Agricultural Trade: Government Support Calculations Under the U.S.-Canada Free Trade Agreement
RCED-90-210
Published: Aug 08, 1990. Publicly Released: Aug 17, 1990.
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Highlights
GAO reviewed methods used to calculate levels of government support under the U.S.-Canada Free Trade Agreement, focusing on the accuracy of the 1989 government support calculations for U.S. wheat.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Agriculture | Given the potential importance of even small changes in the U.S. government support calculations to the lifting of Canadian import restrictions for grain, the Department of Agriculture (USDA) and the Census Bureau should jointly identify a cost-beneficial method for adjusting the Census Bureau's report of state budget expenditures for agriculture that would show more precisely how much state governments are supporting their agriculture sectors. |
Closed – Implemented
The Census Bureau provided USDA with adjustments to the 1990 calculations that resulted in a reduction of about $550 million in the Bureau's reported state budget expenditures. These adjustments reduced the calculated amount of government support for wheat by $24.3 million in crop year 1988 and $20.8 million in crop year 1989. The Census Bureau provided USDA similar adjustments for this year.
|
| U.S. Census Bureau | Given the potential importance of even small changes in the U.S. government support calculations to the lifting of Canadian import restrictions for grain, the Department of Agriculture (USDA) and the Census Bureau should jointly identify a cost-beneficial method for adjusting the Census Bureau's report of state budget expenditures for agriculture that would show more precisely how much state governments are supporting their agriculture sectors. |
Closed – Implemented
The Census Bureau provided USDA with adjustments to the 1990 calculations that resulted in a reduction of about $550 million in the Bureau's reported state budget expenditures. These adjustments reduced the calculated amount of government support for wheat by $24.3 million in crop year 1988 and $20.8 million in crop year 1989. The Census Bureau provided USDA similar adjustments for this year.
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Topics
Agricultural programsCommodity marketingForeign trade agreementsGrain and grain productsImport restrictionInternational trade regulationState budgetsAgricultural tradeBudget outlaysCensus