House economic leader says time is right
Texas Insider Report: WASHINGTON DC Business as usual is not an option. These reforms are long overdue and take the first serious steps toward ending the global battle of government export subsidies" said U.S. Congressman Kevin Brady (R-TX) the chairman of the Trade sub-committee of the House Ways & Means Committee as the House passed a 3-year extension of the EX-IM Bank.
The 3-year extension raises the Ex-Im Banks lending limits to $140 billion but includes for the first time reforms which protect taxpayers and set the stage for eventually eliminating government export subsidies.
The EXIM Bank helps finance the sales of American goods and service overseas which support jobs in the U.S.
The House-passed bill was supported by American manufacturers who face aggressive lending subsidies by competitors from China Brazil and Europe. Many experts believe if Congress acts alone to abolish the EXIM Bank and unilaterally end the financing - while other countries continue theirs - it will put American businesses at a major disadvantage when competing in the international marketplace.
This is a smart way to keep our American companies and their workers competitive while we send a strong message to China Brazil and Europe that the days of these subsidies are numbered.
The reforms include directing the Secretary of the Treasury to enter into multi-country negotiations to begin reducing and eliminating government lending subsidies around the world protecting U.S. taxpayers with an early warning system on defaults giving taxpayers a first priority for repayment and aggressive oversight of EXIMs risk management and loan guarantees.
