The trade war isn’t the only thing in the news that is hindering exports and imports with the United States. The Export-Import Bank of the United States hasn’t been able to reach a quorum, causing United States manufacturers to be severely weakened in foreign markets until recently.
The Export-Import Bank of the United States is a government agency whose purpose is to act as an export credit agency, providing financing and facilitation services to American businesses engaging in export transactions. This is specifically for financial backing to export transactions for which there is insufficient private capital. The bank has been operating under acting Chairman and President Jeffrey Garish, but has not been able to reach a quorum to consider deals over $10 million. Recently the Senate confirmed the appointments of Kimberly Reed to serve as the bank’s president and former Rep. Spencer Bachus (R-Ala.) and Judith Pryor to serve on its board. With these members on the board, the bank will be able to return to full operation for the first time since 2015. The bank’s supporters have said that restoring the bank is critical for the manufacturing industry and the American economy. White house officials have described it as an important weapon in the US trade arsenal against countries like China that have their own financing agencies.
Although the bank has won this fight, the next battle is already brewing. Lawmakers will need to pass legislation to maintain operations when its authorization lapses in September. It is likely that reauthorization will face resistance in the House, however, there has been talk of overhauling the agency. Only time will tell what is in store for the Export-Import Bank, but for now it will run as intended.