Export Promotion

While the United States exported nearly $400 billion in goods and services in 1990, these exports represented only about seven percent of the U.S. gross domestic product. By comparison, exports are an important share of the economies of major European countries--27 percent of the gross domestic product in the case of Germany. To help their exporters enter world markets, these countries have adopted some unique approaches. This report examines the nonagricultural export promotion activities of France, Germany, Italy, the United Kingdom, and the United States. GAO discusses the (1) structure of their export promotion programs, (2) spending for such programs, and (3) financial assistance these competitors give their exporters.

GAO found that: (1) the degree of government involvement in, and integration of, export promotion programs varied significantly in the five countries it evaluated, making it difficult to generalize; and (2) the U.S. approach to export promotion is distinct in that its efforts are not centrally managed or implemented under a plan based on a set of national priorities, and private-sector groups have both a limited role in export promotion and limited involvement with federal government efforts. GAO also found that several factors may give the four European countries' exporters an advantage over U.S. exporters, including: (1) less fragmented export programs; (2) more aid by semiprivate and private organizations; (3) more government spending on, and more government staff designated to, the promotion of exports; (4) more financial incentives and targeted services; (5) more emphasis and financial assistance concerning trade fairs; (6) targeting of export promotion resources to the geographic areas and industry sectors with the best export prospects; and (7) easier access to export financing.