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o that world food and fiber needs exceed demand. To 

 translate needs into commercial demand more quickly should be 

 a central objective of foreign assistance. 



This suggests an export policy built around: 



Supply assurance. Agricultural exports should be exempted 

 from trade or economic sanctions except to protect national 

 security. This will enable importers to depend on imports 

 with more confidence. 



Market access. Improved market access for agricultural 

 products should be a priority in trade negotiations, including 

 bilateral talks with Japan, plurilateral efforts to open or 

 expand regional trading arrangements and multilateral 

 initiatives such as the admission of China to the 6ATT. 



Market development. Funding for FAS and cooperator programs 

 has been cut in recent years. It should be expanded and 

 resources focused on key growth markets. Market development 

 should be coordinated with negotiating efforts. 



Sales development. A different package of export assistance 

 programs should be developed to help foreign markets mature 

 and to reach their import potential more quickly. Thus, they 

 would translate more reliably into real export growth that can 

 be sustained. Here are three ideas for consideration: 



o For the poorest countries, funds might be earmarked for 

 merchant marine operating expenses or food aid might be 

 exempted from cargo preference requirements. 



o Promising markets trying to make the transition from 

 aid to commercial status might be offered direct export 

 credits through a multi-year revolving fund. Repayment 

 terms could be varied by level of need, and repayments 

 would automatically replenish the country's credit line, 

 giving it both the incentive to repay and the confidence 

 to open up greater imports. 



o An investment revolving fund also might be e.«i-»bi ished 

 to loan money to private U.S. entities willing to make 

 investments in developing countries to increase 

 consumption of importable commodities. Repayment terms 

 could be structured to fit the level of development of the 

 country or the economic sector involved, which should 

 accelerate the process of development of the local economy 

 and its transformation to a higher quality diet. 



Capitalizing on growth potential with a proactive, market 

 building effort can position U.S. agriculture to build and 

 serve the markets it is uniquely positioned to serve — that 

 is for the full range of bulk and higher value products that 

 people want to buy. 



