86 



6 

 demand for imported feed grains. Structural adjustment in the 

 livestock industry has been more rapid and noticeable than in any 

 other farm sector. 



The European Community is another major factor in U.S. 

 export performance. It is a major market for U.S. soybeans and 

 is our chief competitor in world grain markets due to its 

 subsidized sales. However, recent reforms of the EC's Common 

 Agricultural Policy are expected to reduce their grain and 

 oilseed production, ultimately providing new market opportunities 

 for our farmers. 



Our market promotion, food aid, credit guarantee, and export 

 enhancement programs are valued tools for increasing U.S. 

 exports. More than 20 percent of all U.S. agricultural exports 

 in the early 1990 's was shipped under one or more of these 

 programs. While this is well below the levels achieved in the 

 1950 's and 1960's, it is more than double the share from the 

 1970's through the mid-1980's. Currently, more than half of this 

 20 percent comes from the export credit guarantee programs 

 (GSM-102 and GSM-103) . Programs designed to meet subsidized 

 competition, primarily the Export Enhancement Program (EEP) , 

 account for the next largest share, followed by food aid, 

 primarily PL 480. Nearly $1 billion was awarded in EEP bonuses 

 during fiscal year 1992, and programming has continued at about 

 that rate so far this year. USDA export programs are important 

 in combating unfair trade, building new markets and helping the 

 world's needy people. We will work hard to increase the 

 effectiveness of these programs. 



