May 21, 2014
AAF Research Finds Market Realities Underscore Need For Ex-Im Bank
The Export-Import Bank (Ex-Im), the official export credit agency of the United States, acts in a distorted world of export finance to empower American companies facing increased competition. One part of a larger trade policy, Ex-Im is a way to level the playing field for U.S. exporters as they face market realities like competition from foreign export credit agencies, new research from the American Action Forum (AAF) finds. As reauthorization for Ex-Im is considered, AAF’s research outlines necessary reforms that better protect taxpayers while minimizing market distortions.
AAF recommends the following reforms:
- Eliminate unneeded taxpayer backing and financing authority;
- Eliminate preferential and quota approaches to industries and firms;
- Continue reforms from 2012’s reauthorization to address weaknesses in the bank’s governance and risk management;
- Increase transparency; and
- Improve operational criteria for the selection of projects afforded financing.
The research was conducted by Douglas Holtz-Eakin, AAF’s President, and Andy Winkler, AAF’s Director of Housing Policy.
Click here to read the research.