The reauthorization of the Export-Import bank charter is necessary in order to stay competitive with Brazilian and Chinese state credit agencies that provide nearly half of all official export financing, said former Sens. George Allen and Blanche Lincoln in a May 5 National Association of Manufacturers blog post. The bank will also provide a critical mechanism to revitalize the sluggish U.S. economy, said the former lawmakers, while dismissing the common criticism that the credit agency meddles with the free market.

The Export-Import Bank favors “large, politically connected” firms at the expense of small and medium sized businesses by providing unfair access to foreign markets, said 30 organizations, including Americans for Tax Reform and FreedomWorks, in a May 1 letter to members of Congress. As expiration of the bank’s charter looms at the end of fiscal year 2014, lawmakers should oppose reauthorization, said the organizations. “Not only does the Export-Import bank interfere with the free market, it also jeopardizes billions of taxpayer dollars,” said the letter. “According to the Congressional Budget Office, the bank relies on obsolete accounting methods that significantly overstate its profits.” Ex-Im reauthorization has sparked a partisan fight in recent weeks and months, although House Speaker John Boehner, R-Ohio, supports renewal (see 14042903). Bank President Fred Hochberg claims the official U.S. credit agency profited $1.057 billion in fiscal year 2013 (see 14032526).

The expiration of a tariff preference program that allows the Nicaraguan apparel industry to incorporate 50 percent foreign fabric and still export to the U.S. duty-free will hurt U.S. jobs, businesses and consumers, said Rick Helfenbein, chairman of the board of the American Apparel and Footwear Association, in a Sourcing Journal Online op-ed. The program, due to run its course at the end of 2014 after 10 years in effect, allows Nicaragua to match U.S. fabric with fabric sourced elsewhere. The expiration will severely disrupt supply chains that have taken years and significant capital to shape, said Helfenbein.

U.S. import duties on children’s footwear continue to increase, building off a 53 percent rise since 2010, said the Footwear Distributors and Retailers of America (FDRA) in a report released on May 2. The Affordable Footwear Act would counteract skyrocketing costs to American importers and consumers by eliminating $800 million in duties for lower-priced children’s footwear, along with outdoor and some athletic shoes, said FDRA. A bipartisan group of senators reintroduced the legislation in 2013, and Finance Committee Chairman Ron Wyden, D-Ore., recently expressed support (see 14040919).

The Senate Finance Committee will consider the nomination of Darci Vetter as chief agricultural negotiator at the Office of the U.S. Trade Representative during a May 8 hearing, the committee said. President Barack Obama sent the nomination to the Senate on Jan. 7, and agricultural groups have since expressed support (see 14011315).

Recent trade-related bills introduced in Congress include:

The draft fiscal year 2015 appropriations bill for the Departments of Commerce and Justice, Science, released on April 29, would bolster funding for several trade related agencies, but are below the Obama administration's prescribed funding levels. The Commerce, Justice, Science and Related Agencies subcommittee marked up the draft bill on April 30, but lawmakers did not add any significant amendments, said a committee spokesman. The draft has not yet been formally introduced.

The Export-Import Bank reauthorization legislation submitted to Congress in recent days would boost the credit agency’s lending cap by $20 billion, said House Financial Services Committee Chairman Jeb Hensarling, R-Texas in an April 25 statement, while calling renewal “a bad idea.” The bank manipulates markets, represents “the face of cronyism” and is poorly managed, said Hensarling. The chairman has been a staunch and vocal opponent of the bank (see 14032526). The bank’s charter expires on Sept. 30. Hensarling vowed to consider reauthorization legislation, however, in response to pressure from House Democrats over recent months (see 14042427). "The committee will hold a hearing in the coming months to discuss this reauthorization request and give members an opportunity to publicly debate the merits of the Bank," said Hensarling.

The Obama administration and Congress should expand sanctions on the Russian financial, energy, metals, mining, engineering, and defense sectors due to recent Russian destabilization of Ukraine, said Senate Armed Services Committee Chairman Carl Levin, D-Mich., on April 25, speaking in Kyiv, Ukraine. In accordance with Executive Order 13661 (here), the U.S. should also sanction additional banks, said Levin. President Barack Obama issued the order on March 16. The U.S. has sanctioned dozens of Russians and Ukrainians since the beginning of March, along with one bank (see 14032024).

Congress is looking at legislative language that would renew the Export-Import Bank's charter beyond its expiration at the end of this fiscal year, said House Democratic Whip Steny Hoyer, D-Md., as he expressed support for quick reauthorization. "Congress must put this matter to rest as soon as possible by reaffirming its support for the Bank's mission and passing a multi-year reauthorization that can restore certainty to the businesses the Bank serves. I look forward to working with Members on both sides of the aisle to reauthorize the Export-Import Bank in the near term." Hoyer pushed reauthorization with House Financial Services ranking member Maxine Waters, D-Calif., along with other Democratic lawmakers, during a press conference earlier in April (see 14041028). At the press conference, the lawmakers said uncertainty surrounding reauthorization would deter potential business partners overseas. The bank’s charter expires on Sept. 30, but some House Republicans have blocked reauthorization legislation (see 14021018).