Foreign Assistance: U.S. Support for Caribbean Basin Assembly Industries
(Chapter Report, 12/29/93, GAO/NSIAD-94-31).

In response to increased competition, many manufacturers, particularly
those in the apparel industry, have cut costs by relocating their
assembly operations to offshore sites, including the Caribbean Basin.
Under production-sharing arrangements, Basin workers assemble parts made
in the United States and finished products are returned to the U.S.
market.  The United States has provided significant amounts of bilateral
foreign assistance to the Caribbean Basin--nearly $17 billion between
1980 and 1992.  This report reviews (1) the impact that U.S. policies
and programs have had on the growth of Basin assembly industries and on
the decisions of U.S. companies to invest in these industries; (2) the
relationship between Section 599, which prohibited federal agencies from
offering financial incentives for U.S. firms to relocate jobs overseas,
and other foreign assistance objectives; and (3) implications for the
future of U.S. foreign assistance and trade policies in the Basin.  This
report focuses on the following four countries: Costa Rica, the
Dominican Republic, El Salvador, and Honduras.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  NSIAD-94-31
     TITLE:  Foreign Assistance: U.S. Support for Caribbean Basin 
             Assembly Industries
      DATE:  12/29/93
   SUBJECT:  Foreign trade policies
             Foreign economic assistance
             Developing countries
             Economic development
             International economic relations
             Foreign governments
             Investments abroad
             Non-government enterprises
             Manufacturing industry
             Foreign aid programs
IDENTIFIER:  Caribbean Basin Initiative
             Costa Rica
             Dominican Republic
             El Salvador
             Honduras
             Enterprise for the Americas Initiative
             Generalized System of Preferences Program
             International Monetary Fund
             North American Free Trade Agreement
             NAFTA
             AID Private Enterprise Initiative
             Economic Support Fund
             AID Development Assistance Program
             
************************************************************************

We regret that the full text of this item is presently unavailable.

See the GAO FAQ - Section 2.0 for printed copy ordering information.
The FAQ is automatically retrieved with all WAIS search results or 
can be obtained by sending e-mail to: [email protected]