Issue Profile: The Export-Import Bank Termination Act of 2012

Congressman Justin Amash (R-MI), along with Congressman Jeff Flake (R-AZ), has introduced the Export-Import Bank Termination Act of 2012 (H.R.4268).  As the name suggests, it would eliminate the Export-Import (Ex-Im) Bank, which in 2008, then-Senator Obama called “little more than a fund for corporate welfare.”

H.R.4268 would end the Ex-Im Bank three years after the bill’s enactment and would disallow the agency from accepting new loan or loan guarantee applications after thirty days of enactment. It would also halt the Bank from renewing or entering into a contract to provide a loan, insurance, or a guarantee, or participate in an extension of credit by another entity 12 months after the bill’s enactment. Basically, it begins the process of winding down the “Fannie Mae for exporters.”

In a “Dear Colleague” letter sent to House Members, Rep. Amash wrote:

“Ex-Im has become a tempting vehicle for social engineering and red tape, as well. Examples include extensive economic and environmental impact reports, limits on foreign content, shipping restrictions and mandates for renewable energy.

“Ex-Im does not create jobs or expand the economy. At best, it simply redistributes jobs from other exporters and import-using businesses to the bank’s clients.”

Earlier this month, Rep. Amash spoke at The Heritage Foundation about the Ex-Im Bank:

“Conservatives should strongly oppose the reauthorization of the Export-Import Bank. Ex-Im provides below-market loans and loan guarantees to foreign entities that purchase domestic goods. Principled conservatives recognize that this type of corporate welfare violates the Rule of Law because it unjustly enriches some companies at the expense of others, while putting taxpayers on the hook for billions of dollars of loans.”

The Ex-Im bank provides corporate welfare for companies wishing to export their products overseas at lower costs than they sell to companies here in America. If President Obama and the left were truly serious about “fairness” and helping American companies, he would oppose an extension of the Ex-Im Bank, instead of touting it.

The Ex-Im bank must be terminated in order to allow companies to compete on an even playing field. We should not be putting taxpayers on the hook for bad loans, especially in the era of Solyndra (which received taxpayer support from Ex-Im).

Please Share Your Thoughts
  • Anonymous

    Dear Mr. Amash:
    Here is a list of Michigan so-called “crony capitalism” companies that reportedly benefit from EXIM loans and policies (below). Note, also — since we’re on the subject — the federal DOE and other agency loan guarantees and loans that go to the Nuclear Power Industry (see new plants recently OK’d for Georgia?).
    Exporter City Product Total Disbursements* Total Export
    Sales Supported**
    Hess Industries, Inc. Niles, MI Unknown Group 2 $80,100,000.00 $70,000,000.00
    Eclipse Tool & Die, Inc. Wayland, MI Machinery Manufacturing and Sales $1,136,200.00 $1,136,200.00
    Motan, Inc. Plainwell, MI Machinery Manufacturing and Sales $800,619.75 $800,619.75
    Burr Oak Tool Inc. Sturgis, MI Machinery Manufacturing and Sales $626,997.80 $737,644.47
    Stryker Corporation Portage, MI Other Misc Mfg and Sales of Non Capital Equipment $438,689.66 $516,105.48
    Prab, Inc Kalamazoo, MI Machinery Manufacturing and Sales $224,687.99 $224,687.99
    PRAB, INC. Kalamazoo , MI Machinery Manufacturing and Sales $82,960.00 $82,960.00
    Leco Corp Saint Joseph, MI Other Misc Mfg and Sales of Non Capital Equipment $6,173.39 $10,852.64

    Exporter City Product Total Disbursements* Total Export
    Sales Supported**
    Envirotronics, Inc. Grand Rapids, MI Machinery Manufacturing and Sales $9,196,289.66 $9,196,289.66
    Viking Spas, Inc. Grand Rapids, MI Other Misc Mfg and Sales of Non Capital Equipment $5,385,349.03 $5,385,349.03
    Rowe International Inc Grand Rapids, MI Machinery Manufacturing and Sales $3,834,593.72 $5,796,000.00
    Nordic Products, Inc. Grand Rapids, MI Other Misc Mfg and Sales of Non Capital Equipment $3,076,033.12 $3,076,033.12
    Mill Steel Company Grand Rapids, MI Primary Metal Manufacturing and Sales $1,828,214.83 $1,828,214.83
    5 Star Parts, Inc. Grand Rapids, MI Motor Vehicle and Parts Manufacturing and Sales $1,514,192.56 $1,514,192.56
    Wefa Cedar, Inc. Cedar Springs, MI Machinery Manufacturing and Sales $983,821.57 $983,821.57
    Eleison Composites LLC Grandville, MI Chemical Manufacturing and Sales $911,114.20 $911,114.20
    ELEISON COMPOSITES, LLC Grandville , MI Plastics and Rubber Products Mfg and Sales $800,000.00 $800,000.00
    VIKING SPAS, INC. Grand Rapids , MI Other Misc Mfg and Sales of Non Capital Equipment $188,594.00 $188,594.00
    Viking Corporation Hastings, MI Machinery Manufacturing and Sales $63,703.77 $78,294.22
    Innerspace Grand Rapids, MI Other Misc Mfg and Sales of Non Capital Equipment $43,985.08 $51,747.15

    • http://pulse.yahoo.com/_RL6YA4AQIBMJI5RCNZWCU2S6KM Adam Redwings

      The fact that businesses in MI receive money from this system does not justify it!

  • Anonymous

    What about federal support for the nuclear power industry?
    https://lpo.energy.gov/?page_id=45
    It appears — because of the liability issue — that private loans have always been hard to come by for this industry, ja?

    What does — in the preamble of the U.S. Constituion — it mean when it says Congress/government, among other things, “… shall promote the general welfare” of its citzens? Could that have meant borrowing money (going into debt in some cases) to build canals, roads, bridges, etc? Interested in your thoughts on this …

    • http://www.facebook.com/michael.t.branche Michael T Branche

      Since John Edward Baker was once Secretary of the Treasury, when we see that all we can find of the US Constitution is the Baker Act (denial of Writ of Habeas Corpus if the accused is dangerous to themselves or others), that only leaves us with defense contracting as a means of business with US Treasure. We have seen health care dominating this country’s concience, most of the time at the expense of those who are unaware of the source of their problems. The number of irresponsible leaders who believe that the mint just prints money and spends it has become an insurmountable problem for responsible parties. We keep hearing arguments that it is wrong to ship jobs overseas, but the number of real production sources in this country has diminished as we attempt to convert from the industrial age into the space age. The ability to keep a payroll account away from those who are not involved in jobs has become so difficult that investors do not even consider this prospect, for the most part. Is it possible to return security to the members at large of our society without exposing the vital foundations of the economy?

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