The Agricultural Export Enhancement Program and Agricultural Foreign Market Development Programs

GAO discussed its assessment of the Agricultural Export Enhancement Program and the progress the program is making in achieving its objectives to increase U.S. exports and encourage the European community to begin serious bilateral and multilateral negotiations on agricultural trade problems. GAO found that: (1) isolating and assessing the impact of the program is a difficult task; and (2) any impact the program might have would be reinforced by the declining value of the dollar and the 1985 Farm Security Act, which provides for the lowering of loan rates. GAO also found that both changes are expected to: (1) result in increased competitiveness of U.S. agricultural products and higher U.S. exports; and (2) raise the costs of the European community's agricultural subsidy or restitution program, which would reduce its export subsidies. An increase in U.S. exports or any movement toward negotiations with the European community cannot be primarily attributed to the Agricultural Export Enhancement Program.