Economy
Related: About this forumGE may ship $10 billion in work overseas as U.S. trade bank languishes
Source: Reuters
GE may ship $10 billion in work overseas as U.S. trade bank languishes
WASHINGTON | BY DAVID LAWDER
General Electric Co is taking steps to shift some U.S. manufacturing work overseas now that the U.S. Export-Import Bank will be shuttered at least until September, the industrial giant's global operations boss told Reuters on Thursday.
GE Vice Chairman John Rice said the conglomerate is bidding on over $10 billion worth of projects that require support from an export credit agency (ECA) like Ex-Im.
With Ex-Im unable to extend new loans or guarantees thanks to an effort by congressional Republicans to shut it down, GE is arranging with ECAs in other countries to finance the deals involved, with much of the production going to GE plants in those foreign locations. The prospective government partners include Canada, the United Kingdom, France, Germany, China and Hungary, he said.
"We're submitting the tenders now. So we are identifying where we'll bid this and the ECA support that comes with it, and it's not in the United States," Rice told Reuters in a telephone interview from Atlanta
Ex-Im has been unable to consider any new financing requests since Congress allowed the bank's charter to expire on June 30.
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Read more: http://www.reuters.com/article/2015/07/30/us-usa-eximbank-general-electric-idUSKCN0Q42J920150730
Ed Suspicious
(8,879 posts)realized advantages provided by American policy and American tax benefits, then you owe it to us a return on our investment in you. You can leave, but you're physical infrastructure stays.
whathehell
(29,111 posts)hollysmom
(5,946 posts)I never would have ought in, but they bought the company I originally invested in. sounds like time to pull that money out and take the tax hit.
PoliticAverse
(26,366 posts)GE just doesn't want to risk their own profits on the deals. Why should they when they
can privatize the profit and socialize any losses?
boatsnhose
(40 posts)I heard Boeing was planning on doing the same. Democrats better fight harder to reauthorization the export-import bank, and they better do it fast!
golfguru
(4,987 posts)Instead our government should fight for leveling the field on foreign trade. If Japan government wants to finance purchases of Japanese goods by foreigners, that is not fair trade. We must then impose tariff on Japanese goods for the same amount as the government of Japan subsidies.