[Congressional Record Volume 160, Number 121 (Wednesday, July 30, 2014)]
[House]
[Pages H7115-H7118]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                   EXPORT-IMPORT BANK REAUTHORIZATION

  The SPEAKER pro tempore. Under the Speaker's announced policy of 
January 3, 2013, the Chair recognizes the gentlewoman from California 
(Ms. Waters) for 30 minutes.
  Ms. WATERS. Mr. Speaker, today we have Democrats on the Financial 
Services Committee here where we have gathered on the House floor to 
talk about the Export-Import Bank, which supports hundreds of thousands 
of jobs and levels the playing field so that American businesses, large 
and small, can compete successfully in the global markets.
  Tomorrow, Speaker Boehner and the Republican leadership will leave 
town for a 5-week congressional recess, and legislation to renew the 
Export-Import Bank hasn't even seen a vote in our committee. When we 
return in September, there will be just 10 legislative days to renew 
the bank before its charter lapses on September 30.
  This ideological push to abolish the Ex-Im Bank is an irrational 
crusade to destroy an agency that supports hundreds of thousands of 
jobs and propels economic recovery without costing taxpayers a dime. 
The result could be the end of an institution that, over the past 5 
years, has supported 1.2 million private sector American jobs, and over 
200,000 jobs last year alone.
  Additionally, the Ex-Im Bank reduced our deficit by returning over $1 
billion to taxpayers last year alone through interest and fees. Still, 
critics of the bank say it is a risk to taxpayers, that it picks 
winners and losers, and that it interferes in the free market and, 
therefore, creates a less efficient economy. For all of those reasons, 
it should be abolished, they say.
  But first, let me say, this notion that there is such a thing as pure 
free enterprise, that if left to its own devices would flourish with 
total efficiency and self-discipline and allocate resources and spread 
risk in such a way that accrues to the benefit of everyone in society, 
this notion of just pure free enterprise simply doesn't exist.
  In fact, I thought one of the lessons we learned from the recent 
financial crisis is that markets must be embedded in systems of 
governance. The idea that markets are self-correcting, many of us 
thought, had received a mortal blow.
  Regardless of the outcome, Republicans have already created 
uncertainty for thousands of American companies trying to compete 
against businesses in China, Korea, and across Europe, all of which 
have their own version of the Ex-Im Bank.
  Mr. Speaker, I would like to enter into the Record a letter from Mr. 
Steve Wilburn, who is the CEO of the

[[Page H7116]]

green energy company FirmGreen, who lost $57 million in contracts 
because of uncertainty surrounding the future of the Ex-Im Bank.
  At this time, and before us sharing this information with you, I 
would like to yield to the gentlewoman from Ohio (Mrs. Beatty).
  Mrs. BEATTY. Mr. Speaker, thank you to Ranking Member Congresswoman 
Maxine Waters.
  Mr. Speaker, I rise today in strong support of the Export-Import Bank 
and current legislation, H.R. 4950, to reauthorize the bank introduced 
by my freshman colleague and fellow Financial Services Committee 
member, Congressman Heck from Washington.
  The Export-Import Bank has been helping United States businesses of 
all sizes sell their products around the world for over 80 years. But 
despite the bank's proven track record of creating jobs, helping 
American businesses compete globally, and reducing the Federal deficit, 
a faction of House Republicans want to close the door of this important 
Federal agency forever.
  Mr. Speaker, shutting down the Export-Import Bank makes no sense to 
me, and it makes no sense to my constituents. In my congressional 
district, Ohio's Third, 10 companies, including six small businesses, 
have grown because of the Export-Import Bank. These businesses have 
been able to expand sales internationally and create jobs locally 
because of the Export-Import Bank.
  Earlier this month I received a letter from the CEO of Yenkin-
Majestic Paint, a manufacturer in my district. In his letter, he 
writes: ``Normally we would not write in context of Washington 
crosscurrents about the bank. However, it would be very unfortunate if 
the Congress cannot reach a responsible bipartisan reauthorization of 
this work to encourage commerce for American-made products abroad and 
to help expand U.S. employment from sales beyond what is available on 
the home front.''
  Mr. Speaker, this is just one of many letters I have received from 
affected constituents.
  I have also heard from a young man who works at International Risk 
Consultants, a Columbus-based company that provides guidance to small 
businesses to export internationally. He writes: ``The Ex-Im Bank 
offers trade finance solutions that work for small businesses that 
cannot find alternatives in the private market.''
  He closes his letter in this way, I think most telling: ``Perhaps the 
most devastating effect of not reauthorizing the Ex-Im Bank will be 
visited upon the many firms that never began exporting but would, if 
they were introduced to Ex-Im Bank solutions.''
  Mr. Speaker, Congress should not allow an extreme faction of the 
Republican Conference to execute an ill-conceived and destructive plan 
to close Export-Import Bank. My constituents deserve better. Ohioans 
deserve better, and the American people deserve better.
  I urge the House Republican leadership to bring H.R. 4950, a bill 
with over 200 cosponsors, to the floor so we can keep the Export-Import 
Bank operating and, more importantly, keep Americans working.


                             General Leave

  Ms. WATERS. Mr. Speaker, I ask unanimous consent that all Members 
have 5 legislative days to revise and extend their remarks and insert 
extraneous material in the Record on the topic of my Special Order.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentlewoman from California?
  There was no objection.
  Ms. WATERS. Mr. Speaker and Members, I will read into the Record a 
letter from Steve Wilburn, CEO of the green energy company FirmGreen, 
who lost a $57 million contract because of uncertainty surrounding the 
future of the Ex-Im Bank. I will read you excerpts from his letter.
  Mr. Wilburn attended the Ex-Im Bank panel I organized in April, and 
last month we invited him back to be one of our Democratic witnesses at 
a House Financial Services Committee hearing on the Ex-Im Bank. He is 
among the best witnesses we have ever had at a hearing.
  In his letter, Mr. Wilburn explains that FirmGreen's export potential 
has been directly affected by the uncertainty of reauthorization of Ex-
Im Bank U.S. and the aggressive financial terms offered by the Korean 
Ex-Im Bank.
  Attached to his letter is another letter from a company in the 
Philippines, Green Energy Solutions, informing him that his business 
lost a $57 million contract. The letter begins: ``Dear Mr. Wilburn, in 
view of the uncertainty of the reauthorization of the Ex-Im Bank and 
project finance structure you proposed have become problematic. We have 
made the decision in May, this year not to proceed with your project 
offering.''

                              {time}  2045

  Mr. Wilburn goes on to say: ``In summation, as a combat-decorated 
veteran, small business owner, job creator, exporter, and concerned 
citizen, I believe we should not unilaterally disarm and abandon the 
very governmental agency that allows U.S. manufacturers and other U.S. 
exporters to fairly compete on the world's trading stage.''
  Mr. Speaker and Members, the main criticism of the bank that I would 
like to discuss right now is the assertion that the bank is the 
embodiment of corporate welfare, benefiting a handful of large 
companies, which they claim represents crony capitalism.
  Last April, I held a panel on the Ex-Im Bank which included a number 
of small business owners from across the country. They came here to 
Washington to discuss their work with the bank and how the bank helped 
their companies compete in the global marketplace. Every one of those 
panel members were extraordinarily decent people, hardworking business 
owners who create jobs and pay taxes and have families and a civic 
sense of duty. And this is why I am so offended by this label of 
``crony capitalists'' that critics like to attach to users of the bank.
  Those of us who know what it is like to live behind a label 
understand how they work. Once you are able to put a label on something 
or to someone and it sticks, then you could be done with them. And if 
enough people can be convinced that customers of the Ex-Im Bank are 
crony capitalists, well, there is nothing left to do but get rid of 
them.
  It is so important to note that while a good amount of the bank's 
support goes to large companies, the vast majority of Ex-Im 
transactions--nearly 90 percent--help small businesses. In fact, if the 
Ex-Im Bank were abolished today, it would affect small- and medium-
sized businesses just as much, or more, as large exporters--perhaps 
more, given the distinct challenges and risks small businesses face 
when looking to export.
  Moreover, large U.S. exporters that benefit from high dollar values 
of Ex-Im financing also have large domestic supply chains which 
consists largely of small- and medium-sized businesses that benefit 
indirectly but in very important ways from Ex-Im support.
  At a later time, I will be entering into the Record excerpts from 
Brek Manufacturing and Hansen Engineering.
  This letter is from Mr. Greg Lay, vice president of Hansen 
Engineering. I will read this letter first from Hansen Engineering:

       Hansen Engineering company is one of many small businesses 
     in the South Bay area of Los Angeles, California, that is 
     dependent on Boeing contracts to support the business. Ninety 
     percent of our contracts support Boeing aircraft, either 
     directly or indirectly, through our prime aerospace companies 
     throughout the world. My company staffs approximately 60 
     employees who live in the South Bay and surrounding areas and 
     depend upon the support of Boeing for the well-being of their 
     families.
       Without the reauthorization of Ex-Im Bank, it would be 
     impossible for us to have a big impact on the health of our 
     businesses and its employees and their families.

  Next we have a letter from Brek Manufacturing:

       Brek Manufacturing company is a small business in 
     California with 170 employees who have a critical interest in 
     foreign sales of Boeing commercial aircraft. The Export-
     Import Bank plays an important role as an intermediary in the 
     sale of these aircraft.
       This letter is to express our support for the Ex-Im Bank, 
     as it is key to securing additional sales of Boeing 
     commercial aircraft.

  He goes on to say:

       Our representatives who support the military should also be 
     concerned with the Ex-Im Bank because of the role it plays in 
     supporting jobs and companies like ours, both large and small 
     across the country.

  He further states:


[[Page H7117]]


       We supply critical aircraft structural components which are 
     key to successful, safe air transport and air defense. There 
     are many others like us who represent thousands of high-
     skilled and well-paying positions with good benefits.
       Please express our support for the Ex-Im Bank to your 
     colleagues. We are counting on them to do the right thing and 
     support American manufacturing jobs.

  At this time, I would like to yield to the gentleman from Washington 
(Mr. Heck) who is a leader with the bill that would reauthorize the Ex-
Im Bank, if we could get the support from the opposite side of the 
aisle that we need.
  Mr. HECK of Washington. I thank the ranking member of the committee 
very much.
  Mr. Speaker, I am going to offer four elegant, simple, 
straightforward reasons why it is so critically important that the U.S. 
Congress reauthorize the Export-Import Bank prior to its expiration on 
October 1, and they are simply as follows: the Export-Import Bank 
creates jobs; it helps small businesses; it promotes fiscal 
responsibility; and it advances economic growth.
  With respect to jobs, it has already been cited that in the last 5 
years alone, the Export-Import Bank is responsible for the creation of 
over a million jobs, 205,000 jobs in just the last year.
  But here is what has not been said: export-related jobs in America 
pay 13 to 18 percent more than non-export jobs. So it doesn't just 
create jobs; it creates good jobs. And it helps small businesses. 
Nearly 90 percent of all transactions of the Export-Import Bank are 
with small businesses. And to put a fine point on that, last year, it 
was 3,413 small businesses, businesses like Pexco in Fife, Washington, 
which makes traffic signs to promote safety during construction. Pexco 
recently sold $125,000--a small order by any measure--to the 
Netherlands, I think it was. Only one entity would guarantee payment 
because no one else could collect across international borders. And 
that entity, of course, was the Export-Import Bank.
  Stac, another veteran-owned business in Sumner, Washington, with 
eight employees, they do exporting. They are going to hire three new 
employees on the basis of their international sales. But do you know 
what is incredibly frustrating for somebody who comes from the private 
sector? It is, frankly, the woeful deficiency in understanding, because 
the small business support that the Export-Import Bank provides does 
not stop with direct loans and loan guarantees to small businesses 
because big businesses buy goods and services from small businesses as 
well.
  The greatest airplane maker in the world, Boeing airplanes, uses 
15,000 businesses in their supply chain, and 6,600 of them are small 
businesses.
  I was recently on an Alaska flight from Sea-Tac to National Airport 
in Washington, D.C., and a friend of mine named Eric Hahn, who works at 
General Plastics in south Takoma, was sitting a couple seats behind me. 
As everybody was gathering on the plane and shoving their luggage up 
above and getting seated, Eric jumped up, and he said, ``Denny, do you 
see this? Do you see this?'' And he was pointing at the plastic between 
the two overhead bins. He said, ``We made that. We made that.'' General 
Plastics has 185 employees, another small business.
  The Export-Import Bank promotes fiscal responsibility. It has been 
more than a generation since there was any red penny supporting or 
subsidizing the Export-Import Bank, in the wake of reforms adopted 
during the Reagan years. Indeed, last October, more than $1 billion 
transferred to the U.S. Treasury. If we deauthorize the Export-Import 
Bank, our deficit is going up. Who wants that to happen? And finally, 
the Export-Import Bank promotes economic growth.

  Let me give you a series of facts. We cannot change these facts by 
wishing them away. Fact number one: 95 percent of the consumers in the 
world live outside our borders--95 percent-plus, actually. Another 
fact: since 1980, global trade has increased something like fivefold--
fivefold. And let me give you another fact: if we in America want to 
keep our middle class, we had better learn how to sell to the growing 
middle class throughout the world. And the Export-Import Bank is an 
outstanding tool to do that.
  You know, America's economy is projected to grow by only about 2.4 
percent a year over the next 10 years. And do you know what the shame 
of that is? The shame of that is, it is not fast enough to absorb even 
the kids coming out of high schools and postsecondary education and 
colleges. We simply have to grow this economy faster. And there is no 
better way than to participate in the exploding global economy.
  Every developed nation on the face of the planet has an export credit 
authority. And, in fact, about 60 in all, theirs are larger than ours 
either in absolute dollars or in terms of a percentage of their gross 
domestic product. Why? Why would we unilaterally disarm? Why would we 
unilaterally disarm?
  Finally, let me say this. Right now, tonight, as we sit, as we speak, 
the people of China are pouring billions of dollars into the 
development of a commercial aircraft. They call it the C-919. They say 
it will be available for sale within 2 years. Frankly, I think it is 
going to be longer than that. It will be 3 or 4 or 5 years. But 
whenever it is, they are going to create even more fierce competition 
for an industry that is a bulwark of America's manufacturing base, a 
bulwark. And what about China's export credit authority? It is six 
times larger in absolute dollars than America's. And as a percentage of 
GDP, it is 35 times larger.
  So I ask the Members of the House, let us not wake up 63 days from 
now with no export credit authority. This is the 16th time, by my 
count, we have reauthorized the bank. Almost every time by virtually 
unanimous support. And there are more than 300 votes on this floor to 
pass it, if they will bring it to a vote.
  In the name of jobs, in the name of small businesses, in the name of 
fiscal responsibility, and in the name of economic growth, let us 
reauthorize the Export-Import Bank.
  Ms. WATERS. Mr. Speaker, I yield to the gentleman from Texas (Mr. Al 
Green), and I thank him for the leadership and the support that he has 
shown for the Export-Import Bank.
  Mr. AL GREEN of Texas. I thank you, Madam Ranking Member of the full 
committee. I am exceedingly proud to be a part of this effort. And I 
want to you know that when we succeed, it will be due in no small part 
to the energy that you have provided to help us get this legislation 
through.
  I would also like to thank the gentleman from Washington (Mr. Heck) 
for H.R. 4950, an outstanding piece of legislation. It extends the 
Export-Import Bank for 7 years, and it will increase the cap to $175 
billion. I think it is an outstanding piece of legislation. And, of 
course, I am one of the persons who is supporting it.
  Mr. Speaker, let me start by indicating that the Export-Import Bank 
is not one of the too big to fail institutions. It wasn't involved in 
the credit default swaps. It wasn't involved with derivatives. It 
wasn't involved with no-doc loans. It wasn't involved in all of these 
exotic products that nearly caused the collapse of the economy.
  If the truth be told, the Export-Import Bank was one of the reasons 
why the economy was able to survive. It has been thriving. It has done 
well. It pays for itself by virtue of the loans that it makes, by 
virtue of the fees that it collects, by virtue of the products that it 
insures. The Export-Import Bank makes good sense.
  I find no businesspeople in my community who are in opposition to the 
Export-Import Bank. It is not too big to fail, and it should not be too 
small to save. We ought to do what we have done 16 times in the 
previous 80 years, and that is, reauthorize the Export-Import Bank in a 
clean bill, and do it with very little fanfare.
  Unfortunately, that is not the circumstance that we confront 
presently. Unfortunately, there are persons who believe that the 
Export-Import Bank no longer serves a useful purpose.
  Well, it serves a useful purpose for the people in my district. And 
the facts speak for themselves. In my district, between 2007 and 2013, 
in the Ninth Congressional District, we had a total of 88 export-
importers.

                              {time}  2100

  We had 39 small businesses, 13 minority-owned businesses, and four 
women-owned businesses, and we are proud of these businesses that are 
owned by women because we still contend that when women succeed, 
America succeeds. The Export-Import Bank is on the agenda to help women 
succeed.

[[Page H7118]]

  I would add that there are businesses that have indicated that they 
are supportive. I have a letter from a company in Houston, the style of 
it is the South Coast Products Company, and I just shall read an 
excerpt from their letter. I have many letters to read, but I shall 
pick a few and just read excerpts.
  This one reads--and it is addressed to the Honorable Maxine Waters:

       We are a small manufacturer in Texas that exports thread 
     and valve lubricants primarily to the oil and gas industry. 
     We have used Export-Import Banks' export credit insurance for 
     13 years. During that time, our export business has grown by 
     a factor of 15 because of the security offered by our policy 
     with Export-Import.

  I shall go to the last paragraph which reads, ``Please emphasize to 
your colleagues that Ex-Im Bank is not corporate welfare''--this is a 
business, a business that has written this to us--``or a charity of any 
kind. It facilitates U.S. exports, especially for small businesses like 
us, while supporting itself. Please do not let them put our livelihoods 
on the chopping block for their own political gain.''
  This is from South Coast Products, a Texas business.
  I would also like to read a letter from the Greater Houston 
Partnership. The Greater Houston Partnership is the preeminent chamber 
of commerce in my area. It is called the partnership because we do 
things differently in Texas, and the partnership has also joined in 
this letter by a good many other entities that I shall name after 
having read an excerpt from this letter.
  It reads:

       The Houston region continues to enjoy strong economic 
     growth driven in large part by the Export-Import Bank. In 
     order to keep momentum, it is crucial that Congress supports 
     tools encouraging businesses to expand into new markets and 
     create new jobs. The Export-Import Bank of the United States 
     is one of these tools, and we ask that you support this 
     legislation.

  The letter is addressed to me.
  It goes on to add:

       Small- and medium-sized businesses in our region also 
     benefit directly from Export-Import. Small businesses account 
     for nearly 85 percent of Ex-Im Bank's transactions; further, 
     these transaction figures do not include the tens of 
     thousands of small- and medium-sized businesses that supply 
     goods and services to large exporters using the bank.

  This is signed by the Bay Area Houston Economic Partnership, the 
Baytown Chamber of Commerce, the Brenham/Washington County Chamber of 
Commerce, the Clear Lake Chamber of Commerce, the Greater Beaumont 
Chamber of Commerce, the Greater Tomball Area Chamber of Commerce, the 
Houston East End Chamber of Commerce, the Houston Northwest Chamber of 
Commerce, Lake Houston Area Chamber of Commerce, League City Chamber of 
Commerce, Pearland Chamber of Commerce, West Chambers County Chamber of 
Commerce, and the Wharton Chamber of Commerce.
  I close simply with these words: businesses are supportive of the Ex-
Im Bank. People understand the necessity for it. We but only need to 
have a vote on it to get it continued.
  Ms. WATERS. Mr. Speaker, Members, you have heard about businesses in 
any number of districts that receive the support from the Ex-Im Bank.
  I would like to read to you excerpts from a letter from Chairman 
Hensarling's district. This is from Fritz-Pak, and this letter is about 
how the Ex-Im Bank helped save his business.
  His name is Gabriel Ojeda, president of Fritz-Pak Corporation, and 
this is the excerpt I would like to read:

       During the past 5 years, we have grown our international 
     sales from 15 percent to over 35 percent of our business. We 
     now have major trading partners in over 30 different 
     countries, including Brazil, Russia, India, and Taiwan. Most 
     recently, we exhibited our products at Bauma International 
     Trade Fair in Munich, Germany.
       So what is Fritz-Pak Corporation today? We are an American 
     manufacturer of the best concrete admixtures in the world, 
     and we sell them as far as Yellowknife, Canada, and as far 
     south as Wellington, New Zealand. We may be small, but we 
     think big. In an age where everything seems to be made 
     someplace else, we are thriving here in the USA and in no 
     small part due to the services provided by Ex-Im Bank.

  Lastly, I would like to read excerpts from Mr. Mike Boyle of BES&T in 
New Hampshire. The CEO and president of BES&T is Mr. Michael Boyle, and 
he sent us a very good letter last week.
  Mr. Speaker, at a later time, we will enter into the Record these 
letters that we are not able to read this evening. I thank you, and I 
yield back the balance of my time.

                          ____________________