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The United States
Did you know?
The United States offers export credits to a number of high profile projects around the world through its official ECA, US Ex-Im Bank, as well as the Overseas Private Investment Corporation (OPIC), which behaves as an ECA. Projects are usually supported by one agency or the other, though both are involved in more comprehensive ventures such as reconstruction in Iraq. Sponsorship of certain environmentally damaging projects has prompted a Climate Lawsuit against the two agencies, organized by Friends of the Earth, Greenpeace, and several US American cities.
"Money talks. And right now, OPIC and Ex-Im’s message, which encourages US corporations and developing countries to build the infrastructure for continued reliance on fossil fuels, is talking louder than any other exhortation the US Government is making for 'meaningful participation' by developing countries under the Kyoto Protocol."
-OPIC, Ex-IM & Climate Change: Business as Usual? April 28, 1999 By the Institute for Policy Studies, Friends of the Earth, and the International Trade Information Service
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Photo Credit: Friends of the Earth
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Important Background Documents:
US Ex-Im and OPIC in Iraq:
The American government is encouraging US businesses to invest in Iraq, opening up the country to investment by private corporations. Many businesses see Iraq as an opportunity to take control of a particular market but are having trouble entering it. Private insurance companies do not want to risk rejection of foreign industry by the Iraqis and will not insure corporations looking to invest in redevelopment of Iraq. So OPIC and Ex-Im provide guarantees to businesses to invest in Iraq. However, the American Export Credit Agencies will only guarantee American businesses, strengthening the American hold on the Iraqi market. This is not the first time American ECAs have been involved in Iraq. As an ally to Saddam Hussein against Iran in the 1980s, the United States helped Iraq obtain arms, turning a blind eye to products which could be, and were, used for chemical warfare. In 1988, Dow Chemical provided Iraq with $1.5 million of pesticides with the help of Ex-Im Bank.
Ex-Im and OPIC in Iraq News:
 OPIC Board Approves $150 Million to Support Trade Bank of Iraq August 25, 2005
Iraq Wants 90 – 95% Debt Forgiveness October 4, 2004
Update on “Uncle Sam's Iraq Quagmire Fund” May 24, 2004
Ex-Im Bank's First Transaction in Postwar Iraq April 28, 2004
Ex-Im Chairman on Bank's Role in Iraq March 27, 2004
ECAs Financing Business in Iraq January 12, 2004
US OPIC and Exim Bank Financed Saddam's Iraq March 24, 2003
Climate Change Lawsuit Against US Ex-Im and OPIC:
Friends of the Earth, Greenpeace, four American cities, and several private individuals are suing US Ex-Im and OPIC for their funding of $32 billion worth of fossil fuel projects. They claim the sponsorship of these projects was illegal because they did not comply with National Environmental Policy Act (NEPA) standards which require an assessment of their impact on the US environment and global warming. The projects of interest include the Chad-Cameroon pipeline, the BTC pipeline, and the Sakhalin Energy project. Each project contributes a significant amount of CO2 to the atmosphere, contributing to global warming, and should therefore not have been sponsored by the ECAs. The Chad-Cameroon pipeline, which received funding from both ECAs, is expected to emit 445.9 million tons of CO2 over its lifetime. Sakhalin II, which received $116 million from OPIC, will result in 1129.9 tons of CO2 emissions over its lifetime. The BTC pipeline will emit 50 million tons of CO2 per year as a result of the million barrels a day of oil it is expected to transport per day. US Ex-Im bank provided support to the pipeline.
Climate Change Lawsuit News:
Climate Change Suit Against OPIC and US ExIm Advances May 23, 2005
OPIC and ExIm Bank Sued by Arcata, California November 10, 2004
Bush Government Sued Over Climate Change August 25, 2004
Export Agencies Sued Over Warming
August 27, 2002 The Washington Post
Mayor of City of Boulder, Colorado, USA, responds to Daily editorial August 26, 2002 Colorado Daily
News:
For more information, contact the ECA Watch Facilitator.
ECA Watch Campaign Member Links:
AmazonWatch, Atossa Soltani - www.amazonwatch.org
Center for International Environmental Law, Marcos Orellana - www.ciel.org
Environmental Defense, Stephanie Fried, Aaron Goldzimer, Korinna Horta, Bruce Rich, Steve Schwartzman - www.environmentaldefense.org
Friends of the Earth - US, Jon Sohn, Sara Zdeb - www.foe.org
GLOBE USA, Hilary Hoffman - www.globeusa.org
Institute for Policy Studies/ SEEN, Daphne Wysham, Nadia Martinez - www.seen.org
National Wildlife Federation (NWF), Julie Tanner - www.nwf.org
Pacific Environment, Doug Norlen - www.pacificenvironment.org
World Resources Institute, Crescencia Maurer, Navroz Dubash - www.wri.org
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