The Yemen Arab Republic will continue importing food grains and feedstu largely because of increasing demand and declining local production. Prospects for expanding U.S. agricultural exports to YAR are promising. The U.S. Export Enhancement Program and credit programs were instrumental in more than tripling the value of U.S. agricultural exports between 1985 and 1987. By 1991, wheat and flour imports may rise to 1.1-1.2 million tons from 821,000 tons in 1986, due mainly to increased gross domestic product from newly discovered oil and increased consumer preference for wheat. The Yemeni market could absorb a variety of other U.S. agricultural commodities, especially high-value products, and processed foods.