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SIA Urges Congress to Reauthorize Ex-Im
Bank
October 6, 2015
Satellite Industry Association (SIA) President Tom Stroup today
issued the following statement urging Congress to reauthorize
the Export-Import Bank of the United States: “As lost
opportunities for domestic commercial satellite manufacturers
continue to mount, SIA urges Congressional leadership to
reauthorize the Export-Import Bank of the United States (Ex-Im
Bank). Without Ex-Im Bank, U.S. commercial satellite
manufacturers are increasingly uncompetitive in a global
marketplace where foreign buyers account for roughly 75 percent
of all commercial satellite sales.
“Since the closing of Ex-Im Bank, the United States has had at
least three pre-existing commercial satellite orders withdrawn,
lost other awards, and been barred from other competitions
entirely. This is just the tip of the iceberg. In the highly
competitive commercial satellite manufacturing market, support
from export credit agencies (ECAs) can be the difference between
the winning proposal and a competitive one. And in some cases,
ECA support is a required component of the proposal. The longer
the Ex-Im Bank remains closed, the greater the damage will be to
U.S. satellite manufacturers and the hundreds of local
businesses that supply them.
“American manufacturers have been the leaders in the global
commercial satellite manufacturing market, winning 57 percent of
orders placed in 2014. Congress risks allowing this competitive
edge to slip by failing to ensure a level playing field for
American-made satellites. Access to financing is a crucial
element in winning satellite business – given that most
commercial satellites cost hundreds of millions of dollars,
raising the funds to order spacecraft is time-intensive,
complicated, and can make or break a business plan. Foreign
ECAs, recognizing the growing importance of the sector, have
been aggressive in offering competing export credit deals for
new satellite operators.
“Since 2010, Ex-Im has financed 16 satellite projects worth $4
billion, supporting tens of thousands of U.S. jobs. Satellites
had been Ex-Im’s fastest-growing category of financial activity,
expanding from about $50 million annually in 2007-2009 to more
than $1 billion annually in the last three years. This activity
has generated a net profit for the Ex-Im bank, returning funds
to U.S. taxpayers.
Our industry can dominate the market if Congress ensures a level
playing field with European satellite manufacturers, all of
which have access to foreign ECA support. Congress must
reauthorize Ex-Im as quickly as possible.”
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