Reauthorization of the Export-Import Bank: Issues and Policy Options for Congress

The Export-Import Bank of the United States (Ex-Im Bank, EXIM Bank, or the Bank), a self- sustaining agency, is the official U.S. export credit agency (ECA). It operates under a renewable charter, the Export-Import Bank Act of 1945 (P.L. 79-173), as amended, and has been reauthorized through May 31, 2012 (P.L. 112-74).

Potential issues for the 112th Congress as it examines reauthorization of the Ex-Im Bank include the following:

• The economic rationale for the Bank, including the role of the federal government in export promotion and finance;

• Specific Bank policies, such as those relating to content, shipping, economic and environmental impact analysis, and tied aid, including how these policies balance U.S. export and other policy interests;

• Statutory requirements directing the Ex-Im Bank to support certain types of exports, such as exports of small businesses and “green” technology, including the tension that such requirements can create between desiring to support specific economic sectors and allowing the Ex-Im Bank flexibility to fulfill its mission to support U.S. exports and jobs; and

• International developments that may affect the Bank’s work, such as the growing role of emerging economies’ ECAs and the sufficiency of the Organization for Economic Cooperation and Development (OECD) Arrangement on Officially Supported Export Credits to “level the playing field” for U.S. exporters.

Potential options for Congress include, but are not limited to, the following areas:

• Structure of the Bank. Congress could maintain the Ex-Im Bank as an independent agency, reorganize or privatize the functions of the Bank, or terminate the Bank.

• Length of reauthorization. Congress could extend the Bank’s authority for a few years at a time (as in previous reauthorizations), for a longer period of time, or permanently reauthorize the Bank.

• Bank’s policies. Congress could maintain the status quo, or revise the Bank’s policies, such as those related to the requirements and limitations on the Ex-Im Bank’s credit and insurance activities.

• International ECA context. Congress could seek to enhance international regulation of official export credit activity through the OECD or other mechanisms, or enhance the Ex-Im Bank’s understanding of international export credit activity and trends.

In the 112th Congress, legislation has been introduced to reauthorize the Ex-Im Bank through September 30, 2015 (e.g., H.R. 2072; S. 1547; S.Amdt. 1836, an amendment to H.R. 3606; and H.R. 4302). Legislation also has been introduced to terminate the Bank (e.g., H.R. 4268).