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Abstract
The United States subsidized 50 percent of its wheat exports between 1985 and 1988 under the Export Enhancement Program (EEP) in an attempt to expand U.S. exports and counter European Community export subsidies. The Department of Agriculture uses a complex bidding process to award EEP subsidies to targeted countries. The program grew steadily from 1985 through mid-1988, with wheat accounting for over 80 percent of EEP sales value. Economic analysis indicates that the program raised U.S. wheat export volume, prices, and gross export revenues. But net export revenues rose only slightly once the value of commodities from Government inventories awarded to exporters under the EEP is taken into account.