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portunities in Mexico and throughout the region. United States ag- 

 ricultural exports to Mexico and Canada already make these two 

 countries combined our largest agricultural export market. 



A third area of major opportunity is the former Soviet Union. 

 This is an area of which I have considerable personal experience 

 and knowledge. 



The potential for United States agricultural exports, particularly 

 value-added products to this region, is as vast as the Russian land- 

 scape. This market is growing despite the wrenching economic 

 transformation currently underway. 



FAS must be ready to adapt to the changes in world agricultural 

 trade patterns. As more than half of the U.S. ag exports are high 

 value, value-added products, it is imperative that FAS develop the 

 marketing knowledge and expertise to assist U.S. exporters to sell 

 these products. 



As we move closer to the next century, FAS must organize itself 

 to conduct more market research that impacts on the market U.S. 

 companies seek to penetrate. This will help companies to adapt 

 their products to meet the needs of the foreign consumer. 



We need a value-added products division that focuses its entire 

 energy on consumer-oriented products. The FAS staff should be 

 trained especially to deal with small- and medium-sized companies. 



In this regard, instead of cutting back the market promotion pro- 

 gram, I believe it should be expanded or at least more funds made 

 available to the States through our regional trade association. This 

 past year, some 18 small- and medium-size Maryland companies 

 participated in the market promotion program, many of them get- 

 ting into the export market for the first time. This kind of program 

 is especially important for those companies with excellent export 

 potential but lacking the resources to market the products effec- 

 tively overseas. 



In addition, I think FAS should work more closely with the re- 

 gional trade associations of the State Departments of Agriculture 

 and coordinate more cross-regional activities to reduce duplication 

 and improve market access for our companies. 



Moreover, FAS must employ all the latest technology at its dis- 

 posal. For example, FAS needs to introduce a program to allow for 

 wider distribution of its trade leads electronically. The trade policy 

 staff must be expertly trained to deal with problems relating to im- 

 port standards. Also, as we undertake more market research in 

 high-value products or value-added products, we should study the 

 distribution chsinnels in foreign markets. FAS must help U.S. food 

 manufacturers understand fully how the international market 

 works. 



As regards the combination of OICD with FAS, I think this will 

 reduce administrative overhead and perhaps result in some sav- 

 ings. I am concerned that the development mission of OICD may 

 become lost in the new International Trade Service Agency and 

 perhaps inclusion of development somewhere in the title of that re- 

 organization would be appropriate. 



Let me repeat, again, that this is an extremely exciting time. The 

 economic stakes are for us in agriculture enormous. It is in our eco- 

 nomic and national interests that we not let these economic oppor- 



