15 



Mr. Goldthwait. Well, certainly the phase down provides some 

 ease, easing some transition. We may need to look at something 

 else. 



Mr. Penny. Last, I want to pursue a question related to market 

 promotion programs. You have the MPP. You also have what is 

 called the foreign market development program. As you know, MPP 

 was under fire the last few years. I think we put most of the fire 

 out last year. There may still be some glowing embers. 



We do note that last week's ag appropriations bill took another 

 $10 million slice out of MPP. But at least we didn't face a floor 

 amendment to gut the program. And we trust that the reforms we 

 have implemented are helping to focus that program more effec- 

 tively. 



What do you view as the future of that program and the need 

 for that program and would you suggest that maybe the foreign 

 market development program is to be preferred if we had to pick 

 between the two? 



Mr. Goldthwait. Two points. First of all, with respect to the 

 need for the MPP, it is our principal tool for supporting the pro- 

 motion of the high value products. We very much believe that it is 

 going to continue to be useful and necessary in order to achieve the 

 growth rate that we were talking about a few minutes ago. 



With respect to preferring one program over the other, we looked 

 at that question in terms of our internal MPP task force, and we 

 concluded really that the focus of the market development program 

 and the market promotion program is distinct enough so that we 

 really need both programs and the resources of both programs to 

 address different needs in the trade environment. 



Mr. Penny. Can you give an example what you mean by that? 



Mr. Goldthwait. One example would be the way in which much 

 of the work of the market development program is focused on trade 

 servicing activity as opposed to direct promotional activity. We find 

 it is very useful for us to be able to provide through that program 

 a certain level of technical support to the users of the commodities 

 in country. 



Mr. Penny. So the two programs go hand in hand in certain in- 

 stances? 



Mr. Goldthwait. Yes. 



Mr. Penny. Where you have MPP promoting a particular com- 

 modity, but then you have technical support coming through the 

 market development program? 



Mr. Goldthwait. Correct. 



Mr. Penny. And neither alone would get the job done? 



Mr. Goldthwait. We feel that we need both. 



Mr. Penny. Thank you. Mr. Mendelowitz, I haven't forgotten 

 about you. I was reading the portion of your testimony where you 

 talked about the credit programs, GSM programs, and as you know 

 from our previous discussions on this matter, I share your concern 

 about the use of that program. 



On page 2 of your testimony, you state, "But these programs 

 have not been sufficiently responsive to current shifts in global 

 trade from bulk commodities to profitable market opportunities in 

 high value products." 



