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Boeing: If Ex-Im Shuttered, We’ll Outsource Jobs

Boeing

Boeing threatens to outsource engineering and manufacturing jobs if U.S. Congress fails to extend Ex-Im Bank charter.

The Boeing Company is threatening to relocate jobs outside of the United States if the U.S. Congress fails to pass the reauthorization of the Export–Import Bank (Ex-Im) in June.

Boeing CEO Jim McNerney told Reuters, “Most of my engineering and manufacturing jobs are in the United States and I’d like to keep it that way. But without Ex-Im financing you’d have to start asking questions.”

His comments were echoed by Scott Scherer, head of regulatory strategy at Boeing Capital, who said Boeing would “not sit idly by” if Congress allows the Export-Import Banks charter to expire, according to The Daily Caller.

The Export–Import Bank is the official credit agency of the United States. Established in 1934, its mission is to support American jobs by facilitating the export of U.S. goods and services as a self-sustaining agency. It operates by assuming credit risks that the private sector is either unable or unwilling to accept and provides financing assistance with loans, guarantees and insurance programs. In 2014, it supported $27.4 billion in U.S. exports and 164,000 jobs while returning a surplus of $675 million to the taxpayer.

Most of the opposition to extending the bank’s charter comes from conservative groups such as the Club for Growth, Heritage Action for America and Americans for Prosperity, which appears to be ideological in nature. These groups claim that the programs offered by the bank distort the free market system and, in essence, amount to little more than corporate welfare.

Ideology aside, the demise of the Ex-Im Bank may place the United States at a disadvantage to its competitors. A 1993 comparison of U.S. and European Union export credit agencies found that the U.S. financed $15.1 billion of exports through Ex-Im bank, but the leading EU exported credit agencies financed $74.8 billion of European exports. It is almost certain that major American exporters such as Boeing would begin to look offshore in order to level the playing field.

[Photo: iStock]

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