Export Promotion: U.S. Programs Lack Coherence.
Abstract
Ten federal government agencies currently offer programs to help businesses begin exporting or expand their exports. Among the agencies with more significant programs are the Departments of Agriculture and Commerce, and the Export-Import Bank. Export promotion programs involve offering business counseling, training, and representational assistance as well as providing market research information, trade fair opportunities, and export financing assistance. Alone, these programs cannot produce a substantial change in the U.S. trade balance, because the trade balance is largely determined by the underlying competitiveness of U.S. industry and by the macroeconomic policies of the United States and its trading partners. However, these programs can play a useful role in stimulating exports of U.S. products in economic sectors in which U.S. goods are competitive. For example, government export promotion programs can be particularly helpful in the following situations: (1) when U. S. firms lack export awareness because markets have failed to give the right information to producers who otherwise would export; (2) when U.S. businesses are aware of export opportunities but need additional technical assistance to consummate export sales; (3) when U.S. firms need representational assistance from the U.S. government in opening doors overseas; and (4) when U.S. businesses need competitive financing, loan guarantees, or insurance to close an export sale. To further the goal of improving the government export promotion efforts, in May 1990 the President established an interagency Trade Promotion Coordinating Committee to streamline the government's decentralized approach to export promotion. The committee is chaired by the Secretary of Commerce and includes representatives from 17 other federal agencies.
Document Details
- Document Type
- Technical Report
- Publication Date
- Mar 01, 1992
- Accession Number
- ADA320942
Entities
Organizations
- United States Government Accountability Office