APPENDIX A:

SURVEY OF FOREIGN COUNTRY EXPORT PROMOTION EFFORTS


BACKGROUND


In an effort to assess the efficiency of the US export promotion
efforts, similar activities of leading trading competitors Japan,
Germany, the United Kingdom (UK), Italy, France, and Canada were
examined.  Information was collected from foreign commercial officers
posted in those countries through a comprehensive survey (see box) and
from other published statistics and data.  The focus was on the
organization of each country's export promotion programs, the mode of
delivery of these programs, the types of resources dedicated to those
programs by the national government, the nature of private sector
involvement in export promotion, the kinds of services offered to
exporting firms, and the types of financial assistance made available to
those firms.

As the following country summaries demonstrate, there is a great deal to
be learned from examining the exporting practices of other countries. 
They have smaller economies than the United States, and so they have
been forced to look outward, developing more experience in the export
promotion arena.  As a result, they have created mechanisms for
providing more effective and efficient exporting services to companies. 
Several principles and approaches have contributed to these successes in
the 6 countries surveyed.

* Local and regional chambers of commerce are invaluable in providing
exporting services.  Delegating export promotion efforts to the private
sector is a more effective means of providing services to companies. 
Germany, France, and the UK, among others, have learned that local
chambers of commerce, which know their members well and are out in the
trenches, tend to be more accessible and thus are more effective in
providing exporting services than government organizations.  


* Not every company is a potential exporter.  Private and quasi-private
sector export service providers, such as German, French, or Italian
chambers of commerce, limit assistance to motivated and well-prepared
businesses.  These providers realize that it is a waste of resources to
offer services to any and all willing, unwilling, or indifferent
companies.  Export audit programs are an example of countries' efforts
to service only those firms which not only are willing but also are able
to benefit from export promotion services.


* Exporting assistance services must be narrowly focused.  It is
important to tailor services to the potential exporter.  Instead of
providing training generally to potential exporters or exporters eager
to increase their already existing exporting business, most export
training in Europe is narrowly focused on addressing specific industry
sectors or markets.  At an even more precise level, some countries
create programs designed to tailor an export promotion program
specifically for individual companies, such as Sweden's Export Manager-
for-the-Hire Program and Denmark's Export Assistant Training Program. 
Alternatively, some entities, such as France's Essonne Department, have
begun to establish programs that identify, research, explore, and
finally broker export agreements on behalf of the companies.  This is
done after assessing the skills, talent, educational levels, and general
business savvy of the company's managers, and determining that it would
be less efficient for those managers to become trained to run the firm's
exporting business.


* There must be something at stake for the potential exporter to gain
maximum benefit from the services provided.  Instead of providing all
services free, many countries require that the potential exporter absorb
some portion of the cost of the service, giving the company more
incentive to make the services obtained work to its benefit.


* There must be high-level government commitment to the exporting cause. 
Compared with the United States, the countries reviewed have
demonstrated a stronger commitment to increasing and promoting exports
by allocating the necessary resources to their programs.  These
resources include not only money and personnel (see table), but also
high-level visibility and commitment within their governments.  For
example, the UK encourages both its foreign commercial officers and its
entire diplomatic corps to seize every opportunity to promote British
exports.  High-level French officials frequently advocate on behalf of
their companies with great success.


* Tied aid is widely used as a means of gaining a presence in developing
markets.  Many countries aggressively employ tied aid in their efforts
to assist developing nations and boost their firms' exporting market
shares.  This is particularly the case with respect to infrastructure
development aid.


* Financial assistance must be readily available to companies to
effectively increase exporting efforts.  Most of the countries studied
had agencies similar to the US Eximbank, providing insurance and
guarantees for their exporters.  However, financial counseling regarding
all facets of the necessary financing arrangements also is available at
regional and local branches of government as well as at local banks and
chambers of commerce.  This easy access to financial information and
assistance is another important key to assisting potential exporters. 

The following review and analysis of the most prominent US competitors'
exporting promotion policies and practices may increase understanding of
what is effective and what may be transferable to US exporting programs. 



Japan


ORGANIZATION

National Government 


The overwhelming majority of Japanese export promotion efforts are for
manufactured products and technical services, with less priority given
to agricultural products.  The Ministry of International Trade and
Industry (MITI) plays the key role in the formulation of Japanese export
policy, with input from the Ministry of Foreign Affairs (MFA), the
Ministry of Finance, and, from time to time, the Ministry of
Agriculture, Forestry, and Fisheries.  MITI's International Trade
Administration Bureau has primary responsibility for trade policy
formulation and international negotiations. 

The Japan External Trade Organization (JETRO), MITI's export promotion
division, is the center of Japan's export promotion and commercial
information services.  JETRO's responsibilities are comparable to the
export promotion programs and the development of trade leads by US
commercial attaches.  

In addition to the efforts of JETRO, Japan's diplomatic corps regards
export promotion as a major priority.  Japanese embassies are staffed
with officers from a variety of ministries, including MITI, MFA, and the
Small and Medium Enterprises Agency (SMEA), which send economic and
commercial officers to embassies overseas.  Japanese embassy officers
also are responsible for government-to-government negotiations and
routine reporting.  SMEA, another division of MITI, also supports
export-related activities at JETRO.


Funding:  Due in part to heavy pressure from many of its trading
partners, over the last several years Japan has ceased many of its overt
support programs for Japanese exporters.  It now has become difficult to
identify the categories and titles which are explicitly expressed as
export promotion in any of the current Japanese programs and budget,
but implicit or de facto export-related budgets are reflected in the
part of MITI's budget allocated to JETRO.  JETRO's total budget from
MITI for export promotion in 1992 was $111.4 million.

Private industry organizations also contribute significantly to the
exporting efforts of Japanese companies.  This contribution is not
reflected in official government funding figures.


Staffing:  Japan has about 386 employees in export promotion activities
in major overseas countries France, Italy, UK, Germany, Canada, and the
United States in both JETRO offices or Japanese embassies and
consulates.  In addition, Japan has 1,800 staff in export promotion in
Japan.  While Japan maintains that it is decreasing its export promotion
efforts and increasing its imports, it nonetheless has almost four times
as many employees stationed in the United States as the United States
has stationed in Japan for export promotion Japan has 192 employees in
the United States devoted to export promotion while the United States
has 51.

Semi-Private and Private Organizations


Industry association export promotion efforts are enormous.  A quick
review of published resources reveals more than 60 major export
associations, virtually all under the jurisdiction of MITI, with more
than 450 employees and an estimated total budget of about $33.5 million.

In addition to quasi-governmental private sector industry associations,
there exist several private sector associations which assist Japanese
businesses exporting abroad.  Such associations employ more than 240
people, with total annual budgets of more than $82 million.


SERVICES


JETRO offers all the basic types of export promotion assistance,
including the collection and processing of data on overseas economies,
trade, industry, products, technology, and the climate for investment
worldwide.  It publishes a number of periodicals in several languages
and maintains trade information libraries throughout Japan.  Other key
programs include information services, market research, trade fairs, and
publications.

Information Services


JETRO has a database of close to 1,000 Japanese companies in search of
technical partners in other countries, especially in the United States
and Europe.  The database includes companies looking for partners to
cooperate in joint research and development, technology transfer, and
marketing agreements.  JETRO uses the database to assist Japanese
companies in making liaisons with industrial associations in other
countries.

Market Research


JETRO performs market research for a fee for firms and cooperates
closely with trading companies, such as Mitsubishi and Fuji, that are
experts in market research.  After JETRO helps small firms with initial
export marketing, it often refers them to a Japanese trading company for
further help.

Trade Fairs


Although phasing out its subsidies for trade fairs, JETRO recently paid
as much as 75 percent of the costs for Japanese firms participating in
trade fairs and other industry exhibitions.  JETRO subsidizes trade
missions by small, private groups and conducts all-expense-paid tours to
Japan for foreign business delegations.

Publications


JETRO publishes guidebooks and manuals dealing with foreign markets for
Japanese exporters, and distributes catalogs and orders on viable
Japanese export products and services for current and potential buyers
abroad.


FINANCIAL ASSISTANCE

Insurance and Guarantees


The Export-Import Insurance Division (EID) of MITI is responsible for
providing export credit insurance coverage for Japanese exports placing
high priority on industrial plants, machinery, aircraft, ships, and
technical services.  EID provided a total of $110 billion in supplier
and buyer credits in 1992.  EID support enables commercial banks,
normally unwilling to assume the risk of foreign long-term financing, to
fund overseas projects.  The Export-Import Bank of Japan provides
guarantees to banks and makes loans to complement commercial bank
financing for Japanese export sales.

Financial Counseling


Counseling information services for export financing and payments issues
are offered primarily by JETRO, the Export-Import Bank of Japan, major
city banks, and select large trading firms.

Tied Aid


The Ministry of Foreign Affairs (the lead agency), the Ministries of
Finance and International Trade and Industry, and the Economic Planning
Agency formulate development assistance policy and approve development
assistance loans through official development assistance (ODA) programs. 
Japan's ODA expenditures in 1992 reached $11.3 billion.  (Since 1988,
Japan has provided close to $50 billion in foreign aid and is the
world's largest foreign aid donor.  From 1993 through 1998, Japan is
expected to provide $15 billion annually in ODA).  The major beneficiary
countries were Indonesia, China, Philippines, India, Thailand, and
Vietnam.  Over this period, there have been significant increases in
Japan's loan programs to Latin America (10 percent of total yen loans
extended in 1992) and to Africa.

According to a 1993 Foreign Ministry report on assistance programs, 35
percent of ODA contracts were awarded to Japanese companies, while 52
percent of awards went to companies in developing countries.  Included
in this latter figure, however, are foreign subsidiaries and affiliates
of Japanese firms.  In the past 5 years, there has been a radical shift
away from tied-aid loans (about 10 percent of total yen loan projects
involve assistance linked to the purchase of Japanese goods and
services).  However, administrative practices still allow the Japanese
government to assist its firms in winning lucrative contracts in
developmental assistance projects.

These administrative practices include the Japanese government's
extensive involvement with large Japanese trading companies (Sogo
Shosha) and consultants, which are key players in and beneficiaries of
Japan's ODA program.  For example, government officials meet regularly
with these private companies.  Although not an official part of the ODA
program, these meetings (called teiki kondankai) that are periodic
dialogues are believed to involve disclosure of viable ODA projects.

Advocacy


The government has stated that it no longer engages in the practice of
advocacy, i.e., government support of its companies/industries pursuing
sales opportunities outside Japan.  Through administrative guidance, the
Japanese government led a strong exporting drive for decades that
advanced Japanese entry into foreign markets, while protecting the
domestic market from foreign competition.  The government since has
eliminated overt support programs for Japanese exporters.  Implicit
support of Japanese exporting firms continues, however.


Germany



ORGANIZATION 

National Government


Unlike most US competitors, the German government does not have an
extensive official export promotion system.  To the extent that it does,
the Ministry for Economic Affairs (BMWi) has overall responsibility for
official export promotion efforts in Germany.  The Federal Office for
Foreign Trade Information (BFAi), under BMWi, and the Society for
Foreign Trade Information, Ltd., are responsible for gathering and
disseminating market information worldwide.  In addition to BFAi's
correspondents, the German diplomatic corps assists BFAi in gathering
economic information and reports on the host country as well as
providing trade fair support and counseling.


Funding:  In 1992, the German government spent $77 million, about .02
percent of its export revenues, on export promotion the lowest of all of
the countries surveyed.  However, that figure does not include
agriculture or operating expenditures.  Nor does it include substantial
state expenditures or the monies funnelled to chambers of commerce from
the national government.


Staffing:  In 1992, about 300 employees were allocated to export
promotion in German embassies and consulates.  Worldwide, the German
Chambers of Commerce (DIHT) employ approximately 800 persons devoted to
both the promotion of trade and investment.  In 1992, about 990
employees, including those at chambers of commerce and BFAi, worked in
Germany on export promotion activities.

Semi-Private and Private Organizations 


Instead of spearheading a national export promotion program, Germany
largely leaves export promotion to its extensive and sophisticated
network of chambers of commerce, industry associations, banks, trade
fair authorities, technical societies, and research and academic
institutions.  These private and semi-private organizations implement
export promotion activities through an informal directive without
official German government oversight.

Key to the provision of export services to German business is Germany's
elaborate network of chambers of commerce the Association of Chambers of
Industry and Commerce (IHK) and its affiliate Chambers of Commerce
Abroad (AHK).  The chambers operate as self-supporting organizations
free of government funding, in part because membership in a chamber is
mandatory for local business.  However, although the chambers claim that
they receive no assistance from the national government, the Ministry of
Industry indirectly funds the chambers by subsidizing particular
services offered to their members.  For example, businesses in Germany
may apply to their local IHK for a market study and have 25-30 percent
of the costs of the study funded by the German government.


SERVICES

Market Information


The chambers of commerce provide potential exporters with export advice,
trade leads, joint venture partner and sales representative searches,
and information on customs, laws, taxation, and wage structures.  They
also provide information regarding the suitability of their products in
a particular market, assistance in locating agents and distributors, and
reports on business conditions.  

The Rationalization Board of German Industry is a small organization
designed to assist small businesses in learning about exporting.  The
German Federal Ministry for Economics provides 80 percent of its
administrative budget and funds 20 percent of its activities, with the
balance coming from the private sector.  The ministry is primarily
responsible for collecting and disseminating foreign market and trade
information for German industry.  It also maintains a comprehensive
inquiries service, issues a large number of publications, and offers a
data bank service.

The Federal Foreign Ministry, through embassies and consulates, does
general economic reporting on the host country, assists German firms in
the handling of foreign tenders, and handles trade complaints.  The
Federal Ministry for Research and Technology handles technology
programs, and the Federal Ministry for Economic Cooperation in Third
World Countries manages investment programs.  The Federal Agency for
Economics counsels on potential export controls, and the Federal
Administration Agency publishes information on emigration, taxation,
labor, and social laws of foreign countries.  Germany's Office of Trade
Information is dedicated solely to analyzing, packaging, and
disseminating trade-related data. 


Trade Fairs



As in the United States, trade fairs are Germany's principal method of
export promotion.  The Council for Exhibitions and Trade Fairs (AUMA)
coordinates Germany's domestic and foreign trade fair program for the
many private sector organizations involved in export promotion in
Germany, including chambers of commerce and trade associations.  The
government funds about 30 percent of the costs of each fair by
channelling the funds through fair organizers; however, most funding
comes through private sources.  The government also has set aside a
significant sum of money annually to encourage small and medium-sized
businesses to participate in fairs in Europe.  

In an effort to assure that businesses gain the maximum benefit from
these trade fairs, the AUMA now encourages the participating firms to
come prepared by doing market research and attending round-table
discussions on exporting issues before they attend the fair. 


FINANCIAL ASSISTANCE

Insurance and Guarantees


German export insurance and guarantees are issued by a consortium
consisting of Hermes Kreditversicherungs (Hermes), a private insurance
company, and Treuarbeit AG, a quasi-public corporation. 
Insurance/guarantee support from the consortium mobilizes funding from
private banks.  Larger export credit contracts are discussed in an
interministerial committee, with the Economics Ministry making a final
determination whether the guarantee is available. 

Financial Counseling



Since export promotion is largely viewed as a private function,
financial counseling is officially regarded as a nonfederal government
activity.  In-depth financial counseling is almost exclusively provided
by banks and Hermes.

Tied Aid


The German government's development assistance program is directed by
the Ministry for Economic Cooperation.  Policy is implemented primarily
by the Kreditanstalt fur Wiederaufbau (KfW), which channels capital
assistance for economic development in developing nations, and by the
Deutsche Gesellschaft fur Technische Zusammenarbeit (GTZ), which
provides technical assistance.  Two other major sources of German
development finance are the German Finance Company for Investments in
Developing Countries, and the type B (B-plafond) export credits of the
Ausfuhrkreditgesellschaft, a consortium of 55 German banks.
                 
Advocacy


Advocacy by high-ranking German government officials on behalf of German
companies is used occasionally in bilateral relations on a political
level.  In most cases, advocacy is not company-specific, but of a more
general nature stressing the high technology and superior standards of
German products.

However, strong ties exist between the German avionics and aerospace
industries and the Economics Ministry.  Germany is often a participant
in European consortia of manufacturers, which are favored in EC
contracts.


United Kingdom


ORGANIZATION

National Government


The British Department of Trade and Industry (DTI) has overall
responsibility for international trade policy.  However, the British
Overseas Trade Board (BOTB), a branch of DTI, is the agency responsible
for export promotion.  It provides advice to the government on trade
strategy, directs the export promotion services of the government, and
encourages and supports exporters.  BOTB is comprised of five
divisions one for projects and export policy and four for geographical
areas, and a special Japan Unit.

The BOTB has 11 regional offices in the UK and 17 area advisory groups
comprised of local business executives.  The Foreign and Commonwealth
Office (FCO) provides overseas export promotion support for BOTB
programs through its 185 posts overseas.  The UK's diplomatic corps
emphasizes export promotion; roughly 30 percent of the FCO's overseas
resources are spent on commercial activities.  Senior government
officials regularly promote British trade interests, including specific
projects when traveling abroad.

In addition to other government agencies tailored specifically to
particular exports, the Ministry of Defence's Defence Export Services
Office is responsible for promoting and coordinating all defense
industry exports and military surplus sales.


Funding:  The national government spent about $244 million in 1992,
about $4 per capita, on export promotion activities.  This figure does
not include expenditures for the promotion of agriculture, but includes
DTI's export promotion budget, contributions made by FCO, and funds
allocated for trade events.  Of the countries surveyed, Britain's
official government expenditures on export promotion are second only to
France's.


Staffing:  The government allocates 1,263 employees to export promotion
efforts in the United Kingdom.  A total of 356 employees worked on
export promotion activities in Italy, Germany, Japan, Canada, France,
and the United States.

Semi-Private and Private Organizations 


As is the case with most European countries, chambers of commerce play
an important role in the UK's export promotion efforts.  Most of the
large city chambers have international trade and export documentation
departments and offer a range of services in conjunction with BOTB. 
Some also organize export clubs, where exporters can meet informally to
share advice and discuss problems. The chambers are totally self-
supporting; they receive no financial support from the government.

The Confederation of British Industries (CBI), a private sector
organization representing more than 250,000 UK firms, is an active
promoter of exports.  It advises the government on export matters,
counsels exporter members, and issues publications on exporting. 
Although CBI has close links with BOTB, it receives no government
financial support.  There also are 65 voluntary self-funded export clubs
throughout the UK in which seasoned export professionals counsel small
to medium-sized firms that export infrequently.



SERVICES


BOTB is considered a leader in developing services and techniques to aid
export industries.  It focuses on trade information, counseling, trade
fairs, and major project support.  Although BOTB has taken the lead in
organizing and implementing its export promotion policies and programs,
under Britain's newly implemented Export Initiative the provision of
some services was shifted from BOTB directly to private sector
providers.  Local offices, now more accessible to their clients, also
have become directly responsible for the delivery of some services.

Advertising


The BOTB places a heavy emphasis on publicity, providing up to half of
all advertising and translating costs.  The British Central Office of
Information distributes publicity for British exporters, and the BBC
External Service publicizes British products and technology.
                 
Information Services



The BOTB supplies export information, marketing support, and free advice
on individual markets.  It also has a database, which includes lists of
export and joint venture opportunities, overseas business visitors to
the United Kingdom, changes in overseas tariffs and regulations, major
aid projects, national and other development plans, notification of
overseas trade fairs, world economic comments, and trading reports.

Many of the market research services normally provided by the BOTB have
been delegated to local or regional branches of the Association of
British Chambers of Commerce (ABCC) and a group of export development
advisors working with the ABCC.  The UK has provided $4 million in
funding to the chambers.  However, funds will decrease incrementally
over 4 years to zero, leaving the chambers to absorb the costs
themselves.

Major Projects



Large infrastructure and industrial projects are closely monitored, and
BOTB coordinates the necessary involvement, at times assisting firms
with as much as 40 percent of the cost of bidding for major overseas
capital projects.


Trade Missions and Fairs



The British government allocated about $123 million, more than half of
its export promotion funds, to support trade events in 1992.  The BOTB
gives financial support for export-related business travel and foreign
buyer visits.  It pays as much as 60 percent of the cost for first-time
exhibitors at trade fairs.


Other Services



The BOTB has developed a computer system to simplify international trade
procedures by standardizing export documents and allowing data exchanges
between otherwise incompatible computers and supporting software.  The
BOTB also provides technical help to British exporters, advising them on
foreign technical requirements and standards.


FINANCIAL ASSISTANCE

Financing Programs, Insurance, and Guarantees


The Export Credit Guarantee Department (ECGD) of the Department of
Industry and Trade is the only source of official export credit.  In
addition to providing insurance and guarantees to protect British
exporters and private lenders against payment default risks, ECGD
operates an interest rate subsidy program.  This assures a commercial
rate of return to lenders through an interest rate mark-up scheme.  ECGD
pays the lender the difference between market rates and any below-market
interest rate extended to the buyer.


Tied Aid


The Special Committee on Aid and Trade has oversight responsibility for
British tied-aid programs.  This committee includes the Department of
Trade and Industry, the Overseas Development Administration (ODA), the
Treasury, FCO, the Bank of England, and ECGD.  ECGD's participation in
tied-aid credit transactions is customary, since the subsidy is partly
provided through ECGD's interest rate subsidy program.  The UK also is a
participant in the EC's phare program.  The focus of ODA's programs
tends to be the provision of technical assistance rather than the
financing of major capital projects.

Advocacy


All British officials (from the Royal Family and prime minister down),
who either travel abroad or meet with overseas visitors, actively pursue
the role of trade advocates as a normal part of their official duties. 
High-level state visits often coincide with major trade promotion
efforts in targeted markets.  For example, a state visit by Prince
Charles and the Princess of Wales to Seoul in November 1992 coincided
with the biggest concentration of British business events ever held in
South Korea.  Moreover, direct intervention by the prime minister on
behalf of British companies involved in specific bids is not unusual.   



UNIQUE PROGRAMS

Confidential Export Audit Program


The London Chamber of Commerce has created a free confidential export
audit program designed to ascertain the level of interested firms'
commitment to exporting.  If after being audited, the firm is determined
to be export ready, a first-stage action plan can be developed for about
$50 an hour to cover the costs of markets, credit insurance, selling
channels, and customs requirements.  Of the 120 initial participants in
the program, 40 reported increased export earnings totaling nearly $8
million by the second year.

Export Market Research Scheme


The Export Market Research (EMR) scheme is a government-subsidized
program conducted jointly with the ABCC.  Under EMR, firms with fewer
than 200 employees can obtain narrowly targeted market intelligence in
one of three ways:  hire a private market research consultant if
qualified; perform the research in house; or purchase published
research.  BOTB subsidizes up to $40,000 of the costs.

New Products From Britain Program


This program subsidizes the cost of generating publicity for specific
products in target markets.

Inward Missions


BOTB subsidizes travel of foreign business representative on visits to
Britain for export purposes sponsored by British industry, including air
fare, briefing, and debriefing lunch or dinner receptions.

North America Now


The 3-year North America Now is a campaign launched in April 1, 1993,
with the objective of increasing the UK's share of the North American
nonoil import market by 25 percent.  With the prospect of NAFTA, British
companies are encouraged to position themselves to take advantage of
wider North America opportunities. 



France



ORGANIZATION

National Government


The French government's involvement in export promotion is substantial
and highly centralized.  Most functions are consolidated under one
organization the Ministry of Economic Affairs, Finance, and Budget.  The
ministry formulates the French government's position on trade policy and
manages overseas trade promotion.  

Within the ministry, the Direction des Relations Economiques Exterieures
(DREE) is the main policy-making agency for export promotion and credit
activities.  DREE oversees the activities of other agencies that provide
domestic and overseas export assistance, including the French Center for
Foreign Commerce (CFCE) and the Poste D'Expansion Economique, the French
equivalent of the US&FCS.  Within France, CFCE is the primary point of
contact for export promotion services, while the Poste d'Expansion
Economique provides promotional services to French firms overseas.  

Through a network of regional offices in France, CFCE counsels exporters
and organizes overseas trade events.  It also gathers and distributes
trade information.  



Funding:  The French government spent about $445 million, approximately
$7.74 per capita, on its export promotion activities in 1992.  This
figure includes agricultural promotion as well as operating expenses. 
However, France's regional or county governmental organizations provided
an additional $187 million for export promotion efforts.  Of the
countries surveyed, France allocated far more funds to export promotion
than its counterparts nearly 21 percent of its export revenues. 


Staffing:  France has about 493 employees overseas assisting exporters. 
There are about 2,050 employees in export promotion in France.

Semi-Private and Private Organizations 


Semi-private organizations contribute to the French export promotion
effort.  A network of separate local, regional, and overseas chambers of
commerce and industry associations advises firms on export issues. 
Domestic chambers organize foreign trade missions and offer many other
services, including information centers, data banks, and training
courses.  For example, the Paris chamber offers member companies direct
and personalized assistance in devising export strategies for particular
foreign markets.  To help those companies that do not have in-house
expertise or that have not yet attempted to penetrate certain overseas
markets, the chamber identifies potential partners and joint ventures. 
Unlike the United States, membership in local chambers is mandatory for
some companies.  

Overseas chambers of commerce also assist exporters by providing
information, facilities, commercial assistance, and other promotion
services.  French chambers of commerce, both domestic and overseas,
receive some government funding and additional subsidies for certain
trade events.  

Another organization that promotes French exports is the Federation of
Small and Medium-Sized Industries, which also receives government
support.  The federation targets medium-sized French companies for
assistance in establishing foreign subsidiaries because the French
government believes this aid will lead to greater exports.

To better coordinate the different programs, an agreement known as the
Charte Nationale d'Exportation was signed 4 years ago among the major
players in the field of export promotion at the regional and national
levels.  Although progress has been made, there is still room for
improvement so that all actors respect this agreement and place the
collective interest before their own.


SERVICES

Trade Shows


In France, participation in international trade fairs is a principal
export promotion activity for the government probably more so than any
other European nation.  CFCE, sometimes in conjunction with regional
chambers of commerce and trade associations, sponsors or helps organize
and promote more than 200 trade events each year, including country-
specific trade fairs.  Exhibitors are subsidized 50-60 percent of the
total cost by the French government if the event is not profitable. 
This is accomplished by the export insurance and guarantee agency,
through a Compagnie Francaise d'Assurance pour le Commerce Exterieur
(COFACE) insurance scheme. 

Market Research


The export insurance and guarantee agency offers exporters specialized
insurance for market research under its Assurance Prospection scheme,
which encourages firms to explore and develop overseas markets by
covering up to 75 percent of a firm's fixed costs incurred to
investigate overseas markets.  CFCE counsels exporters and gathers and
distributes trade information.  Overseas commercial staff offer a
variety of export services to French firms, including:  (1) collecting
and reporting market information and export opportunities; (2) locating
agents and distributors; (3) supporting firms' participation at trade
events; and (4) providing counseling to visiting French firms. 
Individuals in France also have access to market data reports in the
CFCE's data base.

Seminars
                 

For a fee, the CFCE offers export-willing firms a wide range of seminars
that focus primarily on specific opportunities in foreign markets or
sectors.  These seminars are offered both in Paris and through 24
regional offices and the regional chambers of commerce.  


FINANCIAL ASSISTANCE

Insurance and Guarantees


The Banque Francaise du Commerce Exterieur (BCFE), a government-owned
agency, is the lender for officially supported export credits at
preferential interest rates.  COFACE, a quasi-public company, provides
short-term commercial risk insurance of less than 3 years.  COFACE also
provides insurance of 3-7 years for political and commercial risk on
behalf of the French government.  Products must be primarily of French
origin.  These two agencies implement French export credit policy, which
is formulated by DREE.

Financing Programs


France provides export financing assistance through COFACE, which has a
network of 22 regional offices.  Among the various forms of assistance
offered are insurance and guarantees.  COFACE also cooperates with
commercial banks to provide export financing.

Tied Aid


Concessional financing is provided by the French government through the
Caisse Centrale de Cooperation Economique (CCCE) and government-to-
government protocols.  CCCE support consists of loans and grants
extended to former French colonies.  Most CCCE financing is used for
capital projects and tied to procurement from France.  Protocols are
concessional lines of credit for multiple projects or transactions. 
They generally are entered into annually between France and those
beneficiary countries that are ineligible for CCCE financing.  Protocols
generally combine concessional loans from the French Treasury with
officially insured commercial export credits and usually are tied to
French procurement.

Advocacy


France is an aggressive practitioner of advocacy on behalf of its firms
in obtaining foreign contracts.  France also has been known to use other
financial inducements in competing for contracts for goods or services. 
The French president and numerous cabinet officials successfully urged
the Turkish government in support of the $300 million TURKSAT project
that was awarded to the French company Aerospatiale.

UNIQUE EFFORTS
                 
MIRCEB


MIRCEB, a new regionally supported private organization, provides
tailored assistance to the Breton region's exporting firms by
researching new markets, finding suitable joint venture partners, and
negotiating agreements on a partly subsidized fee-for-service basis.  
                 
FRAC
                 

Under the Regional Assistance and Consultancy Fund (FRAC), a subsidized
market research consultancy fund, businesses may apply to either a
regional government or the regional chamber of commerce and industry for
assistance in hiring a marketing consultant to undertake a customized
study of a target export market.  If the application is approved, the
government supports up to 50 percent of the cost of consulting
assistance, to a maximum of about $30,000.  
                 
API-PME



France's agency for the international promotion of small and medium-
sized enterprises (API-PME) assists small business in testing and
entering new export markets.  API-PME has offices in 15 countries around
the world that identify market sectors in which export opportunities
exist for French firms, and finds firms within the organization's
membership interested in entering those markets.

Interested firms are audited to determine their export readiness, and
API-PME test markets their products in particular markets.  API-PME
identifies potential importers and distribution partners, gathers
intelligence on potential joint venture partners or acquisitions, or
helps the company sort out the geographic, legal, and regulatory issues
associated with establishing a subsidiary operation in the market.

Fees for API-PME's services range from about $1,500 for a market test to
$10,000 for partner searches.  However, API-PME clients receive national
government export assistance, such as FRAC grants and COFACE insurance,
at no additional charge.
                 
Essonne's Objective Europe Project


In 1990, the Essonne department of France's economic development board
hired a Paris-based international management consulting firm to act as a
broker for the region's firms and potential venture partners.  This
joint public and private team audited and attempted to match several
Essonne region firms with British joint-venture partners. 

The success rate is impressive.  Eight and possibly an additional 7 of
the 40 firms signed contracts.  The costs of the project were split
between the Essonne government and the French Ministry of Industry;
those companies that reach the contract phase pay a success fee to the
regional government.


Canada



ORGANIZATION

National Government


Canada's export promotion responsibilities are shared by the Department
of External Affairs and International Trade Canada (EAITC) and the
Department of Industry, Science and Technology Canada (ISTC).  EAITC, in
addition to its basic foreign affairs mission, is responsible for
Canada's overseas export promotion effort.  EAITC promotes Canadian
exports and provides marketing advice, primarily through its Trade
Commissioner Service and International Trade Development Branch.  ISTC
handles domestic export promotion activities, primarily through its
regional offices.  ISTC usually is the first point of contact.  To
better coordinate its export effort, Ottawa devised in 1988 the National
Trade Development Strategy, a project joining federal and provincial
governments with management and labor.

In the past, provincial organizations, such as the Ontario International
Corporation and the Societe de Developpement Industriel du Quebec (SDI),
also played a major role in assisting firms in export promotion.  Many
of these organizations had their own staffs overseas.  However, due to
drastic government cutbacks, provincial involvement has decreased, while
EAITC has taken on a more prominent role.


Funding:  The EAITC spent $54 million in 1992 on export promotion.  This
figure does not include spending on the promotion of agriculture,
operating expenses, or the substantial expenditures of the individual
provinces.  Canada's expenditures on export promotion fall somewhere in
the middle as compared to the expenditures by the other countries
surveyed.


Staffing:  EAITC's Trade Commission Service has about 165 officers
located in cities across Canada.  About 318 employees work on export
promotion activities in France, the UK, Japan, Italy, and Germany.

Semi-Private and Private Organizations 


Canada has several Crown Corporations which, though federally owned,
operate with a high degree of autonomy.  The Ontario International
Corporation helps Ontario suppliers penetrate export markets and win
contracts for specific projects.  Similar crown corporations exist in
other provinces.


SERVICES                         

Canada's Trade Commissioner Service, a branch of EAITC, and its
International Trade Development Branch provide a full range of services
to Canadian exporters and do particularly well in export marketing. 
Stationed in Canadian embassies and consulates abroad, the trade
commissioners act as consultants to Canadian exporters in all phases of
marketing, including identification of export opportunities, assessment
of market competition, introductions to foreign businesses and
government officials, screening and recommending of agents, guidance on
terms of payment, and assistance with tariff or access problems.  Their
activities are similar to those of a one-stop shop.  The International
Trade Development Branch is officially tasked to furnish foreign
marketing information on market prospects and access information (e.g.,
concerning tariffs, import regulations, and nontariff barriers), and to
provide a special in-depth advisory service on US customs and access
requirements and regulations.  Many of the provinces provide similar
services.


FINANCIAL ASSISTANCE

Insurance and Guarantees


The Export Development Corporation (EDC) is the source of export credits
from the Canadian government, providing loans, guarantees, and insurance
to buyers of Canadian exports.  EDC operates under two separate
accounts:  (1) the corporate account for transactions where the risk
lies with EDC; and (2) a national Canadian account for cases deemed too
risky by EDC's Board of Directors, but which the Canadian government,
through the Minister for International Trade, considers to be in the
national interest.  

Financing Programs


In addition to its official effort, DEA and ISTC also work informally
with a number of federally owned Crown Corporations, such as the
Canadian Commercial Corporation (CCC) and the EDC, to facilitate
exports.  These corporations orchestrate the participation of Canadian
industry, banks, and trading houses in major foreign project deals
providing export credits insurance, performance-related guarantees and
insurance, and foreign investment insurance.

The provinces have established organizations that assist in financing
their firms' exporting efforts.  Organizations include the Societe de
Developpement Industriel du Quebec, which provides financial guarantees
for exporters from Quebec; and the Quebec's Ministere Des Affaires
Internationales, which provides both technical and financial assistance
and counseling to firms.

Canada also offers one of the most generous cost-sharing programs to its
firms.  While providing assistance in virtually every phase of
promotion, the heaviest focus is on export information and market
development assistance.  Most of this assistance is offered via the
Program for Export Market Development (PEMD), designed to increase
exports by sharing the financial risk of entering a new market.  PEMD
shares up to 50 percent of expenses, but it remains a repayable
contribution, not a grant.  

Tied Aid


Tied-aid credits are provided under the national Canadian account, which
may be mixed with standard export credits, and through the Canadian
International Development Association USAID's counterpart.

Advocacy


The federal government, through EAITC, uses advocacy in its export
promotion efforts.  Trade commissioners located abroad intervene in
trade disputes and assist Canadian companies in gaining equal access to
foreign contracts.  The department also has intervened in export
promotion activities abroad where it feels the political situation is
detrimental to trade promotion.  The federal government restricts its
use of advocacy for export promotion to Canadian corporations that have
a minimum of 50 percent Canadian-resident ownership, or that provide
substantial employment in Canada.


UNIQUE PROGRAMS

New Exporters to Border States


New Exporters to Border States (NEBS) assists Canadian companies in
exporting to the United States by offering courses on the exporting
process.  Topics on customs procedures, banking, insurance, and agents
and distributors are discussed.  Advice on marketing strategies and
locating US agents or buyers also is provided.

Trade Missions Program


The Trade Missions Program (TMP) is for companies that have
traditionally exported to only one US regional market usually in the
northern United States.  Using a NEBS style workshop format, the TMP
provides information to help the company expand into markets elsewhere
in the United States.  The TMP also features a visit to a local trade
fair or event.

New Exporters to Overseas


New Exporters to Overseas (NEXOS) extends the NEBS/TMP concept to help
exporters new to Western Europe learn the essentials of doing business
there.  Each NEXOS mission focuses on a specific sector in a specific
country and usually includes a visit to a trade fair. 


Italy



ORGANIZATION


National Government


The Ministry of Foreign Trade (MINCOMES) has overall responsibility for
establishing and implementing Italy's trade policy.  The ministry
delegates the implementation of its trade promotion programs almost
exclusively to the Institute for Foreign Trade (ICE), an agency which,
though technically an autonomous body, reports directly to MINCOMES. 
ICE runs all of Italy's key export promotion programs and has its own
domestic and foreign commercial service.  The Ministry of Foreign
Affairs provides additional support through its overseas embassies and
consulates. 


Funding:  In 1992, the national government spent a total of $72.7
million on export promotion, approximately $1.30 per capita.  The
regions contributed about $503,000 toward Italy's export promotion
efforts.



Staffing:  Italy has about 430 employees overseas in its 5 largest
markets, with 1,756 additional employees in Italy dedicated to export
promotion.

Semi-Private and Private Organizations 


There are several semi-private organizations that actively participate
in assisting Italian firms' trade promotion efforts.  One such group,
FEDEREXPORT, is a consortium of 170 Italian industry associations that
works closely with ICE and receives significant government funding in
return.  FEDEREXPORT has about 130,000 companies, including about 6,000
small firms that have exporting potential.  There are an additional 180
independent export consortia whose funding is similar to that of
FEDEREXPORT.  

In Italy, as in Germany, chambers of commerce also represent an
important facet of the trade promotion effort by offering export-related
services through their network of domestic and overseas offices.

SERVICES


ICE provides Italian and foreign companies with market surveys; trade
leads; customs, tax, and technical regulations; and assistance in
settling trade disputes. It also provides promotion information,
education, and assistance, including advanced training for export
professionals.  In addition to other services, the regional chambers of
commerce provide seminars on exporting procedures and transactions. 
FEDEREXPORT provides services similar to those offered by ICE but
emphasizes event and mission participation. 

Information Services


ICE headquarters provides information to exporters at little or no cost
through daily bulletins, country and industry-specific publications, and
automated
databases.  

One-on-One Counseling


ICE and FEDEREXPORT offer one-on-one counseling and provide customized,
specific information, including market penetration plans on request.

Trade Centers


Italy is one of the few industrialized countries that maintain a number
of permanent trade centers.  Eight of its overseas offices also make
floor space available for exhibits.

Trade Fairs


Italy puts emphasis on trade missions and trade fairs and shares
exhibition costs with private exhibitors.  In 1992, Italy officially
sponsored about 151 trade missions and trade fairs.


FINANCIAL ASSISTANCE

Insurance and Guarantees


The Sezione Speciale per l'Assicurazione del Credito all'Exportazione
(SACE) insures credits for Italian exports against political,
catastrophic, commercial, and exchange rate risks.  In 1992, SACE
provided insurance coverage totaling about $15.5 billion.

Financing Programs
                 

Medicredito Centrale, a government-controlled entity, provides financing
and funding for participation in market programs in non-EC countries and
makes concessional funds available to small and medium firms to carry
out market research and set up facilities overseas.

Tied Aid


The Italian tied-aid credit program is formulated by the
Interministerial Committee on Development and Cooperation, consisting of
the Ministers of Foreign Affairs, Budget and Economic Programming,
Foreign Trade, and Treasury.  The Italian government initiates tied-aid
credits through government-to-government protocols, rather than on a
case-specific basis.  In considering project eligibility for this credit
support, there is an implied policy that takes into account the
commercial aspect of a transaction, with consideration given to market
share and the importance of the sector to the Italian economy.  

Advocacy


The Italian government frequently employs government-to-government
presentations on behalf of its companies.  Typically, the government
advocates on behalf of firms attempting large projects (e.g.,
construction).  The government also acts on behalf of particular
industries. 


UNIQUE EFFORTS/PROGRAMS

ERVET's Emilia-Romagna's Service Centers


ERVET created a series of service centers in the northern Italian region
of Emilia-Romagna designed to provide sophisticated business services to
groups of manufacturing firms too small to afford them on their own.  

SVEX


ERVET, the regional chambers of commerce, and the production
associations for small, medium, large, and artisan  created the Service
Center for the Export Development of Emilia-
Romagna Firms (SVEX).  SVEX conducts detailed market analysis in markets
such as the former Soviet Union, India, and Japan; identifies forums in
which the region's exports may be promoted; organizes a group of firms
interested in and capable of trading with the largest country; invites
officials from that country to visit the firms in the region; and
eventually establishes a presence in that market.  Although SVEX is
initially being funded by ERVET, it is expected to become self-
supporting through fees charged to its customers.

RESFOR


The Subcontractor Network for Emilia-Romagna (RESFOR) is a detailed and
continuously updated database on the production capabilities of its 600
member firms.  The purpose of RESFOR is to assist small businesses in
gaining access to information on large contractors seeking
subcontractors.  RESFOR provides complete technical profiles on its
members, including location and plant size, number and skills of
employees, and production capacity.  Through membership fees RESFOR
hopes to become self-supporting by 1995.



Survey Questions:  Foreign Country Export Promotion Efforts

Following is the list of questions provided to overseas missions in
Japan, France, Germany, Canada, United Kingdom, and Italy.  The survey
was completed in August 1993.


SECTION I:  General Structure and Budget of Export Promotion Efforts


1. List each entity, whether governmental or quasi-governmental, which
participates in export promotion, listing those entities with the
heaviest involvement first.


2.  List and describe the type of services provided by those entities
identified in response to Question 1.


3.  List and describe any existing special programs, whether
governmental, quasi-governmental, or private, to encourage and
facilitate export promotion in your host country.


4.  For each entity listed in response to Question 1, if there exists a
particular focus of promotion, please so identify, i.e., manufactured
products, agricultural products, or services.


5.  Identify and describe any ongoing programs involving coordination of
government/quasi-government and private export promotion efforts in your
host country.


SECTION II:  Funding


6.  Provide a best estimate, in local currency, for the total amount
that your host country, the national government, expended on export
promotion in 1992.  (Also provide in a footnote the most recent exchange
rate for the US dollar and its date, and the source of the information,
e.g., government document, government official, estimate, etc.)


7.  To the extent possible, explain what the total provided in your
response to Question 6 includes and, most importantly, identify what it
does not include.  For example, does it include agriculture or operating
expenditures?


8.  To the extent possible, provide a best estimate of the total amount
that local or state governments expended on export promotion in 1992.


SECTION III:  Staffing


9.  List the number of employees that your host country allocates to
export promotion overseas by the following categories:  commercial
officers, FSNs, and total staff.  (Include employees other than
clerical.  Some countries use volunteers and contract employees to fill
these positions.  If this practice applies in your host country, define
this employee system in a footnote.)


10.  Identify the number of employees located in your host country that
are allocated to export promotion.


SECTION IV:  Export Financing and Payments Support


11.  Indicate the types of export financing and payments support, e.g.,
counseling or direct financial support that your host country provides,
by entity, including assistance, such as preferential loans, loan
guarantees, and insurance.


12.  Please indicate whether counseling is offered for the following
export financing and payments issues.  Using local currency, under the
categories of federal government, state/local government, quasi-
government, and private, indicate the amount budgeted annually for the
following programs:  general information, sales terms, payment options,
trade finance sources, insurance programs, use of multilateral
development banks, accounting issues, taxation issues,
barter/countertrade, and tied aid.


13.  List types of export promotion financial incentives that your host
government provides, e.g., tied aid, export subsidies, etc., and the
associated local currency amount used to support these programs in the
last available year.  List by name and type, and amount.  (In a
footnote, provide the source for the information.)
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