US exporters are set for a rocky road
American companies' ability to win foreign sales is being challenged by the ‘dramatic rise’ of unregulated export credit programmes of export credit financing, according to US Exim.
Speaking at the Center for American Progress on Monday, US Exim chairman Fred Hochberg said that countries around the world are fighting to back their companies and industries to create “their own national champions”.
"There are over 60 export credit agencies around the world, and each and every one is working to expand their footprint and increase their activity. This is the world we live in. And we've got to compete in the world as it is, not as we'd like it to be."
"American companies can go head-to-head with any company in the world. But they can't go head-to-head with the government of another country. President Obama is right. We need a government that will fight for our economic interests around the world, to create more American jobs at home."
Another factor encroaching on the success of US exporters is the rise of unregulated OECD and non-OECD export credit programmes being deployed in favour of foreign exporters and ‘national champions’.
A recent study by US Exim reports that collectively, these forms of government financing are exceeding all official export finance activity of the G7 ECAs combined.
From last year alone, there was an estimated US$100bn-worth of unregulated OECD export financing, according to US Exim, and an additional US$60bn from Brazil, India, and China.