Section 2(e)(2)(A) of the EXIM Bank Charter prohibits the Bank from providing “any loan or guarantee to an entity for the resulting production of substantially the same product that is the subject of-- … (ii) a determination under title II of the Trade Act of 1974 [19 U.S.C. 2251 et seq.].”
A determination under title II of the Trade Act of 1974 (also known as a “section 201 determination”) is essentially a determination that the level of imports of the product in question into the U.S. is a substantial cause of serious injury to U.S. producers of that product.
Below is a list of products for which the United States International Trade Commission (USITC) has made a global affirmative 201 determination. EXIM is prohibited from supporting the export of capital goods or services that would result in production of these products. However, if the applicant can demonstrate extraordinary harm to the exporter or to the U.S. economy by denial of such support, EXIM’s board of directors may consider the transaction after a public notice and comment period regarding the proposed transaction.
The USITC, in addition to their global determination, must make a separate determination regarding imports of the listed products coming from countries that have a free trade agreement (FTA) with the United States. If the USITC determines that a FTA country’s exports of the relevant products to the U.S. are not a source of injury to U.S. producers of the product, EXIM support could be available for transactions resulting in production of the listed products from those countries.
Products as to which the USITC has made a global affirmative 201 determination:
- Crystalline Silicon Photovoltaic Cells - For a full technical description of the goods covered by the determination, please see the Federal Register Notice.
- Large Residential washers – For a full technical description of the goods covered by the determination, please see the Federal Register Notice.
Please contact the Office of Policy Analysis and International Relations (firstname.lastname@example.org) if you have questions on whether EXIM Bank is prohibited from supporting the export of a specific U.S. good or service pursuant to the USITC 201 determinations listed above, or whether the prohibition applies to a specific FTA country.