A container ship passes under the Arthur Ravenel Jr. Bridge in Mount Pleasant as a full moon sets. … [+]
“I think our Secretary of State said it best: Economic security,” Judith Pryor, vice chair and first vice president of the Export-Import Bank of the United States, recently said in an exclusive interview on the “Electric Ladies” podcast. is national security,” he said. This is also an important lesson of the pandemic economic crisis.
“I'll tell you, it was retired generals and veterans who were on The Hill telling Congress about the importance of economic development agencies like EXIM and OPIC and even USAID.” We want to get out, and if we get out and no one comes behind us, then yeah, there's going to be chaos,” Pryor explained.
She would know because she has been in international business for almost 30 years. Prior to her appointment as an executive at the Export-Import Bank, she had a long career in the communications satellite sector, after which she worked for many years at what is now the U.S. International Development Finance Corporation (formerly Overseas Private Investment Corporation, OPIC).
EXIM 2023 Conference Opening EXIM Chair Reta Joe Louis – Photo by Liz Roll 1977
EXIM Bank is a small, 90-year-old institution founded by President Franklin D. Roosevelt and one of a variety of government instruments that facilitate cross-border cooperation between U.S. businesses and nongovernmental organizations. . The Office of the United States Trade Representative (USTR) is located in the White House, and the Bureau of International Trade is located in the Department of Commerce. Interestingly, in the Biden administration, all of the people at the top of these positions are women. Leta Joe Lewis is chairman of the Export-Import Bank along with Pryor. Katherine Tai is USTR, Gina Raimondo is Secretary of Commerce, Marisa Rago is Under Secretary of Commerce for International Trade, and Diane Farrell is Deputy Under Secretary for International Trade.
According to a report by Statistica, as of 2021, exports accounted for 10% of the US economy, or approximately $3 trillion, and imports accounted for approximately 4.5% of the US economy.
How can companies find international partners and financing?
International trading can be risky, complex, and lucrative. They can develop from networking or from seeking them out through reflection. Entrepreneurs may meet people who need their product at a conference, for example, or they may identify key markets for their product in other countries.
Katherine Tai, USA. Office of the Trade Representative – EXIM 2023 Conference – Photo by Liz Roll 2480
The Office of the United States Trade Representative and the International Trade Administration can help facilitate certain aspects of exports. and the Export-Import Bank, which facilitates the structuring and financing of deals and helps reduce risk.
“We help anyone in the United States who wants to sell their products or services abroad through short-, medium-, and long-term financing tools for international buyers. “Frankly, our goal is to promote American jobs through exports and to level the playing field so that American companies can compete fairly,” Pryor said. Ta.
Facilitate payments and reduce risk
Judith_DelZoppo_Pryor,_EXIM Vice Chairman, First Vice President
“I live in Spain, and up until six months ago I was in the United States. At that time, I came across a product that I really liked, so I would like to import it and sell it in my chain of boutiques throughout Spain. .I don't want to pay until I get the goods.The American exporter said, “I don't want to export until I know I'm going to get the money.'' So you're in this conundrum where everyone wants their money and they want their product at the same time, and we can help with that. ” That is the export scenario that Pryor envisioned.
“This is how EXIM steps in to help protect and de-risk exports for short-term exporters, typically 30, 60 or 90 days. This is just one example of how it can help, and we do thousands of transactions like this every year.”
Screenshot, Export-Import Bank Credit Terms webpage, exim.gov
EXIM Bank helps you structure export deals, secure financing at competitive rates, and facilitate payments. “We provide foreign buyers with the ability to purchase U.S. goods and services. In other words, we are the financier of debt to purchasers of U.S. products and services,” Pryor explained. . “Meanwhile, we offer short-term export credit insurance for 30, 60 and 90 days to small and medium-sized enterprises to ensure payment for the goods they receive.”
EXIM Bank earns fees from the transactions it brokers, but the proceeds are returned to the U.S. Treasury. They report that they have so far returned about $10 billion to the Treasury and reduced the national debt.
Renewable energy is a priority
Aerial view of solar panels seen at the MCE Solar One solar power plant in Richmond on April 25, 2024. … [+]
Pryor emphasized that clean energy is high on their agenda and included in the Congressional Charter. “Renewable energy is a priority, not only because we are, but also because Congress is making it a priority through our increased reauthorization.”
He added that “support for environmentally beneficial exports has been in our charter since 1997, to the point where we are required to designate someone within the bank to focus solely on this.” added.
Pryor noted that the flow of renewable energy export deals has been slow, as these projects require 85% U.S. content, but recently changed that standard to 51% to facilitate more deals. He explained that it had been reduced to %.
Pryor said women-owned businesses that export do better financially than those that don't.
Screenshot – EXIM Bank Women-Owned Business Webpage, exim.gov
The Census Bureau reports that there are 12.4 million women-owned businesses in the U.S. with “$2.2 trillion in receipts.” However, the Department of Commerce announced in January 2024 that only 15% are exported.
“If you are a woman running a business and you export, you can provide better wages to your employees and therefore be more resilient to economic storms and recessions, such as the pandemic, than businesses that are not exporting. “You're more likely to survive,'' Pryor emphasized. “And according to the data, as we all know, businesses run by women have a 34% better return on investment. That’s 34% higher than businesses run by men. There are many good reasons to want to see more women exported.”
EXIM Bank offers specialized programs for businesses owned by women, minorities, and veterans. In January 2024, the Department of Commerce announced a program to specifically promote export opportunities for women-owned businesses and other diverse entrepreneurs in the United States.
