International Trade Changes Needed To Improve Effectiveness Of The Market Promotion Program PDF Download

Pursuant to congressional requests, GAO evaluated the Department of Agriculture's (USDA) Market Promotion Program (MPP), focusing on whether MPP: (1) has successfully developed, maintained, or expanded U.S. agricultural exports; and (2) participants continue to need federal funding. GAO found that: (1) the Foreign Agricultural Service (FAS) believes that there is a positive correlation between MPP funding levels and U.S. export levels and the additional value of exports due to MPP ranges between $2 and $7 for each dollar in program expenditures; (2) the large number of variables that determine export levels makes it difficult to demonstrate a relationship between program-funded promotion activities and increased exports; (3) FAS has conducted only 12 MPP program evaluations between fiscal year (FY) 1986 and FY 1992; (4) some program activities in Japan have not achieved their objectives partially due to inadequate market research and management problems; (5) some MPP activities in Japan have helped remove trade restrictions and increased consumer awareness and sales of certain products; (6) FAS has no method for ensuring that MPP funds are used for additional promotion activities, since applicants are not required to provide information on their prior promotional expenditures; and (7) FAS has not established criteria regarding how long participants can remain in the program and is opposed to a mandatory graduation requirement.