Implementation of the Export Trading Company Act of 1982

GAO testified on its recent work on the Export Trading Company Act of 1982. GAO found that the intent of the act is to increase the export of products and services by: (1) providing for the formation of the Export Trading Company Affairs Office to promote and encourage the formation of export trading companies (ETC); (2) allowing bank holding companies to invest in ETC; (3) reducing restrictions on trade financing; (4) modifying the application of antitrust laws to export trade; and (5) having the Department of Commerce issue certificates of review for specific antitrust protection. Only 61 ETC have received antitrust clearance certificates from Commerce, and only 40 bank holding companies have received Federal Reserve Board approval to invest in ETC. The high value of the dollar against foreign countries' currencies has hampered exporting that ETC have established. GAO believes that bankers and exporters have an increased awareness of export trading and are in the position to take greater advantage of it when economic conditions become more favorable. However, it would be unrealistic to expect that the removal of export barriers in and of themselves would yield a major increase in exports, since U.S. export performance is determined by many variables, including: (1) the level and growth of gross national products in foreign countries; (2) the value of the dollar; (3) the availability of international lending; (4) current developing country debt problems; (5) U.S. technological leadership; (6) foreign tastes and preferences; (7) barriers to U.S. products; (8) U.S. business attitudes; and (9) impediments to U.S. exports created by U.S. laws and regulations.