The Emerging Markets Program is a market access program that provides funding
for technical assistance activities intended to promote exports of U.S.
agricultural commodities and products to emerging markets in all geographic
regions, consistent with U.S. foreign policy. The program is authorized by the
Food, Agriculture, Conservation, and Trade Act of 1990, as amended. The EMP
regulations appear at 7 CFR part 1486. Funding is set at $10 million each fiscal
year from the Commodity Credit Corporation from now through the end of the
current Farm Bill.
The Emerging Markets Program is a generic program. Its
resources may be used to support exports of U.S. agricultural commodities and
products only through generic activities. Projects that endorse or promote
branded products are not eligible for the Program.
Funding is provided through three channels: (1) the Central Fund, the
principle means of funding, made available through a public announcement; (2)
the Technical Issues Resolution Fund, to address technical barriers to exports;
and (3) the Quick Response Marketing Fund, to assist in resolving short-term
time-sensitive market access issues.
What is an Emerging Market? The legislation defines an emerging market
as any country that "is taking steps toward a market-oriented economy through
the food, agriculture, or rural business sectors of the economy of the country,"
and "has the potential to provide a viable and significant market for United
States commodities or products of United States agricultural commodities."
There is no fixed list of "emerging market" countries. Because funds are
limited and the range of emerging markets is worldwide, the Program uses certain
administrative criteria, in addition to the legal definition above, to determine
whether a country is considered an emerging market:
1) Per capita income of less than $11,455, the current ceiling on upper
middle income economies as determined by the World Bank.
2) Population greater than 1 million (may encompass regional groupings,
such as the islands of the Caribbean Basin).
Guidance on qualified emerging markets is provided each year in the Program’s
application announcement.
Program Priorities. The principal purpose of the program is to assist
U.S. organizations, public and private, to improve market access by developing,
maintaining, or enhancing U.S. exports to low- and middle-income countries which
have or are developing market-oriented economies, and which can be viable
markets for these products. The underlying premise is that emerging agricultural
markets have distinctive characteristics that benefit from U.S. governmental
assistance before the private sector moves to develop these markets through
normal trade promotional activities. All agricultural commodities except tobacco
are eligible for consideration.
Cost-share, the funding U.S. private organizations are willing to commit from
their own resources to seek export business in an emerging market, is one of the
requirements needed in an application in order to qualify for funding assistance
under the Emerging Markets Program. Justification for federal funding is also
required.
Types of Projects and Activities. Funding is on a project-by-project
basis. Many types of technical assistance activities that promote markets for
U.S. agricultural products may be eligible for funding. Examples include
feasibility studies, market research, sectorial assessments, orientation visits,
specialized training, and business workshops. The program is not intended for
projects targeted at end-user consumers. Ineligible activities include in-store
promotions; restaurant promotions; branded product promotions (including
labeling and supplementing normal company sales activities designed to increase
awareness and stimulate sales of branded products); equipment purchases; costs
of new product development; administrative and operational expenses for trade
shows; advertising; preparation and printing of brochures, flyers, posters,
etc., except in connection with specific technical assistance activities such as
training seminars; and design of development of Internet Web sites.
The program complements other FAS marketing programs. Once a market access
issue has been addressed by the Emerging Markets Program, further market
development activities may be considered under other FAS programs.
Eligible Organizations. Any U. S. agricultural or agribusiness
organization, university, state department of agriculture, or USDA agency (or
other federal agency involved in agricultural issues) is eligible to participate
in the Emerging Markets Program. Preference will be given to proposals
indicating significant support and involvement by private industry. Proposals
will be considered from research and consulting organizations only as long as
they can demonstrate evidence of substantial participation by U.S. industry.
For-profit entities are also eligible, but may not use program funds to conduct
private business, promote private self-interests, supplement the costs of normal
sales activities, or promote their own products or services beyond specific uses
approved for a given project. USDA market development cooperators may seek
funding to address priority, market-specific issues or to undertake activities
not already serviced by or unsuitable for funding under other FAS marketing
programs, such as the Foreign Market Development Program and Market Access
Program.
The opportunity for applying to the Emerging Markets Program during the
annual open solicitation period is announced in the Federal Register and on the
FAS Internet Web site.
Advisory Committee on Emerging Markets. A private sector advisory
committee provides information and advice to help USDA develop strategies for
providing technical assistance and enhancing markets for U.S. agricultural
products in developing market economies. More specifically, Committee members
review from a business perspective qualified proposals submitted to the Program
for funding assistance. The Secretary of Agriculture appoints members to the
committee for 2-year terms.
More Information. Further details on the Emerging Markets Program,
including the funding options under the program (the Central Fund, the Technical
Issues Resolution Fund, and the Quick Response Marketing Fund), additional
qualification requirements, the application and proposal review process, and
administrative policies and procedures are contained in the Program Regulations,
available by mail or on the FAS Internet site (see below). For additional
information, contact:
Grants Management Branch
Foreign Agricultural Service
U.S. Dept. of Agriculture, Stop 1052
1400 Independence Ave. SW
Washington, D.C. 20250-1052
Telephone: (202) 720-6896
Fax: (202) 690-0193
Email: emo@fas.usda.gov
Internet:
http://www.fas.usda.gov/mos/em-markets/em-markets.asp
