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                                                                                        Updated  September 10, 2019

U.S. Trade and Development Agency (TDA)


  Backround
The U.S. Trade and Development  Agency  (TDA)  is an
independent U.S. government export promotion and foreign
assistance agency. TDA aims to support U.S. jobs by
linking U.S. firms to export opportunities for development
projects in developing and middle-income countries
through funding pre-export assistance. TDA is authorized
permanently under the Foreign Assistance Act of 1961
(FAA), as amended  (22 U.S.C. §2421), and operates under
the Secretary of State's policy guidance. In 1992, Congress
established TDA as an independent agency (P.L. 102-549),
but its predecessor dates to the 1980s. The TDA Director is
appointed by the President, by and with the Senate's advice
and consent. President Trump's continued request for
funding to eliminate TDA, as well as other legislative and
policy developments, may intensify debate over the
arguments for and against TDA, its role in supporting U.S.
exports, and its relationship to other federal agencies.
Funding.  TDA  is small relative to other U.S. export
promotion and foreign assistance agencies. President
Trump's  FY2020  budget requests funding to implement an
orderly closeout of TDA; the Administration's view is
that the private sector is better suited to serve TDA's
mission, and that other federal agencies can continue to
support U.S. exports, U.S. businesses overseas, and
international infrastructure development. Congress did not
implement  similar requests by the President in FY2018 and
FY2019  to eliminate TDA, instead funding TDA's
continued operations (see Table 1).
Table  I. TDA  Funding  ($ millions) and Employment

            FY16     FY17     FY18      FY19    FY20a

  Funding     $60       $75    $79.5     $79.5    $12.1
  FTESb        55        57       48       62c      15c
Source: CRS, based on appropriations laws and budget documents.
Notes: (a) Requested. (b) FTEs: Full-time equivalents. (c) Estimated.
Programs.  TDA  provides grants to foreign project sponsors
(public or private entities that can make decisions and
implement projects), who select U.S. firms (primarily
smaller firms) to perform TDA-funded project preparation
activities. TDA activities include (with examples of
FY2018  obligations):
   Feasibility studies that assess technical, financial, legal,
   environmental, and other aspects of infrastructure
   development  projects that may lead to follow-on
   business, to assist projects in securing financing and
   achieving implementation (such as feasibility studies for
   renewable energy projects in sub-Saharan Africa); also,
   in some cases, pilot projects to demonstrate U.S.
   sellers' goods, services, and technologies in the foreign


   buyer's setting, for testing and scaling up in order to
   secure project funding.
*  Technical  assistance to support legal and regulatory
   reform, the establishment of industry standards, and
   infrastructure-planning activities, to enhance the
   business environment for U.S. exports (such as for
   aviation-related projects in China and India, and a
   cybersecurity project for the Brazilian energy sector).
*  Training  programs  for foreign decision-makers on
   technology, regulatory requirements, or other areas to
   support U.S. exports (such as partnering with Japan's
   Ministry of Economy, Trade, and Industry (METI) to
   train decision-makers in the Indo-Pacific on sustainable
   gas infrastructure procurement best practices).
*  Reverse  trade missions (RTMs)  to bring foreign
   delegations to the United States to meet with U.S. firms
   and observe the design, manufacture and operation of
   U.S. goods and services, to foster commercial ties (such
   as a health care RTM for a Chinese delegation and a
   ports development RTM   for an Egyptian delegation).
*  Conferences  and workshops   to connect U.S. firms
   with foreign project sponsors (such as hosting the
   Association of Southeast Asian Nations (ASEAN)
   Connectivity Through Rail Forum  (Jakarta, Indonesia)
   to connect project sponsors with U.S. providers of
   technologies and services to advance ASEAN's rail
   infrastructure development goals).
                   TDA Initiatives
TDA  partners with public and private groups, domestic and
overseas, to advance certain initiatives through its programs.
Global Procurement Initiative: Training and other assistance
for procurement officials on best practices and policies to
calculate the total costs for infrastructure projects.
U.S. Gas Infrastructure Exports Initiative: Feasibility studies,
RTMs, and other support to connect U.S. companies with
infrastructure export opportunities across the gas value chain in
emerging markets.
Making  Global Local: RTMs, conferences, and other support to
expand TDA  outreach to U.S. businesses, especially smaller firms.

TDA  participates in the Trade Promotion Coordination
Committee  (TPCC),  an interagency body that coordinates
U.S. government export promotion efforts. Some projects
that use TDA-funded services may use financing from the
Export-Import Bank  (Ex-Im Bank) for exporting. For
example, in 2018, TDA  provided a grant to Ghana's
Ministry of Energy for a feasibility study to expand energy
access through solar-based, independent minigrid energy
systems, with the aim to use Ex-Im Bank financing to
implement  the minigrids. TDA also collaborates with other
agencies, such as the U.S. Agency for International
Development  (USAID),  on Administration initiatives.

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