International Trade: Export Enhancement Program's Recent Changes and Future Role
NSIAD-90-204
Published: Jun 14, 1990. Publicly Released: Jun 14, 1990.
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Highlights
Pursuant to a congressional request, GAO reviewed the Export Enhancement Program (EEP), focusing on: (1) recent program changes; and (2) the program's continued role in fostering the liberalization of agricultural trade.
Recommendations
Matter for Congressional Consideration
| Matter | Status | Comments |
|---|---|---|
| Congress, in reauthorizing the program, should consider conditioning the level of appropriations on the outcome of the current negotiating round scheduled to end in December 1990. At that time, Congress should reevaluate the need for the program in light of any agreement reached on agricultural trade liberalization. |
Closed – Not Implemented
|
The Uruguay Round was scheduled to conclude the week of December 3, 1990; however, participating countries failed to reach a compromise on agricultural reform. Thus, the entire round of negotiations has been suspended, with the ultimate outcome uncertain. Meanwhile, Congress appropriated $425 million for fiscal year 1991. |
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Agriculture | The Secretary of Agriculture should continue to improve EEP operations by directing the Administrator, FAS, to require the Commodity and Marketing Programs section to expand its status report on proposals by including those being analyzed in the commodity divisions so that the General Sales Manager can monitor their progress and ensure their consistent, fair, and timely treatment. |
Closed – Implemented
FAS has implemented an expanded status report that includes the status of proposals being analyzed in the commodity divisions.
|
| Department of Agriculture | The Secretary of Agriculture should continue to improve EEP operations by directing the Administrator, FAS, to require written justification for each decision to reject an official proposal for a new program initiative, including decisions made by the Under Secretary for International Affairs and Commodity Programs. |
Closed – Implemented
FAS has adopted a revised format for the decision memos which includes a written justification for each decision made to reject an official proposal for a new program initiative. This revised format applies to decisions made by the Under Secretary for International Affairs and Commodity Programs.
|
| Department of Agriculture | The Secretary of Agriculture should continue to improve EEP operations by directing the Administrator, FAS, to randomly verify all categories of information needed to prove exporter eligibility to help ensure that only eligible exporters with valid sales contracts participate in the bidding process. |
Closed – Implemented
The FAS Commodity Credit Corporation Operations Division has implemented verification measures regarding eligible exporters under EEP, including verification of eligibility submissions, proof of exporter experience, and the existence of a valid sales contract. An accomplishment report will be prepared.
|
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Agricultural productsAgricultural programsAgricultural tradeCommodity marketingExport regulationExportingForeign trade agreementsForeign trade policiesGrain and grain productsInternal controlsProgram management