Top Competitors Continue to Outinvest United States in Export Credit Financing

April 15, 2013

export credit financing is a critical tool for boosting U.S. exports, boosting U.S. job growth, narrowing the trade deficit, and revitalizing the U.S. economy. Yet some have argued that the United States should unilaterally abandon export credit financing activities on the principle that it constitutes industrial policy or government picking winners. Others fret because they don’t like the fact that Beijing’s aggressive embrace of export credit financing is setting the terms and pace of global export financing policy—though it does. This would be akin to saying during the Cold War, “to let Moscow set the terms and pace of military spending in the United States is foolhardy at best.” Would anyone say that it’s okay and prudent to let China (or Russia before it) outinvest the United States in defense expenditures, moreover to unilaterally abandon our investment in a sound defense? But that’s exactly what those who advocate for the United States to unilaterally abandon the use of export credit financing activities are calling for. The simple reality is that America’s economic competitors are in the game to win and if the United States unilaterally disarms the U.S. Ex-Im Bank, the only result will be fewer U.S. exports and the jobs dependent on them.