Implementation of the Export Trading Company Act of 1982

GAO testified on the progress made in implementing the Export Trading Company Act of 1982 that would: (1) allow for the formation of an Office of Export Trading Company Affairs under the Department of Commerce to promote and encourage the formation of export trading companies (ETC); (2) allow bank holding companies to invest in ETC; (3) reduce restrictions on trade financing; and (4) modify the application of antitrust laws to export trade and allow Commerce to issue certificates of review for specific antitrust protection. GAO found that: (1) businesses' response to the act was slow, perhaps due to foreign economic growth and relative exchange rates; (2) only a few certificates of review were issued because the process was new and many applications did not involve antitrust issues; (3) many bank holding companies did not invest in ETC because they do not service many exporters, believe that only large international banks should undertake ETC, or believe that ETC profitability is too uncertain; and (4) the act, if amended, would qualify a company as an ETC when its export revenues exceed its import revenues and, therefore, would reduce the trade restrictions.