The Foreign Service Journal, May 2003

FAS provides funding to state and regional trade groups that provide support to small and medium enterprises that have shown promise as agricultural exporters. FAS’s agricultural trade offices, in particular, work closely with the cooperators and SRTGs on a variety of activities. The ATOs, SRTGs and cooperators co-sponsor educational seminars for food processors and importers, “America Week” supermarket and restaurant promotions for U.S. foods and beverages, and American pavillions at major food shows. FAS also organizes trade missions from our host countries to major trade shows in the United States. In recent years, the agency has moved away from micromanaging the cooperators to providing them with more strategic input. For example, 20 years ago every sin- gle activity required an FAS signature to pay the bills. Ten years ago, guidance was broader but any change in activi- ty, no matter how small, still needed approval. Now the relationship focuses more on the “big picture.” Agriculture officers also work with exporters to find clients overseas. If a new apple exporter in California wants to find a market in Japan, it will work through FAS and its cooperators. The goal is to identify and build on new prospects for U.S. exports. Many of these come from several important trends including population growth and increasing urbanization in developing coun- tries, the expanding middle class in emerging markets, and demand for new, specialty products in high-income markets. Since FAS works so closely with the private sector, it is heavily driven by export numbers. FAS has perfor- mance indicators related to program efforts and general- ly expects cooperators to meet goals, especially over time. This close relationship also makes FAS very client- focused. If the trade is going badly, it reflects poorly on the FAS office in the country. Conversely, if a major trade barrier comes down, it’s time to celebrate. Food Aid, Export Credits and International Cooperation FAS offices are often called upon to play important roles in food aid programs. USDA provides U.S. agri- cultural commodities to countries in need of food assis- tance through direct donations and long-term conces- sional sales programs. Initiatives have helped fight star- vation in sub-Saharan Africa, and are playing a major role in providing food aid to Afghanistan as it struggles to rebuild after more than 20 years of civil war. FAS food aid also played a major role in Central America’s recov- ery from Hurricane Mitch in 1998: a total of 180,000 metric tons of U.S. wheat and 50,000 tons of corn were provided. FAS also runs export credit programs that reduce risk to U.S. exporters and increase their competitiveness. The latest farm bill will make $5.5 billion annually avail- able for the Export Credit Guarantee programs. The largest programs are the short-term (GSM-102) and intermediate-term (GSM-103) credit programs that guarantee repayment of credit extended by U.S. finan- cial institutions to eligible foreign banks that issue letters of credit to pay for U.S. agricultural commodities. The Supplier Credit Guarantee Program insures short-term, open account financing. The goal of these programs is to help U.S. exporters become more competitive by offering lower interest rates, extending longer credit terms or increasing the amount of credit available to for- eign buyers. Finally, Foreign Agricultural Service offices work closely with host governments on a whole range of coop- eration programs, from technical assistance and training, to collaborative research projects where U.S. and foreign scientists work on topics of mutual interest. FAS works with developing countries as they try to comply with their WTO agreements and take a science-based approach to biotechnology. The Cochran Fellowship Program, which provides a short-term U.S. training pro- gram for senior and mid-level public and private sector specialists and administrators from middle-income countries, emerging markets, and emerging democra- cies, has been particularly effective. Cochran programs have helped strengthen connections between U.S. agribusinesses and government officials and overseas importers and officials. Most programs focus on agricul- tural trade, agribusiness development, management, policy, and marketing along with U.S. agricultural and economic policies and business practices. Cochran alumni often go on to become some of FAS’s most valu- able foreign interlocutors. Market Intelligence and Analysis When FAS was established in 1953, its primary emphasis was on agricultural reporting, with secondary attention to food aid and market development. (Involvement in trade disputes was actually discouraged.) Though that is no longer the case, the ability of an FAO to F O C U S 48 F O R E I G N S E R V I C E J O U R N A L / M A Y 2 0 0 3