In the News

By Tom Barrett, Mayor of Milwaukee

The global economic arms race is intensifying. Workers, cities and countries must be equipped or risk being left behind. The good news is that the United States has emerged from the global recession in a position to lead the world; the bad news is that Congress is considering putting American and Milwaukee exporters at a global disadvantage, and thus risking economic growth.

We have expanded economic opportunity in Milwaukee, but I also know that hard gains are easily lost if we fail to leverage every advantage. An important economic engine in Milwaukee that supports good, middle-class jobs remains manufacturing. These jobs that pay a living wage are exactly what we need to foster.

A proven way to support and expand Milwaukee's manufacturing base is to support a robust Export-Import Bank of the United States (Ex-Im Bank). On Friday, I joined Chairman Fred Hochberg of the Ex-Im Bank, the Global Leadership Coalition, the Global Cities Initiative, private financiers and small businesses to illuminate how the Ex-Im Bank is helping small businesses in Milwaukee to be globally competitive.

In 2013, the bank supported 113 Wisconsin businesses as they exported $939 million in goods and services. The top two destinations for Wisconsin goods were Mexico and India. Milwaukee businesses that were helped were largely manufacturers, including many smaller manufacturers such as Maxon Industries of Milwaukee. The bank did this while maintaining a low default rate and not relying on taxpayer support. Furthermore, it reduced the federal deficit by returning money to the Treasury.

The Ex-Im Bank is the official export credit agency (ECA) of the United States, which means it matches foreign export financing offered by other governments to make U.S. exports competitive and provides financing when private trade financing is unavailable. In layman's terms, the bank bridges a gap to help U.S. businesses invest, grow and remain competitive in global markets by leveling the playing field for U.S. business and workers.

The charter of the Ex-Im Bank needs to be periodically reauthorized by Congress. Historically, the reauthorization has been bipartisan and has been supported by business and unions. Unfortunately, we have encountered ideological factions in Congress that are working to eliminate the Ex-Im Bank. Their position ignores the undeniable reality that other countries aggressively utilize ECAs to support their exporters. For example, South Korea's ECN provided substantially more export financing than the Ex-Im Bank in 2013. We need to ensure a level playing field so our local manufacturers don't fall behind.

U.S. Rep. Gwen Moore (D-Wis.) will be leading the congressional reauthorization effort. Like me, she knows that Milwaukee workers and businesses can compete globally if given the opportunity. Milwaukee's history is synonymous with manufacturing and American know-how. The Ex-Im Bank is an important tool to rebuild our manufacturing economy. I hope that you will join Congresswoman Moore and me in supporting reauthorization of this powerful jobs engine.

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