Foreign Export Credit Competition Continues to Intensify as U.S. Competitiveness Wanes

Amidst continuing debate regarding the role of the U.S. Export-Import Bank, the 2014 Report to the U.S. Congress on Export Credit Competition provides fresh evidence that foreign export credit competition continues to intensify even as U.S. competitiveness at providing export credit assistance continues to weaken compared to leading competitor nations. As a share of GDP, competitors such as China and Germany are investing five to seven times more in export credit assistance than the United States, while Korea invests fourteen times more. Meanwhile, over the past six years, China has invested twice as much in export credit as the United States in current dollars, and almost four times as much as a share of GDP. Moreover, the majority of foreign export credit competition is now occurring outside of guidelines promulgated by the Organization for Economic Cooperation and Development (OECD) to regulate fair competition in the use of export credit a mong nations in a way that ensures that global export competition is based on free-market principles and mutually agreed-upon standards. Such data reaffirms the important and much-needed role the U.S. Export-Import Bank plays in providing export credit assistance to help finance the exports of U.S. products and services.