Mr. DURBIN. This program has cost over $1 billion since its inception. To what extent can you conclusively demonstrate that this program has increased exports?

Mr. GOLDTHWAIT. Since the inception of TEA/MPP, U.S. exports of high value products-which receive 80 percent of funding—have increased 75 percent in value. Although we cannot demonstrate a direct causal relationship between expenditures and increased exports due to such external dynamics as exchange rates, tariff and non-tariff barriers, and general economic conditions, we do know that these programs have played a positive, support role in export expansion.

Mr. DURBIN. Please provide a table showing U.S. exports in total for all of the items covered by TEA/MPP for fiscal years 1986 through 1991 and the estimates for 1992 and 1993, by year.

Mr. GOLDTHWAIT. I will provide for the record a table showing U.S. exports in total for fiscal years 1986 through 1991. Unfortunately, we are unable to provide estimates for 1992 and 1993 because these figures, developed through an interagency process, have not yet been developed or announced.

[The information follows:]

Mr. DURBIN. When you provide funds to multi-billion dollar U.S. companies to help them promote their products overseas, to what extent is this an indication that they place a low priority on export markets?

Mr. GOLDTHWAIT. In legislating the MPP, Congress recognized the need to provide cost-share assistance to trade organizations willing to accept the risks associated with introducing or expanding operations designed to increase exports of U.S. products to foreign markets. Furthermore, the Congress recognized the need for assistance to private firms by authorizing branded promotions. Currently, the Department administers MPP on a size-neutral basis, where each and every applicant is reviewed on its individual merits to move product into the export market.

Mr. DURBIN. You require only 50 percent or greater domestic content to be eligible. What would be the impact if this requirement were raised to 75 percent or 90 percent? Please explain in detail.

Mr. GOLDTHWAIT. Basically, a higher U.S. content requirement will correspondingly reduce the number of products that will be eligible for support.

GATT

Mr. DURBIN. Please describe for the Committee the latest developments in connection with GATT.

Mr. CENSKY. Last December the Director-General of the GATT, Arthur Dunkel, submitted a draft final agreement that covered all of the negotiating groups, including agriculture. This draft agreement is the focus of the current negotiations and represents the Director-General's effort to reach a compromise across all of the negotiating groups. The Trade Negotiations Committee-TNC, made up of representatives from all of the participating countries met in Geneva on January 13 to report their general reactions to the draft agreement. While many countries, including the United States, voiced concerns over specific sections of the draft, their comments were generally positive.

In the January meeting the participating countries agreed to a work plan to guide the negotiations to a conclusion. The work plan directs all countries to submit in early March a country schedule detailing their commitments under the agreement for review by the other countries in the negotiations. The United States submitted its country schedule on March 5. About 20 other countries have also submitted schedules. We are currently reviewing the schedules that have been submitted. One round of technical meetings to discuss the country schedules was held in Geneva March 23-27. We anticipate future meetings will be scheduled to continue the review of schedules and resolve outstanding technical issues.

At the political level we have been meeting with the European Community in an effort to bridge the gap between our positions. We have tried to engage the EC in serious negotiations without undermining the Dunkel text, but so far the EC has shown no flexibility.

Mr. DURBIN. From the standpoint of U.S. agriculture, what are the pros and cons of the Dunkel Draft?