Agricultural Trade:

Competitor Countries' Foreign Market Development Programs

T-GGD-95-184: Published: Jun 14, 1995. Publicly Released: Jun 14, 1995.

Additional Materials:


Office of Public Affairs
(202) 512-4800

Pursuant to a congressional request, GAO discussed: (1) competitor countries' foreign agricultural market development activities; and (2) state trading enterprises (STE). GAO noted that: (1) the European Union spends far more on total agricultural support than the United States; (2) foreign market development includes advertising, consumer promotion, trade servicing and market research; (3) although the multilateral trade agreement limits the amount of agricultural subsidies, it does not limit funding for foreign market development activities; (4) the four European countries reviewed spend less on promoting high-value products than the United States; (5) although their market development programs are similar, the United States tends to place more emphasis on consumer advertising than the European countries; (6) 3 of the countries use centralized marketing organizations to promote their exports, while the Netherlands and the United States use more decentralized approaches; (7) the 4 countries reviewed have greater incentives for ensuring that their promotional activities are effective, since program financing comes predominantly from the private sector; (8) U.S. marketing boards tend to focus more on the U.S. domestic market rather than exports; (9) switching program funding to the private sector would reduce federal expenditures and prompt the agricultural industry to ensure that foreign market development activities are effective; and (10) the Uruguay Round agreement requires member countries to report on STE activities, but it is too soon to tell if these measures will be effective.

Oct 2, 2020

Sep 22, 2020

Sep 15, 2020

Sep 14, 2020

Aug 27, 2020

Jul 28, 2020

Jun 18, 2020

Jun 9, 2020

May 12, 2020

Looking for more? Browse all our products here