Washington DC -June 20,2014, ExWorks Capital LLC, a new company dedicated to financing U.S. exports, was recently approved to be an official exporter under the Framework Agreement signed between The Export-Import Bank of the United States and the China Ministry of Finance to promote the importation of goods and services made in the U.S. Last year USD 55.6 millions were used under this framework to support the export of American aircraft and agricultural machinery to China.
Undoubtedly, China has impressed the world with the fastest-growing economy over the past 30 years. Since the country's implementation of free market reforms in 1979, its annual gross domestic product (GDP) has averaged growth rates of nearly 10%. China has also become the 2nd largest trading partner of the United States with $562 billion in total goods in 2013. With a rapidly rising economy and increasing global trading activities, China is a large and potentially huge export market for the United States. Selling more to China, which potentially generates more high paying U.S. jobs, has been one of the hottest topics since the beginning of the Obama Presidency.
Recognizing the economic relationship between the two countries, and the growing trade imbalance, The Export-Import Bank of the United States (ExIm Bank), an independent U.S. government agency, signed a Framework Agreement with the China Ministry of Finance (China MoF) in January 2005 to better promote the importation of goods and services made in the U.S. Under this framework agreement, a company in China could get up to 100% financing from a U.S. commercial bank with guarantees from the U.S. ExIm Bank, which in turn relies upon the sovereign guarantee of China. In addition, import relief in the form of waiving taxes and duties amounting to as much as 20%.
A few companies either have been successfully carrying out projects in China using this program or have been very active pursuing such opportunities in recent years. One of these companies is ExWorks Capital. ExWorks is headed by Mr. John McAdams, the former COO and Board Member of the U.S. ExIm Bank. ExWorks Capital is a recently founded lender which offers export trade financing solutions to U.S. exporters and their international buyers using ExIm Bank loan guarantees and insurance. It is worth noting that John McAdams was one of the original architects of the China Framework Agreement. ExWorks Capital is an approved exporter under this program. It is also in the process of becoming an approved lender, a unique role given the company can play either the role of lender or exporter of record depending on what is needed by the U.S. exporter or Chinese importer. ExWorks has been actively pursuing transactions in China. To learn more about ExWorks Capital and its services, please visit www.ExWorksCapital.com.
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