Integrating Development-Through-Trade Programs

Trade has become an increasingly important vehicle for helping poorer countries integrate into the world economy and spur growth and development. USTR fosters this by seeking to expand trade with developing nations, such as through its administration of four trade preference programs:

  • Trade preference programs have grown (see figure 1) and have contributed to increased and more diverse trade.

  • Improvements can be made in product coverage and country use.

    Highlights of GAO-08-443 (PDF)

  • U.S. administration of the multiple trade preference programs has been disjointed.

  • More integrated administration is required that includes systematic efforts to review foreign countries’ compliance with criteria and more integrated reporting on recipients’ use of available benefits to meet their shared economic development goal.

    Highlights of GAO-08-443 (PDF)

USTR also co-chairs the interagency working group that coordinates U.S. efforts to build trade capacity in developing countries. Despite several billion dollars devoted to building trade capacity and congressional mandates to provide assistance in regions such as Africa, the effectiveness of U.S. trade-capacity measures is not being evaluated.

Highlights of GAO-05-150 (PDF)

Figure 1: Growth of Trade Preference Programs
Figure 1: Growth of Trade Preference Programs
Source: GAO analysis of official U.S. trade statistics.

^ Back to topWhat Needs to Be Done

  • To ensure that trade preference programs meet U.S. goals, USTR should periodically convene relevant agencies to discuss the programs jointly and consider ways to administer, evaluate, and report on preference programs in a more integrated manner.

    Highlights of GAO-08-443 (PDF)

  • To ensure that beneficiary countries comply with program criteria, USTR should also periodically review beneficiary countries that have not been considered under the regional programs.

    Highlights of GAO-08-443 (PDF)

^ Back to topKey Reports

International Trade: The United States Needs an Integrated Approach to Trade Preference Programs
GAO-08-907T, June 12, 2008
International Trade: U.S. Trade Preference Programs Provide Important Benefits, but a More Integrated Approach Would Better Ensure Programs Meet Shared Goals
GAO-08-443, March 7, 2008
Foreign Assistance: U.S. Trade Capacity Building Extensive, but Its Effectiveness Has Yet to Be Evaluated
GAO-05-150, February 11, 2005
GAO Contact
portrait of Loren Yager

Loren Yager

Director, International Affairs and Trade

yagerl@gao.gov

(202) 512-4347