STATE DEPARTMENT FACT SHEET ON U.S. EXPORT OF MILITARY UNMANNED AERIAL SYSTEMS

FROM:  U.S. STATE DEPARTMENT
U.S. Export Policy for Military Unmanned Aerial Systems
Fact Sheet
Office of the Spokesperson
Washington, DC
February 17, 2015

The United States is the world’s technological leader in the development and deployment of military Unmanned Aerial Systems (UAS). As other nations begin to employ military UAS more regularly and as the nascent commercial UAS market emerges, the United States has a responsibility to ensure that sales, transfers, and subsequent use of all U.S.-origin UAS are responsible and consistent with U.S. national security and foreign policy interests, including economic security, as well as with U.S. values and international standards.

As a result, the United States has established a new policy designed specifically for U.S.-origin military and commercial UAS. This new policy, governing the international sale, transfer and subsequent use of U.S.-origin military UAS, supplements and builds upon the U.S. Conventional Arms Transfer Policy and is consistent with the requirements of the Arms Export Control Act and the Foreign Assistance Act which govern all U.S. military transfers. The new policy also governs the international sale, transfer and subsequent use of U.S.-origin commercial UAS, supplementing and building upon the Export Administration Regulations which govern all U.S. commercial transfers.

The new export policy is part of a broader United States UAS policy review which includes plans to work with other countries to shape international standards for the sale, transfer, and subsequent use of military UAS.

Enhanced Controls on the Export of U.S.-Origin Military UASs

The United States is committed to stringent standards for the sale, transfer, and subsequent use of U.S.-origin military UAS. The United States’ new UAS export policy establishes the standards by which the United States will assess, on a case-by-case basis under the U.S. Conventional Arms Transfer Policy, potential exports of military UASs, including armed systems. The new export policy puts in place stringent conditions on the sale or transfer of military UAS, including potential requirements for:

Sales and transfers of sensitive systems to be made through the government-to-government Foreign Military Sales program;
Review of potential transfers to be made through the Department of Defense Technology Security and Foreign Disclosure processes;
Each recipient nation to be required to agree to end-use assurances as a condition of sale or transfer;
End-use monitoring and potential additional security conditions to be required; and
All sales and transfers to include agreement to principles for proper use.
The new policy also maintains the United States’ long-standing commitments under the Missile Technology Control Regime (MTCR), which subjects transfers of military and commercial systems that cross the threshold of MTCR Category I (i.e., UAS that are capable of a range of at least 300 kilometers and are capable of carrying a payload of at least 500 kilograms) to a “strong presumption of denial” for export but also permits such exports on “rare occasions” that are well justified in terms of the nonproliferation and export control factors specified in the MTCR Guidelines.

Principles for Proper Use of U.S.-Origin Military UAS

As the most active user of military UAS, and as an increasing number of nations are acquiring and employing UASs to support a range of missions, the United States has an interest in ensuring that these systems are used lawfully and responsibly. Accordingly, under the new UAS export policy, the United States will require recipients of U.S.-origin military UAS to agree to the following principles guiding proper use before the United States will authorize any sales or transfers of military UASs:

Recipients are to use these systems in accordance with international law, including international humanitarian law and international human rights law, as applicable;
Armed and other advanced UAS are to be used in operations involving the use of force only when there is a lawful basis for use of force under international law, such as national self-defense;
Recipients are not to use military UAS to conduct unlawful surveillance or use unlawful force against their domestic populations; and
As appropriate, recipients shall provide UAS operators technical and doctrinal training on the use of these systems to reduce the risk of unintended injury or damage.
Enhanced Controls on the Export of U.S.-Origin Commercial UAS

The United States is equally committed to stringent standards for the sale, transfer, and subsequent use of U.S.-origin commercial UAS, to include future commercial MTCR Category I systems. All commercial UAS will be reviewed under the requirements and licensing policies described in the Export Administration Regulations.

Implications of the New Policy

The new U.S. UAS export policy provides a disciplined and rigorous framework within which the United States will exercise restraint in sales and transfers and advance its national security and foreign policy interests, which includes enhancing the operational capabilities and capacity of trusted partner nations, increasing U.S. interoperability with these partners for coalition operations, ensuring responsible use of these systems, and easing the stress on U.S. force structure for these capabilities. It also ensures appropriate participation for U.S. industry in the emerging commercial UAS market, which will contribute to the health of the U.S. industrial base, and thus to U.S. national security which includes economic security.

The United States is committed to working with other countries to adopt similar standards for the sale, transfer, and subsequent use for military UAS.

EXPORT-IMPORT BANK SUPPORTED OVER $2 BILLION MINORITY, WOMEN OWNED BUSINESS EXPORTS IN FY 2014

FROM:  U.S. EXPORT-IMPORT BANK, 
Ex-Im Bank Financing Supported over $2 Billion in Minority- and Women-Owned Business Exports in Fiscal Year 2014
Financing support helped one company reach $5 million in sales

Washington, D.C. – Today in Los Angeles, Export-Import Bank Chairman Fred P. Hochberg announced that Ex-Im Bank supported over $2 billion in minority- and women-owned business exports in fiscal year 2014 by providing financing and insurance totaling approximately $750 million over the same time period.

Since 2009, Ex-Im has authorized more loans to help grow minority- and women-owned businesses than it did over the previous two administrations combined.

“Here at Ex-Im, we’re proud of the progress we’ve made to support businesses in California and across the country, equipping them with the tools they need to succeed on the global stage,” said Hochberg. “Because when we do that, we’re building stronger, more successful communities here at home.”

These numbers reflect Ex-Im Bank’s commitment to minority- and women-owned businesses like Valley of the Sun Cosmetics, a small business based in Gardena, Calif., that has relied upon Export-Import Bank financing to expand its export reach and create jobs.

Before purchasing an Ex-Im Bank export credit insurance policy, Valley of the Sun exported only to a few countries, employed three people, and recorded annual sales of less than $500,000. The company now exports to more than 80 countries worldwide, employs over 30 people, and boasts sales of $5 million, 100 percent of which is export-related.

“The increased sales and remarkable job growth enjoyed by California small businesses like Valley of the Sun reflect Ex-Im Bank’s commitment to boosting exports and supporting jobs,” Hochberg added. “Last year alone, Ex-Im Bank supported $4.9 billion in California small-business exports, which accounts for 26 percent of the state’s total exports.”

“Before using Ex-Im Bank, we never had the money or working capital to grow and develop the company as envisioned,” said Jim Ajmal, owner of Valley of the Sun. “Since working with Ex-Im Bank, we have been able to give customers a line of credit and borrow against pending orders, which has helped us expand over the past few years.”

EXPORT-IMPORT BANK GUARANTEES LOAN FOR EXPORTING TRANSMISSION TOWERS TO CANADA

FROM:  U.S. EXPORT-IMPORT BANK 

Ex-Im Bank Guarantees $21 Million Export Loan

Transaction Supports Hundreds of U.S. Jobs in Texas

WASHINGTON, D.C. – The Export-Import Bank of the United States (Ex-Im Bank) today announced its guarantee of a $21 million revolving loan facility by Cadence Bank to Jyoti Americas LLC for the export to Canada of lattice transmission towers to be constructed by U.S. workers in Conroe, Texas.

The 220,000 square-foot Jyoti Americas manufacturing plant already employs about 159 workers. As a result of this transaction, an additional shift of skilled workers will be added to the present workforce for this export production.

“We’re pleased to support both Jyoti’s direct investment in America, and the jobs that open up when U.S. manufacturers export,” said Ex-Im Bank Chairman and President Fred P. Hochberg. “This transaction also illustrates how exporters like Jyoti Americas can get fast export credit through one of Ex-Im’s delegated-authority lenders, Cadence Bank. Ex-Im’s guarantee helped clinch the sale, and paved the way for more business and U.S. jobs.”

Jyoti Americas LLC is wholly-owned subsidiary of Jyoti Structures, Ltd., India, which directly invested $41 million to establish a state-of-the-art manufacturing plant in Conroe. The Texas employees will source U.S.-produced steel to fabricate up to 54,000 metric tons annually. Jyoti Americas’ customer in Canada requires electric transmission towers for the Labrador-Island Link LP, an element of the Lower Churchill Project which generates and distributes hydroelectric power to Canada’s Atlantic provinces. Jyoti Americas will design, manufacture, and test eleven different types of high-voltage towers weighing a total 34,000 metric tons.

“We are delighted to receive this support from Ex-Im Bank which paved the way for us to secure and smoothly execute this prestigious export to Canada,” said Ashok Goyal, Joint Managing Director at Jyoti. “With Ex-Im Bank’s guarantee support along with Cadence Bank’s working capital facilities, we look forward to many more such successes globally.”

EXPORT-IMPORT BANK SAYS U.S. EXPORTS IN MAY WERE $195.5 BILLION

FROM:  U.S. EXPORT-IMPORT BANK 
U.S. Exports Reach $195.5 Billion in May

Export-Import Bank Financing Support Helps Create American Jobs

Washington, D.C. – The United States exported $195.5 billion of goods and services in May 2014, according to data released today by the Bureau of Economic Analysis (BEA) of the U.S. Commerce Department.

“The numbers show that the world’s consumers continue to value U.S. goods and services for their quality and reliability,” said Export-Import Bank Chairman and President Fred P. Hochberg. “Given a level playing field, U.S. exporters can compete with anyone in the world, and Ex-Im Bank is proud to support them abroad as they support jobs here at home.”

Exports of goods and services over the last twelve months totaled $2.3 trillion, which is 45.7 percent above the level of exports in 2009, and have been growing at an annualized rate of 8.9 percent when compared to 2009.

During the same time period among the major export markets (i.e., markets with at least $6 billion in annual imports of U.S. goods), the countries with the largest annualized increase in U.S. goods purchases, when compared to 2009, were Panama (22.5 percent), Russia (19.6 percent), Peru (17.9 percent), Colombia (17.4 percent), Ecuador (17.3 percent), Hong Kong (17.3 percent), Argentina (16.3 percent), Nigeria (15.1 percent), Chile (14.8 percent) and Indonesia (14.6 percent).

EX-IM BANK NAMED "MULTILATERAL" OF THE YEAR BY PROJECT FINANCE INTERNATIONAL

FROM:  EXPORT-IMPORT BANK 
Project Finance International Names Ex-Im Bank “Multilateral” of the Year

 Washington, D.C. – The Export-Import Bank of the United States (Ex-Im Bank) was named 2013’s Global Multilateral of the Year by Project Finance International (PFI) in recognition of the Bank’s “game-changing” deals and its strategic portfolio expansion.

“We are very appreciative of Project Finance International’s recognition of our work on behalf of U.S. exporters and their operations abroad,” said Export-Import Bank Chairman and President Fred P. Hochberg. “In today’s hyper-competitive environment, Ex-Im Bank’s role is indispensable for responding to gaps in export financing and leveling the playing field for U.S. exporters. Supporting American jobs is at the forefront of what we do.”

PFI also listed two of Ex-Im Bank’s 2013 Middle East transactions on its “Roll of Honour,” namely, Ex-Im Bank’s direct loan to the Sadara Chemical Company for the construction of a petrochemical plant in Saudi Arabia and the Bank’s direct loan to Emirates Aluminum Company Ltd. for the expansion of a smelter complex in the U.A.E.

The Sadara transaction still ranks as Ex-Im Bank’s largest authorization in its history and supported a record 18,400 American jobs, including 2,300 small-business jobs.

U.S. EXPORT-IMPORT BANK TO FINACE EXPORT OF AIRCRAFT TO RUSSIA

Peter And Paul Fortress.  Credit:  CIA World Factbook.

FROM: U.S. EXPORT-IMPORT BANK
Ex-Im Approves more than $500 million to Finance Export of U.S. Aircraft to Russia

Washington, D.C. – The board of the Export-Import Bank of the United States (Ex-Im Bank) voted to guarantee a loan of more than $500 million provided by Apple Bank for Savings to OJSC VEB Leasing (VEBL) of Moscow for the export of a fleet of Boeing 777 aircraft to Russia to be operated by Aeroflot Russian Airlines (Aeroflot).


Boeing delivered the first of the aircraft earlier this month.

Ex-Im Bank’s financing will support approximately 3,200 U.S. jobs, according to Bank estimates derived from Departments of Commerce and Labor data and methodology.

"The transaction showcases once again the wealth of opportunities for U.S. exporters in Russia," said Ex-Im Bank Chairman and President Fred P. Hochberg. "Moreover, the aircraft sale will support thousands of high-paying American jobs and provide Aeroflot with a top-of-the-line product."

VEBL, a subsidiary and leasing arm of the state-owned Vnesheconombank Group (VEB), will lease the aircraft to Aeroflot. It is the largest leasing company in the Russian Federation both in terms of its existing lease portfolio and new business volume. In line with VEB’s mandate, VEBL aims to increase the competiveness and diversification of the Russian economy and promote investment activity in key industries. Its portfolio is diversified over a number of different sectors, including, aviation, rail, sea and river vessels, heavy machinery, and automobiles.

"Aircraft financing is one of the main business activities of Vnesheconombank," said Vnesheconombank Deputy Chairman and Member of the Board Alexander S. Ivanov. "With this transaction we are happy to step into a promising and mutually beneficial partnership with Ex-Im Bank in this field."

Aeroflot, also of Moscow, is the flag carrier and largest airline of the Russian Federation. The company, which dates back to 1923, boasts one of the youngest fleets in Europe and is a member of the SkyTeam Alliance, which was founded by Delta Air Lines, Aeroméxico, Air France, and Korean Air. The new acquisition of the aircraft will contribute to the airline’s fleet renewal and route-network expansion. Additionally, the Aeroflot aircraft will share routes and flights with other members of the SkyTeam Alliance as part of the Alliance’s codeshare agreement.

"Boeing is very pleased that Aeroflot becomes Russia’s first airline to add the 777-300ER to its fleet," said Marty Bentrott, Boeing Commercial Airplanes sales vice president for the Middle East, Russian and Central Asia. "Russia is an important and growing market for aviation and aircraft financing. Ex-Im Bank's innovative financing structuring in this transaction facilitates Aeroflot selecting U.S.-built airplanes to help it succeed, while supporting U.S. exports and sustaining good-paying, high-skilled American aviation manufacturing jobs."