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QUESTIONS FROM THE SUBCOMMITTEE ON FOREIGN AGRICULTURE AND HUNGER 

 REVIEW OF THE MISSION FOR THE FOREIGN AGRICULTURAL SERVICE 



QUESTION: How does FAS determine which companies are eligible for funding 

 under the Market Promotion Program? There are always more applications than 

 money. Now with MP? reduced even further, the decisions could be even more 

 difficult. 



ANSWER: Private companies may apply for participation in the Market 

 Promotion Progreun (MPP) through one of three types of programs: 



1. Non-profit trade associations - administer programs for U.S. 

 and foreign companies; 



2. Regional - administered by the four state regional trade 

 groups, targeting small, new-to-export, and economically disadvantaged 

 companies; and 



3. Export Incentive Program - administered directly by FAS for 

 industries where no appropriate trade organization exists. 



FAS determines which MPP applicants are eligible based upon criteria 

 published in the Federal Register including: adequacy of the strategic plan 

 and promotion objectives, ability to provide its own resources and staff to 

 conduct overseas promotions, evidence of the applicant's program management 

 capabilities, adequacy of the applicant's provisions for monitoring and 

 evaluating activities in the proposed plan, and a detailed explanation of 

 the prospects for success of the proposed activities. FAS reviews each 

 applicant's activity plan, and in turn, approves specific budgets based upon 

 the proposals. Additionally, based upon the provisions of the Omnibus 

 Budget Reconciliation Act of 1993, FAS will give priority consideration for 

 funding small-sized entities determined on the basis of Small Business 

 Administration criteria. 



QUESTION: What is the process used by FAS for determining eligibility for 

 the Export Enhancement Program (EEP)? Who participates in the decisions and 

 how are countries and commodities selected for EEP? 



ANSWER: FAS continually reviews proposals for country/commodity EEP 

 initiatives. Proposed initiatives that meet the program criteria and the 

 approval of the Under Secretary for International Affairs and Commodity 

 Programs and the TPRG are announced by USDA. (Agencies represented in the 

 TPRG include the Council of Economic Advisors, Department of Commerce, 

 Department of State, Department of the Treasury, National Security Council, 

 Office of Management and Budget, and Office of the U.S. Trade 

 Representative.) According to the criteria published in the Federal 

 Register on June 7, 1991, all EEP initiatives must: further the U.S. trade 

 policy negotiating strategy of countering competitors' subsidies and other 

 unfair trade practices by displacing such countries' subsidized exports in 

 targeted countries; demonstrate the potential to develop, expand, or 

 maintain markets for U.S. agricultural commodities; not have more than a 

 minimal effect on non-subsidizing exporters of agricultural products; and 

 have expected benefits which exceed the expected costs of the initiative. 



