Was former Boeing CEO Jim McNerney’s implied threat of moving jobs overseas if the U.S. Export-Import Bank isn’t reauthorized simply bluster?
Maybe not, reports the Seattle Times:
“Nations already part of Boeing’s supply chain — Canada, for one — have looser rules for export financing and a hunger for new manufacturing jobs and advanced technology. They might extend funding now for a promise of jobs in the future.”
A spokesman for Canada’s export financing agency told the Times “We could look at financing where the U.S. company commits to increasing its Canadian supply.”
The Ex-Im Bank provides financing for U.S. exports. The idea is that cutting financing costs for foreign buyers increases export sales for U.S. manufacturers.
The federal agency’s biggest beneficiary by dollar amount is Boeing, however most of its loan applications come from small businesses. It was created during as part of the New Deal during the Great Depression, and has been quietly and regularly reauthorized by Congress until last year.
Tea Party Republicans and like-minded groups, such as the Heritage Foundation, have criticized the Ex-Im Bank as corporate welfare and for exposing taxpayers to financial risk. Critics also say the bank has too little oversight, operates behind closed doors and is too cozy with big business.
The Ex-Im Bank’s supporters say it is self-supporting and levels the playing field for American businesses. Every other country does it, so scrapping the bank, supporters say, would put U.S. companies at a disadvantage.
The Ex-Im Bank’s charter expired at the end of June, meaning it can’t make new loans. Without Ex-Im credit, Boeing has already seen a satellite deal fall through since then, according to Reuters.
The Ex-Im Bank has enough support in Congress to pass if put up for a vote, but so far, its critics have managed to block a reauthorization vote in the House.
In the meantime, Boeing and General Electric, another big Ex-Im beneficiary, have cut political contributions to Tea Party conservatives opposing the Ex-Im Bank, Politico reported earlier this month.
Dan Catchpole: 425-339-3454; dcatchpole@heraldnet.com; Twitter: @dcatchpole.
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