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Testimony of Eugene L. Bovee -3- 



June 23, 1994 



An interesting concept has been developed by the Department of Commerce, the Big 

 Emerging Markets (BEMS), in which the Commerce Department is spearheading the export 

 promotion program in cooperation with other government agencies and institutions. We 

 believe the same should be done by the USDA relative to export markets which have been 

 traditional buyers of U.S. bulk, as well as value-added commodities. In addition, USDA 

 should identify those markets that are going to provide continued growth and demand. This 

 should be done in partnership with private sector parties including exporters and financial 

 institutions. 



An important component to the strength of our economy as a whole is international trade. 

 Agriculture is an obvious area in which the U.S. can compete globally and contribute to a 

 healthy U.S. trade balance. In addition, and perhaps more importantly, agricultural exports 

 are critical to the health of our farming sector and rural America. 



Our research, based on USDA data, indicates a high correlation between the level of U.S. 

 agricultural exports and farm income. We urge the administration and Congress not to 

 underestimate the importance of expanding foreign markets for our farm products and to 

 continue to support commercial programs such as GSM, Eximbank and PL-480 and to work 

 to make them more efficient. These programs are important to our agriculture and to global 

 competitiveness. Similar programs exist in other countries and often operate with more 

 flexibility and as a part of a better coordinated overall trade program. 



It is important that export finance and the promotion of U.S. exports not be seen as being 

 contrary to present initiatives for free trade. Such programs can support and facilitate free 

 trade, particularly when done on commercial terms. Use of initiatives, such as EEP, will 



