Trump reversal on Ex-Im bank applauded by Yakima area interests

April 14—YAKIMA, Wash. — President Donald Trump no longer wants to shut down the federal Export-Import Bank — news that was hailed as good for small business Thursday by 4th District U.S. Rep. Dan Newhouse, R-Sunnyside.

The bank, which provides loans and insurance for U.S. companies' international trade, has been criticized as corporate welfare by some conservative lawmakers. But Newhouse and, more recently, Trump believe it can be an essential tool for small businesses that couldn't otherwise afford the risks associated with international sales.

“This is welcome news because the Export-Import Bank provides financing for local small businesses in Central Washington, which depend on that support to compete in the global market,” Newhouse said in an emailed statement.

The bank, popularly known as the Ex-Im Bank, supported 165 exporters in Washington state between 2012 and 2016, including 114 small businesses, according to a report it published at the end of last year. That report cited Yakima company Manhasset Specialty Products as Washington's “Ex-Im success story.” The company manufactures music stands and “has relied on Ex-Im's export credit insurance to reach foreign markets like France and Germany without the risk of nonpayment by their buyers overseas,” according to the report.

Manhasset General Manager Dan Roberts was not immediately available to comment Thursday but has in the past vocally advocated for the bank. And Barry Heid, Roberts' predecessor, sang its praises in an Association of Washington Business video produced in 2014.

“The problem with us exporting without some insurance like that: It's too big of a risk for a company like ours to begin to take. … The bottom line is, if we want to grow, if we want to be competitive in this market as we go forward, we need the Export-Import Bank insurance,” Heid said in the video.

During his campaign, Trump had called the bank unnecessary and said it served as “featherbedding for politicians and others and a few companies.” He told the Bloomberg news agency, “These are companies that can do very well without it. So I don't like it. I think it's a lot of excess baggage.”

But in an interview Wednesday with the Wall Street Journal, Trump revealed a changed view of the bank.

“Actually, it's a very good thing,” he said. “And it actually makes money — it could make a lot of money.”

___

(c)2017 Yakima Herald-Republic (Yakima, Wash.)

Visit Yakima Herald-Republic (Yakima, Wash.) at www.yakima-herald.com

Distributed by Tribune Content Agency, LLC.