South Caucasus Integration and Open Railroads Act of 2005

Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, as the ranking member of the Financial Services Subcommittee with jurisdiction over the Export-Import Bank, I am delighted to stand and speak in support of H.R. 5068, the Export-Import Bank Reauthorization Act of 2006, introduced by our Subcommittee Chair, Deborah Pryce.

This bipartisan legislation was overwhelmingly supported in the Financial Services Committee and is also supported by the Small Business Committee on a bipartisan basis. The original cosponsors include not only Representative Pryce and myself, but the majority and minority leadership of both committees. We have all worked together in this bill to fairly address the concerns of many viewpoints, and I want to thank those Members and their staffs for their hard work and effort to listen to many points of view and to produce a bill on which we can all agree.

I also want to take a moment to thank Chairman Oxley for his leadership on this bill and on so many others throughout his tenure. The Financial Services Committee and this Congress will feel his absence. This bill is a good example of the bipartisan work of the committee that Chairman Oxley helped to make possible. We don't always agree, but we can often work together to find points of agreement, as we have done on this bill.

This bill responds to concerns that the committees involved have had for some time and that we heard repeatedly from our constituents, both businesses and interest groups, as we began work on this very important piece of legislation.

First, the bill reaffirms Congress' strong intent that the bank support small businesses to a greater extent than at present, consistent with sound lending practices. To this end, the bill creates a Small Business Division within the bank run by a senior VP who reports directly to the chairman. The staff of this new division are dedicated exclusively to small business transactions, reflecting the fact that these deals and these clients need unique skills. Within this division, the bill creates an office charged with expanding outreach to women and minority-owned businesses. On these sections, the leadership of the Small Business Committee was especially valuable, and I want to thank my colleague Representative Velazquez from New York.

Secondly, based on numerous comments, we also concluded that the bank could increase its activity in Sub-Saharan Africa consistent with sound lending principles by being more flexible in its financing and underwriting terms. And the bill contains a mandate to that effect.

Third, as a proud member of the Congressional Caucus on Armenian Issues and the representative of a large and vibrant Armenian-American community, I support the provisions which would prohibit the Export- Import Bank from funding railroad projects in South Caucasus region that deliberately exclude Armenia.

Fourth, in listening to my constituents and others talk about their experiences with the bank, it became clear to me that businesses, large and small, were frustrated by the lack of transparency and unfriendliness in the bank process. Several of them said that their applications simply disappeared.

At my initiative, the bill contains several transparency reforms that respond to this concern. I expect these relatively low-cost changes will provide significant benefits to Ex-Im clients. They include notification requirements, so that applicants know what is happening to their application.

Ex-Im has recently put up an improved Web site, and the bill requires that applicants be able to access their application on that site and see where it is in the process. Most colleges manage student applications in a similar manner, and it is time for Ex-Im to implement simple steps like this to help the American public.

In the same vein, the bill contains a requirement for board action on applications that have been subject to economic impact analysis. These applications tended to die a lingering death as Ex-Im sat on them. That is really not fair. The bank should tell applicants whether it can support them or not in a reasonable time frame.

Finally, and very important, the bill contains new provisions to make the bank more competitive with other countries' export credit agencies, or ECAs, so that the bank and U.S. companies are not fighting with one hand tied behind their backs. In particular, the bill gives the bank authority to use the Tied Aid Fund, a fund established several years ago by Congress to combat unfair export practices by other countries' ECAs. To date, Treasury has blocked the use of this fund as Congress intended, and this underlying bill will correct that.

This reform and reauthorization legislation is urgently needed. Today, more than ever, the future of the Export-Import Bank is of great interest and concern because it has significant potential to affect the national economy, job growth and our trade imbalance.

We are faced with the need to pass reauthorization legislation for our Nation's export credit agency at a time when the demands of the global marketplace seem increasingly pressing and difficult and the agenda of the Ex-Im Bank is more critical to our economy than ever before.

The Ex-Im Bank has long played a key role in the economy of many of the districts we each represent. As the independent U.S. Government agency that assists in financing the export of U.S. goods and services to markets around the world, through export credit insurance, loan guarantees and direct loans. But the bank's mission of creating and maintaining U.S. jobs through financing exports takes on a

new urgency and importance in the new global economy.

Tom Friedman's book, The World is Flat, brought home to many of us the fact that an economic tsunami is occurring under our feet. The convergence of events that have brought India, China and many other countries into the global supply chain for services and manufacturing has created an explosion of wealth in the middle classes of the world's two biggest nations, giving them a huge new stake in globalization.

As former Chairman Greenspan was fond of telling us when we asked him about the loss of jobs in this country, we need to recognize, he said, that all of a sudden a huge number of highly educated people from formally noncompetitive countries have entered the global workforce. We cannot afford to be uncompetitive in the rapidly changing global market or complacent about our status in the global market.

As leadership on both sides of the House recognize, we must empower and support Ex-Im now more than ever. I think we have crafted a bill that Members from both sides can support and that is much needed. I urge my colleagues to support H.R. 5068.

Mr. Speaker, I reserve the balance of my time.

Mr. Speaker, I yield 3 minutes to the honorable gentlewoman from New York (Ms. Velazquez), the ranking member of the Small Business Committee. I thank her once again for her leadership on this legislation.

(Ms. VELAZQUEZ asked and was given permission to revise and extend her remarks.)

Mr. Speaker, may I inquire as to the remaining time.

Mr. Speaker, I yield 3 minutes to the gentlewoman from California (Ms. Waters), the ranking member of the housing subcommittee of the Financial Services Committee.

Mr. Speaker, I yield 3 minutes to the gentlewoman from Texas (Ms. Jackson-Lee)

Mr. Speaker, at this point we do not have any further speakers. I urge a strong vote on this bill. It is supported by the Financial Services Committee, the Chair and the ranking member, the Chair and the ranking member of the subcommittee, and the Chair and ranking member of the Small Business Committee.

It has a very special focus on enabling small businesses to compete in the global market, and it will help America's competitiveness and economic growth.

I urge a ``yes'' vote on this bill.

Mr. Speaker, I yield back the balance of my time.

Mr. Speaker, I thank the gentlewoman for yielding me time.

Mr. Speaker, Congress should reject H.R. 5068, the Export-Import Reauthorization Act, for economic, constitutional, and moral reasons. The Export-Import Bank takes money from American taxpayers to subsidize exports by American companies. Of course it is not just any company that receives Ex-Im support.

The vast majority of Ex-Im Bank funds benefit Enron-like outfits that must rely on political connections and government subsidies to survive and/or multinational corporations who can afford to support their own efforts without relying on the American taxpayers.

In fact, according to journalist Robert Novak, Enron itself received over $640 million in taxpayer-funded assistance from Ex-Im. The taxpayer-provided largess no doubt helped postpone Enron's inevitable day of reckoning. It is not only bad economics to force working American small businesses and entrepreneurs to subsidize the exports of large corporations; it is also immoral.

Redistribution from the poor and middle class to the wealthy is the most indefensible aspect of the welfare state, yet it is the most accepted form of welfare.

Mr. Speaker, it never ceases to amaze me how Members who criticize welfare for the poor on moral and constitutional grounds see no problem with the even more objectionable programs that provide welfare for the rich.

The moral case against Ex-Im is strengthened when one considers that one of the governments which benefits most from Ex-Im funds is Communist China. In fact, Ex-Im actually underwrites joint ventures with firms owned by the Chinese Government. Whatever

one's position is on trading with China, I would hope all of us would agree that it is wrong to force taxpayers to subsidize in any way this regime.

Unfortunately, China is not an isolated case. Colombia and Sudan benefit from taxpayer subsidized trade as well, courtesy of the Ex-Im Bank. At a time when the Federal Government is running huge deficits and Congress is once again preparing to raid Social Security and Medicare trust funds, does it really make sense to use taxpayers' funds to benefit future Enrons, Fortune 500 companies, and Communist China?

One project funded by Ex-Im in China is an $18 million loan guarantee to expand steel manufacturing. This is not an isolated example of how Ex-Im helps foreign steel producers. According to the most recent figures available, the five countries with the greatest Ex-Im exposure are all among the top 10 exporters of steel and of steel-to-products to the United States.

In fact, Ex-Im provides almost $20 billion of U.S. taxpayer support to these countries. Mr. Speaker, I find it hard to see how taxing American steel producers to benefit their foreign competitors strengthens the American economy.

Proponents of continued American support for the Ex-Im Bank claim that the bank creates jobs and promotes economic growth. However, this is a fallacy worth looking in to.

However, this claim rests on a version of what the great economist Henry Hazlitt called the ``broken window'' fallacy. When a hoodlum throws a rock through a store window, it can be said he has contributed to the economy, as the storeowner will have to spend money having the window fixed. The benefits to those who repaired the window are visible for all to see, therefore it is easy to see the broken window as economically beneficial. However, the ``benefits'' of the broken window are revealed as an illusion when one takes into account what is not seen: the businesses and workers who would have benefited had the store owner not spent money repairing a window, but rather had been free to spend his money as he chose.

Similarly, the beneficiaries of Eximbank are visible to all. What is not seen is the products that would have been built, the businesses that would have been started, and the jobs that would have been created had the funds used for the Eximbank been left in the hands of consumers. Leaving the resources in the private sector ensures the resources will be put to the use most highly valued by individual consumers. In contrast, when the government diverts resources into the public sector via programs such as the Eximbank, their use is determined by bureaucrats and politically powerful special interests, resulting in a distorted market and a misallocation of resources. By distorting the market and preventing resources from achieving their highest valued use, Eximbank actually costs Americans jobs and reduces America's standard of living!

Some supporters of this bill equate supporting Eximbank with supporting ``free trade,'' and claim that opponents are ``protectionists'' and ``isolationists.'' Mr. Speaker, this is nonsense, Eximbank has nothing to do with free trade. True free trade involves the peaceful, voluntary exchange of goods across borders, not forcing taxpayers to subsidize the exports of politically powerful companies. Eximbank is not free trade, but rather managed trade, where winners and losers are determined by how well they please government bureaucrats instead of how well they please consumers.

Finally, Mr. Speaker, I would like to remind my colleagues that there is simply no constitutional justification for the expenditure of funds on programs such as Eximbank. In fact, the drafters of the Constitution would be horrified to think the Federal Government was taking hard- earned money from the American people in order to benefit the politically powerful.

In conclusion, Mr. Speaker, Eximbank distorts the market by allowing government bureaucrats to make economic decisions in place of individual consumers. Eximbank also violates basic principles of morality, by forcing working Americans to subsidize the trade of wealthy companies that could easily afford to subsidize their own trade, as well as subsidizing brutal governments like Red China and the Sudan. Eximbank also violates the limitations on congressional power to take the property of individual citizens and use it to benefit powerful special interests. It is for these reasons that I urge my colleagues to reject H.R. 5068, the Export-Import Bank Reauthorization Act.

Mr. Speaker, on that I demand the yeas and nays.

The yeas and nays were refused.

So (two-thirds having voted in favor thereof) the rules were suspended and the bill, as amended, was passed.

A motion to reconsider was laid on the table.

Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 5068) to reauthorize the operations of the Export-Import Bank, and to reform certain operations of the Bank, and for other purposes, as amended.

Mr. Speaker, I yield myself 30 seconds.

I rise in support of H.R. 5068, the Export-Import Bank Reauthorization Act of 2006. I would like to thank the gentlewoman from Ohio, Chairman Pryce, for her leadership on this bill. It has been a long process of meetings and negotiations, but I believe that we have crafted a solid product that focuses on the core mission of the Ex-Im Bank. This mission is to increase U.S. exports and, most importantly, U.S. jobs.

Mr. Speaker, I yield 3 minutes to my colleague from Illinois, the chairman of the Small Business Committee, Mr. Manzullo.

Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, this bipartisan bill will strengthen the Ex-Im Bank's ability to help our exporters increase their businesses abroad. During a February roundtable meeting held in my district, many businesses said that they only learned about the bank's tremendous resources by accident. I am pleased that this and other suggestions made by these businesses were incorporated into the bill, including language that directs the bank to increase its outreach to small business.

I encourage Members of this body to spread the word about the bank's export financing opportunities, and I encourage Members to contact the bank to determine what businesses, large and small, directly and indirectly, are being supported by the bank's services.

For example, I learned that Ex-Im financing for one aircraft can translate into work for over 100 small businesses in my district alone. And I received a report issued by the bank last Friday that showed businesses in my district, ranging from a knee guard company to one that makes printing presses, have benefited from about $4.6 million in Ex-Im products over the past decade.

On another note, I would like to take this opportunity commend the bank's new chairman, Jim Lambright and his team for aggressively moving on several important fronts; helping our U.S. businesses to keep a competitive edge in the global marketplace, listening to businesses and implementing bank reforms.

For example, to help them beat foreign competitors, businesses in my district suggested that the bank enhance application transparency and provide electronic on-line processing. The bank has done just that. A business can now register with the Ex-Im Bank online and easily track its application as it moves through the review process.

Mr. Speaker, in our increasingly competitive global environment, we must ensure that we provide every advantage, and remove every disadvantage, for U.S. businesses to ``win the sale'' over foreign competitors. Make no mistake about it: Ex-Im is one of the best tools we have to ensure that our businesses are allowed to beat the competition abroad. More importantly, it is jumper cables to the economy, helping U.S. businesses increase exports and create more and better U.S. jobs.

Mr. Speaker, I reserve the balance of my time.

Mr. Speaker, I yield 3 minutes to the gentleman from Texas (Mr. Paul).

(Mr. PAUL asked and was given permission to revise and extend his remarks.)

Mr. Speaker, I yield 3 minutes to the gentlewoman from New York (Mrs. Kelly), the vice chair of the Financial Services Committee.

Mr. Speaker, I would just like to say that looking at my district, and seeing the value of exports, $4.6 million that our companies have found for export value, and that works down to $295 million for small businesses.

I think that the Ex-Im Bank is one that is, the mission is so important that we increase U.S. exports and more importantly U.S. jobs. I think that is exactly what this bill is set up to improve and to make sure that that happens.

We are in a global economy. We are in competition with countries from all over the world. If we are to maintain our high standards, we have got to compete in the export market. I think this bill will help to do that. I would urge all Members to support the bill.

Mr. Speaker, I would be remiss not to thank Chairman Oxley for all the work that he has done on this bill, again Chairman Pryce and Ranking Member Maloney for all of the work that they have put into this.

Mr. Speaker, I would urge an ``aye'' vote.

Mr. Speaker, I yield back the balance of my time.

Mr. Speaker, I rise in support of the Export-Import Bank Reauthorization under suspension vote today.

This is a sound, bipartisan bill.

So often, people see the acrimonious side of this House rife with partisanship and member distrust.

We do not have that on the Financial Services Committee, and that is due in large part to the leadership of Chairman Mike Oxley and our Ranking Member, Barney Frank.

While I am working hard to see Barney become our chairman in the 110th Congress, I just want to salute our outgoing Chair, Mike Oxley.

He is a hard working member who is not afraid to roll up his sleeves and work with people across the aisle to get the important work done. He is results oriented.

Legislatively, he has a long list of accomplishments to be proud of, including this bill, but it is his spirit of bipartisanship, friendship and class for which we should all look to him for.

But he can also be a formidable foe, from the committee room to the baseball diamond.

He will be missed next year.

Stating that I do support this bipartisan bill--it is a real jobs bill.

This bill will strengthen the Export-Import Bank's abilities to allow American companies to compete in the global market as we try to increase our exports, increase our global competitiveness and create more and better paying jobs in the U.S.A.

This is a bill about exporting products not jobs.

Additionally, besides the overall nature of this bill, I was able to add important language to this reauthorization pertaining to the nation of Armenia--a strong U.S. ally in the Caucasus.

My amendment, done with Congressmen Ed Royce and Brad Sherman, prohibits the Export-Import Bank from funding any railway projects from Azerbaijan, through Georgia and Turkey, which specifically bypass Armenia. I am very pleased that this language was included in the final version of this legislation being debated on the House floor today.

This language will assist in promoting stability in the Caucasus region, help in ending long standing conflicts, and save U.S. taxpayers the responsibility of funding a project that goes against U.S. interests.

For over 10 years, Armenia has fought an illegal blockade, imposed on them by the countries of Turkey and Azerbaijan. These two countries continually exclude Armenia from regional development.

Just recently, Turkey, Azerbaijan, and Georgia finished construction on the Baku-Tblisi-Ceyhan pipeline. This pipeline does not pass through Armenia, even though the fastest and most economically sound route is through the country.

Now Turkey, Azerbaijan, and Georgia plan on constructing a railway that will completely bypass Armenia once again; once again excluding Armenia from regional development.

Exclusion of one country in regional projects only fosters instability. Having Export-Import Bank support a railway project which excludes Armenia is not the way to include all countries in regional development. I am pleased that the Bank is now prohibited from doing so in this bill.

Besides possibly creating a regional crisis, this project, if funded by the Export-Import Bank could cost taxpayers millions. I do not believe that U.S. taxpayers should be funding a project that goes against U.S. interests.

I am pleased this good language was added to an already good bill--a jobs bill for America

Therefore, I urge my colleagues to support the Export-Import Reauthorization.

Mr. Speaker, I rise in support of H.R. 5068, the Export- Import Bank reauthorization bill.

I would like to thank the Committee on Financial Services chairman, Mr. Oxley, and Ranking Member Frank for moving this important measure through our committee.

Ms. Pryce, the chairwoman on the Subcommittee on Domestic and International Monetary Policy, Trade and Technology, and, of course, our ranking member, Mrs. Maloney, who has provided leadership on this issue as well as many other issues, has done a fabulous job on making sure that the members of our committee understood very well the importance of the Ex-Im Bank and how it benefits our entire country and small businesses as well as some large businesses. I thank her for bringing this measure to the floor.

The reauthorization of the Export-Import Bank, H.R. 5068, is particularly important in light of our current trade deficit which stands at more than $60 billion. Indeed, we must continue to be proactive in terms of programs that will encourage the expansion of our exports. The export sector of our economy is critical to job creation at the local level.

This bill makes the Ex-Im Bank more relevant in today's global economy, because it better supports U.S. exports. Last year the bank was engaged in more than 3,000 transactions, with an export value of $17.9 billion and returned over $1.7 billion to the Treasury.

This bill should increase the overall level of exports. Of course, I am encouraged by the provisions of the bill related to small businesses. Under the bill, an Office of Small Business is established to be dedicated to small business issues.

Ex-Im needs to be viewed as a resource, not just for large exporters but for small exporters as well. The management of the office of our senior official sends a strong signal to the small business community that small businesses are an important part of the Export-Import equation. Equally important, the office should be required to interface with the U.S. Small Business Administration, which has built an excellent reputation as a repository of information for small exporters.

This reverses a trend that I believe developed as a result of the weakening of policies at the bank that have been in place to encourage the participation of small businesses in our export market, particularly minority-and women-owned business.

During markup of this bill, an amendment that I sponsored had been made part of the bill reported to the full House. It requires the bank to develop performance measures related to minority- and women-owned business programs. This will ensure that the management of Ex-Im Bank is directly involved in developing programs designed to increase participation of minority- and women-owned businesses in Ex-Im Bank programs.

The performance measures will be developed in concert with GAO and will enable Congress to determine how the small business programs for minorities and women that are put in place are performing. In addition, I am pleased that the bill contains a provision to promote increased trade with Africa.

I consider Mr. Paul as a serious person. I take him seriously. I will look into some of that which he has said.