1. U.S. Code
  2. title 12
  3. chapter 6A
  4. subchapter III
  5. § 635q

Collapse to view only § 635q. Establishment of tied aid credit program in United States Export-Import Bank

§ 635o. Congressional statement of purpose
The purpose of this subchapter is—
(1) to expand employment and economic growth in the United States by expanding United States exports to the markets of the developing world;
(2) to stimulate the economic development of countries in the developing world by improving their access to credit for the importation of United States products and services for developmental purposes;
(3) to neutralize the predatory financing engaged in by many nations whose exports compete with United States exports, and thereby restore export competition to a market basis; and
(4) to encourage foreign governments to enter into effective and comprehensive agreements with the United States to end the use of tied aid credits for exports, and to limit and govern the use of export credit subsidies generally.
(Pub. L. 98–181, title I [title VI, § 642], Nov. 30, 1983, 97 Stat. 1263.)

CITE AS: 12 USC 635o

§ 635p. Presidential mandate to negotiate; objectives
The President shall vigorously pursue negotiations to limit and set rules for the use of tied aid for exports. The negotiating objectives of the United States should include reaching agreements—
(1) to define the various forms of tied aid credit, particularly mixed credits under the Arrangement on Guidelines for Officially Supported Export Credits established through the Organization for Economic Cooperation and Development (hereinafter in this subchapter referred to as the “Arrangement”);
(2) to phase out the use of government-mixed credits by a date certain;
(3) to set rules governing the use of public-private cofinancing, or other forms of mixed financing, which may have the same result as government-mixed credits of drawing on concessional development assistance to produce subsidized export financing;
(4) to raise the threshold for notification of the use of tied aid credit to a 50 per centum level of concessionality;
(5) to improve notification procedures so that advance notification must be given on all uses of tied aid credit; and
(6) to prohibit the use of tied aid credit for production facilities for goods which are in structural oversupply in the world.
(Pub. L. 98–181, title I [title VI, § 643], Nov. 30, 1983, 97 Stat. 1263.)

CITE AS: 12 USC 635p

§ 635q. Establishment of tied aid credit program in United States Export-Import Bank
(a) Establishment and elements of program; cooperation with Trade and Development Agency and private institutions and entities
(1) The Chairman of the Export-Import Bank of the United States shall establish, within the Export-Import Bank of the United States, a program of tied aid credits for United States exports.
(2) The program shall be carried out in cooperation with the Trade and Development Agency and with private financial institutions or entities, as appropriate.
(3) The program may include—
(A) the combined use of the credits, loans, or guarantees offered by the Export-Import Bank of the United States with concessional financing or grants made available under section 635r(d) of this title, by methods including the blending of the financing of, or parallel financing by, the Bank and the Trade and Development Agency; and
(B) the combined use of credits, loans, or guarantees offered by the Bank, with financing offered by private financial institutions or entities, by methods including the blending of the financing of, or parallel financing by, the Bank and private institutions or entities.
(b) Purpose of program
(c) Fund
(d) Availability of concessional financing or grants
(Pub. L. 98–181, title I [title VI, § 644], Nov. 30, 1983, 97 Stat. 1264; Pub. L. 100–418, title II, § 2204(c)(1)(A), Aug. 23, 1988, 102 Stat. 1330; Pub. L. 102–549, title II, § 202(c)(1), Oct. 28, 1992, 106 Stat. 3658.)

CITE AS: 12 USC 635q

§ 635r. Establishment of tied aid credit program administered by Trade and Development Agency
(a) Establishment and elements of program
The Director of the Trade and Development Agency shall carry out a program of tied aid credits for United States exports. The program shall be carried out in cooperation with the Export-Import Bank of the United States and with private financial institutions or entities, as appropriate. The program may include—
(1) the combined use of the credits, loans, or guarantees offered by the Bank with concessional financing or grants made available under subsection (d), by methods including the blending of the financing of, or parallel financing by, the Bank and the Trade and Development Agency; and
(2) the combination of concessional financing or grants made available under subsection (d) with financing offered by private financial institutions or entities, by methods including the blending of the financing of, or parallel financing by, the Trade and Development Agency and private institutions or entities.
(b) Combination of funds with financing by Export-Import Bank or private commercial financing
(c) Limitation on use of Agency funds; authorization for establishment of fund
(1) Funds which are used to carry out a tied aid credit program authorized by subsections (a) and (b) shall be offered only to finance United States exports which can reasonably be expected to contribute to the advancement of the development objectives of the importing country or countries, and shall be consistent with the economic, security, and political criteria used to establish country allocations of Economic Support Funds.
(2) The Director of the Trade and Development Agency is authorized to establish a fund, as necessary, for carrying out a tied aid credit financing program as described in this section.
(d) Use of Economic Support Funds
(Pub. L. 98–181, title I [title VI, § 645], Nov. 30, 1983, 97 Stat. 1264; Pub. L. 100–418, title II, § 2204(c)(1)(B), Aug. 23, 1988, 102 Stat. 1330; Pub. L. 102–549, title II, § 202(c), Oct. 28, 1992, 106 Stat. 3658.)

CITE AS: 12 USC 635r

§ 635s. Implementation
(a)
(1) The National Advisory Council on International Monetary and Financial Policies shall coordinate the implementation of the tied aid credit programs authorized by sections 635q and 635r of this title.
(2) No financing may be approved under the tied aid credit programs authorized by section 635q or 635r of this title without the unanimous consent of the members of the National Advisory Council on International Monetary and Financial Policies.
(b) The Trade and Development Agency shall be represented at any meetings of the National Advisory Council on International Monetary and Financial Policies for discussion of tied aid credit matters, and the representative of the Trade and Development Agency at any such meeting shall have the right to vote on any decisions of the Advisory Council relating to tied aid credit matters.
(Pub. L. 98–181, title I [title VI, § 646], Nov. 30, 1983, 97 Stat. 1265; Pub. L. 100–418, title II, § 2204(c)(2), Aug. 23, 1988, 102 Stat. 1331; Pub. L. 102–549, title II, § 202(c)(1), Oct. 28, 1992, 106 Stat. 3658.)

CITE AS: 12 USC 635s

§ 635t. DefinitionsFor purposes of this subchapter—
(1) the term “tied aid credit” means credit—
(A) which is provided for development aid purposes;
(B) which is tied to the purchase of exports from the country granting the credit;
(C) which is financed either exclusively from public funds, or, as a mixed credit, partly from public and partly from private funds; and
(D) which has a grant element, as defined by the Development Assistance Committee of the Organization for Economic Cooperation and Development, greater than zero percent;
(2) the term “government-mixed credits” means the combined use of credits, insurance, and guarantees offered by the Export-Import Bank of the United States with concessional financing or grants offered by the Agency for International Development to finance exports;
(3) the term “public-private cofinancing” means the combined use of either official development assistance or official export credit with private commercial credit to finance exports;
(4) the term “blending of financings” means the use of various combinations of official development assistance, official export credit, and private commercial credit, integrated into a single package with a single set of financial terms, to finance exports;
(5) the term “parallel financing” means the related use of various combinations of separate lines of official development assistance, official export credits, and private commercial credit, not combined into a single package with a single set of financial terms, to finance exports; and
(6) the term “Bank” means the Export-Import Bank of the United States.
(Pub. L. 98–181, title I [title VI, § 647], Nov. 30, 1983, 97 Stat. 1265.)

CITE AS: 12 USC 635t