FTW pick: Uncertainty threatens US-Africa trade

US political leaders are lobbying to reauthorise the charter for the Export-Import Bank of the United States (Ex-Im) – which expired on July 1 - amid concerns that the country’s efforts to deepen trade ties with Africa could be seriously impacted.

The Ex-Im charter helps finance the foreign purchases of US goods for private businesses and supports major US companies such as Boeing, Caterpillar and General Electric. It was opposed by conservative lawmakers who labelled it as “corporate welfare”.

Senior international adviser: Africa for US corporate law firm Covington & Burling LLP, Witney Schneidman, wrote on the company’s CovAfrica blog: “If Ex-Im is not reauthorised, US efforts to deepen commercial ties to Africa would be significantly impeded. Not only would this put US companies at a commercial disadvantage to companies from the European Union, China, Russia, India and elsewhere, it would impact negatively on the contribution that many American companies make to economic development on the continent through job creation, technology transfers and skills development.”

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