International Trade

The U.S. Department of Agriculture (USDA) and American farmers face a changing environment for world agricultural trade, one that includes lowered trade barriers and emerging new markets. This testimony focuses on how a shift from a traditional production-oriented approach to a market-oriented approach would help USDA adapt to the increasingly competitive world marketplace. GAO believes that in making this shift, USDA will find it essential to employ a strategic marketing approach that includes devising a long-term market development plan and changing its approach to information gathering, personnel policies, and resource allocation. Also, USDA will still need to stress programs to combat unfair foreign trade practices and overcome market imperfections. Shifting to a market-oriented approach may, however, reduce the size of U.S. carryover stocks of staple grains. Previous oversupplies of these stocks had the side effect of helping to ensure world food security. Without them, the United States and other nations may need a different strategy to address this problem.