Congress, concerned about the government’s promotion of American tobacco products in foreign markets, passed legislation in the 1990s prohibiting agencies -- including the USDA’s Foreign Agricultural Service (FAS) -- from funding tobacco export programs.
GAO has found, however, that FAS, which works to improve export opportunities for U.S products abroad, has continually gathered and disseminated information related to foreign tobacco production, importation, and consumption rates -- including tobacco and brand preference information. In addition, the report states that FAS has provided negotiators from the Office of the U.S. Trade Representative with information on foreign tariff rates, U.S. market shares, as well as the potential impact of trade concessions on exports.
Sen. Richard Durbin (D-IL) and Rep. Henry Waxman (D-CA) wrote to Agriculture Secretary Ann Veneman following release of the report, requesting an investigation of FAS’s tobacco-related activities. The two raised questions about the service’s involvement in recent tobacco trade negotiations involving South Korea and Chile, citing e-mail communications between a Philip Morris executive and an FAS analyst among others.
“We believe that GAO’s findings and the recent e-mail communications between Philip Morris and USDA raise serious questions about whether the Department has violated Congressional prohibitions on the use of federal funds to promote tobacco exports,” the letter said. Sen. Durbin and Rep. Waxman have requested a response from Secretary Veneman by July 15.