Sec. 2. Findings
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Congress makes the following findings: Export subsidies provide advantages to specific industries or businesses at the expense of their domestic competition, other sectors of the economy of the United States, and the people of the United States. Banks and other financial institutions that provide trade facilitation credit also profit from export subsidies such as loan guarantees and trade insurance. International trade finance is well developed and supplied by the private sector at competitive rates that reflect market conditions.
The Export-Import Bank of the United States is an agency of the United States Government that subsidizes exports by insuring or guaranteeing trade facilitation loans and other credit from private financial institutions and by providing direct loans to exporters in the United States. Export subsidies impose risks on the taxpayers of the United States. In a June 2012 report, the Congressional Budget Office found, using accurate, fair value estimation, that the expected return of the Export-Import Bank of the United States was less than 1/10 of the estimate under the current, flawed methodology used pursuant to the Federal Credit Reform Act of 1990 (2 U.S.C. 661 et seq.).
Recent years have revealed other safe Federal credit programs to have large taxpayer costs, including Freddie Mac, Fannie Mae, and the Federal Housing Administration. The Export-Import Bank of the United States claims to serve small businesses primarily but most of its financing subsidizes exports of large multinational corporations.
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