To Members of the US Congress:
There will be a vote soon on whether to reauthorize the US ExIm Bank. You should do so.
Arguments by some that this is a form of corporate welfare are unfounded. Suggestions that ExIm Bank merely supports The Boeing Co. are misguided.
To be sure, Boeing airplanes received the majority of ExIm Bank commitments and guarantees. This is because Boeing makes the most expensive things ExIm supports. But plenty of small businesses benefit from ExIm as well.
Supporting ExIm for Boeing airplanes creates jobs in America. LionAir of Indonesia ordered hundreds of Boeing 737s. ExIm Bank support was pledged to support this order. LionAir also ordered hundred of Airbus A320s. If ExIm weren’t supporting the 737s, it’s a fair conclusion LionAir would have ordered more A320s instead of Boeing. Why? Airbus gets active support from the ExIm’s equivalent agencies in Europe.
LionAir is but one such example.
Boeing is one of the top exporters (if not the top) of US products. These exports help the US balance of trade.
If ExIm is not reauthorized, Airbus will have an international advantage over Boeing. My market intelligence tells me that Airbus has already used the ambiguity over ExIm’s reauthorization in sales campaigns against Boeing.
If there are specific problems with how ExIm is administered, fix them, but don’t kill the program that has been around–and successfully supporting American businesses–for decades.
ExIm returns a profit to the US Treasury with its fees and other charges supporting its work. How many government programs can say this?
Stop playing games with and holding hostage ExIm Bank. It’s time to grant long-term reauthorization.
Very truly yours,
Leeham News and Comment