Summary: GAO reported the results of their work over the past 5 years and identified the key questions and issues which Congress and the Administration should consider when establishing policies and programs designed to improve the U.S. balances and current accounts. Productivity, technology transfer, and export controls were three major issues discussed. The growing interdependence between the U.S. economy and the economies of its trading partners is likely to increase in the coming decades. U.S. policy is one of promoting the development of an open, nondiscriminatory, and fair world economic system to stimulate fair and free competition between the United States and foreign countries. The establishment and enforcement of fair and equitable trade rules to govern the relationship between trading partners is important to open and expanding trade. Because of continuing U.S. balance of trade deficits, the Government attached importance to programs to stimulate exports. Most of these programs fall into three major categories; export financing, direct support and services to exporters, and export tax incentives. Numerous recommendations were made to the executive branch and to Congress for improving the U.S. trade and current account performance. Major recommendations concerned: (1) the possible need for legislation to establish a centralized mechanism for developing and coordinating long-term economic policy planning; (2) the Departments of Agriculture, Commerce, and State should develop trade objectives for market development; (3) Congress should consider establishing a joint executive-congressional group to consult on a variety of East-West trade matters; (4) Congress should centralize export license applications management responsibilities in Commerce and have a multiagency group established to provide guidance to Commerce to make the system more responsive; (5) administration of the Antidumping Act and a better information base to permit a more comphrensive analysis of the effects of antidumping actions on prices, U.S. trade, and other interests should be improved; (6) the U.S. should make manufacturing productivity a national priority; and (7) the method of accumulating statistics should be changed so that the implications of U.S. technology transfer policies can be better evaluated. GAO work with Congress has resulted in the establishment of the current registration system for foreign investment.
