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Testimony of Eugene L. Bovee -4- 



June 23, 1994 



continue to be necessary to combat unfair trade practices and agricultural subsidies around 

 the world as long as such practices occur. Everyone hopes that GATT will result ultimately 

 in eliminating the need for such practices, but, until that occurs, the U.S. should be 

 aggressive in protecting its markets and promoting trade by these and other available means. 



We at CoBank believe the key to many U.S. agricultural products remaining competitive in 

 world markets will continue to be the successful implementation of the Export Credit 

 Guarantee Programs, GSM-102 and GSM-103. 



The purpose of these programs should be purely and simply to increase the amount of 

 agricultural products exported from the Unites States. This is emphasized by the CCC 

 repeatedly in its prefaces to the Commodity Credit Corporation's regulations; i.e., "these 

 programs... are intended to: 



1. Facilitate exportation; 



2. Forestall or limit decline of exports; 



3. Permit exporters to meet competition of other countries; 



4. Increase commercial exports of U.S. agricultural commodities." 



This is also emphasized by Congress in the 1990 Trade Act: i.e., "...the long-term 

 agricultural strategy. ..shall be designed to ensure - 1) the growth of exports of the United 

 States agricultural commodities; 2) the efficient, coordinated use of federal programs 

 designed to promote the export of United States agricultural commodities;..." CoBank 

 believes the export credit guarantee programs have been highly successful and cost effective 

 in helping to move U.S. agricultural products into world markets. 



