Ex-Im Bank Vice President Nominee Says Rise of ECAs Threatening US Exporters
The rise of export-credit agencies around the world is threatening U.S. exporters and pushing them out of certain marketplaces, Paul Shmotolokha, the nominee for vice president of the Export-Import Bank of the United States, said in his pitch to the Senate Committee on Banking, Housing and Urban Affairs on June 5.
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As Congress considers whether to reauthorize the bank, which recently regained enough members on the board of directors for a quorum to approve transactions of more than $10 million, Shmotolokha told the Senate committee why he should be chosen as one of the bank’s leaders and advocated for more resources. He said he will bring a “fresh perspective” and pointed to the struggles some U.S. exporters face without an authorized export-import bank, a tool that many foreign competitors, including companies in China, have access to. “I will ensure that American companies have full access to and understanding of the programs authorized by Congress to maximize their global reach and competitiveness,” Shmotolokha said.
He also said U.S. companies need help facing “political risks, economic hazards” and increasingly strict import regulations when trying to enter into diverse, foreign marketplaces. Competing in “first-world markets” can be “relatively level,” Shmotolokha said, but it is becoming challenging for U.S. exporters to vie for opportunities in “emerging markets,” such as Latin America, Africa and parts of Asia. “All companies -- small, medium and large -- all need help at times in leveling the playing field in today’s global economy,” he said.
In response to a question from Sen. Bob Menendez, D-N.J., Shmotolokha said Congress should increase the amount of loans the bank can finance “in light of the increased resources” countries such as China are giving to their export crediting agencies. “It is critical,” Shmotolokha said.