NOLA.com - Export-Import Bank Shouldn't Be Renewed by Congress

Op-Ed

by Rep. John Fleming

Next month Congress has a choice to reauthorize the Export-Import Bank, or let it expire. Supporters of the bank claim it is necessary to ensure American companies have access to the financing they need to compete with overseas markets. In reality, the Ex-Im Bank is a government-created entity that uses taxpayer dollars to provide corporate welfare. That's why in June I support allowing the bank to expire.

President Franklin Roosevelt created the Export-Import Bank in 1934 to promote U.S. sales overseas by providing loans to foreign entities looking to purchase American goods. The goal was and still is to promote U.S. sales and subsequently, the creation of jobs through subsidized exports.

However, when the government subsidizes an export for one American company, other companies in the same sector don't get the same benefit, likely hurting their sales and most likely, job creation too.

The Ex-Im Bank may help a few American businesses, but only at the expense of hurting others.

In actuality, the bank only serves less than 1 percent of small businesses. More than 60 percent of the bank's finances go to 10 large corporations -- companies that do not need taxpayer help. In 2013 one large American company made $90 billion in revenues, yet the Ex-Im Bank helped sell its product to foreign companies by giving them almost $8 billion in financing, all thanks to American taxpayers.

Furthermore, the Ex-Im Bank has come under scrutiny for fraud, waste and abuse. There are currently 31 open fraud investigations against the bank and one indictment. In recent months the bank also has removed or suspended four officials for either receiving gifts or accepting money from companies hoping to get a share of the Ex-Im funding.

It's no surprise that more people believe the bank should be allowed to expire in June, including Majority Leader Kevin McCarthy, Majority Whip Steve Scalise and the chairmen of every House committee with authority over the Ex-Im reauthorization. The Export-Import Bank cannot be "fixed," either. It must go in its entirety. Congress must take no action to renew its charter or continue its existence.

While foreign countries' purchasing decisions may not favor American businesses, providing low-interest loans to Chinese and Russian state-owned enterprises is not the solution. We must not provide easy opportunities for corruption. Ex-Im picks winners and losers, harming some businesses while helping others.

The best way to truly create a level playing field is through tax reform, increased energy independence and fewer regulations. We should create an environment where everyone has the opportunity to grow, not a select few.

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