Trump planning to revive EXIM Bank
Win for Boeing, GE
WASHINGTON, April 13, (RTRS): President Donald Trump plans to revive the hobbled Export-Import Bank of the United States, his office said, a victory for American manufacturers like Boeing Co and General Electric Co which have overseas customers that use the agency’s government-backed loans to purchase their products.
Trump first told the Wall Street Journal on Wednesday he would fill two vacancies on the agency’s fivemember board that have prevented the bank from having a quorum and being able to act on loans over $10 million. Trump’s picks must gain approval from the Senate, which blocked nominees by former President Barack Obama.
Trump told the Journal that the bank benefits small businesses and creates jobs, a reversal of his earlier criticism of the bank being “featherbedding” for wealthy corporations.
The Export-Import Bank, an independent government agency, provides loans to foreign entities that enables them to purchase American-made goods. For example, it has been used by foreign airlines to purchase planes from Boeing and farmers in developing nations to acquire equipment.
The bank’s acting chairman, Charles “CJ” Hall, was not immediately available for comment.
Target
The bank has become a popular target for conservatives, who have worked in Congress to kill the bank, arguing that it perpetuates cronyism and does little to create American jobs.
Trump’s about-face on the export bank comes after meeting on Tuesday with former Boeing Chief Executive Officer Jim McNerney, who left the company last year but oversaw the corporation’s aggressive lobbying effort in support of the bank in 2015.
Trump also met at the White House on Feb 23 with GE CEO Jeff Immelt and Caterpillar Inc CEO Mark Sutton, both vocal supporters of the bank.
It is not known if they discussed the bank at those meetings.
Large American corporations that do significant amounts of exports say other countries have similar agencies and the export bank levels the playing field.
“This is an encouraging development on a key competitive issue for US manufacturers and their extensive supply chains,” Boeing spokeswoman Kate Bernard said in statement to Reuters.
The US Chamber of Commerce and the National Association of Manufacturers, which includes companies like Ingersoll-Rand Plc, United States Steel Corp and Pfizer Inc, cheered the move.
“Manufacturers are encouraged by President Trump’s vocal support for the bank,” said NAM Vice-President of International Economic Affairs Linda Dempsey in a statement.