153 all borrowings by ex im bank to finance its

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153 All borrowings by Ex-Im Bank to finance its operations are fully guaranteed by the U.S. Government. Ex-Im Bank's mandate is to supplement, not compete with, the private sector. 154 3. Ex-Im Bank grants support only to the parts of an export transaction that meet local-content requirements. To be eligible for Ex-Im Bank financing, goods and services in a U.S. supply contract must be shipped from the United States. For transactions with repayment periods of up to 180 days, Ex-Im Bank normally requires that at least 50% of the value of the transaction be of U.S. origin. For transactions with medium-term and long-term repayment periods, the total level of support for a supply contract will be the lesser of: 85% of the value of all eligible goods and services, or 100% of the U.S. content in all eligible goods and services in the contract. 4. In addition, to be eligible for Ex-Im Bank loans and long-term guarantee financing, goods must be shipped aboard U.S. flagged ships. Further, U.S. insurers should be given a "non- discriminatory opportunity" to bid for insurance on all shipments financed by Ex-Im Bank. 5. In FY 2003, Ex-Im Bank authorized a total of US$10.5 billion in support for its export activities (Table III.9), slightly more than the previous year but still below the average recorded since 1996 (US$11.1 billion). Support in FY 2003 was in the form of loans (US$58 million), guarantees (US$7.8 billion), and export credit insurance (US$2.7 billion). This supported 2,703 U.S. export sales and US$13.8 billion in U.S exports world-wide. 155 In FY 2003, more than US$4.6 billion was used to finance the export of 74 U.S.-manufactured, large commercial aircraft. Small business benefited from 149 This section reviews export finance, insurance, or guarantee mechanisms operated by the Federal Government. Those specifically targeting agricultural exports are discussed in Chapter IV(2). 150 Export-Import Bank of the United States (2003). 151 Annex I, Illustrative List of Export Subsidies, item (k). 152 WTO document G/SCM/N/71/USA, 2 July 2002. 153 These programmes are described in the Ex-Im Bank's online information at: http://www.exim.gov. 154 Title 12, Export-Import Bank of the United States, (12USC635).
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WT/TPR/S/126 Trade Policy Review Page 69 about US$2 billion in FY 2003, approximately 20% of total authorizations. The largest export markets were, in decreasing order of importance, Mexico, China, Brazil, and Turkey. 6. Every year, Ex-Im Bank also receives an appropriation for its programme budget (the "subsidy" or Program Budget Authority), which is used as a reserve to cover both the possible losses of providing new direct loans, guarantees and insurance, and the associated administrative costs (Table III.9); if the amount is not spent, it is rolled over to the next year's appropriation. As expected losses have decreased in recent years, the Program Budget Authority has declined to an estimated US$334 million in FY 2003. The budget request for FY 2004 was announced as "zero", also because unused funds from the four previous fiscal years were expected to suffice to meet possible losses.
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