ex-Im Bank to protect American exporters by matching the
concessionary financing of foreign export credit agencies. The Tied Aid
War Chest has been grossly underutilized, which is due in part to the
disagreements between the Ex-Im Bank and the Department of Treasury
over the years on how to use the funds.
These past problems would be addressed in this legislation by the
creation of a new definitive step-by-step process to be followed by the
Ex-Im Bank and the Treasury Department regarding how the Tied Aid War
Chest is to be administered. The manager's amendment would make the
following changes to how the Tied Aid War Chest is administered.
Number 1, under the bill as reported, the Secretary of the Treasury
would set the process and standards on how the amounts in the Tied Aid
War Chest can be effectively used and efficiently used, and it would do
this in consultation with the Ex-Im Bank. In the manager's amendment,
the word ``principles'' is inserted before the word ``process.'' This
change is made throughout the manager's amendment where applicable.
Number 2, the Ex-Im Bank would be allowed to jointly set the
principles, process and standards which govern the use of the Tied Aid
War Chest with the Secretary of the Treasury.
Three, the Tied Aid War Chest also must be used in accordance with
the purposes described in section 10(a)(5) of the Ex-Im Bank charter.
This reference to section 10(a)(5) is in current law.
Number 4, adds a new standard which will govern the use of the Tied
Aid War Chest in the interim period before the Secretary of the
Treasurer and the Ex-Im Bank submit their principles, process and
standards to Congress. This new standard states that the Tied Aid War
Chest should be used to leverage multilateral negotiations in such
places as the OECD in Paris to restrict the scope of aid-financed trade
distortions and to police existing rules. This new standard is added to
the six existing standards in the bill as reported.
Number 5, under H.R. 2871, as reported, an applicant for the Tied Aid
War Chest is given an opportunity for an expeditious reconsideration by
the Ex-Im Bank board within 3 months of the denial of an application
for assistance. Under this legislation, as reported, the applicant may,
but shall not be required to provide any information for the
application to be reconsidered. That is at the suggestion of the
administration. The manager's amendment states that the applicant may
be required to provide new information in order for the application to
be reconsidered.
Number 6, under the bill, as reported, the Tied Aid War Chest can be
used to combat untied aid and market windows. Under the current law,
the Tied Aid War Chest can only be used to combat tied aid from foreign
export credit agencies. The manager's amendment does not allow the Tied
Aid War Chest to be used for market windows. Market windows are defined
as export financing that claims to operate on a commercial basis while
benefiting directly or indirectly from some level of government
support.
This change was made at the request of the administration because the
Ex-Im Bank is still trying to understand how countries such as Germany
and Canada use the market windows device. As a result, this Member
believes that we should not legislate an issue until we fully
understand how the market windows device actually functions.
Number 7, finally, the manager's amendment also makes other minor
technical corrections.
Mr. Chairman, in summary, as a result of the manager's amendment, the
Export-Import Bank will administer the Tied Aid War Chest in
consultation with the Secretary of the Treasury in accordance with both
the principles, process and standards developed jointly by the
Secretary of the Treasury and the Ex-Im Bank and in accordance the
purposes which are currently listed in the Ex-Im charter. This Member
believes that the changes in the manager's amendment are essential to
further clarify the administration of the Tied Aid War Chest.
Mr. Chairman, in conclusion, this Member would urge his colleagues to
support the manager's amendment to H.R. 2871.
Mr. Chairman, I reserve the balance of my time.
The CHAIRMAN. Who rises to claim the time in opposition?
Mr. LaFALCE. Mr. Chairman, I claim the time in opposition.
The CHAIRMAN. The gentleman from New York (Mr. LaFalce) is recognized
for 5 minutes.
Mr. LaFALCE. Mr. Chairman, I yield myself such time as I may consume.
I am very pleased to rise in support of the gentleman from Nebraska's
(Mr. Bereuter) amendment which attempts to meet objections to the bill
raised by the Treasury Department, and I know that the gentleman from
Nebraska has negotiated in great faith with Treasury officials.
Unfortunately, they have withheld support for the bill, primarily due
to the tied aid credit fund provisions within it, and I am appreciative
of the gentleman's enormous efforts to address Treasury's concerns
during the past 5 months over what is essentially a territorial
dispute.
The manager's amendment represents his best effort to accommodate
Treasury. To that end, I fully support it. I only regret that it has
taken 5 months for the Republican House leadership to decide that the
U.S. Treasury Department does not set the schedule in the House of
Representatives.
Having said that, let me also add that I did support a 6-month
extension of the authorization for Ex-Im Bank last year, and then I
supported an additional 30-day extension, and yesterday I supported an
additional 30-day extension. We have until the Memorial Day recess to
reconcile the differences between the House Ex-Im reauthorization bill
and the Senate Ex-Im reauthorization bill.
The differences are not that great. We should be able to resolve them
at one meeting which could take place this week or next week. Most of
the issues, I should not say this, could be settled by a flip of the
coin between the House and Senate. Treasury might still oppose, and if
Treasury is allowed to hold up the conference report, I just tell them
now that I will not support another extension.
Mr. Chairman, I yield back the balance of my time.
Mr. BEREUTER. Mr. Chairman, I yield myself the balance of the time,
and I want to thank the distinguished gentleman from New York (Mr.
LaFalce) for his patience and his support through this process. I
actually welcome the statement the gentleman made about the upcoming
House-Senate conference, and his suggestion is exactly the method that
I am going to try to advance, with the Chairman's help, if, in fact, we
have an opportunity to go to conference today, as I expect.
I would like to say to the gentleman that he and I have shared
frustration for so many years over the lack of use of the war chest
when it is appropriate, and in part, that failure or deficiency is
because of the subject that I think we are addressing in the manager's
amendment.
Again, I thank the gentleman for his support and his patience through
this long consultation process with the administration. We have made as
many accommodations as we possibly can without making the ultimate one
because we understand what they want is not consistent with what this
body, as a legislative body, should do.
I urge support of the manager's amendment.
Mr. Chairman, I yield back the balance of my time.
The CHAIRMAN. The question is on the amendment offered by the
gentleman from Nebraska (Mr. Bereuter).
The amendment was agreed to.
The CHAIRMAN. It is now in order to consider amendment No. 2 printed
in House Report No. 107-423.
Amendment No. 2 Offered by Mr. DeFazio
Mr. DeFAZIO. Mr. Chairman, I offer an amendment.
The CHAIRMAN. The Clerk will designate the amendment.
The text of the amendment is as follows:
Amendment No. 2 offered by Mr. DeFazio:
At the end of the bill, add the following:
[[Page H1792]]
SEC. ____. BAN ON ASSISTANCE FOR PROJECT INVOLVING
PRIVATIZATION OF GOVERNMENT-HELD INDUSTRY OR
SECTOR.
Section 2(b) of the Export-Import Bank Act of 1945 (12
U.S.C. 635(b)) is amended by adding at the end the following:
``(13) Ban on assistance for project involving
privatization of government-held industry or sector.--The
Bank may not guarantee, insure, or extend (or participate in
the extension of) credit in connection with the export of any
good or service for a project that involves the privatization
of a government-held industry or sector if--
``(A) the privatization transaction is not implemented in a
transparent manner;
``(B) the privatization transaction is not implemented in a
manner that adequately protects the interests of workers,
small investors, and vulnerable groups in society to the
extent that they are affected by the privatization
transaction; or
``(C) appropriate regulatory regimes have not been
established to esnure the proper function of competitive
markets in the industry or sector.''.
The CHAIRMAN. Pursuant to House Resolution 402, the gentleman from
Oregon (Mr. DeFazio) and a Member opposed each will control 15 minutes.
The Chair recognizes the gentleman from Oregon (Mr. DeFazio).
Mr. DeFAZIO. Mr. Chairman, I yield myself such time as I may consume.
We will not use all of the time here.
The amendment which I drafted is based substantially on language
which will be included in legislation to come up later today, H.R.
2604, the Multinational Development Bank Reauthorization. It is a
bipartisan piece of legislation which the gentleman from Nebraska (Mr.
Bereuter) as the Chairman of the Subcommittee on International Monetary
Policy and Trade introduced and was cosponsored by the gentleman from
New York (Mr. LaFalce), ranking member, and the gentleman from Vermont
(Mr. Sanders).
I looked at that legislation, and although I will admit that the
issue before us here, the Ex-Im Bank, is not normally the principal
source of funding for potential privatization efforts, but there are
instances where Ex-Im Bank has followed in acquisitions and has
essentially been linked to privatization efforts.
Oftentimes there may well be nothing wrong with the U.S. firm being
involved in a privatization effort overseas, as long as there is a
regulatory structure in place, as long as the government or the
taxpayers of that country get full value in a process which is
transparent in terms of the bidding, but unfortunately, there have been
a number of cases, a couple of which involved the Enron corporation in
Panama and the Dominican Republic, where that was not the case. In
fact, a study after the fact in the Dominican Republic found that the
assets were undervalued by $907 million, and the Panama case, there was
a problem with basically some corruption within the government which
had led to a low bid and an improper acquisition.
I think putting in place some basic rules is needed to make sure that
the Ex-Im Bank either in the first instance or in follow-on to U.S.
acquisition, in supplying follow-on to that, does not become involved
in improper privatization efforts.
The standards are quite simple: That the assistance should only go to
projects that are implemented in a transparent manner; that they are
implemented in a manner that protects the interests of workers, small
investors, vulnerable groups in society; or, if appropriate, the
regulatory regimes have been established to ensure properly functioning
competitive markets.
It is further my understanding that the Chairman has some concerns
about the capability of enforcing this and statutory language but would
perhaps be willing to support this as a sense of Congress within the
conference.
Mr. BEREUTER. Mr. Chairman, will the gentleman yield?
Mr. DeFAZIO. I yield to the gentleman from Nebraska.
Mr. BEREUTER. Mr. Chairman, I thank the gentleman for yielding. I
would have claimed the time in opposition, but the gentleman has
accurately described the derivation of this language, and there is
certainly nothing wrong with the intent.
He is also right in recognizing that the primary entities that could
have an impact on such a situation, as described in this amendment, are
multilateral development banks, but if the gentleman would withdraw
this amendment, I will do my best to assure that language like this,
probably exactly like it, would be a included as sense of the Congress
language or, at least that if we have problems with the Senate
conferees, it be included in report language. But it would be my intent
to attempt to add such language as sense of the Congress language, as
the gentleman has offered it.
Mr. DeFAZIO. Mr. Chairman, I thank the gentleman for his support and
his great work on the legislation to come up later today. I believe
these are essential reforms and limitations that should be put into the
law, and I thank the gentleman.
Mr. Chairman, I ask unanimous consent to withdraw my amendment.
The CHAIRMAN. Is there objection to the request of the gentleman from
Oregon?
There was no objection.
The CHAIRMAN. It is now in order to consider amendment No. 3 printed
in House Report No. 107-423.
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