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WASHINGTON: President Barack Obama on Saturday urged business owners to press Congress to re-authorise the US Export-Import Bank, which could halt any new financing Sept 30 — as some conservative Republicans hope it will — if lawmakers fail to act.
The little-known institution provides loans to buyers of US products abroad. Obama said in his weekly radio address that if Congress lets the bank close, it would be stunting US export growth and impeding economic expansion.
“If Congress fails to act, thousands of businesses, large and small, that sell their products abroad will take a completely unnecessary hit,” the president said.
While playing a relatively small role in the US export universe, the bank has become a political flashpoint. Conservative Republicans single it out as an unnecessary and potentially risky government programme, while moderates and most Democrats defend it as providing a useful boost to businesses seeking new markets.
Household names such as Boeing Co, Caterpillar Inc and General Electric Co are big beneficiaries of the bank’s services. Ex-Im Bank’s critics say aiding well-established firms such as those serves little purpose and puts taxpayers at risk.
Opposition to renewing the bank’s charter includes influential lawmakers such as new House Majority Leader Kevin McCarthy and House Financial Services Committee Chairman Jeb Hensarling, both Republicans.
Fuelling concerns about the bank’s role, Delta Airlines charges that the institution provides an unfair advantage to foreign competitors of the US carrier.
“If left to do business as usual, the Bank has proven that it will continue to help all foreign airlines indiscriminately, including well-funded and state-supported ones that competitively threaten US airlines and their employees,” Delta Senior Vice President Andrea Fischer Newman wrote to Hensarling this week.
Published in Dawn, August 24th, 2014
