The Coalition for Employment through Exports (CEE) on Tuesday released a new report detailing how changes to the U.S. Export-Import Bank's domestic-content requirement could help boost the competitiveness of U.S. exporters and support U.S. trade-related employment.
The report, U.S. Exporters, Global Supply Networks, and Competitive Export-Import Bank Financing
, recommends lowering the domestic-content requirement for full financing of U.S. exports and implementing a clear and flexible set of guidelines for measuring the domestic content of services to allow the Ex-Im Bank to better compete with other major export credit agencies and better support American exporters and workers.
“This report echoes the long-held belief of many in the U.S. business community – that Ex-Im’s current domestic-content requirement is in need of fundamental changes to help ensure that U.S. goods and services exporters – small and large – are more competitive globally,” said CEE President John Hardy.
The recommendations for reforming current Ex-Im Bank policies are based on two central messages: U.S. exporters are increasingly integrated into global supply networks to produce their goods and services in America for sale around the world; and competitive Ex-Im Bank financing should, but currently does not, adequately reflect the extent to which "Made in America" today involves the rest of the world.
“In particular, the Ex-Im Bank rule of providing maximum export financing only to products with at least 85 percent domestic U.S. content is increasingly an anachronism,” the report said. “With policies more in tune with today’s global marketplace, Ex-Im Bank could better support American workers.” - Eric Johnson