Cargo Preference:

Effects of U.S. Export-Import Cargo Preference Laws on Exporters

GGD-95-2BR: Published: Oct 31, 1994. Publicly Released: Nov 30, 1994.

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Pursuant to a congressional request, GAO reviewed: (1) the frequency of exemptions from cargo preference laws for U.S. Export-Import Bank (Eximbank) financed exports in 1990 through 1992; and (2) whether Eximbank cargo preference requirements adversely affected Eximbank's efforts to assist U.S. exporters, particularly those in the Midwest.

GAO found that: (1) the Maritime Administration (MARAD) granted 7 general cargo preference requirements waivers in both 1990 and 1991 and 15 general waivers in 1992; (2) MARAD granted 28 statutory waivers in 1990 and 102 statutory waivers in 1992; (3) none of the five export firms surveyed reported lost sales due to cargo preference requirements, but they cited other concerns regarding compliance with the requirements; and (4) there was no evidence that Midwestern exporters were uniquely affected by the cargo preference requirements.

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