[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

[[Page H1774]]

     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

[[Page H1775]]

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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