International Trade

FAS Management of Livestock Cooperator Program Gao ID: NSIAD-88-24 October 26, 1987

In response to a congressional request, GAO examined livestock cooperator activities under the Foreign Agricultural Service's (FAS) Cooperator Market Development Program to determine whether non-profit cooperators were distributing trade leads in a timely manner to other livestock exporters.

GAO found that: (1) although FAS knew of problems with certain livestock cooperators, it did not initiate actions to alleviate the conditions that permitted conflicts of interest and unfair competition; (2) FAS proposed a conflict-of-interest provision to amend program guidelines, but did not act expeditiously to prevent some livestock cooperators from entering into contracts with their subsidiaries; and (3) existing guidelines did not address distribution of trade leads, receipt of commissions, operation of for-profit subsidiaries, or restrictive trade standards.

Recommendations

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