Pace of growth would double exports in five years
The Export-Import Bank of the U.S. (Ex-Im Bank) is trumpeting government statistics that indicate U.S. exports of goods and services increased by 16.9% in the first four months of 2010. At this pace, the U.S. is on track to double exports in five years, the goal set by the Obama administration’s National Export Initiative. (Note, however, that the latest International Trade Administration U.S. Export Fact Sheet shows a 0.7% decrease from March to April.)
According to Fred P. Hochberg, Ex-Im Bank chair and president, the bank is doing its part to encourage exports. In the first eight months of fiscal 2010 (through April 2010), the bank has authorized US$14.7 billion in loans, guarantees and insurance, 70% of the total authorized in FY ’09.
Within the last two months, Ex-Im Bank approved five medium-term insurance policies through PNC Bank for buyers in Chile, all focused on infrastructure projects. Motorola Inc., Plantation, Fla., is using its US$1.3 million policy to export telecommunications equipment to Gallyas S.A. in Chile. A US$605,591 Ex-Im Bank policy will support Portland, Ore. exporter Daimler Trucks North America LLC’s export of road building equipment to Empresa Constructora de Obras Viales, Ltda., Chile (Ecovial). Navistar of Warrenville, Ill., will use its US$1.7 million Ex-Im Bank policy to export trucks to Maquinarias y Equipos Santa Marta, S.A., Chile. A US$1.7 million policy will support the export by Deere, Moline, Ill. and Mack Trucks, Allentown, Penn., of dump trucks, loaders and motor graders to Constructora Excon S.A., Chile (Excon). Deere and Mack Trucks also are using a US$4.3 million policy to support the export of construction equipment to Empresa Constructora Agua Santa S.A.
Hochberg also told CNBC that he sees a potential boost in exports from China’s announcement that it would no longer peg the value of its renminbi, or yuan, to the U.S. dollar, depending on actual implementation. After NAFTA partners Canada and Mexico, China is America’s third-ranked customer. (You can track the relative value of the yuan and the dollar here.) The Ex-Im Bank is also targeting nine national markets with high growth potential for U.S. exporters: Brazil (#8 market for U.S. export goods in first-quarter 2010, according to Datamyne), Colombia (#20), India (#17), Indonesia (#31), Mexico (#2), Nigeria (#44), South Africa (#43), Turkey (#28), and Vietnam (#47). [See the Datamyne Top 5 export markets in first-quarter 2010.] Earlier this month, the bank pre-approved 11 Indonesian banks to receive financing under a US$1 billion bank facility to support U.S. exports and reached agreement with the government of Vietnam on a USD$500 million financing facility to boost sales of U.S. equipment and services to infrastructure projects.