is used to offer specific terms to match
such an offer.
‘‘(III) The Tied Aid Credit Fund
will be used to enable a competitive
United States exporter to pursue fur-
ther market opportunities made pos-
sible by the use of the Fund.
‘‘(IV) Each use of the Tied Aid
Credit Fund will be in accordance
with the Arrangement unless a breach
of the Arrangement has been committed
by a foreign export credit agency.
‘‘(V) The Tied Aid Credit Fund
will be used to defend potential sales
by United States companies to a
project that is environmentally sound.
‘‘(VI) The Tied Aid Credit Fund
will be used to preemptively counter
potential foreign tied aid offers without
triggering foreign tied aid use.
‘‘(ii) LIMITATION.—The process and
standards referred to in subparagraph (A)
shall not result in the Secretary having the
authority to veto a specific deal.
‘‘(C) INITIAL REPORT.—As soon as is prac-
ticable but not later than 6 months after the date
of the enactment of this paragraph, the Secretary
shall submit to the Committee on Financial
Services of the House of Representatives and the
Committee on Banking, Housing, and Urban Af-
fairs of the Senate a report on the process and
standards developed pursuant to subparagraph
(A).
‘‘(D) 
TRANSITIONAL
STANDARDS.—The
standards set forth in subparagraph (B)(i) shall
govern the use of the Tied Aid Credit Fund until
the report required by subparagraph (C) is sub-
mitted.
‘‘(E) UPDATE AND REVISION; REPORTS.—
The Secretary should update and revise, as need-
ed, the process and standards developed pursuant
to subparagraph (A), and, on doing so, shall sub-
mit to the Committee on Financial Services of
the House of Representatives and the Committee
on Banking, Housing, and Urban Affairs of the
Senate a report on the process and standards so
updated and revised.’’.
(b) RECONSIDERATION OF BOARD DECISIONS ON USE
OF FUND.—Section 10(b) of such Act (12 U.S.C. 635i–3(b))
is further amended by adding at the end the following:
‘‘(6) RECONSIDERATION OF DECISIONS.—
‘‘(A) IN GENERAL.—Taking into consider-
ation the time sensitivity of transactions, the
Board of Directors of the Bank shall expedi-
tiously reconsider a decision of the Board to
deny an application of the use of the Tied Aid
Credit Fund if the applicant submits the request
for reconsideration within 3 months of the de-
nial.
‘‘(B) PROCEDURAL
RULES.—In any such
reconsideration, the applicant may, but shall not
be required to, provide new information on the
application.’’.
SEC. 10. EXPANSION OF AUTHORITY TO USE TIED AID
CREDIT FUND.
(a) UNTIED AID.—
(1) NEGOTIATIONS.—The Secretary of the Treas-
ury shall seek to negotiate an OECD Arrangement on
Untied Aid. In the negotiations, the Secretary shall
seek agreement on subjecting untied aid to the rules
governing the Arrangement, including the rules gov-
erning disclosure.
(2) REPORT TO THE CONGRESS.—Within 1 year
after the date of the enactment of this Act, the Sec-
retary of the Treasury shall submit to the Committee
on Financial Services of the House of Representatives
and the Committee on Banking, Housing, and Urban
Affairs of the Senate a report on the successes, fail-
ures, and obstacles in reaching the agreement de-
scribed in paragraph (1).
(b) MARKET WINDOWS.—
(1) NEGOTIATIONS.—The Secretary of the Treas-
ury shall seek to negotiate an OECD Arrangement on
Market Windows. In the negotiations, the Secretary
shall seek agreement on subjecting market windows to
the rules governing the Arrangement, including the
rules governing disclosure.
(2) REPORT TO THE CONGRESS.—Within 2 years
after the date of the enactment of this Act, the Sec-
retary of the Treasury shall submit to the Committee
on Financial Services of the House of Representatives
and the Committee on Banking, Housing, and Urban
Affairs of the Senate a report on the successes, fail-
ures, and obstacles in reaching the agreement de-
scribed in paragraph (1).
(c) USE OF TIED AID CREDIT FUND TO COMBAT UN-
TIED AID AND MARKET WINDOWS.—Section 10 of the Ex-
port-Import Bank Act of 1945 (12 U.S.C. 635i–3) is
amended—
(1) in subsection (a)—
(A) in paragraph (1), by inserting ‘‘, and
market windows used by’’ before ‘‘other coun-
tries’’;
(B) in paragraph (4), by striking ‘‘and’’ at
the end;
(C) in paragraph (5), by inserting ‘‘, or
market windows,’’ before ‘‘for commercial’’ the
1st and 3rd places it appears; and
(D) by redesignating paragraph (5) as
paragraph (6) as inserting after paragraph (4)
the following:
‘‘(5) the Bank has, at a minimum, the following
two tasks:
‘‘(A)(i) First, the Bank should match, and
even overmatch, foreign export credit agencies
when they engage in tied aid outside the confines
of the Arrangement and when they exploit loop-
holes, such as market windows and untied aid;
‘‘(ii) such matching and overmatching is
needed to provide the United States with leverage
in efforts at the OECD to reduce the overall level
of export subsidies;
‘‘(iii) only through matching or bettering
foreign export credit offers can the Bank buttress
United States negotiators in their efforts to bring
these loopholes within the disciplines of the Ar-
rangement; and
‘‘(iv) in order to bring market windows
within the discipline of the Arrangement, the
Bank should sometimes initiate highly competi-
tive financial support when the Bank learns that
foreign market window support may be part of
a transaction; and
‘‘(B) Second, the Bank should support
United States exporters when the exporters face
foreign competition that is consistent with the
letter and spirit of the Arrangement and the
Subsidies Code of the World Trade Organization,
but which nonetheless is more generous than the
terms available from the private financial mar-
ket; and’’; and
(2) in subsection (b)(1)—
(A) in subparagraph (A), by inserting ‘‘and
market windows used’’ after ‘‘extended’’; and
(B) in subparagraph (B)(i), by inserting
‘‘or market windows’’ after ‘‘untied aid credits’’.
(d) DEFINITION OF MARKET WINDOW.—Section 10(h)
of such Act (12 U.S.C. 635i–3(h)) is amended by adding
at the end the following:
‘‘(7) MARKET WINDOW.—The term ‘market win-
dow’ means the provision of export financing through
an institution (or a part of an institution) that
claims to operate on a commercial basis while bene-
fiting directly or indirectly from some level of govern-
ment support.’’.
SEC. 11. RENAMING OF TIED AID CREDIT PROGRAM AND
FUND AS EXPORT COMPETITIVENESS PRO-
GRAM AND FUND.
Section 10 of the Export-Import Bank Act of 1945 (12
U.S.C. 635i–3) is further amended—
(1) by striking all that precedes paragraph (1)
of subsection (a) and inserting the following:
‘‘SEC. 10. EXPORT COMPETITIVENESS FUND.
‘‘(a) FINDINGS.—The Congress finds that—’’;
(2) in subsection (a)(6) (as so redesignated by
section 9(c)(1)(D) of this Act), by striking ‘‘tied aid
program’’ and inserting ‘‘export competitiveness pro-
gram’’;
(3) in the heading of subsection (b), by striking
‘‘TIED AID CREDIT’’ and inserting ‘‘EXPORT COM-
PETITIVENESS’’;
(4) in subsection (b)(1)—
(A) by striking ‘‘tied aid credit program’’
and inserting ‘‘export competitiveness program’’;
and
(B) by striking ‘‘Tied Aid Credit fund’’ and
inserting ‘‘Export Competitiveness Fund’’;
(5) in subsection (b)(2), by striking ‘‘tied aid
credit program’’ and inserting ‘‘export competitive-
ness program’’;
(6) in subsection (b)(3)—
(A) by striking ‘‘tied aid credit program’’
and inserting ‘‘export competitiveness program’’;
and
(B) by striking ‘‘Tied Aid Credit Fund’’
and inserting ‘‘Export Competitiveness Fund’’;
(7) in subsection (b)(5) (as added by section
9(a)(2) of this Act), by striking ‘‘Tied Aid Credit
Fund’’ each place it appears and inserting ‘‘Export
Competitiveness Fund’’;
(8) in subsection (b)(6) (as added by section 9(b)
of this Act), by striking ‘‘Tied Aid Credit Fund’’ and
inserting ‘‘Export Competitiveness Fund’’;
(9) in subsection (c)—
(A) in the subsection heading, by striking
‘‘TIED AID CREDIT’’ and inserting ‘‘EXPORT
COMPETITIVENESS’’; and
(B) in paragraph (1), by striking ‘‘Tied
Aid Credit’’ and inserting ‘‘Export Competitive-
ness’’;
(10) in subsection (d), by striking ‘‘tied aid cred-
it’’ and inserting ‘‘export competitiveness’’; and
(11) in subsection (g)(2)(C), by striking ‘‘Tied
Aid Credit’’ and inserting ‘‘Export Competitiveness’’.
SEC. 12. ANNUAL COMPETITIVENESS REPORT.
(a) TIMING.—
(1) IN GENERAL.—Section 2(b)(1)(A) of the Ex-
port-Import 
Bank 
Act 
of 
1945 
(12 
U.S.C.
635(b)(1)(A)) is amended in the 4th sentence by strik-
ing ‘‘on an annual basis’’ and inserting ‘‘on June 30
of each year’’.
(2) APPLICABILITY.—The amendment made by
paragraph (1) shall apply to reports for calendar
years after calendar year 2000.
(b) ADDITIONAL MATTERS TO BE ADDRESSED.—Sec-
tion 2(b)(1)(A) of such Act (12 U.S.C. 635(b)(1)(A)) is
amended by adding at the end the following: ‘‘The Bank
shall include in the annual report a description of the vol-
ume of financing provided by each foreign export credit
agency, and a description of all Bank transactions which
shall be classified according to their principal purpose, such
as to correct a market failure or to provide matching sup-
port.’’.
(c) NUMBER
OF SMALL BUSINESS SUPPLIERS
OF
BANK USERS.—Section 2(b)(1)(A) of such Act (12 U.S.C.
635(b)(1)(A)) is further amended by adding at the end the
following: ‘‘The Bank shall estimate on the basis of an an-
nual survey or tabulation the number of entities that are
suppliers of users of the Bank and that are small business
concerns (as defined under section 3 of the Small Business
Act) located in the United States, and shall include the esti-
mate in the annual report.’’.
(d) OUTREACH TO BUSINESSES OWNED BY SOCIALLY
DISADVANTAGED INDIVIDUALS
OR
BY WOMEN.—Section
2(b)(1)(A) of such Act (12 U.S.C. 635(b)(1)(A)) is further
amended by adding at the end the following: ‘‘The Bank
shall include in the annual report a description of outreach
efforts made by the Bank to any business not less than 51
percent of which is directly and unconditionally owned by
1 or more socially disadvantaged individuals (as defined
in section 8(a)(5) of the Small Business Act) or women,
and any data on the results of such efforts.’’.
SEC. 13. RENEWABLE ENERGY SOURCES.
(a) PROMOTION.—Section 2(b)(1) of the Export-Im-
port Bank Act of 1945 (12 U.S.C. 635(b)(1)), as amended
by section 8(b) of this Act, is amended by adding at the
end the following:
‘‘(K) The Bank shall promote the export of goods and
services related to renewable energy sources.’’.
(b) DESCRIPTION OF EFFORTS TO BE INCLUDED IN
ANNUAL COMPETITIVENESS REPORT.—Section 2(b)(1)(A)
of such Act (12 U.S.C. 635(b)(1)(A)) is further amended
by adding at the end the following: ‘‘The Bank shall include
in the annual report a description of the efforts undertaken
under subparagraph (K).’’.
SEC. 14. GAO REPORTS.
(a) POTENTIAL OF WTO TO REMEDY UNTIED AID AND
MARKET WINDOWS.—Within 1 year after the date of the
enactment of this Act, the Comptroller General of the United
States shall submit to the Committee on Financial Services
of the House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the Senate a re-
port that examines—
(1) whether a case could be brought by the
United States in the World Trade Organization seek-
ing relief against untied aid and market windows,
and if so, the kinds of relief that would be available
if the United States were to prevail in such a case;
and
(2) the scope of penalty tariffs that the United
States could impose against imports from a country
that uses untied aid or market windows.
(b) COMPARATIVE RESERVE PRACTICES OF EXPORT
CREDIT AGENCIES AND PRIVATE BANKS.—Within 1 year
after the date of the enactment of this Act, the Comptroller
General of the United States shall submit to the Committee
on Financial Services of the House of Representatives and
the Committee on Banking, Housing, and Urban Affairs
of the Senate a report that examines the reserve ratios of
the Export-Import Bank of the United States as compared
with the reserve practices of private banks and foreign ex-
port credit agencies.
SEC. 15. HUMAN RIGHTS.
Section 2(b)(1)(B) of the Export-Import Bank Act of
1945 (12 U.S.C. 635(b)(1)(B)) is amended by inserting ‘‘(as
provided in the Universal Declaration of Human Rights
adopted by the United Nations General Assembly on Decem-
ber 10, 1948)’’ after ‘‘human rights’’.
SEC. 16. STEEL.
(a) REEVALUATION.—The Export-Import Bank of the
United States shall re-assess the effects of the approval by
the Bank of an $18,000,000 medium-term guarantee to sup-
port the sale of computer software, control systems, and
main drive power supplies to Benxi Iron & Steel Company,
in Benxi, Liaoning, China, for the purpose of evaluating
whether the adverse impact test of the Bank sufficiently
takes account of the interests of United States industries.
(b) REPORT TO THE CONGRESS.—Within 1 year after
the date of the enactment of this Act, the Export-Import
Bank of the United States shall submit to the Committee
on Financial Services of the House of Representatives and
the Committee on Banking, Housing, and Urban Affairs
of the Senate a report on the re-assessment required by sub-
section (a).
SEC. 17. CORRECTION OF REFERENCES.
(a) Section 2(b)(1)(B) of the Export-Import Bank Act
of 1945 (12 U.S.C. 635(b)(1)(B)) is amended by striking
‘‘Banking and’’.
(b) Each of the following provisions of the Export-Im-
port Bank Act of 1945 is amended by striking ‘‘Banking,
Finance and Urban Affairs’’ and inserting ‘‘Financial
Services’’:
(1) 
Section 
2(b)(6)(D)(i)(III) 
(12 
U.S.C.
635(b)(6)(D)(i)(III)).
(2) Section 2(b)(6)(H) (12 U.S.C. 635(b)(6)(H)).
(3) 
Section 
2(b)(6)(I)(i)(II) 
(12 
U.S.C.
635(b)(6)(I)(i)(II)).
(4) 
Section 
2(b)(6)(I)(iiii) 
(12 
U.S.C.
635(b)(6)(I)(iii)).
(5) Section 10(g)(1) (12 U.S.C. 635i–3(g)(1)).
SEC. 18. AUTHORITY TO DENY APPLICATION FOR ASSIST-
ANCE BASED ON FRAUD OR CORRUPTION BY
THE APPLICANT.
Section 2 of the Export-Import Bank Act of 1945 (12
U.S.C. 635) is amended by adding at the end the following:
‘‘(f) AUTHORITY TO DENY APPLICATION FOR ASSIST-
ANCE BASED ON FRAUD OR CORRUPTION BY PARTY TO THE
TRANSACTION.—In addition to any other authority of the
Bank, the Bank may deny an application for assistance
with respect to a transaction if the Bank has substantial
credible evidence that any party to the transaction has com-
mitted an act of fraud or corruption in connection with
a transaction involving a good or service that is the same
as, or substantially similar to, a good or service the export
of which is the subject of the application.’’.
SEC. 19. CONSIDERATION OF FOREIGN COUNTRY HELPFUL-
NESS 
IN 
EFFORTS 
TO 
ERADICATE 
TER-
RORISM.
Section 2(b)(1) of the Export-Import Bank Act of 1945
(12 U.S.C. 635(b)(1)) is further amended by adding at the
end the following:
‘‘(L) It is further the policy of the United States that,
in considering whether to guarantee, insure, or extend cred-
it, or participate in the extension of credit in connection
with the purchase of any product, technical data, or infor-
mation by a national or agency of any nation, the Bank
shall take into account the extent to which the nation has
been helpful or unhelpful in efforts to eradicate terrorism.
The Bank shall consult with the Department of State to
determine the degreee to which each relevant nation has
been helpful or unhelpful in efforts to eradicate terrorism.’’.
SEC. 20. OUTSTANDING ORDERS AND PRELIMINARY INJURY
DETERMINATIONS.
Section 2(e) of the Export-Import Bank Act of 1945
(12 U.S.C. 635(e)) is amended—
(1) in paragraph (2), by striking ‘‘Paragraph
(1)’’ and inserting ‘‘Paragraphs (1) and (2)’’; and
(2) by redesignating paragraphs (2) and (3) as
paragraphs (3) and (4) and by inserting after para-
graph (1) the following:
‘‘(2) OUTSTANDING ORDERS AND PRELIMINARY
INJURY DETERMINATIONS.—
‘‘(A) ORDERS.—The Bank shall not provide
any loan or guarantee to an entity for the result-
ing production of substantially the same product
that is the subject of—
‘‘(i) a countervailing duty or anti-
dumping order under title VII of the Tariff
Act of 1930; or
‘‘(ii) a determination under title II of
the Trade Act of 1974.
‘‘(B) 
AFFIRMATIVE
DETERMINATION.—
Within 60 days after the date of the enactment
of this Act, the Bank shall establish procedures
regarding loans or guarantees provided to any
entity that is subject to a preliminary deter-
mination of a reasonable indication of material
injury to an industry under title VII of the Tar-
iff Act of 1930. The procedures shall help to en-
sure that these loans and guarantees are likely to
not result in a significant increase in imports of
substantially the same product covered by the
preliminary determination and are likely to not
have a significant adverse impact on the domes-
tic industry. The Bank shall report to the Com-
mittee on Financial Services of the House of
Representatives and the Committee on Banking,
Housing, and Urban Affairs of the Senate on the
implementation of these procedures.
‘‘(C) COMMENT PERIOD.—The Bank shall
establish procedures under which the Bank shall
notify interested parties and provide a comment
period with regard to loans or guarantees re-
viewed pursuant to subparagraph (B).’’.
SEC. 21. SENSE OF THE CONGRESS RELATING TO RENEW-
ABLE ENERGY TARGETS.
(a) ALLOCATION
OF ASSISTANCE AMONG ENERGY
PROJECTS.—It is the sense of the Congress that, of the total
amount available to the Export-Import Bank of the United
States for the extension of credit for transactions related
to energy projects, the Bank should, not later than the be-
ginning of fiscal year 2006, use—
(1) not more than 95 percent for transactions re-
lated to fossil fuel projects; and
(2) not less than 5 percent for transactions re-
lated to renewable energy and energy efficiency
projects.
(b) DEFINITION OF RENEWABLE ENERGY.—In this
section, the term ‘‘renewable energy’’ means projects related
to solar, wind, biomass, fuel cell, landfill gas, or geothermal
energy sources.
Union Calendar No. 178
107TH CONGRESS
1ST SESSION
H. R. 2871
[Report No. 107–292]
A BILL
To reauthorize the Export-Import Bank of the
United States, and for other purposes.
NOVEMBER 15, 2001
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union,
and ordered to be printed