Export-Import Bank Chairman Fred Hochberg says his colleagues at similar institutions around the world are “bewildered” that the U.S. would want to end its export credit agency.
In an interview with The Hill, Hochberg said failure to reauthorize the bank would put the United States at a competitive disadvantage against China in the global economy.
{mosads}He said U.S. competitors recognize this, and have no intention to unilaterally disarm.
At a banking summit in Italy, Hochberg said his contemporaries gave him a “bewildered and quizzical” reaction when said the U.S. Congress is considering ending the bank after its charter expires June 30.
Under the 2012 reauthorization of the bank’s charter, Treasury officials were directed to work with their colleagues around the world on talks to wind down export credit agencies around the world.
Hochberg brought that idea up at the recent conference, but he indicated there’s no interest from other countries given China’s efforts to support its businesses with government credit.
“In a perfect world, none of us would have a role, but we don’t live in that perfect world,” Hochberg said.
Hochberg was criticized in a recent hearing for not making the case to wind down the bank. He argues it is not his responsibility to do so, but that he did bring up the issue.
“I wanted to go this time to get some direct feedback,” Hochberg said. “This is the secretary Treasurer’s responsibility but I take what Congress says seriously. I wanted to go the extra mile myself and get some feedback and hear about our colleagues our saying.”
At the semi-annual Berne Union conference in Florence, Italy, he said global business and foreign leaders told him “it’s very hard to compete with China Inc. if you’re a private sector company.”
“We want to support the private sector. None of us want to replace the private sector — but there’s one thing that looms over all of this and that’s the role of China,” Hochberg told The Hill.
He said that representatives from Japan, South Korea, Russia, Germany, France and Brazil all indicated that they anticipate accelerating their financial backing for their exports — not winding them down.
The Export-Bank in the U.S. will shut down unless the charter is extended by Congress by June 30.
Conservative Republicans are pushing to end it. They say the bank is a form of corporate welfare and that it picks winners and losers in deciding what projects to back.
Supporters argue the bank plays a role in financing U.S. exports and that it would be foolish to shut it down when other states have no intention of doing so.
The U.S. Chamber of Commerce and other business groups are lobbying to extend the bank’s charter.
Hochberg said the meetings in Italy included representatives from many of the estimated 60 export credit agencies around the world.
As in the United States, he argued that other countries use export financing programs as a way to sustain small business jobs, too.
Critics argue Ex-Im is more vital to companies that shouldn’t need the help — such as Boeing.
Congressional sources have suggested this week that a reauthorization bill will be attached to another legislative package such as Obama’s trade policies or an infrastructure bill.
Hochberg wouldn’t comment on legislative strategy.
“I got my job to do,” Hochberg said. “Congress has their job to do — pass legislation.”