Washington Business Summer 2019 | Washington Business | Page 13
eye on business
Fight Continues for Ex-Im Bank
Kris Johnson, AWB President
Five years ago last month, I caught an early-morning
flight to Spokane to join a press conference urging
support for the Export-Import Bank of the United States.
The event was held on the shopfloor at SCAFCO Grain
Systems, a manufacturer of agricultural equipment that
exports products throughout the world. The goal was to
raise the profile of the often-used but little-known bank
and encourage members of Congress to reauthorize its
charter.
A little more than a year later, we celebrated when
Congress finally did reauthorize the bank’s charter. But the
fight was far from over.
For the next two and a half years, the bank operated
without a quorum, meaning it couldn’t issue loans larger
than $10 million. The bank had been reauthorized, but it
was only partly functioning. That issue was resolved just
this last May with the confirmation of three new members
and the nomination of two more, including Paul Shmotolokha,
a vice president of Bellingham-based Alpha Technologies. But
now the Ex-Im Bank is facing a new challenge.
The reauthorization we fought so hard to achieve five
years ago is set to expire at the end of September. Once again,
Washington manufacturers are reminding federal lawmakers
of the vital role the Ex-Im Bank plays in the success of our
economy. And once again they are calling on Congress to
reauthorize the bank’s charter so it can continue to operate.
All the reasons we supported the Ex-Im Bank five years
ago are still valid today. Washington remains the most trade-
driven state in the nation per capita, with 40% of our workforce
connected to trade in some way. Manufactured goods make
up 82% of our state’s exports and our farm families help make
Washington the third-largest exporter of food and agricultural
products in the U.S.
And the Ex-Im Bank continues to support hundreds of
Washington employers by opening trade opportunities through
financing to customers who can’t otherwise find it and through
crucial loan guarantees.
Critics argue the bank is a form of “crony capitalism” but
that’s simply not true. It’s an independent, self-sustaining
federal agency that actually returns money to the U.S. Treasury.
And while there are many valid arguments and data points
to support reauthorization, the best way to win support for the
bank is simply to tell the success stories it has fostered since its
founding 85 years ago.
That’s what we did five years ago, highlighting employers like
Seattle’s Lighthouse for the Blind, a manufacturer of machine
parts and molding for aerospace companies; L’Ecole No. 41,
the renowned Walla Walla County winery; and Manhasset
Specialty Company, the Yakima-based manufacturer of music
stands that are sold throughout the world.
And it’s what we continue to do.
Consider the story of Amru Rice, a Cambodian processor
and distributor of organic rice. The company needed to buy a
3,000-metric-ton storage system from an American supplier
and turned to the Ex-Im Bank for help.
Although Amru Rice could access funding from Cambodia’s
government-owned bank, it was unable to obtain term financing
from local commercial banks. Ex-Im’s guarantee enabled the
company to obtain credit on longer repayment terms from the
U.S. supplier — none other than SCAFCO Grain Systems in
Spokane.
“We worked hard to win this sale,” SCAFCO CEO Jim
McDonald said. “Ex-Im’s support not only helped us to seal this
deal but also has generated new interest in U.S. manufactured
equipment in Cambodia. And that’s good news for our
employees in Washington.”
It’s good news, indeed, and just one of countless examples
of why I caught that early-morning flight five years ago — and
why we continue to fight today for the Ex-Im Bank and the
Washington jobs it supports.
summer 2019
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