Exports, and trade more broadly, contribute to the U.S. economy in a  variety of ways. In addition to the longer-term benefits of trade and exports, exports can  serve as a countercyclical force for the U.S. economy—that is,  strengthening the economy when other parts of it are relatively weaker. For a number of years, as the United States increasingly imported more  than it exported, the U.S. economy was an engine of growth for other  nations. The National Export Initiative Sets Ambitious Goals for Increasing U.S. Exports and Contains a Key Role for Ex-Im

The President created the National Export Initiative on March 11, 2010,  with an ambitious goal of doubling exports in the next 5 years to support  job creation. To facilitate achieving this goal, the National Export Initiative  established an Export Promotion Cabinet that includes Ex-Im as well as 15  other agencies and executive departments. The report identifies several actions for Ex-Im. Congress Has Set Targets Regarding the Composition of Ex- Im’s Export Financing

GAO has reported on Ex-Im’s efforts to achieve specific targets set by  Congress regarding the composition of Ex-Im’s export financing. We also reported that Ex-Im needs to further clarify its definitions and  improve its reporting on environmentally beneficial exports. We reported that while Ex-Im has taken steps to increase financing for  environmentally beneficial exports, it could benefit from more  consistently following strategic planning practices such as involving  stakeholders and realigning resources. Small Business Exports Are a U.S. Trade Priority, and Congress Has Required Ex-Im to Provide a Certain Level of Support for These Exports

Promoting exports by small business has been a long-time priority of  Congress as well as the executive branch, given these exports’ role in  generating growth and employment. In 2006, we identified weaknesses in Ex-Im’s data  systems for tracking and reporting on its small business financing and  made recommendations for improvement. As the nation’s export credit  agency, the Export-Import Bank is a key part of the initiative, and there  are a number of detailed initiatives related to export credit in the report  that was released on September 16, 2010. Our work on Ex- Im’s financing with respect to small business—including minority and  women-owned businesses—and environmentally beneficial exports has  demonstrated that substantial steps have been taken, and Ex-Im continues  to face substantial challenges.
Why GAO Did This Study

This testimony discusses the role of the U.S. Export-Import Bank (Ex-Im) in promoting exports and achieving other U.S. policy goals. As Congress considers policies to achieve more robust growth in the U.S. economy, it must consider the full range of tools available to further growth and create new jobs for U.S. workers. Some of these tools are related to promoting exports, which can have broad benefits to the U.S. economy. As the official export credit agency of the United States, Ex-Im has a key role in helping many U.S. firms achieve sales in foreign markets. In addition to establishing Ex-Im's broad mandate of supporting U.S. employment through exports, Congress has laid out specific, targeted goals for the bank in areas such as increasing financing for environmentally beneficial exports and expanding services to small and minority-owned businesses. This testimony provides some broad observations regarding Ex-Im's contribution to the export promotion goals announced in the President's National Export Initiative. It also describes progress Ex-Im has made in achieving the specific targets set by Congress, as well as some challenges the bank faces in meeting those targets. The statement also provides some background information concerning the ways in which exports can enhance U.S. economic output.

What GAO Found

The President's National Export Initiative has put forth an ambitious goal of doubling exports in the next 5 years. Ex-Im has been identified as having a key role in the initiative, and a recent administration report identifies a number of specific actions for Ex-Im. Our work on Ex-Im's financing with respect to small business found areas where Ex-Im needed to improve its data systems for accurate reporting as well as its tracking of efforts to increase small business financing. Regarding Ex-Im's environmentally beneficial exports financing, we found that the bank could benefit from more consistently following strategic planning practices. Ex-Im has taken a number of steps in response to GAO recommendations, but opportunities for improvement remain. Additional attention to these issues will enable Ex-Im to develop better communication with Congress and other stakeholders regarding the balance between the small business and environmental export targets and the broader priorities in the National Export Initiative.