19 



Independent of government programs, U.S. companies must address 

 the challenges of a changing and globalized agricultural trade 

 environment. GAO has found that U.S. companies engaged in 

 overseas trade often lack a strong commitment to exporting, and 

 many lack an export strategy altogether. Specifically, many U.S. 

 exporters do not conduct adequate market research, adjust 

 products to specific markets, establish a local presence in 

 overseas markets, develop an overseas promotion plan, or provide 

 post-trade servicing to their overseas customers. 



4. 



DOES FAS DO ENOUGH TO PROMOTE THE EXPORT OF HIGH VALUE 

 AGRICULTURAL PRODUCTS? IF NOT, WHAT SHOULD BE DONE TO CORRECT 

 THIS? ARE THERE ANY PROVISIONS IN THE LAWS THAT RESTRICT HIGH 

 VALUE EXPORTS? 



In recent testimony and reports, GAO has highlighted the 

 importance of HVPs as the fastest growing segment of world 

 agricultural trade. We have also stated that the promotion of 

 HVP exports should be based on an overall agricultural trade 

 strategy, that is itself part of a governmentwide export 

 promotion plan. However, the USDA's Long-term-Agricultural Trade 

 Strategy has not proved to be a useful management tool to help 

 determine the USDA's efforts to promote HVPs. Furthermore, the 

 TPCC's governmentwide export promotion strategy has very little 

 in the way of discussion on how to improve USDA's export 

 assistance efforts. 



We believe that more can be done to promote HVPs. While USDA 

 provides a variety of credit and subsidy programs for buyers and 

 sellers of U.S. agricultural commodities, and these programs are 

 available to exporters or HVPs, USDA has traditionally emphasized 

 servicing bulk commodities. While USDA introduced new programs 

 in the 1980s, some of which support the exporting of HVPs, as a 

 congressional report stated, USDA has not provided the marketing 

 leadership needed to help U.S. agribusiness better compete in 

 export markets . 



USDA can do a better job of promoting HVPs exports. Central to 

 this effort is the recognition that support for HVPs requires a 

 re-orientation of FAS towards the different needs of HVP 

 exporters. For example, we stated in a recent report^ that 

 markets in Taiwan, Malaysia, and Indonesia, hold good potential 



HIGH-VALUE PRODUCT EXPORTS: Good Potential Exists for More Trade 

 With Taiwan, Malaysia, and Indonesia (GAO/GGD-94-52, Nov. 19, 

 1993.) 



^HIGH-VALUE PRODUCT EXPORTS. 



