Export Promotion

U.S. businesses have increasingly recognized during the last decade the benefits of competing in the international marketplace. Exports as a share of U.S. gross domestic product rose from 6.4 percent in 1988 to 7.9 percent ($672 billion) in 1998. The U.S. government runs several programs to help businesses promote their goods and services overseas. This report (1) identifies the federal agencies involved in promoting U.S. exports and the activities they carry out, (2) describes the overall resources these agencies devoted to export promotion in fiscal year 1999, and (3) isolates the agencies' overseas resources devoted to export promotion during this period. GAO also describes how some of these agencies participated in a computer network that provides trade leads from developing countries to U.S. exporters.

GAO noted that: (1) 10 federal agencies are involved in export promotion activities: (a) the Departments of Agriculture, Commerce, Energy, State, and Transportation; (b) the Export-Import Bank of the United States; (c) the Overseas Private Investment Corporation; (d) the Small Business Administration; (e) the Agency for International Development; and (f) the U.S. Trade and Development Agency; (2) all of these agencies help educate U.S. businesses about the export process by participating in trade shows and other events; seven provide financial assistance to exporters or investors in overseas projects; seven provide trade contacts; and six gather and disseminate market and trade lead information; (3) these agencies received approximately $1.9 billion for export promotion activities in FY 1999; (4) the Export-Import Bank and the Department of Agriculture, agencies that provide direct financial support to U.S. exporters, received $1.47 billion, or almost 78 percent, of this amount; (5) another $299 million (16 percent) was received by the Department of Commerce, which employed the equivalent of almost 2,000 full-time people in these activities during this period; (6) the remaining 6 percent was devoted to eight other agencies; (7) seven agencies devoted approximately $174 million in estimated expenses to export promotion activities at U.S. overseas posts in FY 1999; (8) of this amount, about $110 million came from the Commerce Department, which devoted the equivalent of over 700 full-time people to these activities during this period; (9) the Departments of Agriculture and State devoted $48 million and $14 million respectively; and (10) these expenditures covered salaries and expenses of overseas staff and administrative costs associated with overseas facilities.