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Title 12, Banks and BankingRelease 119-110

§635a–5 Negotiations to End Export Credit Financing

Title 12 › CHAPTER 6A — EXPORT-IMPORT BANK OF THE UNITED STATES › SUBCHAPTER I — GENERAL PROVISIONS › § 635a–5

Last updated Sep 23, 2026|Official source

Summary

The President must start and carry out talks with major exporting countries, including OECD and non‑OECD members, to sharply cut and try to end subsidized export financing and other export subsidies within 10 years after December 4, 2015. The President must also negotiate with any country that uses a state‑sponsored entity to finance airline purchases to cut and try to end aircraft export credit financing covered by the 2007 Sector Understanding on Export Credits for Civil Aircraft (the ASU). The ASU covers heavy aircraft (capable of 300,000 pounds or more), large aircraft (over 41,000 up to 300,000 pounds), and small aircraft (41,000 pounds or less). The President must report progress to the Senate Committee on Banking, Housing, and Urban Affairs and the House Committee on Financial Services. Reports on the first talks were due 180 days after May 30, 2012 and then yearly until the President certifies all supporters have ended their programs. A plan and strategy for eliminating subsidized export financing and related support must be sent to Congress 180 days after December 4, 2015, and negotiations with non‑OECD countries must be reported starting 180 days after December 4, 2015 and annually through calendar year 2019.

Full Legal Text

Title 12, §635a–5

Banks and Banking, Source: USLM XML via OLRC

(a)In general
The President shall initiate and pursue negotiations—
(1)with other major exporting countries, including members of the Organisation for Economic Co-operation and Development (in this section referred to as the “OECD”) and non-OECD members, to substantially reduce, with the possible goal of eliminating, before the date that is 10 years after December 4, 2015,, subsidized export financing programs and other forms of export subsidies; and
(2)with all countries that finance air carrier aircraft with funds from a state-sponsored entity, to substantially reduce, with the ultimate goal of eliminating, aircraft export credit financing for all aircraft covered by the 2007 Sector Understanding on Export Credits for Civil Aircraft (in this section referred to as the “ASU”), including any modification thereof, and all of the following types of aircraft:
(A)Heavy aircraft that are capable of a takeoff weight of 300,000 pounds or more, whether or not operating at such a weight during a particular phase of flight.
(B)Large aircraft that are capable of a takeoff weight of more than 41,000 pounds, and have a maximum certificated takeoff weight of not more than 300,000 pounds.
(C)Small aircraft that have a maximum certificated takeoff weight of 41,000 pounds or less.
(b)Annual reports on progress of negotiations
Not later than 180 days after May 30, 2012, and annually thereafter, the President shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives—
(1)a report on the progress of any negotiations described in subsection (a)(1), until the President certifies in writing to the committees that all countries that support subsidized export financing programs have agreed to end the support; and
(2)a report on the progress of any negotiations described in subsection (a)(2), including the progress of any negotiations with respect to each classification of aircraft set forth in subsection (a)(2), until the President certifies in writing to the committees that all countries that support subsidized export financing programs have agreed to end the support of aircraft covered by the ASU.
(c)Report on strategy
Not later than 180 days after December 4, 2015, the President shall submit to Congress a proposal, and a strategy for achieving the proposal, that the United States Government will pursue with other major exporting countries, including OECD members and non-OECD members, to eliminate over a period of not more than 10 years subsidized export-financing programs, tied aid, export credits, and all other forms of government-supported export subsidies.
(d)Negotiations with non-OECD members
The President shall initiate and pursue negotiations with countries that are not OECD members to bring those countries into a multilateral agreement establishing rules and limitations on officially supported export credits.
(e)Annual reports on progress of negotiations
Not later than 180 days after December 4, 2015, and annually thereafter through calendar year 2019, the President shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a report on the progress of any negotiations described in subsection (d).

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Codification Section was enacted as part of the Export-Import Bank Reauthorization Act of 2012, and not as part of the Export-Import Bank Act of 1945 which comprises this subchapter.

Amendments

2015—Subsec. (a). Pub. L. 114–94, § 55002(a)(1)(A), in introductory provisions, substituted “President” for “Secretary of the Treasury (in this section referred to as the ‘Secretary’)”. Subsec. (a)(1). Pub. L. 114–94, § 55002(a)(1)(B), substituted “(in this section referred to as the ‘OECD’)” for “(OECD)” and “possible goal of eliminating, before the date that is 10 years after December 4, 2015,” for “ultimate goal of eliminating”. Subsec. (b). Pub. L. 114–94, § 55002(a)(2), substituted “President” for “Secretary” wherever appearing. Subsecs. (c) to (e). Pub. L. 114–94, § 55002(a)(3), added subsecs. (c) to (e).

Statutory Notes and Related Subsidiaries

Effective Date

of 2015 Amendment Pub. L. 114–94, div. E, title LV, § 55002(b), Dec. 4, 2015, 129 Stat. 1770, provided that: “The

Amendments

made by paragraphs (1) and (2) of subsection (a) [amending this section] shall apply with respect to reports required to be submitted under section 11(b) of the Export-Import Bank Reauthorization Act of 2012 (12 U.S.C. 635a–5(b)) after the date of the enactment of this Act [Dec. 4, 2015].”

Executive Documents

Delegation of Authority Under section 11 of the Export-Import Bank Reauthorization Act of 2012 Memorandum of President of the United States, Mar. 11, 2016, 81 F.R. 14367, provided: Memorandum for the Secretary of the Treasury By the authority vested in me as President by the Constitution and the laws of the United States of America, including section 301 of title 3, United States Code, I hereby delegate to you the functions and authorities vested in the President by section 11 of the Export-Import Bank Reauthorization Act of 2012, as amended. In exercising functions and authority delegated by this memorandum, you shall ensure that all actions taken by you are consistent with the President’s constitutional authority to (A) conduct the foreign affairs of the United States, including the commencement, conduct, and termination of negotiations with foreign countries and international organizations; and (B) withhold information the disclosure of which could impair the foreign relations, the national security, the deliberative processes of the Executive, or the performance of the Executive’s constitutional duties. You are authorized and directed to publish this memorandum in the Federal Register. Barack Obama.

Reference

Citations & Metadata

Citation

12 U.S.C. § 635a–5

Title 12, Banks and Banking

Last Updated

Sep 23, 2026

Release point: 119-110