[House Report 107-292]
[From the U.S. Government Publishing Office]




107th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    107-292

======================================================================



 
             EXPORT-IMPORT BANK REAUTHORIZATION ACT OF 2001

                                _______
                                

 November 15, 2001.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

  Mr. Oxley, from the Committee on Financial Services, submitted the 
                               following

                              R E P O R T

                             together with

                            DISSENTING VIEWS

                        [To accompany H.R. 2871]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Financial Services, to whom was referred the 
bill (H.R. 2871) to reauthorize the Export-Import Bank of the 
United States, and for other purposes, having considered the 
same, report favorably thereon with an amendment and recommend 
that the bill as amended do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................     9
Background and Need for Legislation..............................     9
Hearings.........................................................    11
Committee Consideration..........................................    11
Committee Votes..................................................    11
Committee Oversight Findings.....................................    15
Performance Goals and Objectives.................................    15
New Budget Authority, Entitlement Authority, and Tax Expenditures    16
Committee Cost Estimate..........................................    16
Congressional Budget Office Estimate.............................    16
Federal Mandates Statement.......................................    19
Advisory Committee Statement.....................................    19
Constitutional Authority Statement...............................    19
Applicability to Legislative Branch..............................    19
Section-by-Section Analysis of the Legislation...................    19
Changes in Existing Law Made by the Bill, as Reported............    23
Dissenting Views.................................................    37

    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

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 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 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)(iii) (12 U.S.C. 635(b)(6)(I)(iii)).
          (5) Section 10(g)(1) (12 U.S.C. 635i-3(g)(1)).

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.

                          Purpose and Summary

    H.R. 2871, the Export-Import Bank Reauthorization Act of 
2001, extends the charter of the U.S. Export-Import Bank for 4 
years and creates offices on Small Business Exporters and 
Africa within the Bank. The legislation also improves the 
operation of the Tied Aid Credit Program, increases the value 
of transactions that the Bank can hold in its portfolio at any 
time, and raises the percentage of small business transactions 
the Bank should pursue. This measure further mandates that the 
Bank take into consideration U.S. trade laws, corrupt practices 
of a recipient company and a country's efforts to combat 
terrorism when considering a transaction.

                  Background and Need for Legislation

    Congress last authorized the U.S. Export-Import Bank (Ex-
Im) in 1997 for a 4 year term, which expired on September 30, 
2001. The mission of the 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 
(ECAs) in Japan, Germany, France, Canada, 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 toward securing international 
agreements to reduce government-subsidized export financing, 
thereby promoting a level playing field for U.S. exporters.
    Today, Ex-Im finances approximately 2 percent of U.S. 
exports annually. In FY 2000, Ex-Im financed $12.6 billion in 
loans, guarantees, and insurance for the export of U.S. non-
military goods and services. Examples of some of the goods that 
Ex-Im helped to export include, U.S. civilian aircraft, 
electronics, energy-related products, engineering services, 
medical equipment, vehicles, and agricultural equipment.
    During the Committee's review of the Ex-Im Bank, several 
issues arose which needed to be addressed in this 
reauthorization. First, the Administration had called for a 25 
percent reduction in the operating budget of Ex-Im. Industry 
witnesses at the hearings argued that the reduction was too 
great and that such a cut could adversely affect U.S. workers 
and the U.S. economy. In response to those concerns, H.R. 2871, 
as reported by the Committee, signals strong support for Ex-Im 
funding by raising the statutory ceiling on the dollar value of 
the loans, guarantees, and insurance Ex-Im can have outstanding 
at any one time and by authorizing an increase in Ex-Im's 
administrative expenses to $80 million, adjusted annually for 
inflation. Additionally, the Committee raised the ceiling on 
the total amount of loans, guarantees and insurance that Ex-Im 
can have outstanding at any one time from $75 billion to $130 
billion, adjusted for inflation, by 2005.
    Second, the Committee discovered that there were 
inconsistencies in the administration of the Tied Aid Credit 
Program. Specifically, procedures for communication between the 
Treasury Department and Ex-Im regarding the use of tied aid 
credit were found to be inadequate. The Committee commends 
Treasury and Ex-Im for working together to formulate an 
agreement to improve communication; however this is a non-
binding agreement holding no force of law. The Committee wants 
to ensure that these two agencies follow statutory guidelines 
in order to effectively administer the Tied Aid Credit Program. 
Thus, the bill mandates that the Treasury Department establish 
a set of guidelines to govern the use of tied aid and to report 
back to Congress on its progress. The bill's provisions 
effectively deny Treasury Department any veto power over 
specific tied aid transactions and require Ex-Im to establish 
procedures for the reconsideration of applications that have 
been turned down. The Committee further authorizes the Tied Aid 
Credit Fund to be used to combat both market windows and untied 
aid. This authorization will strengthen the United State's 
negotiating position in the Organization for Economic 
Cooperation and Development (OECD) negotiations to eventually 
eliminate such market altering tools.
    Finally, the Committee sought to expand access and 
awareness of Ex-Im to small businesses. The bill expands the 
percentage of small business transactions Ex-Im must pursue 
from 10 percent to 20 percent of total lending volume annually. 
Additionally, the bill, for thefirst time, establishes a 
requirement that 8 percent of Ex-Im lending be reserved for small 
business of less than 100 employees. The reauthorization further 
establishes an Office of Small Business Exporters and urges Ex-Im to 
improve its outreach to small businesses through improvements in 
technology.
    During the full Committee markup three amendments were 
accepted. The first prohibited Ex-Im from proceeding with a 
transaction if the product in question is subject to a 
countervailing duty or anti-dumping order pursuant to U.S. 
trade laws. This measure went further to require that Ex-Im 
establish an additional review process when there has been a 
preliminary affirmative determination of a material injury to 
an industry under title VII of the Tariff Act of 1930. The 
second amendment removed provisions adopted by the Subcommittee 
on International Monetary Policy and Trade which would have 
created a new Office of Human Rights assessment Ex-Im. In the 
opinion of the Committee, this proposed office would be 
wasteful and duplicative since Ex-Im does not have the 
expertise to do these assessments and the State Department 
already performs this work. Finally, the Committee accepted an 
amendment expressing the sense of Congress that no more than 95 
percent of Ex-Im's transactions should relate to fossil fuels 
while at least 5 percent should be directed toward renewable 
energy projects.

                                Hearings

    The Subcommittee on International Monetary Policy and Trade 
held two hearings in preparation for the reauthorization of Ex-
Im. On May 2, 2001, the Subcommittee received testimony from 
Ex-Im officers. The witness list included: Mr. James Hess, 
Chief Financial Officer of the Export-Import Bank; Mr. William 
Redway, Group Vice President of Small and New Business, Export-
Import Bank; and Mr. Bert Ubamadu, Office of the General 
Counsel, Export-Import Bank.
    The Subcommittee held a second hearing on May 8, 2001. 
Witnesses included: Mr. Richard M. Christman, President, Case 
IH Agricultural Businesses on behalf of the National Foreign 
Trade Council and the Coalition for Employment Through Exports; 
Mr. Ian McLaughlin, President and CEO, Watson Machinery 
International, on behalf of the National Association of 
Manufacturers; Mr. C. Fred Bergsten, Director, Institute for 
International Economics; Dr. Ian Vasquez, Senior Fellow, CATO 
Institute; Mr. Brent Blackwelder, President, Friends of Earth; 
and Mr. George Becker, former President, United Steel Workers 
of America. A statement for the record was submitted by 
Citigroup, Inc.

                        Committee Consideration

    On September 21, 2001, the Subcommittee on International 
Monetary Policy and Trade met in open session and approved H.R. 
2871 for full Committee consideration, as amended, by a voice 
vote.
    On October 31, 2001, the Committee met in open session and 
ordered H.R. 2871 reported to the House with a favorable 
recommendation, with an amendment, by a voice vote.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the record votes 
on the motion to report legislation and amendments thereto. No 
record votes were taken with in conjunction with the 
consideration of this legislation. A motion by Mr. Oxley to 
report the bill to the House with a favorable recommendation 
was agreed to by a voice vote.
    Record votes were taken on the following amendments. The 
names of Members voting for and against follow:

    An amendment by Mr. Sanders, no. 2, requiring certain 
information and certifications from companies seeking or 
receiving new assistance, was not agreed to by a record vote of 
14 yeas and 28 nays (Record vote no. 14).
        YEAS                          NAYS
Mr. Frank                           Mr. Oxley
Ms. Waters                          Mr. Leach
Mr. Sanders                         Mrs. Roukema
Mr. Gutierrez                       Mr. Bereuter
Mr. Watt of North Carolina          Mr. Baker
Mr. Maloney of Connecticut          Mr. Bachus
Mr. Sherman                         Mr. Royce
Mr. Meeks of New York               Mr. Lucas of Oklahoma
Ms. Lee                             Mr. Barr of Georgia
Ms. Schakowsky                      Mr. Ryun of Kansas
Mr. Capuano                         Mr. Riley
Mr. Ford                            Mr. Manzullo
Mr. Clay                            Mr. Ose
Mr. Israel                          Mrs. Biggert
                                    Mr. Green of Wisconsin
                                    Mr. Toomey
                                    Mr. Gary G. Miller of California
                                    Mrs. Capito
                                    Mr. Ferguson
                                    Mr. Rogers of Michigan
                                    Mr. Tiberi
                                    Mrs. Maloney of New York
                                    Mr. Bentsen
                                    Ms. Hooley of Oregon
                                    Mr. Inslee
                                    Mr. Moore
                                    Mr. Lucas of Kentucky
                                    Mr. Crowley

    An amendment by Mr. Watt to the amendment by Mr. Sanders 
(as modified by unanimous consent), no. 2a, permitting the Bank 
to continue to provide assistance subject to certain findings, 
was not agreed to by a record vote of 15 yeas and 22 nays 
(Record vote no. 13).
        YEAS                          NAYS
Mr. Frank                           Mr. Oxley
Ms. Waters                          Mr. Leach
Mr. Sanders                         Mrs. Roukema
Mr. Gutierrez                       Mr. Bereuter
Mr. Watt of North Carolina          Mr. Baker
Mr. Bentsen                         Mr. Bachus
Mr. Maloney of Connecticut          Mr. Royce
Ms. Hooley of Oregon                Mr. Lucas of Oklahoma
Mr. Sherman                         Mr. Barr of Georgia
Ms. Lee                             Mr. Ryun of Kansas
Mr. Inslee                          Mr. Riley
Ms. Schakowsky                      Mr. Manzullo
Mr. Capuano                         Mr. Ose
Mr. Lucas of Kentucky               Mrs. Biggert
Mr. Israel                          Mr. Green of Wisconsin
                                    Mr. Toomey
                                    Mr. Gary G. Miller of California
                                    Mrs. Capito
                                    Mr. Ferguson
                                    Mr. Rogers of Michigan
                                    Mr. Tiberi
                                    Mr. Crowley

    An amendment by Mr. Bereuter, no. 3, striking provisions 
creating an Office of Human Rights, was agreed to by a record 
vote of 25 yeas and 17 nays (Record vote no. 15).
        YEAS                          NAYS
Mr. Oxley                           Mr. Frank
Mr. Leach                           Ms. Waters
Mrs. Roukema                        Mr. Sanders
Mr. Bereuter                        Mrs. Maloney of New York
Mr. Bachus                          Mr. Watt of North Carolina
Mr. Castle                          Mr. Ackerman
Mr. Royce                           Mr. Bentsen
Mr. Lucas of Oklahoma               Mr. Maloney of Connecticut
Mr. Ney                             Ms. Hooley of Oregon
Mr. Ryun of Kansas                  Mr. Sherman
Mr. Riley                           Mr. Sandlin
Mr. Manzullo                        Ms. Lee
Mr. Ose                             Ms. Schakowsky
Mrs. Biggert                        Mr. Moore
Mr. Green of Wisconsin              Mr. Crowley
Mr. Toomey                          Mr. Clay
Mr. Fossella                        Mr. Israel
Mr. Gary G. Miller of California
Mr. Cantor
Mr. Grucci
Mrs. Capito
Mr. Ferguson
Mr. Rogers of Michigan
Mr. Tiberi
Mr. Lucas of Kentucky

    An amendment by Ms. Waters, no. 4, banning Export-Import 
Bank assistance for companies challenging intellectual property 
law or government policy of a developing country which 
regulates and promotes access to HIV/AIDS pharmaceutical or 
medical technology, was not agreed to by a record vote of 16 
yeas and 28 nays (Record vote no. 16).
        YEAS                          NAYS
Mr. Frank                           Mr. Oxley
Ms. Waters                          Mr. Leach
Mr. Sanders                         Mrs. Roukema
Mrs. Maloney of New York            Mr. Bereuter
Mr. Gutierrez                       Mr. Castle
Mr. Watt of North Carolina          Mr. Royce
Mr. Ackerman                        Mr. Lucas of Oklahoma
Mr. Meeks of New York               Mr. Ney
Ms. Lee                             Mr. Weldon of Florida
Mr. Mascara                         Mr. Ryun of Kansas
Ms. Schakowsky                      Mr. LaTourette
Mr. Gonzalez                        Mr. Manzullo
Mr. Capuano                         Mr. Ose
Mr. Ford                            Mrs. Biggert
Mr. Crowley                         Mr. Green of Wisconsin
Mr. Israel                          Mr. Toomey
                                    Mr. Shays
                                    Mr. Fossella
                                    Mr. Gary G. Miller of California
                                    Mr. Cantor
                                    Mr. Grucci
                                    Ms. Hart
                                    Mrs. Capito
                                    Mr. Ferguson
                                    Mr. Rogers of Michigan
                                    Mr. Tiberi
                                    Mr. Kanjorski
                                    Mr. Lucas of Kentucky

    An amendment by Mr. Crowley, no. 6, prohibiting assistance 
for the export of goods or services for the Baku-Ceyhan 
Pipeline that avoids Armenia, was not agreed to by a record 
vote of 20 yeas and 24 nays (Record vote no. 17).
        YEAS                          NAYS
Mrs. Roukema                        Mr. Oxley
Mr. Royce                           Mr. Leach
Mr. Paul                            Mr. Bereuter
Mr. Cantor                          Mr. Castle
Mr. Ferguson                        Mr. Lucas of Oklahoma
Mr. Rogers of Michigan              Mr. Gillmor
Mr. Tiberi                          Mr. Weldon of Florida
Mr. Frank                           Mr. Ryun of Kansas
Ms. Waters                          Mr. Riley
Mrs. Maloney of New York            Mr. Manzullo
Mr. Gutierrez                       Mr. Ose
Mr. Sherman                         Mrs. Biggert
Ms. Lee                             Mr. Green of Wisconsin
Mr. Inslee                          Mr. Toomey
Mr. Moore                           Mr. Shays
Mr. Capuano                         Mr. Gary G. Miller of California
Mr. Ford
Mr. Lucas of Kentucky               Ms. Hart
Mr. Crowley                         Mrs. Capito
Mr. Israel                          Mr. Sanders
                                    Mr. Watt of North Carolina
                                    Mr. Ackerman
                                    Mr. Bentsen
                                    Mr. Maloney of Connecticut
                                    Mr. Mascara

    The following amendments were also considered by the 
Committee:

          An amendment by Mr. Toomey, no. 1, prohibiting the 
        Bank from providing loans or guarantees to an entity 
        that is the subject of an outstanding order or 
        preliminary injury determination, was agreed to by a 
        voice vote.
          An amendment by Mr. Ose to the amendment by Ms. 
        Waters, no. 4a, banning Export-Import Bank assistance 
        for companies challenging intellectual property law or 
        government policy of a developing country which 
        regulates and promotes access to agricultural equipment 
        and technology, was withdrawn.
          An amendment by Mr. Ose to the amendment by Ms. 
        Waters, no. 4b, banning Export-Import Bank assistance 
        for companies challenging intellectual property law or 
        government policy of a developing country which 
        regulates and promotes access to agricultural equipment 
        and technology, was ruled nongermane by the Chair.
          An amendment by Mr. Gary G. Miller of California, no. 
        5, striking provisions mandating that 8 percent of the 
        Bank's transactions be set aside for businesses of less 
        than 100 employees, was not agreed to by a voice vote.
          An amendment by Mr. Inslee (as modified by unanimous 
        consent), no. 7, expressing the sense of congress that 
        the bank should extend not less than 5 percent of funds 
        available for the extension of credit for energy 
        projects for renewable energy projects, was agreed to 
        by a voice vote.

                      Committee Oversight Findings

    Pursuant to clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee held hearings and made 
findings that are reflected in this report.

                    Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, the Committee establishes the 
following performance related goals and objectives for this 
legislation:
    The U.S. Export-Import Bank will use the authority granted 
by this legislation to promote U.S. exports overseas, increase 
the amount of small business transactions it pursues, combat 
efforts by foreign export credit agencies to alter 
international markets and to the promotion and maintenance of 
U.S. jobs.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee finds that this 
legislation would result in new budget authority, entitlement 
authority, or tax expenditures or revenues consistent with the 
cost estimate prepared by the Director of the Congressional 
Budget Office pursuant to section 402 of the Congressional 
Budget Act of 1974.

                        Committee Cost Estimate

    The Committee adopts as its own the cost estimate prepared 
by the Director of the Congressional Budget Office pursuant to 
section 402 of the Congressional Budget Act of 1974.

                  Congressional Budget Office Estimate

    Pursuant to clause 3(c)(3) of rule XIII of the Rules of the 
House of Representatives, the following is the cost estimate 
provided by the Congressional Budget Office pursuant to section 
402 of the Congressional Budget Act of 1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                 Washington, DC, November 14, 2001.
Honorable Michael G. Oxley,
Chairman, Committee on Financial Services,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H. R. 2871, the Export-
Import Bank Reauthorization Act of 2001.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Joseph C. 
Whitehill.
            Sincerely,
                                          Barry B. Anderson
                                    (For Dan L. Crippen, Director).
    Enclosure.
    Summary: H.R. 2871 would extend the authority of the 
Export-Import Bank of the United States (Eximbank) to enter 
into new direct loan obligations and new guaranteed loan 
commitments through 2005 and would increase the bank's 
statutory ceiling on its aggregate outstanding loans, 
guarantees, and insurance. The bill would rename the Tied Aid 
Credit Program and expand its use. It also would authorize new 
efforts by the U.S. government to bring export financing (so 
called ``market windows'') offered by certain foreign banks 
owned or supported by their governments and untied foreign aid 
into compliance with the terms of the export credit arrangement 
among the major exporting countries. It also would direct the 
bank to expand outreach to small business exporters and 
exporters owned by socially disadvantaged individuals and 
women, and would increase the Eximbank's set-aside for 
financing exports by small businesses from 10 percent to 20 
percent of its credit obligations and commitments. Finally, the 
bill would establish new offices within the Eximbank for small 
business and Africa, and would require additional reports.
    Assuming the appropriation of the necessary amounts, CBO 
estimates that implementing H.R. 2871 would cost $215 million 
in 2002 and $3.1 billion over the 2002-2006 period. In 
addition, the bill contains provisions that would increase 
obligations from available balances in the Tied Aid Credit 
Fund. CBO estimates implementing those provisions would 
increase direct spending by $9 million in 2002 and $128 million 
over the 2002-2006 period. Because the bill would affect direct 
spending, pay-as-you-go procedures would apply.
    H.R. 2871 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would impose no costs on state, local, or tribal 
governments.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 2871 is shown in the following table. 
The costs of this legislation fall within budget function 150 
(international affairs).

----------------------------------------------------------------------------------------------------------------
                                                                  By fiscal year, in millions of dollars--
                                                           -----------------------------------------------------
                                                              2001     2002     2003     2004     2005     2006
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION

Spending Under Current Law for Eximbank:
    Estimated Authorization Level \1\.....................      910       49       41       37       31       31
    Estimated Outlays.....................................      813      628      306      186      102       68
Proposed Changes:
    Estimated Authorization Level \2\.....................        0      902      933      960      985       46
    Estimated Outlays.....................................        0      215      585      738      848      680
Spending Under H.R. 2871 for Eximbank:
    Estimated Authorization Level \1,\\2\.................      910      951      974      997    1,016       77
    Estimated Outlays.....................................      813      843      891      924      950      748

                                           CHANGES IN DIRECT SPENDING

    Estimated Budget Authority............................        0        0        0        0        0        0
    Estimated Outlays.....................................        0        9       25       31       35       28
----------------------------------------------------------------------------------------------------------------
\1\ The 2001 level is the amount appropriated for that year. The 2002-2006 levels are the estimated amounts
  necessary for administrative costs to service loans made through fiscal year 2001.
\2\ The estimate assumes that funding for Eximbank credit subsidies would continue at the 2001 level adjusted
  for inflation. Funding at the 2001 level without adjustments for inflation would lower outlays by $5 million
  in 2002 and by $135 million over the 2002-2006 period.

    Basis of estimate: The Eximbank provides about $12 billion 
annually in loans and guarantees to finance the export of U.S. 
goods and services. H.R. 2871 would extend the Eximbank's 
authority to provide financing through 2005, an additional four 
years. The estimate assumes the Eximbank would receive 
appropriations for administrative expenses and for the cost of 
new loans and guarantees, as defined by the Federal Credit 
Reform Act, at the start of each fiscal year and that outlays 
would follow historical patterns.

Spending subject to appropriation

    CBO's estimate of spending under current law for 2002 
through 2006 show the amounts estimated to be necessary for 
administrative expenses to service outstanding credits if the 
program were not reauthorized. Under the bill, CBO estimates 
that Eximbank could increase financing from $12 billion to $14 
billion a year over the 2002-2005 period with a subsidy 
appropriation comparable to the 2001 level adjusted for 
inflation. Subsidy appropriations at those levels would support 
an increase in financing relative to 2001 because the 
Administration's economic and technical assumptions for 2002 
would lower the estimated cost, as defined by the Federal 
Credit Reform Act, of all Eximbank financing. That is, the 
Administration projects a drop in the average subsidy rate for 
Eximbank loans. For example, CBO estimates that a program level 
of $13 billion in new credits in 2002 would require $100 
million less in subsidy appropriations than it did in 2001.
    The bill would authorize the bank to undertake special 
outreach programs for small businesses and businesses owned by 
socially disadvantaged individuals and women. H.R. 2871 would 
direct the bank to create an office for small business 
exporters and an office on Africa. It also would direct the 
bank to invest in management technology. To pay for these 
activities, the bill would authorize an appropriation of $80 
million for administrative expenses in 2002 and similar 
amounts, adjusted for annual inflation, over the 2003-2005 
period.
    The bill would increase the ceiling on the aggregate level 
of outstanding loans, guarantees, and insurance to $100 billion 
in 2002 with an annual increase of $10 billion plus inflation 
over the 2003-2005 period. Because the current ceiling of $75 
billion has not constrained the bank's financing activity, CBO 
estimates that increasing the ceiling would not, in itself, 
result in additional financing.

Direct spending

    The bill would change the name of the Tied Aid Credit Fund 
to the Export Competitiveness Fund and would set more 
permissive standards for using the fund. According to the 
Eximbank, it has about $325 million in unobligated balances 
designed as the Tied Aid Credit Fund. Monies in the fund are 
available until expended, but its use has been limited in 
recent years to defending the existing export-credit 
arrangement of the Organization for Economic Cooperation and 
Development, averaging $10 million in obligations a year since 
1994. In addition, the bill would limit the Secretary of 
Treasury's authority to veto individual transactions and would 
authorize the Eximbank to use the Tied Aid Credit Fund to offer 
financing on terms and conditions more generous than permitted 
under the existing arrangement, if necessary, to further 
negotiations to bring the terms of market windows and untied 
foreign aid into compliance with the export-credit arrangement.
    CBO estimates that, under the provisions outlined above, 
obligations from the fund would increase to levels similar to 
those experienced before 1994, or about $50 million a year. We 
estimate that change would increase outlays by $9 million in 
2002 and $128 million over the 2002-2006 period.
    Pay-as-you-go considerations: The Balanced Budget and 
Emergency Deficit Control Act sets up pay-as-you-go procedures 
for legislation affecting direct spending or receipts. The net 
changes in outlays that are subject to pay-as-you-go procedures 
are shown in the following table. For the purposes of enforcing 
pay-as-you-go procedures, only the effects in the budget year 
and the succeeding four years are counted.

----------------------------------------------------------------------------------------------------------------
                                                          By fiscal year, in millions of dollars--
                                           ---------------------------------------------------------------------
                                             2002   2003   2004   2005   2006   2007   2008   2009   2010   2011
----------------------------------------------------------------------------------------------------------------
Changes in outlays........................      9     25     31     35     28     12      7      3      1      1
Changes in receipts.......................                              Not applicable
----------------------------------------------------------------------------------------------------------------

    Intergovernmental and private-sector impact: This bill 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would impose no costs on state, local, or 
tribal governments.
    Estimate prepared by: Federal Costs: Joseph C. Whitehill. 
Impact on State, Local, and Tribal Governments: Elyse Goldman. 
Impact on the Private Sector: Paige Piper/Bach.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

                      Advisory Committee Statement

    Section 6 reauthorizes the Sub-Saharan Africa Advisory 
Committee for 4 years. The goal of this committee is to help 
the U.S. Export-Import Bank expand its efforts in this region. 
Additionally, the Bank is required to report to Congress 
annually for each of the four years on steps taken in Sub-
Saharan Africa. Pursuant to the requirements of section 5(b) of 
the Federal Advisory Committee Act, the Financial Services 
Committee finds that the functions of the proposed advisory 
committee are not and cannot be performed by an existing 
Federal agency or advisory commission or by enlarging the 
mandate of an existing advisory committee.

                   Constitutional Authority Statement

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that the 
Constitutional Authority of Congress to enact this legislation 
is provided by Article 1, section 8, clause 1 (relating to the 
general welfare of the United States) and clause 3 (relating to 
the power to regulate interstate and foreign commerce).

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

             Section-By-Section Analysis of the Legislation


Section 1. Short title; table of contents

    This Section establishes the short title of the bill, the 
``Export-Import Bank Reauthorization Act of 2001,'' and 
provides a table of contents.

Section 2. Clarification that purposes include United States employment

    This section amends section 2(a)(1) of the Export-Import 
Bank Act to provide that the objects and purposes of the Bank 
include contributing to the employment of United States 
workers.

Section 3. Extension of authority

    This section amends section 7 of the Export-Import Bank Act 
by reauthorizing the Bank for 4 years until September 30, 2005. 
Current law authorized the Ex-Im Bank through September 30, 
2001.

Section 4. Administrative expenses

    This section amends section 3 of the Export-Import Bank Act 
by authorizing $80 million for the administrative budget of the 
Bank for FY2002. For FY2003 through 2005, the amount authorized 
for administrative expenses is $80 million plus an annual 
inflation index. The following two new budget subcategories are 
created within the Administrative expenses budget category: 
technology, and outreach to small businesses with fewer than 
100 employees. For FY2002, the bill authorizes $2 million for 
outreach to small businesses with fewer than 100 employees. For 
FY2003 to FY2005, this $2 million authorization figure will be 
indexed annually for inflation. This section also includes 
sense of the Congress language on the importance of technology 
improvements at the Bank.

Section 5. Increase in aggregate loan, guarantee, and insurance 
        authority

    This section amends section 6(a) of the Export-Import Bank 
Act by increasing the current statutory ceiling of $75 billion 
on the total amount of Ex-Im loans, guarantees, and insurance 
outstanding at any one time to $100 billion in FY2002, $110 
billion in FY2003, $120 billion in FY2004 and $130 billion in 
FY2005. This statutory ceiling will also be indexed for 
inflation in each year of the authorization.

Section 6. Activities relating to Africa

    This section amends section 2(b)(9) of the Export-Import 
Bank Act by reauthorizing the Sub-Saharan Africa Advisory 
Committee for four years until September 30, 2005. The 
authorization for this committee expired on September 30, 2001. 
The Bank is required to continue to report to Congress annually 
for each of the four years on steps taken in Sub-Saharan Africa 
and to consult with the Department of Commerce and the Trade 
Promotion Coordinating Council on Africa activities. This 
section also creates an Office on Africa within the Bank.

Section 7. Small business

    This section amends section 2(b)(1)(E) of the Export-Import 
Bank Act by increasing the volume of small business lending the 
Bank must pursue from the current statutory minimum of 10 
percent of all authorizations annually to a minimum of 20 
percent of total Bank financing. The Bank is required to set-
aside a minimum of 8 percent of the total Bank financing to be 
used for small businesses with less than 100 employees. The 
Bank must also conduct outreach and increase loans to 
businesses owned by socially disadvantaged individuals or women 
and also must establish an Office of Small Business Exporters.

Section 8. Technology

    This section amends section 2(b)(1)(E) of the Export-Import 
Bank Act by requiring the Bank to focus on technology 
improvements, which will improve small business outreach. The 
legislation directs the Bank to implement both an electronic 
system designed to track all pending transactions and 
technology to allow customers to use the Internet to apply for 
all Bank programs. The Bank is also directed to submit to 
Congress an interim report and an annual report for each year 
of the four-year authorization on technological progress made 
by the Bank and on how this is assisting small businesses.

Section 9. Tied aid credit fund

    This section amends section 10(b) of the Export-Import Bank 
Act by mandating that the Department of Treasury develop the 
process and standards governing how the Tied Aid Credit Fund is 
used. The Department of Treasury must report on this process 
and standards to the House Financial Services and Senate 
Banking Committees as soon as possible but no later than 6 
months after enactment of this legislation. Any subsequent 
updates to the process and standards must likewise be reported 
to Congress. The Export-Import Bank will administer the Tied 
Aid Credit Fund on a deal-by-deal basis in accordance with 
these standards. The Department of Treasury will not have the 
power to veto specific Tied Aid Credit Fund transactions. Until 
the Department of Treasury has reported back to the House 
Financial Services and the Senate Banking committees on 
standards for the Tied Aid Credit Fund, the standards 
enumerated in the legislation will govern the use of the Tied 
Aid Credit Fund. Finally, this section also requires the Bank 
to reconsider a denial of the use of Tied Aid funds if the 
applicant requests reconsideration within 3 months of the 
original decision.

Section 10. Expansion of authority to use tied aid credit fund

    This section directs the Secretary of the Treasury to seek 
to negotiate agreements or ``arrangements'' on untied aid and 
market windows within the Organization for Economic Cooperation 
and Development (OECD). One year after the enactment of the 
legislation, the Treasury Department must report to the House 
Financial Services Committee and the Senate Banking Committee 
on progress in reaching this OECD agreement on untied aid. Two 
years after enactment of the legislation, the Treasury 
Department must report to the House Financial Services 
Committee and the Senate Banking Committee on progress in 
reaching an OECD agreement on market windows. This section 
allows the Tied Aid Credit Fund to be used to combat both 
untied aid and market windows.

Section 11. Renaming of tied aid credit program and fund as export 
        competitiveness program and fund.

    This section amends section 10 of the Export-Import Bank 
Act by renaming the Tied Aid Credit Program and Fund as the 
Export Competitiveness Program and Fund. This change is 
necessary since section 10 of this legislation allows the Tied 
Aid Credit Program and Fund to be used to combat untied aid and 
market windows.

Section 12. Annual competitiveness report

    This section amends Section 2(b)(1)(A) of the Export-Import 
Bank Act by requiring the Bank to submit its annual 
competitiveness report by June 30 of each year. Under current 
law, there is no deadline for this report. Within this report, 
the Bank is directed to list the volumes of financing of the 
different Foreign Export Credit Agencies and classify its 
transactions according to their principal purpose, such as to 
correct a market failure or provide matching support. This 
report must also include an estimate, on the basis of an annual 
survey or tabulation of the number of entities that are small 
business suppliers of users of the Export-Import Bank. The 
annual competitiveness report must include a description of the 
Bank's efforts on outreach to businesses owned by socially 
disadvantaged individuals or by women.

Section 13. Renewable energy sources

    This section amends section 2(b)(1) of the Export-Import 
Bank Act by requiring the Bank to promote the export of 
American goods and services related to renewable energy 
sources. As part of the Bank's annual competitiveness report 
requirement, the Bank must report to the House Financial 
Services and Senate Banking Committees on efforts to promote 
exports in renewable energy sources.

Section 14. GAO reports

    This section requires the GAO to submit a report, within 
one year after enactment, examining the legal merits of 
potential U.S. cases brought in the WTO seeking relief against 
untied aid and market windows and examining the scope of 
penalty tariffs that the United States could impose against 
imports from countries that united aid or market windows. 
Second, the GAO must submit a report, by one year after 
enactment, examining the Ex-Im reserve ratios as compared to 
the reserve practices of private banks and foreign Export 
Credit Agencies.

Section 15. Human rights

    This section amends section 2(b)(1)(B) of the Export-Import 
Bank Act by clarifying that the Universal Declaration of Human 
Rights, as adopted by the United Nations General Assembly on 
December 10, 1948, should be used in making the the human 
rights determination under the Chafee procedure.

Section 16. Steel

    This section requires that the Bank reevaluate its adverse 
impact test on United States industries as a result of the 
Benxi Iron and Steel Company Bank loan guarantee in Benxi, 
Liaoning, China. The Bank must report back to Congress on this 
reassessment within one year after enactment of this 
legislation.

Section 17. Correction of references

    This section changes references to House Banking Committee 
to House Financial Services Committee.

Section 18. Authority to deny application for assistance based on fraud 
        or corruption by the applicant.

    This section amends section 2 of the Export-Import Bank Act 
giving the authority to the Bank to deny an application for 
assistance if there is credible evidence that a party to a 
transaction has committed an act of fraud or corruption 
regarding a good or service that is either the same or 
substantially similar to the subject of the application.

Section 19. Consideration of foreign country helpfulness in efforts to 
        eradicate terrorism.

    This section amends section 2(b)(1) of the Export-Import 
Bank Act by requiring the Bank, when considering whether to 
guarantee, insure, or extend credit, to take into account the 
extent to which a nation has been helpful or unhelpful in 
efforts to eradicate terrorism.

Section 20. Outstanding orders and preliminary injury determinations.

    This section amends section 2(e) of the Export-Import Bank 
Act by addressing the effect of outstanding trade orders and 
preliminary injury trade determinations on the Bank's 
financing. The Bank is prohibited from providing any loan or 
guarantee to an entity for the resulting production of 
substantially the same product that is subject of a 
countervailing duty or anti-dumping order under title VII of 
the Tariff Act of 1930 or a determination under title II of the 
Trade Act of 1974. The Bank is also directed to establish 
procedures, within 60 days after enactment of this bill, 
regarding loans or guarantees provided to any entity that is 
subject to a preliminary determination of a reasonable 
indication of material injury under title VII of the Tariff Act 
of 1930.

Section 21. Sense of the Congress relating to renewable energy targets.

    This section expresses the sense of Congress that no more 
than 95 percent of Ex-Im's energy related transactions should 
include fossil fuel projects and not less than 5 percent should 
be related to renewable energy and energy efficiency projects.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

EXPORT-IMPORT BANK ACT OF 1945

           *       *       *       *       *       *       *


  Sec. 2. (a)(1) There is hereby created a corporation with the 
name Export-Import Bank of the United States which shall be an 
agency of the United States of America. [The objects and 
purposes of the Bank shall be to aid in financing and to 
facilitate exports and 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 thereof.] 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. In connection with and in 
furtherance of its objects and purposes, the Bank is authorized 
and empowered to do a general banking business except that of 
circulation; to receive deposits; to purchase, discount, 
rediscount, sell, and negotiate, with or without its 
endorsement or guaranty, and to guarantee notes, drafts, 
checks, bills of exchange, acceptances, including bankers' 
acceptances, cable transfers, and other evidences of 
indebtedness; to guarantee, insure, co-insure, reinsure against 
political and credit risks of loss; to purchase, sell, and 
guarantee securities but not to purchase with its funds any 
stock in any other corporation except that it may acquire any 
such stock, through the enforcement of any lien or pledge or 
otherwise to satisfy a previously contracted indebtedness to 
it; to accept bills and drafts drawn upon it; to issue letters 
of credit; to purchase and sell coin, bullion, and exchange; to 
borrow and to lend money; to perform any act herein authorized 
in participation with any other person, including any 
individual, partnership, corporation, or association; to adopt, 
alter, and use a corporate seal, which shall be judicially 
noticed; to sue and to be sued, to complain and to defend in 
any court of competent jurisdiction; to represent itself or to 
contract for representation in all legal and arbitral 
proceedings outside the United States; and the enumeration of 
the foregoing powers shall not be deemed to exclude other 
powers necessary to the achievement of the objects and purposes 
of the Bank. The Bank shall be entitled to the use of the 
United States mails in the same manner and upon the same 
conditions as the executive departments of the Government. The 
Bank is authorized to publish or arrange for the publications 
of any documents, reports, contracts, or other material 
necessary in connection with or in furtherance of its objects 
and purposes without regard to the provisions of section 501 of 
title 44, United States Code, whenever the Bank determines that 
publication in accordance with the provisions of such section 
would not be practicable. Subject to regulations which the Bank 
shall issue pursuant to section 553 of title 5, United States 
Code, the Bank may impose and collect reasonable fees to cover 
the costs of conferences and seminars sponsored by, and 
publications provided by, the Bank, and may accept 
reimbursement for travel and subsistence expenses incurred by a 
director, officer, or employee of the Bank, in accordance with 
subchapter I of chapter 57 of title 5, United States Code. 
Amounts received under the preceding sentence shall be credited 
to the fund which initially paid for such activities and shall 
be offset against the expenses of the Bank for such activities. 
The Bank is hereby authorized to use all of its assets and all 
moneys which have been or may thereafter be allocated to or 
borrowed by it in the exercise of its functions. Net earnings 
of the Bank after reasonable provision for possible losses 
shall be used for payment of dividends on capital stock. Any 
such dividends shall be deposited into the Treasury as 
miscellaneous receipts.

           *       *       *       *       *       *       *

  (b)(1)(A) It is the policy of the United States to foster 
expansion of exports of manufactured goods, agricultural 
products, and other goods and services, thereby contributing to 
the promotion and maintenance of high levels of employment and 
real income, a commitment to reinvestment and job creation, and 
the increased development of the productive resources of the 
United States. To meet this objective in all its programs, the 
Export-Import Bank is directed, in the exercise of its 
functions, to provide guarantees, insurance, and extensions of 
credit at rates and on terms and other conditions which are 
fully competitive with the Government-supported rates and terms 
and other conditions available for the financing of exports of 
goods and services from the principal countries whose exporters 
compete with United States exporters. The Bank shall, in 
cooperation with the export financing instrumentalities of 
other governments, seek to minimize competition in Government-
supported export financing and shall, in cooperation with other 
appropriate United States Government agencies, seek to reach 
international agreements to reduce government subsidized export 
financing. The Bank shall, [on an annual basis] on June 30 of 
each year, report to the appropriate committees of Congress its 
actions in complying with these directives. In this report the 
Bank shall include a survey of all other major export-financing 
facilities available from other governments and government-
related agencies through which foreign exporters compete with 
United States exporters and indicate in specific terms the ways 
in which the Bank's rates, terms, and other conditions compare 
with those offered from such other governments directly or 
indirectly. Further the Bank shall at the same time survey a 
representative number of United States exporters and United 
States commercial lending institutions which provide export 
credit to determine their experience in meeting financial 
competition from other countries whose exporters compete with 
United States exporters. The results of this survey shall be 
included as part of the annual report required by this 
subparagraph. The Bank shall include in the annual report a 
description of its role in the implementation of the strategic 
plan prepared by the Trade Promotion Coordinating Committee in 
accordance with section 2312 of the Export Enhancement Act of 
1988. The annual report required under this subparagraph shall 
include the report required under section 10(g). 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. 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. 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. The Bank shall include in the 
annual report a description of the efforts undertaken under 
subparagraph (K).
  (B) It is further the policy of the United States that loans 
made by the Bank in all its programs shall bear interest at 
rates determined by the Board of Directors, consistent with the 
Bank's mandate to support United States exports at rates and on 
terms and conditions which are fully competitive with exports 
of other countries, and consistent with international 
agreements. For the purpose of the preceding sentence, rates 
and terms and conditions need not be identical in all respects 
to those offered by foreign countries, but should be 
established so that the effect of such rates, terms, and 
conditions for all the Bank's programs, including those for 
small businesses and for medium-term financing, will be to 
neutralize the effect of such foreign credit on international 
sales competition. The Bank shall consider its average cost of 
money as one factor in its determination of interest rates, 
where such consideration does not impair the Bank's primary 
function of expanding United States exports through fully 
competitive financing. The Bank may not impose a credit 
application fee unless (i) the fee is competitive with the 
average fee charged by the Bank's primary foreign competitors, 
and (ii) the borrower or the exporter is given the option of 
paying the fee at the outset of the loan or over the life of 
the loan and the present value of the fee determined under 
either such option is the same amount. It is also the policy of 
the United States that the Bank in the exercise of its 
functions should supplement and encourage, and not compete 
with, private capital; that the Bank, in determining whether to 
provide support for a transaction under the loan, guarantee, or 
insurance program, or any combination thereof, shall consider 
the need to involve private capital in support of United States 
exports as well as the cost of the transaction as calculated in 
accordance with the requirements of the Federal Credit Reform 
Act of 1990; that the Bank shall accord equal opportunity to 
export agents and managers, independent export firms, export 
trading companies, and small commercial banks in the 
formulation and implementation of its programs;  that the Bank 
should give emphasis to assisting new and small business 
entrants in the agricultural export market, and shall, in 
cooperation with other relevant Government agencies, including 
the Commodity Credit Corporation, develop a program of 
education to increase awareness of export opportunities among 
small agribusinesses and cooperatives, that loans, so far as 
possible consistent with the carrying out of the purposes of 
subsection (a) of this section, shall generally be for specific 
purposes, and, in the judgment of the Board of Directors, offer 
reasonable assurance of repayment; and that in authorizing any 
loan or guarantee, the Board of Directors shall take into 
account any serious adverse effect of such loan or guarantee on 
the competitive position of United States industry, the 
availability of materials which are in short supply in the 
United States, and employment in the United States, and shall 
give particular emphasis to the objective of strengthening the 
competitive position of United States exporters and thereby of 
expanding total United States exports. Only in cases where the 
President, after consultation with the Committee on [Banking 
and] Financial Services of the House of Representatives and the 
Committee on Banking, Housing, and Urban Affairs of the Senate, 
determines that such action would be in the national interest 
where such action would clearly and importantly advance United 
States policy in such areas as international terrorism, nuclear 
proliferation, environmental protection and human rights (as 
provided in the Universal Declaration of Human Rights adopted 
by the United Nations General Assembly on December 10, 1948) 
(including child labor), should the Export-Import Bank deny 
applications for credit for nonfinancial or noncommercial 
considerations. Each such determination shall be delivered in 
writing to the President of the Bank, shall state that the 
determination is made pursuant to this section, and shall 
specify the applications or categories of applications for 
credit which should be denied by the Bank in furtherance of the 
national interest.

           *       *       *       *       *       *       *

  (E)(i) * * *

           *       *       *       *       *       *       *

  (iii) In furtherance of this policy, the Board of Directors 
shall designate an officer of the Bank who--
          (I) * * *
          (II) among other duties, shall be responsible for 
        advising small business concerns of the opportunities 
        for small business concerns in the functions of the 
        Bank, 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, and for maintaining liaison with the Small 
        Business Administration and other departments and 
        agencies in matters affecting small business concerns.)

           *       *       *       *       *       *       *

  (v) To assure that the purposes of clauses (i) and (ii) of 
this subparagraph are carried out, the Bank shall make 
available, from the aggregate loan, guarantee, and insurance 
authority available to it, an amount to finance exports 
directly by small business concerns (as defined under section 3 
of the Small Business Act) which shall be not less than [10] 20 
percent of such authority for each fiscal year, 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.

           *       *       *       *       *       *       *

  (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.

           *       *       *       *       *       *       *

  (J) The Bank shall implement an electronic system designed to 
track all pending transactions of the Bank.
  (K) The Bank shall promote the export of goods and services 
related to renewable energy sources.
  (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.

           *       *       *       *       *       *       *

  (6)(A) * * *

           *       *       *       *       *       *       *

  (D)(i) The Board shall not give approval to guarantee or 
insure a sale of defense articles or services unless--
          (I) * * *

           *       *       *       *       *       *       *

          (III) such determinations have been reported to the 
        Speaker and the Committee on [Banking, Finance and 
        Urban Affairs] Financial Services of the House of 
        Representatives, and to the Committee on Banking, 
        Housing, and Urban Affairs and the Committee on Foreign 
        Relations of the Senate, not less than 25 days of 
        continuous session of the Congress before the date of 
        such approval.

           *       *       *       *       *       *       *

  (H) Once in each calendar quarter, the Bank shall submit a 
report to the Committee on Banking, Housing, and Urban Affairs 
of the Senate, and the Committee on [Banking, Finance and Urban 
Affairs] Financial Services of the House of Representatives on 
all instances in which the Bank, during the reporting quarter, 
guaranteed, insured, or extended credit or participated in an 
extension of credit in connection with any credit sale of an 
article, service, or related technical data described in 
subparagraph (G) that the Bank determined would not be put to a 
military use or described in subparagraph (I)(i). Such report 
shall include a description of each of the transactions and the 
justification for the Bank's actions.
  (I)(i) Subparagraph (A) shall not apply to a transaction 
involving defense articles or services if--
          (I) * * *
          (II) at least 15 calendar days before the date on 
        which the Board of Directors of the Bank gives final 
        approval to Bank participation in the transaction, the 
        Bank provides notice of the transaction to the 
        Committees on [Banking, Finance and Urban Affairs] 
        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.

           *       *       *       *       *       *       *

  (iii) Not later than September 1 of each fiscal year, the 
Comptroller General of the United States, in consultation with 
the Bank, shall submit to the Committees on [Banking, Finance 
and Urban Affairs] 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 
a report on the end uses of any defense articles or services 
described in clause (i) with respect to which the Bank provided 
support during the second preceding fiscal year.

           *       *       *       *       *       *       *

  (9)(A) The Board of Directors of the Bank shall, in 
consultation with the Department of Commerce and the Trade 
Promotion Coordinating Council, take prompt measures, 
consistent with the credit standards otherwise required by law, 
to promote the expansion of the Bank's financial commitments in 
sub-Saharan Africa under the loan, guarantee, and insurance 
programs of the Bank.
  (B)(i) * * *

           *       *       *       *       *       *       *

  (iii) The advisory committee shall terminate [4 years after 
the date of enactment of this subparagraph] on September 30, 
2005.

           *       *       *       *       *       *       *

  (e) Limitation on Assistance Which Adversely Affect the 
United States.--
          (1) * * *
          (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).
          [(2)] (3) Exception.--[Paragraph (1)] Paragraphs (1) 
        and (2) shall not apply in any case where, in the 
        judgment of the Board of Directors of the Bank, the 
        short- and long-term benefits to industry and 
        employment in the United States are likely to outweigh 
        the short- and long-term injury to United States 
        producers and employment of the same, similar, or 
        competing commodity.
          [(3)] (4) Definition.--For purposes of paragraph 
        (1)(B), the extension of any credit or guarantee by the 
        Bank will cause substantial injury if the amount of the 
        capacity for production established, or the amount of 
        the increase in such capacity expanded, by such credit 
        or guarantee equals or exceeds 1 percent of United 
        States production.
  (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. 3. (a) * * *

           *       *       *       *       *       *       *

  (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.
  (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).
  (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. 6. AGGREGATE LOAN, GUARANTEE, AND INSURANCE AUTHORITY.

  [(a) Limitation on Outstanding Amounts.--The Export-Import 
Bank of the United States shall not have outstanding at any one 
time loans, guaranties, and insurance in an aggregate amount in 
excess of $75,000,000,000. 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.]
  (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. 7. The Export-Import Bank of the United States shall 
continue to exercise its functions in connection with and in 
furtherance of its object and purposes until the close of 
business on September 30, [2001] 2005, but the provisions of 
this section shall not be construed as preventing the Bank from 
acquiring obligations prior to such date which mature 
subsequent to such date or from assuming prior to such date 
liability as guarantor, endorser, or acceptor of obligations 
which mature subsequent to such date, or from issuing either 
prior or subsequent to such date, for purchase by the Secretary 
of the Treasury or any other purchasers, its notes, debentures, 
bonds, or other obligations which mature subsequent to such 
date or from continuing as a corporate agency of the United 
States and exercising any of its functions subsequent to such 
date for purposes of orderly liquidation, including the 
administration of its assets and the collection of any 
obligations held by the Bank.

           *       *       *       *       *       *       *


                   [tied aid credit program and fund

  [Sec. 10. (a) Findings.--The Congress finds that--]

SEC. 10. EXPORT COMPETITIVENESS FUND.

  (a) Findings.--The Congress finds that--
          (1) tied aid and partially untied aid credits offered 
        by, and market windows used by other countries are a 
        predatory method of financing exports because of their 
        market-distorting effects;

           *       *       *       *       *       *       *

          (4) support of commercial exports by donor countries 
        with tied aid and partially untied aid credits impedes 
        the growth of developing countries because it diverts 
        development assistance funds from essential 
        developmental purposes; [and]
          (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
          [(5)] (6) there should be established in the Bank a 
        [tied aid program] export competitiveness program to 
        target the export markets of those countries which make 
        extensive use of tied aid or partially untied aid 
        credits, or market windows, for commercial advantage 
        for the purposes of--
                  (A) * * *
                  (B) facilitating efforts to negotiate, 
                establish, and enforce new or revised 
                comprehensive international arrangements 
                effectively restricting the use of tied aid and 
                partially untied aid credits, or market 
                windows, for commercial purposes;
        and such program should be used aggressively for such 
        purposes.
  (b) Establishment of [Tied Aid Credit] Export Competitiveness 
Program.--
          (1) In general.--The Bank shall establish a [tied aid 
        credit program] export competitiveness program under 
        which grants shall be made from funds available in the 
        [Tied Aid Credit fund] Export Competitiveness Fund 
        established under subsection (c)--
                  (A) to supplement the financing of a United 
                States export when there is a reasonable 
                expectation that predatory financing will be 
                provided by another country for a sale by a 
                competitor of the United States exporter with 
                respect to such export and with special 
                attention to matching tied aid and partially 
                untied aid credits extended and market windows 
                used by other governments--
                          (i) * * *

           *       *       *       *       *       *       *

                  (B) to supplement the financing of United 
                States exports to foreign markets which are 
                actual or potential export markets for any 
                country which the Bank determines--
                          (i) engages in predatory official 
                        export financing through the use of 
                        tied aid or partially untied aid 
                        credits or market windows, and impedes 
                        negotiations or violates agreements on 
                        tied aid to eliminate the use of such 
                        credits for commercial purposes; or

           *       *       *       *       *       *       *

          (2) Administration of program.--The [tied aid credit 
        program] export competitiveness program shall be 
        administrated by the Bank--
                  (A) in consultation with the Secretary and in 
                accordance with the [Secretary's 
                recommendations on how such credits could be 
                used most effectively and efficiently to carry 
                out the purposes described in subsection 
                (a)(5);] process and standards developed 
                pursuant to paragraph (5);

           *       *       *       *       *       *       *

          (3) Coordination with other export financing.--Under 
        the [tied aid credit program] export competitiveness 
        program, the Bank may combine grants from the [Tied Aid 
        Credit Fund] Export Competitiveness Fund with--
                  (A) * * *

           *       *       *       *       *       *       *

          (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 Export 
                Competitiveness 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 Export Competitiveness Fund in 
                        accordance with the following 
                        standards:
                                  (I) The Export 
                                Competitiveness 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 
                                Export Competitiveness Fund is 
                                used to offer specific terms to 
                                match such an offer.
                                  (III) The Export 
                                Competitiveness 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 Export 
                                Competitiveness 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 Export 
                                Competitiveness Fund will be 
                                used to defend potential sales 
                                by United States companies to a 
                                project that is environmentally 
                                sound.
                                  (VI) The Export 
                                Competitiveness 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 Export Competitiveness 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.
          (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 Export 
                Competitiveness 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.
  (c) [Tied Aid Credit] Export Competitiveness Fund.--
          (1) In general.--There is hereby established within 
        the Bank a fund to be known as the ``[Tied Aid Credit] 
        Export Competitiveness Fund'' (hereinafter in this 
        section referred to as the ``Fund''), consisting of 
        such amounts as may be appropriated to the Fund 
        pursuant to the authorization contained in subsection 
        (e).

           *       *       *       *       *       *       *

  (d) Consistency With Arrangement.--Any export financing 
involving the use of a grant under the [tied aid credit] export 
competitiveness program shall be consistent with the procedures 
established by the Arrangement, as in effect at the time such 
financing is approved.

           *       *       *       *       *       *       *

  (g) Report to Congress.--
          (1) In general.--The Bank, in consultation with the 
        Secretary, shall submit an annual report on tied aid 
        credits to the Committee on Banking, Housing, and Urban 
        Affairs of the Senate and the Committee on [Banking, 
        Finance and Urban Affairs] Financial Services of the 
        House of Representatives.
          (2) Contents of reports.--Each report required under 
        paragraph (1) shall contain a description of--
                  (A) * * *

           *       *       *       *       *       *       *

                  (C) any use by the Bank of the [Tied Aid 
                Credit] Export Competitiveness Fund to match 
                specific offers, including those that are 
                grandfathered or exceptions under the 
                Arrangement; and
  (h) Definitions.--For purposes of this section, the following 
definitions shall apply:
          (1) * * *

           *       *       *       *       *       *       *

          (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.

           *       *       *       *       *       *       *

                              ----------                              


                SECTION 1 OF THE ACT OF OCTOBER 31, 1994

                          (Public Law 103-428)

SECTION 1. AUTHORITY TO PROVIDE FINANCING FOR THE EXPORT OF NONLETHAL 
                    DEFENSE ARTICLES OR SERVICES THE PRIMARY END USE OF 
                    WHICH WILL BE FOR CIVILIAN PURPOSES.

  (a) * * *

           *       *       *       *       *       *       *

  (c) Period of Effectiveness.--The amendments made by this 
section shall remain in effect during the period beginning on 
the date of enactment of this Act and ending on September 30, 
[2001] 2005.
                              ----------                              


              SECTION 1105 OF TITLE 31, UNITED STATES CODE

Sec. 1105. Budget contents and submission to Congress

  (a) On or after the first Monday in January but not later 
than the first Monday in February of each year the President 
shall submit a budget of the United States Government for the 
following fiscal year. Each budget shall include a budget 
message and summary and supporting information. The President 
shall include in each budget the following:
          (1) * * *

           *       *       *       *       *       *       *

          (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.

           *       *       *       *       *       *       *

                              ----------                              


    SECTION 7 OF THE EXPORT-IMPORT BANK REAUTHORIZATION ACT OF 1997

SEC. 7. ADVISORY COMMITTEE FOR SUB-SAHARAN AFRICA.

  (a) * * *
  (b) Reports to Congress.--Within 6 months after the date of 
enactment of this Act, and annually for each of the [4] 8 years 
thereafter, the Board of Directors of the Export-Import Bank of 
the United States shall submit to Congress a report on the 
steps that the Board has taken to implement section 2(b)(9)(B) 
of the Export-Import Bank Act of 1945 and any recommendations 
of the advisory committee established pursuant to such section.

                            DISSENTING VIEWS

    The legislation to reauthorize the Export-Import Bank (H.R. 
2871) that was reported by the Financial Services Committee 
fails to address serious problems in our nation's trade 
policies, and should, in its current form, be rejected by the 
House of Representatives.
    The trade policies of the United States have been a 
disaster for the average worker. Even before the September 11 
terrorist attacks, layoffs were up 624% from last year as over 
1 million decent-paying manufacturing jobs in this country were 
lost. Our trade deficit of some $450 billion is unsustainable.
    The United States now has an $84 billion trade deficit with 
China, a $24 billion trade deficit with Mexico, and a $50 
billion trade deficit with Canada which has more than doubled 
since the passage of NAFTA. This is a recipe for disaster.
    Today, tens of millions of American workers are working 
longer hours for lower wages than was the case 25 years ago. In 
fact, young, entry level workers without a college education 
saw their average real wages plummet by 28% between 1979 and 
1997 because they are forced to work in the low wage service 
industry as opposed to manufacturing--where wages are much 
higher.
    The United States today has the most uneven distribution of 
wealth and income of any industrialized nation, and many people 
in the middle class are working incredibly long hours to keep 
their heads above water. It used to be that in the United 
States one worker could work 40 hours a week and bring in 
enough income to support the entire family. Today, real wages 
have not kept pace with inflation for many workers and most 
families need two breadwinners in order to pay the bills.
    The International Labor Organization (ILO), recently 
reported that the United States now has the dubious distinction 
of having its workers work longer hours than any other 
industrialized country in the world. One of the reasons for 
this is that our failed trade policy is exporting decent paying 
manufacturing jobs, rather than goods.
    Meanwhile, the top five recipients of Export-Import Bank 
subsidies over the past decade have reduced their workforce by 
38%--more than a third of a million jobs down the drain--
according to an article that appeared in Time magazine on 
November 9, 1998. These same five companies have received over 
60 percent of all Export-Import Bank subsidies.
    There are many examples of the Export-Import Bank 
subsidizing corporations that lay off American workers and move 
their production facilities overseas.
     The Export-Import Bank is subsidizing Boeing 
aircraft sales to China. In 1995, Boeing's machinist union went 
on strike, protesting the company's deal with China because it 
required that a portion of the jets sold to China be made with 
Chinese labor. According to the President of IAM Local 751: 
``Boeing used to make tail sections for the 737 in Wichita, but 
they moved the work to a military factory in Xian, China. Is 
this Boeing's definition of free trade, to have American 
workers compete with Chinese labor making $50 a month under 
military discipline?''
     AT&T has received an Ex-Im Loan Guarantee to 
underwrite an $87.6 million loan for AT&T's export sales to 
China. According to the Telecom Publishing Group, ``While some 
equipment for AT&T's network projects in China will be built in 
the U.S., the Chinese are demanding that eventually the bulk of 
the equipment in their system be built in China.''
     General Electric has received over $2.5 billion in 
direct loans and loan guarantees by the Ex-Im Bank. From 1985-
1995 GE reduced its workforce from 243,000 to 150,000.
     General Motors has received over $500 million in 
direct loans and loan guarantees from the Ex-Im Bank. GM has 
shrunk their U.S. workforce from 559,000 to 314,000.
     IBM has received over $20 million in direct loans 
and loan guarantees from the Ex-Im Bank. IBM now has more 
workers employed abroad than in the U.S. (155,000 abroad vs. 
145,000 in the U.S.).
     Motorola has received almost $500 million in 
direct loans and loan subsidies from the Ex-Im Bank, yet it's 
total workforce is only 56 percent U.S.
    In our view, if the Export-Import Bank is not truly 
effective in increasing decent-paying jobs in this country, we 
should cut funding for the program or even eliminate it.
    The fundamental issue is whether working families in this 
country, who for many years have seen a decline in their real 
wages and are working longer hours, should be putting hundreds 
of millions of dollars each year into helping large 
multinational corporations that have laid off hundreds of 
thousands of American workers during the last 15 years. That is 
the issue we should focus on.
    Some have said that we should support the Export-Import 
Bank because we need a level playing field in international 
trade. They are subsidizing exports in Europe and in Japan. And 
there is some truth to that argument. But there is another side 
to the story, and that is that corporations in Japan and Europe 
have a different ethic in many ways. Their systems are 
different.
    In Europe, they have a national health care system 
guaranteeing health care to all people. In Europe, German 
workers make 25 percent more than manufacturing workers in the 
United States. In many countries in Europe, college education 
is free, as opposed to costing $25,000 or $30,000 a year. In 
many European countries, corporations pay significantly more in 
taxes than do companies in our country.
    We need dramatic reforms in our trade policies in this 
country, and the Export-Import Bank legislation should be a 
good place to begin that reform. However, the legislation 
reported out of the Financial Services Committee fails to make 
those reforms.
    In addition to the substantive deficiencies in the 
Financial Services Committee's Export-Import Bank legislation, 
the process by which the legislation was moved through the 
Committee was unfair to the members of the Minority, and did 
not meet the test of bipartisanship.
    Earlier this year, the Chairman of the Subcommittee on 
International Monetary Policy and Trade worked with the 
Subcommittee's Minority to draft a bipartisan Export-Import 
Bank bill. Together, we developed and introduced a bill to 
reauthorize and reform the Bank. That bill, H.R. 2517, included 
groundbreaking provisions to require companies seeking Export-
Import Bank assistance to protect American jobs, and to 
increase the Bank's small business efforts.
    However, just two days before it was to be marked up in the 
Subcommitttee, the mark-up was cancelled. Our bi-partisan bill 
was replaced by an industry-supported bill, with absolutely no 
input from the Minority. And that new bill was used as the 
mark-up vehicle in Subcommittee.
    The bill that the Subcommittee Chairman and the Minority 
developed in a bipartisan spirit should have been allowed to be 
marked up in the Subcommittee. Those who opposed our efforts to 
protect American jobs would have had the opportunity to offer 
amendments to our bill--a bill that was supported by a number 
of the major unions in this country. If those who disagreed 
with us had enough votes they would have won, but there would 
have been at least a serious debate on an issue of enormous 
consequence to American workers.
    When the bill reached the full Committee, Minority members 
of the Committee attempted to offer amendments to correct 
serious deficiencies in the bill. However, despite the fact 
that these amendments were pre-filed with the Committee and 
thus entitled to priority consideration, the full Committee 
markup of the bill was gaveled to a close without objection 
before many of these amendments could be offered.
    These amendments included amendments to restore provisions 
of the bi-partisan bill that the Subcommittee Chairman and the 
Minority introduced earlier this year. For example, members of 
the Minority sought to offer amendments to increase the Bank's 
small business set-asides and outreach efforts.
    In addition, Minority members of the Committee sought to 
offer amendments to add provisions that were not in the 
original, bi-partisan bill, which were not originally offered 
because members of the Minority believed we had arrived at a 
bi-partisan compromise. For example, Minority Members of the 
Committee sought to offer amendments to require a 60-day public 
comment period on environmental assessments; a prohibition on 
assistance for tobacco exports; an amendment to reduce the 
credit subsidy for the Bank, as proposed by President Bush; and 
an amendment to require human rights impact assessments of 
projects funded by the Export-Import Bank.
    We feel strongly that these amendments should have been 
considered by the Committee, and accepted or rejected on their 
merits.
    For all of these reasons, both substantive and procedural, 
we oppose the Export-Import Bank reauthorization legislation 
reported out of the Financial Services Committee.

                                   Bernard Sanders.
                                   Maxine Waters.
                                   Barbara Lee.
                                   William Lacy Clay.

                   DISSENTING VIEWS OF HON. RON PAUL

    Congress should reject HR 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--rather the majority of Eximbank funding benefits 
large, politically powerful corporations.
    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 on getting 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 had to spend money 
repairing a window, but rather would have 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 its opponents are 
``protectionists'' and ``isolationists.'' This claim 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 bureaucrats 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 form achieving 
their highest valued use, Eximbank actually costs Americans 
jobs and reduces America's standard of living!
    The case for Eximbank is further weakened considering that 
small businesses receive only 12-15% of Eximbank funds; the 
vast majority of Eximbank funds benefit large corporations. 
These corporations can certainly 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 exports 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. 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 the 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, the 
Republic of Yemen, and even the Sudan benefit from taxpayer-
subsidized trade courtesy of the Eximbank!
    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 at the thought 
the federal government was taking hard-earned money from the 
American people in order to benefit the politically powerful.
    In conclusion, Eximbank distorts the market by allowing 
government bureaucrats to make economic decisions in place of 
individual consumers. Eximbank also violates basic principals 
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 them to benefit 
powerful special interests. It is for these reasons that I urge 
my colleagues to reject HR 2871, the Export-Import Bank 
Reauthorization Act.

                                                          Ron Paul.

                                
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