The Government Accountability Office on Tuesday released a report finding that the Treasury Department lacks clear criteria for determining whether to oppose multilateral development bank projects that could harm U.S. producers.
Under federal law, the Treasury must instruct U.S. participants to vote against assistance for foreign projects producing commodities or minerals that are in surplus globally and whose export would substantially injure American producers. Gaps in the review process could put the Treasury at risk of unintentionally harming U.S. industries, the GAO said.
The GAO found that the Treasury does not have criteria for assessing what constitutes substantial injury to U.S. producers. While the department has criteria for determining if a commodity is in surplus on world markets, Treasury officials told the GAO that they rarely apply those standards. Without clear rules, the Treasury’s assessments rely on subjective judgment, which could lead to inconsistent voting decisions on similar project proposals, according to the report.
Between January 2015 and August 2025, the Treasury supported 83% of the 340 projects that were likely covered by the statute, the report said. The Treasury does not include information in its public voting records about which projects it evaluated under the statute. The GAO said publicizing this information would improve transparency for industries that could be adversely affected by the projects.
The GAO reviewed two industries as case studies and found evidence that bank-financed aquaculture projects in Ecuador led to increased shrimp imports and may have contributed to lower U.S. prices. The agency found no evidence linking bank projects to challenges for U.S. rice producers. The report noted that both industries have faced other challenges unrelated to the foreign projects, such as market competition and environmental conditions.
The GAO made four recommendations to the Treasury, including updating guidance to include specific criteria for assessing substantial injury and identifying relevant commodities. The report said the Treasury concurred with all four recommendations.