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Market Development Cooperator Program
Program Description
Market Development Cooperator Program (MDCP) awards include financial and technical assistance from the International Trade Administration (ITA) to support projects that help U.S. companies to compete in international markets. An MDCP award establishes a partnership between ITA and non-profit industry groups like trade associations and standards-developing organizations. Such groups are particularly effective in reaching small- and medium-size enterprises. The non-profit groups compete for a limited number of MDCP awards by proposing innovative projects that address trade barriers, enhance industry competitiveness, and generate exports that create or sustain U.S. jobs. Industry groups pledge to pay a minimum of two-thirds of the project cost and to sustain the project after the MDCP award period ends. On average from 1997 through 2018, projects generated $358 in exports for every $1 of MDCP awards made.
MDCP Projects Generate Exports that Create or Sustain U.S. Jobs
Help Organizations that Help Companies
While MDCP financial assistance awards go to trade associations and other non-profit industry groups, the ultimate beneficiaries of MDCP-funded projects are individual U.S. businesses and the U.S. workers they employ. On average, MDCP projects generate $595 million in exports each year. The true figure is twice that based on the cooperators' observations that participating companies report only about half the sales actually generated by project activity. On average, ITA estimates that one U.S. job is directly created or sustained for every $180,000 in exports. Further, the Bureau of Labor Statistics employment requirements tables indicate that 2.7665 jobs throughout the entire U.S. supply chain are generated by every job directly created or sustained by exports. Accordingly, the average MDCP project creates or sustains 17,356 U.S. jobs per year (($565,000,000*2)/$180,000))*2.7665=17,356.
See select examples of exports generated by MDCP projects. For many U.S. firms, exports are not possible until trade barriers are removed. Read about some of the MDCP projects that are addressing trade barriers.
Creating or Sustaining U.S. Jobs
Some U.S. companies may be interested in licensing technology to foreign business partners. Such a transaction would be considered to be an export; however, it would not be an export that creates or sustains U.S. jobs. Any export sale that does not tend to create U.S. jobs or to sustain current U.S. jobs is not the type of export that MDCP projects should be designed to support.
Individual Award Limit of $300,000.
Funds may be expended over a minimum of three years at whatever rate makes sense for the project undertaken. The project period may not exceed five years.
Flyer: This two-page flyer is the same one that is available in hard-copy from U.S. Export Assistance Centers (USEACs) nationwide as well as from other ITA staff based in Washington, DC. Linking to this flyer avoids printing, but additional print copies can be ordered from Brad.Hess@trade.gov.
A PowerPoint presentation includes a general overview of how the program works.
Announcement of the 2020 MDCP competition will be published February 27, 2020. Applications will be due April 27, 2020. Interested parties should not wait for the announcement publication to begin preparing an application. As noted in Competition Basics for 2020, potential applicants should contact ITA as soon as possible.
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