Update of 2002 Procedures Designed to Counter Foreign Predatory Financing Will Help U.S. Business and Workers Compete and Win in the Global Marketplace
FOR IMMEDIATE RELEASE October 30, 2020
Office of Communications (202) 565-3207
WASHINGTON – The Export-Import Bank of the United States (EXIM) today announced new principles, process, and standards that will govern the use going forward of EXIM’s Tied Aid Credit Fund (TACF, Fund).
Under Secretary McIntosh and Chairman Reed
The TACF is used to counter foreign predatory financing confronted by U.S. exporters in overseas markets, or to enable a competitive U.S. exporter to pursue further market opportunities on commercial terms made possible by the use of the Fund.
The “Reed-McIntosh Procedures” were jointly developed by EXIM and the U.S. Department of the Treasury to update and replace the 2002 “Robson-Taylor Procedures.” The new Procedures reflect legislative changes made by the U.S. Congress in EXIM’s 2006 reauthorization to the agency’s tied aid provisions (12 USC 635i-3) and bring the Procedures up to date with the letter and spirit of those legislative changes.
“The world has immensely changed over the past eighteen years. These new tied aid war chest procedures will equip EXIM to carry out our Congressionally-mandated ‘Program on China and Transformational Exports’–one of the most significant programs in EXIM’s 86-year history–and better enable our U.S. businesses and workers to compete globally,” said EXIM President and Chairman Kimberly A. Reed. “EXIM’s vision is to keep America strong, and these new procedures will serve as an important tool in EXIM’s toolbox to create a more level playing field for U.S. exporters competing in the global marketplace against China and other countries.”
“This agreement and cooperation between EXIM and Treasury will ensure purposeful and selective use of the fund to help counter predatory financing practices,” said U.S. Department of the Treasury Under Secretary for International Affairs Brent J. McIntosh.
EXIM, Treasury Department, and State Department “Reed-McIntosh Procedures” Signing Ceremony Attendees, (L-R): Jonathan Hale, EXIM; Luke Lindberg, EXIM, Dave Trulio, EXIM; Brad McKinney, EXIM; Henry Pitney, EXIM; Brent McIntosh, Treasury; Kimberly Reed, EXIM; Travis Thul, EXIM; Devesh Ashra, Treasury; Ryan McCormack, EXIM; Isabel Galdiz, EXIM; David Fogel, State
Tied aid is official or officially supported concessional financing that is linked to the procurement of goods and services from the country providing the support. Targeted use of the TACF supports multilateral negotiations to restrict the further use of tied aid, the policing of existing rules, and efforts to seek compliance by countries that are not members of the Organisation for Economic Co-operation and Development, all with the ultimate goal of leveling the playing field for U.S. exporters.
Chairman Reed and Under Secretary McIntosh noted that they are “optimistic that the Procedures will facilitate a responsible but purposeful administration of the Tied Aid Credit Fund.”
EXIM is an independent federal agency that promotes and supports American jobs by providing competitive and necessary export credit to support sales of U.S. goods and services to international buyers. A robust EXIM can level the global playing field for U.S. exporters when they compete against foreign companies that receive support from their governments. EXIM also contributes to U.S. economic growth by helping to create and sustain hundreds of thousands of jobs in exporting businesses and their supply chains across the United States. In recent years, approximately 90 percent of the total number of the agency’s authorizations has directly supported small businesses. Since 1992, EXIM has generated more than $9 billion for the U.S. Treasury for repayment of U.S. debt.
For more information about EXIM, please visit www.exim.gov.