Posted:
May 3, 2011
USA Maritime - a maritime labor and industry coalition of which American Maritime Officers and American Maritime Officers Service are members - has urged the Department of Transportation to hold a "constructive and open dialogue" to discuss U.S.-flag cargo preference requirements for cargoes financed by the Export-Import (Ex-Im) Bank.
Responding to a request for comments from Inside U.S. Trade, USA Maritime in a written statement noted cargo preference requirements are "critical to the maintenance of our U.S. national defense sealift capability" and warned that changes to the program "would harm that capability."
The Export-Import Bank is the nation's official export credit agency, supporting the export of U.S. goods and services around the world. Loan guarantees issued by the Ex-Im Bank totaling more than $20 million or lasting more than seven years are subject to a cargo preference statute requiring exported cargo to be carried exclusively by U.S.-flagged vessels. The Ex-Im Bank's charter is up for renewal by Congress this year.
USA Maritime's statement - which reiterates the coalition's support for the renewal of the Ex-Im Bank's charter - responds to a report published by Inside U.S. Trade that Secretary of Transportation Ray LaHood and the chairman of the Ex-Im Bank have held discussions regarding cargo preference. These discussions did not include representatives of the maritime industry. USA Maritime is concerned "the discussions may be based in part on misinformation about how cargo preference works."
Exporters have pushed to weaken cargo preference requirements, claiming they are too costly. However, a September 2009 study by the Ex-Im Bank's inspector general found exporters to be generally satisfied with the waiver process if they work closely with the Maritime Administration, USA Maritime noted.
The coalition also pointed to proposals in the study to improve the administration of cargo preference requirements, and noted these recommendations have not been implemented.
Potential changes to Ex-Im Bank cargo preference requirements raise concerns for maritime industry
USA Maritime - a maritime labor and industry coalition of which American Maritime Officers and American Maritime Officers Service are members - has urged the Department of Transportation to hold a "constructive and open dialogue" to discuss U.S.-flag cargo preference requirements for cargoes financed by the Export-Import (Ex-Im) Bank.
Responding to a request for comments from Inside U.S. Trade, USA Maritime in a written statement noted cargo preference requirements are "critical to the maintenance of our U.S. national defense sealift capability" and warned that changes to the program "would harm that capability."
The Export-Import Bank is the nation's official export credit agency, supporting the export of U.S. goods and services around the world. Loan guarantees issued by the Ex-Im Bank totaling more than $20 million or lasting more than seven years are subject to a cargo preference statute requiring exported cargo to be carried exclusively by U.S.-flagged vessels. The Ex-Im Bank's charter is up for renewal by Congress this year.
USA Maritime's statement - which reiterates the coalition's support for the renewal of the Ex-Im Bank's charter - responds to a report published by Inside U.S. Trade that Secretary of Transportation Ray LaHood and the chairman of the Ex-Im Bank have held discussions regarding cargo preference. These discussions did not include representatives of the maritime industry. USA Maritime is concerned "the discussions may be based in part on misinformation about how cargo preference works."
Exporters have pushed to weaken cargo preference requirements, claiming they are too costly. However, a September 2009 study by the Ex-Im Bank's inspector general found exporters to be generally satisfied with the waiver process if they work closely with the Maritime Administration, USA Maritime noted.
The coalition also pointed to proposals in the study to improve the administration of cargo preference requirements, and noted these recommendations have not been implemented.