[Congressional Record Volume 160, Number 100 (Wednesday, June 25, 2014)]
[Senate]
[Pages S3963-S3964]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
EXPORT-IMPORT BANK
Ms. CANTWELL. Madam President, I come to the floor today to talk
about the Export-Import Bank--the program that is a vital tool of U.S.
manufacturers and small businesses across the United States of America
to help them grow jobs and gain access to international markets.
There has been a lot written in the last 24, 48 hours about this
because there has been a lot of discussion about people who have
previously supported the program--maybe voted for it five or six
times--and now all of a sudden have either amnesia or have forgotten
what is so important about this program.
I am here this morning to talk about this issue because I believe it
is so vital to the U.S. economy and to the economic opportunities and
challenges we face.
The Export-Import Bank basically gives assistance in the form of
securitizing loans that are sought by the private sector when a U.S.
company tries to sell a product overseas.
You can imagine that if you are a U.S. manufacturer--and you could be
involved in lots of different things; in our State, there is everything
from aviation to grain silos to music stands to agricultural products--
when you go and say, well, we want to sell to Ethiopia or we want to
sell to a South American country or we want to sell to an Asian
country--for example, a small businessperson in the State of Washington
says: Well, OK, I have found a customer in one of those countries for
my product--and I will use grain silos as example because there is a
company in our State that now sells grain silos to 82 different
countries around the globe--that customer in that country says: Well,
how am I going to finance this deal? It is not exactly like this
sophistication is present in every one of these developing countries.
Yet we want U.S. products to be sold into these developing countries.
I guess we could sit back on our laurels and just think it is all
going to happen on its own and let the Europeans sell products into
that market or let the Chinese sell products into that market or we
could hustle--which is what the United States of America does--and we
can figure out a way to secure those deals when those customers have a
challenge of financing within their country.
Now, it does not mean that the Export-Import Bank finances all of
those deals. It means it provides, in a lot of cases, security so that
when a private bank does finance the sale of that deal, there is
certainty and predictability.
Why is that important? Well, as one vice president of a bank that
operates in 19 different States and the District of Columbia told us:
Most banks, even those as large as--in this case--PNC, cannot alone
take risks for helping a U.S. company sell in countries with
governments that may be less stable than the United States of America.
It makes sense. Right. Look at what we are seeing around the globe.
We are seeing lots of change. You cannot count on a deal and account
for the capricious nature of governments. If someone stiffs me in
Pittsburgh, I will just go to a court in Pittsburgh and win a judgment
against these individuals. Well, you cannot practically expand that to
a government in Africa or in Asia. You cannot go to a court system here
in the United States and say: Hey, that government failed to pay on
that particular customer deal that was enacted. But you can, with the
help of the Export-Import Bank, secure those loans and make sure that
payment is received.
That is why so many small businesses across the State of Washington
like and have used this program in conjunction with the private banking
industry.
For example, there is a company: Manhasset music stands. I love that
company because it makes music stands somewhat like this podium I am
speaking in front of that is used for placement of music, and they sell
all over the globe. In fact, China is one of their best customers. I
love that there is a place in Yakima, WA, that is figuring out how to
sell a U.S.-manufactured product in China and that they are continuing
to compete with the Chinese every day and winning that battle.
I am so proud that company uses the Export-Import Bank to reduce
their risk to those customers because those customers live in a place
where the banking and security might not be there.
Why is this so important? Well, first of all, 95 percent of consumers
in the world live outside of the United States of America. So unless we
just want to sell to people in the United States of America, we better
have a pretty good strategy of how we are going to sell to people
outside of the United States of America.
So with 95 percent of consumers outside of the United States of
America and a rising middle class around the globe--the middle class is
going to double in the next 20 years. It is going to double. That means
more people with more disposable income to buy products and to use
services that are so critical.
Take aviation, for example. Because there is a rising middle class
around the globe and a lot more people want to travel, that is 35,000
new airplanes that are in demand. That is how many we are going to have
to build over the next 20 years--35,000 new airplanes.
[[Page S3964]]
Well, that could be really good news for the United States of America
and U.S. manufacturing because those are great middle-class
manufacturing jobs. But guess what. Those jobs are not secure. The
Brazilians want to build airplanes. The Europeans already build
airplanes. The Chinese want to build airplanes. They are all competing
for that rising middle-class market that is demanding new airplanes.
They all want to get in the action of having manufacturing jobs in
their states.
So we need to make sure we implement the Export-Import Bank, which is
about to expire on September 30 of this year. Without the Export-Import
Bank, we are going to be hobbling businesses across the United States
of America and not giving them these tools.
The Export-Import Bank has created thousands of jobs in the United
States of America. It has increased exports by $37 billion and helped
small businesses and created jobs. It also helps us pay down the
Federal deficit. It has generated over $1.057 billion returned to the
U.S. Treasury. So it has actually helped us pay down the Federal debt.
So my colleagues who are now all of a sudden either having amnesia on
why they supported the Ex-Im Bank or not coming forward to support it
now need to remember what a vital tool this is to the U.S. economy.
The PRESIDING OFFICER. The Senator's time has expired.
Ms. CANTWELL. I ask unanimous consent for another 30 seconds.
The PRESIDING OFFICER. Without objection, it is so ordered.
Ms. CANTWELL. I want to close by saying that other countries use
these same financial tools. So a lot of my colleagues can see that
other countries, for the same reason, when the marketplace does not
provide a private sector financial tool to securitize these products--
it is important that the United States stay competitive with everybody
chasing global market opportunities.
Let's not hobble U.S. manufacturing. Let's get the Export-Import Bank
out of committee and reauthorized.
I yield the floor.
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