Every so often The Internationalist Page Blog provides updates from Ex-Im Bank when they are internationally significant in their implications. Japan is the US' second-greatest creditor, but both the US and Japan face similar problems in terms of their respective levels of exports versus their respective levels of imports.
In this specific case, two government-sponsored banks have created a "treaty" which will not only bode well for trade relations between the two countries, but will also help each of the two countries in terms of its balance of trade with the other countries in the international community.
The Release follows:
FOR IMMEDIATE RELEASE
October 24, 2012
Media contact: Phil Cogan – (202) 565-3200
Media contact: Phil Cogan – (202) 565-3200
Ex-Im Bank, Japan Bank for International Cooperation
Sign Co-financing Agreement to Facilitate U.S., Japanese Export Sales
Sign Co-financing Agreement to Facilitate U.S., Japanese Export Sales
WASHINGTON, D.C. --- Officials from the Export-Import Bank of the United States (Ex-Im Bank) and the Japan Bank for International Cooperation (JBIC) today signed a co-financing agreement that will facilitate future export transactions involving companies in both the United States and Japan.
The agreement enables Ex-Im and JBIC to provide “one-stop-shop” export finance services to buyers in third countries purchasing both U.S. and Japanese goods and services. The two nations’ export credit agencies (ECAs) will provide a one-stop-shop financing package, creating administrative efficiencies for foreign buyers. The agreement complements one signed in 2004 between Ex-Im Bank and Japan’s Nippon Export and Investment Insurance (NEXI).
JBIC Chief Operating Officer and Senior Managing Director Fumio Hoshi, representing JBIC Governor Hiroshi Okuda and Ex-Im Senior Vice President for Policy James C. Cruse , representing Ex-Im Bank Chairman and President Fred P. Hochberg, signed the agreement at Ex-Im’s headquarters in Washington, D.C..
“This arrangement paves the way for Ex-Im Bank and JBIC to co-finance projects, enabling exporters in both the U.S. and Japan to select the best mix of price and technology to strengthen their overseas bids and support jobs,” said Hochberg. “At the same time, exporters will be able to provide their buyers with only one set of terms and conditions covering both countries’ exports.”
This is the first “One-Stop Shop” co-financing agreement signed by JBIC with another ECA.
JBIC is a policy-based financial
institution of Japan, and conducts lending, investment and guarantee
operations while complementing the private sector financial
institutions.
In addition to the JBIC and NEXI
co-financing agreements, Ex-Im Bank currently has signed bilateral
one-stop-shop agreements with ASHR’A (Israel), Atradius (The
Netherlands), Coface (France), ECGD (U.K.), EDC (Canada), EFIC
(Australia), EKF (Denmark), Euler Hermes (Germany), and SACE (Italy) and
is in discussions with other ECAs to sign additional bilateral
agreements. Ex-Im Bank will consider co-financing transactions without a
formal bilateral agreement on a case-by-case basis. In fact, Ex-Im Bank
has concluded a number of one off co-financing arrangements with GIEK
(Norway), H-EXIM (Hungary) and ONDD (Belgium).
About Ex-Im Bank
Ex-Im Bank is an independent
federal agency that helps create and maintain U.S. jobs by filling gaps
in private export financing at no cost to American taxpayers. In the
past five years (from Fiscal Year 2008), Ex-Im Bank has earned for U.S.
taxpayers nearly $1.6 billion above the cost of operations. The Bank
provides a variety of financing mechanisms, including working capital
guarantees, export-credit insurance and financing to help foreign buyers
purchase U.S. goods and services.
Ex-Im Bank approved $35.8 billion in total authorizations in FY 2012 – an all-time Ex-Im record. This total includes more than $6.1 billion directly supporting small-business export sales – also an Ex-Im record. Ex-Im Bank's total authorizations are supporting an estimated $50 billion in U.S. export sales and approximately 255,000 American jobs in communities across the country. For more information, visit www.exim.gov.
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What is interesting to note is that these treaties and economic agreements are being spearheaded by government-sponsored banks instead of by other agencies or diplomatic arms of these countries, or by the United Nations.
Fueling business ventures [reference CrowdFunding Incubator LLC and The CrowdFunding Incubator Blog ] is a common denominator in international politics that every nation seems to understand. The banks are strong diplomats and policy-makers indeed. Many of us in the United States will recall that old expression (a classic) about "Put your money where your mouth is!" A timeless demand.
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