Still Fighting for U.S. Exports: A Message from Vice President Kathryn Karol

June 30, 2015

Caterpillar Vice President Kathryn Karol with responsibility for Global Government & Corporate Affairs talks about the importance of the U.S. Export-Import Bank to our customers.

In on-going efforts to reauthorize and extend the U.S. Export-Import (Ex-Im) Bank’s charter, Caterpillar has been fully engaged with members of Congress for the past year. From hosting lawmakers at facilities and executive participation in business rallies, to employees sending over 27,000 letters to congress, the reauthorization of the Bank is a top priority to Caterpillar.

Caterpillar views the Ex-Im Bank as an important tool to support customers outside of the United States, complementing Caterpillar Financial Services. In one recent example, facing direct competition from export credit agencies from Asia and Europe, U.S. Ex-Im Bank worked with Caterpillar to provide financing to an important customer that would have otherwise purchased equipment from Caterpillar’s competitors. That sale resulted in the purchase of approximately 25 Caterpillar machines so far with the potential order of another 75 machines that have been and will be manufactured and exported from facilities across the United States.

Unfortunately, the Bank’s charter to operate will expire on June 30, 2015, before Congress was able to take up legislation to pass a long-term authorization bill. Beginning on July 1, the Bank will have restricted operations. Fortunately Caterpillar customers whose financing had been fully approved will continue as if nothing changed. However, the Bank directors and staff will not be permitted to process new credit applications. During this time, Caterpillar will continue to work on pending customer transactions that are working toward final application so that they can continue their application as soon as the Bank is renewed.

We will continue our efforts until Congress passes, and the president signs, legislation to reauthorize the Bank. The majorities of both the U.S. House of Representatives and the U.S. Senate support legislation to renew the charter, in addition to U.S. House Speaker John Boehner and U.S. Senate Majority Leader Mitch McConnell committing publicly to allow votes on legislation as soon as they are ready for floor action. In fact, the Senate conducted a test vote on June 10 – and 65 Senators voted in favor of the Bank’s renewal.

While we are encouraged by the likelihood of success, we need your help to ensure that Congress follows through. For more information on Caterpillar’s U.S. Ex-Im Bank reauthorization efforts, visit gov.cat.com. To make your voice heard, please write a letter or call your members of Congress today!

Caterpillar Stands Up for Its Customers and Exports

Over the past five years, Caterpillar exports totaled nearly $88 billion. Reauthorizing the Ex-Im Bank is essential to maintaining Caterpillar’s access to the 95 percent of the world’s consumers that live overseas.

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