One month ago, EXIM released our annual Report to the U.S. Congress on Global Export Credit Competition, which provides information about global export credit activities. Also known as the Competitiveness Report (not to be confused with the Global Competitiveness Report published by the World Economic Forum), the 96-page document covers the 2020 calendar year and includes sections about trends in official medium- and long-term (MLT) export and trade-related activity, exporter and lender views, and appendices with further information about export finance and policies that impact EXIM’s competitiveness.
Included in the report are examples of how EXIM supports U.S. small business exporters. For instance, an Illinois-based electrical equipment company facing tough foreign competition worked with EXIM to secure a loan guarantee which helped the company win a major rural electrification contract with the Republic of Senegal.
Additionally, the report provides data that illustrates EXIM’s commitment to small businesses. In FY20, small businesses accounted for nearly 90% of EXIM’s total number of authorizations. The report also includes information about EXIM’s outreach and education efforts to inform small and medium-sized enterprises about federal government support for exporters. EXIM has a team dedicated to serving minority, women, veteran, and disability-owned small businesses whose activities are highlighted in the report.
Here are some commonly-asked questions about the report:
Q: What is the Competitiveness Report and why does EXIM issue it?
A: EXIM’s Charter requires that we issue the Competitiveness Report each year on June 30th. As part of the report, EXIM is congressionally mandated to survey all other major export-financing facilities available from other governments and, to the extent such information is available, indicate in specific terms the ways in which EXIM’s rates, terms, and other conditions compare with those offered from other governments. EXIM uses all available information to estimate the annual amount of export financing available, and we include a survey of U.S. exporters and commercial lending institutions which provide export credit, in order to understand their experiences and the global competitive landscape.
Q: Can you share more about the history of the report?
A: The first Competitiveness Report was published in 1972. Past Competitiveness Reports are published on EXIM.gov from 2001 onwards. The report used to be published bi-annually but has since been modified to an annual report. Previous editions focused specifically on MLT officially supported export credits because U.S. exporters report acute competition against foreign exporters in that arena. Historically, the Competitiveness Report focused on the official export credit activity within Group of Seven (G7) countries – Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States – as the G7 represented the majority of global export credit support and competition. However, over the past decade, EXIM has expanded our analysis to better capture the growing number of export-credit providers and export and trade-related products offered by other governments beyond traditional G7 countries. For example, recent reports have placed special focus on export credit activity from the People’s Republic of China.
Q: Can you provide a brief summary of EXIM developments in this most recent report?
A: The 2020 report specifically includes the official export credit market’s response to COVID-19 , including information on EXIM’s support for U.S. exporters and lenders through the temporary COVID-19 relief measures, EXIM’s medium- and long-term export credit activity levels compared to other global export credit providers, information about how U.S. exporters and lenders perceive EXIM’s competitiveness, and trends such as the increase in support for more “sustainable finance” projects and a “whole-of-government approach” to official financing.
Regardless of your company size, the report is useful for assessing the global competitive landscape and finding new opportunities in export credit. As EXIM continues to strengthen our programs following our reauthorization at the end of 2019, we will keep doing all we can to ensure American companies can build back better through exporting. Click here to view the full report.
