This initiative is part of the Obama Administration’s efforts to double US exports by the end of next year (2013), and coincides with the commercial aerospace industry's plan to boost its production, with Boeing’s production targeted to increase by 40% by 2014.
Obama in the shadow of a 787 engine.
Speaking from the Boeing's Everett facility in Washington, Obama said, "I'm also instructing the Ex-Im bank to give American companies a fair shot by matching the unfair export financing that their competitors receive from other countries." Obama indicated that increasing competition from China and Europe has made it necessary for the Ex-Im Bank to offer better financing conditions.
Boeing is one of the many U.S. manufacturers that face subsidized foreign competition. To help U.S companies compete, it is essential for the Export- Import Bank to match foreign competitors’ sources of official funding – for both US companies targeting domestic and overseas sales.
During the President’s visit, Boeing announced that it will sign onto the supply chain financing program to "help its eligible small-business suppliers gain access to affordable financing" through the Ex-Im Bank. Boeing will become the newest US exporter to sign onto this supply chain financing program. The global supply chain is essential to jetliner production; it enables aircraft manufacturers to increase their production levels.
Citibank N.A. will operate the export financing program, providing small discount rates to manufacturers in exchange for early payment of their bills from Boeing.
Initially authorized in September 2011, the supplier program has Ex-Im Bank's approval for $740 million financing capacity.
