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Abstract
Arguments in support of the
U.S. Farm Export Enhancement
Program (EEP) are numerous but
not persuasive. The EEP does
more to displace U.S. commercial
exports than it does to bu ild
exports. It transfers more benefit to
foreigners than to U.S. fa rmers.
And instead of working against the
European Community in GATT, EEP
is mostly working to antagonize
Australia and Canada-our natural
allies against the EC in GATT. Political
support for EEP is based on a
widespread misperception that the
program has played a major role in
el iminating surplus stocks. This
same misperception could someday
make EEP politically unpopular,
if stocks continue to fall and if
markets become too tight.