Export Promotion: Rationales for and Against Government Programs and Expenditures

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Report Type	Reports and Testimonies
Report Date	May 23, 1995
Report No.	T-GGD-95-169
Subject	Agricultural programs Business assistance Commodity marketing Economic analysis Export regulation Exporting Foreign trade policies International economic relations International trade Sales promotion Dept. of Commerce National Trade Data Bank Tied Aid Capital Projects Fund USDA Export Enhancement Program USDA GSM-102 Program USDA GSM-103 Program USDA Market Promotion Program

Summary:

The U.S. government currently has several trade promotion programs that provide business counseling, training, market research information, export subsidies, and export finance assistance and sponsor trade missions and fairs. In today's tight budget environment, Congress is carefully reviewing all government programs and expenditures. Export promotion programs are receiving close scrutiny because they involve, at a minimum, government intervention in markets and, in the most expansive form, provide subsidies to the private sector. This testimony addresses the following issues: What are the justifications for such programs? Can money be saved and the programs made more cost effective? Are such programs, irrespective of whether they are cost effective and are grounded in an analytically defensible rationale, worthy of the expenditure of taxpayer dollars, given the extent of proposed cuts in a whole range of government programs?

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Export Promotion: Rationales for and Against Government Programs and Expenditures