When the Export-Import finances a U.S. export, it creates winners and losers. The losers include the companies that didn’t get private financing because the loan went to some foreign company with an Ex-Im guarantee in hand. The losers include domestic and foreign manufacturers that compete with the subsidized exporter. And the losers also include the U.S. companies that compete with the foreign company that received the cheap financing.
Delta Airlines fits into this third category: Boeing’s foreign customers are Delta’s customers. Subsidizing Boeing exports is subsidizing Delta’s competition. Delta filed suit a few years back, trying to force Ex-Im to conduct legally-required economic impact studies on the export of jumbo jets. When Ex-Im officials began making a process for such studies, they turned to Boeing to ask how to do it.
Brody Mullins at the Wall Street Journalgot his hands on the emails. Here are some highlights from his report:
Boeing and Ex-Im officials say it’s natural that the dominant aircraft exporter in the U.S. should have input into federal rules about subsidizing aircraft. But the federal government has a standard method for taking industry input — an open rulemaking process with public comments. Ex-Im is different, it seems.
And, the Boeing-Ex-Im relationship is unique in that Ex-Im actually dedicates 40 percent of its financing to Boeing. I can’t think of another government agency that is so dedicated to serving one company.
