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markets and appropriate U.S. policy in response to these disciplines in terms of funding GATT-legal 

 farm programs. 



The key program that is of benefit to many commodities, of which I am familiar, is the Market 

 Promotion Program (MPP). It is important to realize that this program has been effective even 

 though criticized. In my opinion, Congress should reauthorize MPP and allow for funding at least at 

 the $200 million level contained in the Food, Agriculture, Conservation and Trade Act of 1990. 

 Furthermore, the traditional Foreign Market Development (FMD) program should be retained and 

 separately funded at the $40 million level. A good argument could be made that even more money 

 should be put into both of these programs. Given that they are both "GATT-legal" under the Uruguay 

 Round, we anticipate other countries will be utilizing similar programs in a greater way over the next 

 five years. These types of cooperative promotion programs do not encourage distortions in 

 production nor do they send false market signals. They are aimed at expanding sales by means of 

 promotion and market development. In my mind, these cooperative programs, which have their 

 antecedents in the early 1950's, should be endorsed by Congress as the type of joint private industry 

 government initiative necessary if we are to be competitive in the new international climate. Specific 

 program criticisms of MPP have been answered or are in the process of being answered through 

 either Congressional action or rule making by the Secretary of Agriculture. We should not lose sight 

 of the fundamental fact that these programs work and should be encouraged. 



Beyond the obvious benefit to commodity groups and companies involved in the MPP and FMD 

 programs, is the often underestimated benefit to the U.S. government of having a close working 

 relationship with the private sector in terms of the whole range of issues related to agricultural 

 exports. With a joint promotion program between USDA and a private commodity group, the 

 government gains knowledge of the commodity that it would otherwise not have, and is, therefore, 



