Hatch, Corker Call for USTR to Crack Down on Export Credit
Foreign countries may be using state credit agencies to launch “an export credit arms race” through loans that are below-market rates and possibly in violation of World Trade Organization subsidy rules, two senators said in a Sept. 29 letter to…
Sign up for a free preview to unlock the rest of this article
Timely, relevant coverage of court proceedings and agency rulings involving tariffs, classification, valuation, origin and antidumping and countervailing duties. Each day, Trade Law Daily subscribers receive a daily headline email, in-depth PDF edition and access to all relevant documents via our trade law source document library and website.
U.S. Trade Representative Michael Froman. The WTO Agreement on Subsidies and Countervailing Measures (SCM) put restrictions on export credits, and an Organization of Economic Co-operation and Development agreement also provided an exemption, but many countries are likely not acting in compliance with those stipulations, said the letter. Sens. Orrin Hatch, R-Utah, and Bob Corker, R-Tenn., said the U.S. should continue to negotiate the terms of legislation to clamp down on export credit agencies [ECAs]. The Export-Import Bank Reauthorization Act of 2012 to reduce and ultimately eliminate state export credit (here). “While the negotiations proceed, it is important that the Office of the United States Trade Representative remain vigilant with respect to enforcement of the terms the SCM Agreement, including its safe harbor provisions, so as to prevent unfair market distortions,” said the letter. “We respectfully ask for an update on your investigative efforts and analysis as to whether foreign competitors are operating their ECAs in a manner consistent with their obligations under the SCM Agreement.” Export-Import Bank proponents say foreign credit agencies justify the continued need for the Ex-Im Bank, despite powerful opposition from Republicans.