Summary: Testimony was given on recent GAO work relating to the export promotion activities carried out by the Department of Commerce, including the overseas export support services and commercial reporting performed by the Foreign Commercial Service (FCS). In a previous report, GAO described the numerous resource and policy problems which hindered the first year of FCS operations. Many FCS problems stemmed from a poorly arranged transfer of its work from the Department of State to Commerce and inadequate staff. GAO has noted improvements in the ability of FCS to manage its overseas operations with better organization and a larger permanent staff. However, GAO found that at a number of posts State's economic sections continue to exert control over FCS operations, and there is poor coordination between the economic sections and FCS. Further, differences in rank between overseas economic officers and commercial counselors can contribute to the problem. FCS has taken some steps to improve program administration, and a data reporting program will be phased out in 34 countries where FCS has determined that adequate alternatives exist in the private sector. GAO has noted an increasing demand for FCS services abroad on Commerce matters that do not promote U.S. exports. FCS has also recognized the need to have adequate representation in commercial centers rather than political capitals.
