EX-IM BANK REVISES ECONOMIC IMPACT PROCEDURES
The Export-Import Bank of the United States (Ex-Im Bank) announced today changes to the Bank's economic impact procedures. These procedures assess whether an Ex-Im Bank-supported export sale's benefit to U.S. industry and jobs outweighs potential injury to U.S. producers of competing commodities. The Board of Directors approved the new procedures Sept. 17, 2001.
Ex-Im Bank plays a significant role in the global economy by supporting U.S. exports and jobs while contributing to economic growth in emerging markets, said Ex-Im Bank Chairman John E. Robson. These procedural changes will enable us to more fully analyze the potential impact on the U.S. economy of Ex-Im Bank-supported transactions in the interconnected 21st century global marketplace.
Under the changed procedures, a screening process has been established to efficiently determine the transactions that are subject to a full economic impact analysis. The Bank will analyze only those transactions that support capital equipment to produce an exportable good, involve Ex-Im Bank financing of more than $10 million, and meet Congress's definition of substantial injury (the foreign buyer's production resulting from an Ex-Im Bank-financed purchase is at least 1% of U.S. production). In addition, transactions where the buyer and product are subject to final U.S. trade actions are automatically denied, absent a showing of extraordinary harm.
When a transaction does undergo a full economic impact analysis, the new procedures broaden the scope of data examined in conducting the analysis. In addition, the changes make the analysis more transparent, carefully weighing the analysis and policy views of other government agencies, and allowing affected parties such as domestic producers, exporters and labor unions to weigh in with their views.
In revising the procedures, Ex-Im Bank received extensive input from interested parties as well as from independent economic and trade experts. The input was received at a public meeting at Ex-Im Bank on July 31, 2001, and through written comments submitted during August. These comments were carefully considered in developing the new procedures.
Ex-Im Bank is an independent U.S. government agency that helps finance the sale of U.S. exports primarily to emerging markets throughout the world, by providing loans, guarantees, and insurance. Ex-Im Bank supported $15.5 billion in U.S. exports in fiscal year 2000.