Increased funding for Market Development Cooperator Program (MDCP) Awards

Attention, All Trade & Economic Development Specialists:

Congress has passed legislation to provide $15 million for Market Development Cooperator Program (MDCP) awards. This pool of MDCP award funds is several times larger than the amount traditionally available. The funds will be awarded to trade associations and other partners, or cooperators.

MDCP awards must be matched two to one by cooperators, which must be trade associations or non-profit organizations. Individual for-profit companies are not eligible.

Calls detailing the application process are currently being held. Visit http://ita.doc.gov/td/mdcp/2010-FallCalls.html for details.

Two rounds of competitions for awards are expected to begin in January.

MDCP Info:

A. Market Development Cooperator Program (MDCP) awards include financial and technical assistance from the International Trade Administration (ITA) to support projects that enhance the global competitiveness of U.S. industries. An MDCP award establishes a partnership between ITA and non-profit industry groups such as trade associations and chambers of commerce.

B. Through MDCP partnerships ITA provides expertise and seed money of up to $500,000 to industry groups to launch projects to increase U.S. industry competitiveness, usually by focusing on particular foreign markets. ITA’s share of total project cost never exceeds 33%. Project activity should be completed within three years or less.

C. The principal measurement of competitiveness enhancement is exports generated by MDCP project activity. For every $1 of MDCP award, ITA’s MDCP partners, or cooperators, help U.S. companies generate, on average, $131 in exports.

D. For every $1,374 of MDCP award, one U.S. job is created or sustained.

E. MDCP awards are determined based on a selective process. Industry groups compete to be able to become an MDCP partner with ITA.

F. Competition among MDCP applicants leads to innovative projects that continue after MDCP award funds are exhausted. Examples include promotion of industry standards, improvement to supply chain management, and product demonstration and servicing centers abroad.

G. MDCP awards are cooperative agreements, not grants. A team of ITA professionals work together with each MDCP partner to plan and execute project activity. In addition to helping ITA’s MDCP partners, these cooperative agreements keep MAS, CS, and MAC staff directly engaged with U.S. firms, foreign government officials, and industry leaders.

H. Rather than rely on a “government knows best” approach, MDCP facilitates private sector-generated projects that increase U.S. industry competitiveness.

I. Trade associations and non-profit industry groups interested in enhancing the global competitiveness of U.S. industries should attend the Dec. 1, Partnering to Double Exports event in the Capitol Visitor Center.