Fair Export Financing Act of 1986

Fair Export Financing Act of 1986 - Amends the Export-Import Bank Act of 1945 to direct the Secretary of the Treasury (the Secretary) to establish within the Department of the Treasury a program of tied aid credits for U.S. exports in order to facilitate the negotiation of a comprehensive international arrangement restricting the use of tied aid and partially untied aid credits for commercial purposes. Authorizes using such tied aid credit facility to respond to predatory financing activities by other countries.

Requires the tied aid credit program to be carried out by the Secretary in cooperation with the Export-Import Bank or with private financial institutions or entities.

Prohibits approval of any financing under programs authorized by this Act without the concurrence of the National Advisory Council on International Monetary and Financial Policies (the National Advisory Council). Authorizes the U.S. Trade Representative and the Secretary of Commerce to provide to the Secretary and the National Advisory Council trade information on those countries which block progress toward a comprehensive international arrangement on tied aid credit. Sets forth financing methods that may be included in such program. Authorizes appropriations for FY 1987 and 1988 for such program. Authorizes the Secretary to reimburse the Export-Import Bank for the cost of tied aid credits authorized by the Export-Import Bank during FY 1986. Requires each financing made pursuant to such program to be consistent with the procedures established by the Arrangement on Guidelines for Officially Supported Export Credits.

Limits judicial review of actions by the National Advisory Council, the Secretary, and the Chairman of the Export-Import Bank.

Requires the Secretary to report every six months to the Congress on: (1) the principal offers of predatory financing by foreign countries during the past six months; (2) steps taken to combat specific predatory financing practices of foreign countries; (3) use of the fund by the United States to match specific predatory financing practices of foreign countries and to initiate tied aid credit offers; (4) the additional steps the United States will take to discourage such practices; and (5) progress achieved in negotiations to establish a comprehensive international arrangement restricting the use of tied aid and partially untied aid credits.