Reassessing Efforts to Combat Subsidized Export Credit Financing

Ex-Im Bank’s programs to provide financing for U.S. exporters operate within the global context of export promotion activities undertaken by many countries. In its annual congressionally mandated competitiveness assessment, Ex-Im Bank reported that its programs were competitive in terms of traditional measures such as interest rates and fees, but not in other areas such as foreign content requirements OECD country export credit agencies have since 1992 restricted use of certain concessional financing, specifically tied aid, that has the potential to distort trade flows.  The OECD and the United States continute ot monitor the effectiveness of these rules.  Moreover, the rise of financing by export credit agencies in emerging economies such as China, which operate outside key international agreements, has raised additional concerns about the effectiveness of these agreements. Factors influencing these and other aspects of Ex-Im Bank’s ongoing competitiveness are an area where ongoing analysis can be valuable.

Full Report of GAO-02-741 (PDF, 41 pages)

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