Statements on Introduced Bills and Joint Resolutions
STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS -- (Senate - September 26, 2006)
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By Mr. CRAPO:
S. 3938. An original bill to reauthorize the Export-Import Bank of the United States; from the Committee on Banking, Housing, and Urban Affairs; placed on the calendar.
Mr. CRAPO. Mr. President, I want to thank my fellow Banking Committee members for working with me to reauthorize and reform the Export-Import Bank that reflects broad bipartisan agreement among our Committee. I am especially appreciative to Chairman Shelby, Ranking Member Sarbanes, Senator Bayh, and their staffs for all their diligence and hard work.
The Export-Import Bank is the official export credit agency of the United States and the current authorization ends on September 30. Financing is a key element in global trade competition and extending the Bank's programs for five years is a vital and integral component in supporting the export of American-made goods and American provided services for both small and large companies.
At the same time we need to ensure that the Bank's support for transactions not only helps U.S. exports but does not negatively impact domestic companies. The current system still has problems, which has been demonstrated on loan guarantees involving semiconductors, steel, ethanol, and soda ash. This legislation seeks to improve the process by making it more predictable, transparent, and by involving interested stakeholders in the process. First, it would require the Bank to maintain a list of sensitive areas where export financing is unlikely to be provided. Second, it requires detailed information to the public regarding the proposed financing at an early stage and in an adequate way so that input can be brought to bear by those who have the expertise on the specific proposal and industries involved. Third, it establishes protections against circumvention of U.S. trade remedy orders.
There is also a lot of concern that the Bank has not met its 20 percent small business mandate and this legislation builds upon structural changes to make sure the small business community has an advocate to advance its needs and address its concerns. First, it establishes a Small Business Division, headed by a Senior Vice President who reports directly to the Bank President. Second, it establishes a Small Business Committee, chaired by the Senior Vice President of the Small Business Division. Third, it requires Ex-Im to authorize banks to process medium-term transactions on behalf of Ex-Im to facilitate the approval of such transactions.
Additionally this section would also require that Ex-Im's Senior Vice President be notified of any staff recommendations for denial or withdrawal of an application for support involving a small business at least two days prior to a final decision. I would like to thank Senator Hagel for his work to make sure that Ex-Im does not deny small business transactions without giving the Senior Vice President for small business an opportunity to advocate on behalf of the small businesses.
Due to Senator Hagel's efforts, Ex-Im has pledged that it will further strengthen this notification provision by administratively granting the Senior Vice President of the Small Business Division the authority to request an additional two days to review notices of staff recommendations for denial or withdrawal.
Finally, the legislation clarifies that case-by-case decisions on whether to award tied aid credits shall be made by the Board of Directors of Ex-Im, subject to a veto by the President of the United States. It is very troubling that no tied aid has been approved since the last reauthorization.
I ask unanimous consent that the text of the bill be printed in the RECORD.
There being no objection, the text of the bill was ordered to be printed in the RECORD, as follows:
S. 3938
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