The Lexington Institute today is posting a study of the economic benefits generated by the U.S. Export-Import Bank that will become available in hard copy in mid-February. If you would like to read the study immediately, click here. If you would like to receive a hard copy, please call 703.522.5828 or send your address to email@example.com.
Ex-Im, as it is commonly called, plays a pivotal role in facilitating the export of U.S. goods and services. It uses no taxpayer money and generates a profit by charging fees for its services. Like export credit agencies in 60 other countries, its main role is to provide financing for exports when private-sector sources are either unable or unwilling to offer credit — a situation most likely to occur during economic recessions, or when buyers seeking credit are in developing nations. Ex-Im’s charter prohibits it from competing with private-sector lenders, and requires that at least 20% of its credit be extended to small businesses.
Despite an exemplary record of domestic job creation and leveling the playing field for U.S. exporters, Ex-Im has come under fire in recent years from free-market ideologues who do not understand how the global trading system works and companies seeking to limit the bank’s operations in support of narrow corporate agendas. The arguments these critics advance typically are uninformed or misleading. The study Lexington Institute is posting today explains clearly and concisely why Ex-Im is needed, and the many ways in which it benefits the U.S. economy.