USC Subchapter II

USC Subchapter II
in effect

7 U.S.C. § 5621 Direct credit sales program

(a) Short-term programTo promote the sale of agricultural commodities, the Commodity Credit Corporation may finance the commercial export sale of such commodities from privately owned stocks on credit terms for not to exceed a 3-year period. (b) Intermediate-term programSubject to subsection (c), to promote the sale of agricultural commodities the Commodity Credit Corporation may finance the commercial export sales of agricultural commodities from privately owned stocks on credit terms for a period of not less than 3 years nor in excess of 10 years in a manner that will directly benefit United States agricultural producers. (c) DeterminationsThe Commodity Credit Corporation shall not finance an export sale under subsection (b) unless the Secretary determines that such sale will—(1) develop, expand, or maintain the importing country as a foreign market, on a long-term basis, for the commercial sale and export of United States agricultural commodities, without displacing normal commercial sales; (2) improve the capability of the importing country to purchase and use, on a long-term basis, United States agricultural commodities; or (3) otherwise promote the export of United States agricultural commodities. The reference in paragraphs (1) and (2) to “on a long-term basis” shall not apply in the case of determinations with respect to sales to the independent states of the former Soviet Union. (d) Use of program(1) General usesThe Commodity Credit Corporation may use export sales financing authorized under this section—(A) to increase exports of agricultural commodities; (B) to compete against foreign agricultural exports; (C) to assist countries in meeting their food and fiber needs, particularly—(i) developing countries; and (ii) countries that are emerging markets that have committed to carry out, or are carrying out, policies that promote economic freedom, private domestic production of food commodities for domestic consumption, and the creation and expansion of efficient domestic markets for the purchase and sale of agricultural commodities; and (D) for such other purposes as the Secretary determines appropriate consistent with the provisions of subsection (c). (2) General restrictionsExport sales financing authorized under this section shall not be used for foreign aid, foreign policy, or debt rescheduling purposes. The provisions of the cargo preference laws shall not apply to export sales financed under this section. (e) Terms of credit assistanceAny contract for the financing of exports by the Commodity Credit Corporation under this section shall include—(1) a requirement that repayment shall be made in dollars with interest accruing thereon as determined appropriate by the Secretary; and (2) a requirement, if the Secretary determines such requirement appropriate to protect the interests of the United States, that an initial payment be made by the purchaser at the time of sale or shipment of the agricultural commodity that is subject to the contract. (f) RestrictionsThe Commodity Credit Corporation may not make export sales financing authorized under this section available in connection with sales of an agricultural commodity to any country that the Secretary determines cannot adequately service the debt associated with such sale.

7 U.S.C. § 5622 Export credit guarantee program

(a) Short-term credit guaranteesThe Commodity Credit Corporation may guarantee the repayment of credit made available to finance commercial export sales of agricultural commodities, including processed agricultural products and high-value agricultural products, from privately owned stocks on credit terms that do not exceed a 24-month period. (b) Purpose of programThe Commodity Credit Corporation may use export credit guarantees authorized under this section—(1) to increase exports of agricultural commodities; (2) to compete against foreign agricultural exports; (3) to assist countries in meeting their food and fiber needs, particularly—(A) developing countries; and (B) countries that are emerging markets that have committed to carry out, or are carrying out, policies that promote economic freedom, private domestic production of food commodities for domestic consumption, and the creation and expansion of efficient domestic markets for the purchase and sale of agricultural commodities; and (4) for such other purposes as the Secretary determines appropriate. (c) Restrictions on use of credit guaranteesExport credit guarantees authorized by this section shall not be used for foreign aid, foreign policy, or debt rescheduling purposes. The provisions of the cargo preference laws shall not apply to export sales with respect to which credit is guaranteed under this section. (d) RestrictionsThe Commodity Credit Corporation shall not make credit guarantees available in connection with sales of agricultural commodities to any obligor that the Secretary determines cannot adequately service the debt associated with such sale. (e) TermsExport credit guarantees issued pursuant to this section shall contain such terms and conditions as the Commodity Credit Corporation determines to be necessary. (f) United States agricultural commoditiesThe Commodity Credit Corporation shall finance or guarantee under this section only United States agricultural commodities. (g) Ineligibility of financial institutions(1) In generalA financial institution shall be ineligible to receive an assignment of a credit guarantee issued by the Commodity Credit Corporation under this section if it is determined by the Corporation, at the time of the assignment, that such financial institution—(A) is the financial institution issuing the letter of credit or a subsidiary of such institution; or (B) is owned or controlled by an entity that owns or controls that financial institution issuing the letter of credit. (2) Third country banksThe Commodity Credit Corporation may guarantee under subsection (a) the repayment of credit made available to finance an export sale irrespective of whether the obligor is located in the country to which the export sale is destined. (h) Conditions for fish and processed fish productsIn making available any guarantees of credit under this section in connection with sales of fish and processed fish products, the Secretary shall make such guarantees available under terms and conditions that are comparable to the terms and conditions that apply to guarantees provided with respect to sales of other agricultural commodities under this section. (i) Consultation on agricultural export credit programsThe Secretary and the United States Trade Representative shall consult on a regular basis with the Committee on Agriculture, and the Committee on International Relations, of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate on the status of multilateral negotiations regarding agricultural export credit programs. (j) Administration(1) Definition of long termIn this subsection, the term “long term” means a period of 10 or more years. (2) GuaranteesIn administering the export credit guarantees authorized under this section, the Secretary shall—(A) develop an approach to risk evaluation that facilitates accurate country risk designations and timely adjustments to the designations (on an ongoing basis) in response to material changes in country risk conditions, with ongoing opportunity for input and evaluation from the private sector; (B) adjust risk-based guarantees as necessary to ensure program effectiveness and United States competitiveness; (C) work with industry to ensure, to the maximum extent practicable, that risk-based fees associated with the guarantees cover the operating costs and losses over the long term; and (D) notwithstanding any other provision of this section, administer and carry out (only after consulting with the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition and Forestry of the Senate) the program pursuant to such terms as may be agreed between the parties to address the World Trade Organization dispute WTO/DS267 to the extent not superseded by any applicable international undertakings on officially supported export credits to which the United States is a party.

7 U.S.C. § 5623 Agricultural trade promotion and facilitation

(a) EstablishmentThe Secretary shall carry out activities under this section—(1) to access, develop, maintain, and expand markets for United States agricultural commodities; and (2) to promote cooperation and the exchange of information. (b) Market Access Program(1) Definition of eligible trade organizationIn this subsection, the term “eligible trade organization” means—(A) a United States agricultural trade organization or regional State-related organization that promotes the export and sale of United States agricultural commodities and that does not stand to profit directly from specific sales of United States agricultural commodities; (B) a cooperative organization or State agency that promotes the sale of United States agricultural commodities; or (C) a private organization that promotes the export and sale of United States agricultural commodities if the Secretary determines that such organization would significantly contribute to United States export market development. (2) In generalThe Commodity Credit Corporation shall establish and carry out a program, to be known as the “Market Access Program”, to encourage the development, maintenance, and expansion of commercial export markets for United States agricultural commodities (including commodities that are organically produced (as defined in section 6502 of this title)) through cost-share assistance to eligible trade organizations that implement a foreign market development program. (3) Participation requirements(A) Marketing plan and other requirementsTo be eligible for cost-share assistance under this subsection, an eligible trade organization shall—(i) prepare and submit a marketing plan to the Secretary that meets the guidelines governing such a marketing plan specified in this paragraph or otherwise established by the Secretary; (ii) meet any other requirements established by the Secretary; and (iii) enter into an agreement with the Secretary. (B) Purpose of marketing planA marketing plan submitted under this paragraph shall describe the advertising or other market oriented export promotion activities to be carried out by the eligible trade organization with respect to which assistance under this subsection is being requested. (C) Specific elementsTo be approved by the Secretary, a marketing plan submitted under this paragraph shall—(i) specifically describe the manner in which assistance received by the eligible trade organization, in conjunction with funds and services provided by the eligible trade organization, will be expended in implementing the marketing plan; (ii) establish specific market goals to be achieved under the marketing plan; and (iii) contain whatever additional requirements are determined by the Secretary to be necessary. (D) Branded promotionA marketing plan approved by the Secretary may provide for the use of branded advertising to promote the sale of United States agricultural commodities in a foreign country under such terms and conditions as may be established by the Secretary. (E) AmendmentsAn approved marketing plan may be amended by the eligible trade organization at any time, subject to the approval of the amendment by the Secretary. (4) Level of assistance and cost-share requirements(A) In generalThe Secretary shall justify in writing the level of assistance to be provided to an eligible trade organization under this subsection and the level of cost sharing required of the organization. (B) Limitation on branded promotionAssistance provided under this subsection for activities described in paragraph (3)(D) shall not exceed 50 percent of the cost of implementing the marketing plan, except that the Secretary may determine not to apply such limitation in the case of United States agricultural commodities with respect to which there has been a favorable decision by the United States Trade Representative under section 2411 of title 19. Criteria used by the Secretary for determining that the limitation shall not apply shall be consistent and documented. (5) Other terms and conditions(A) Multiyear basisThe Secretary may provide assistance under this subsection on a multiyear basis, subject to annual review by the Secretary for compliance with the approved marketing plan. (B) Termination of assistanceThe Secretary may terminate any assistance made, or to be made, available under this subsection if the Secretary determines that—(i) the eligible trade organization is not adhering to the terms and conditions applicable to the provision of the assistance; (ii) the eligible trade organization is not implementing the approved marketing plan or is not adequately meeting the established goals of the plan; (iii) the eligible trade organization is not adequately contributing its own resources to the implementation of the plan; or (iv) the Secretary determines that termination of assistance in a particular instance is in the best interests of the Market Access Program. (C) EvaluationsBeginning not later than 15 months after the initial provision of assistance under this subsection to an eligible trade organization, the Secretary shall monitor the expenditures by the eligible trade organization of such assistance, including the following:(i) An evaluation of the effectiveness of the marketing plan of the eligible trade organization in developing or maintaining markets for United States agricultural commodities. (ii) An evaluation of whether assistance provided under this subsection is necessary to maintain such markets. (iii) A thorough accounting of the expenditure by the eligible trade organization of the assistance provided under this subsection. (6) Restrictions on use of fundsAssistance provided under this subsection to an eligible trade organization may not be used—(A) to provide direct assistance to any foreign for-profit corporation for the corporation’s use in promoting foreign-produced products; or (B) to provide direct assistance to any for-profit corporation that is not recognized as a small business concern (as described in section 632(a) of title 15), excluding—(i) a cooperative; (ii) an association described in section 291 of this title; or (iii) a nonprofit trade association. (7) Permissive use of fundsAssistance provided under this subsection to a United States agricultural trade association, cooperative, or small business may be used for individual branded promotional activity related to a United States branded product, if the beneficiaries of the activity have provided funds for the activity in an amount that is at least equivalent to the amount of such assistance. (8) PriorityIn providing assistance for branded promotion, the Secretary should give priority to small-sized entities. (9) Contribution level(A) In generalThe Secretary should require a minimum contribution level of 10 percent from an eligible trade organization that receives assistance for nonbranded promotion. (B) Increases in contribution levelThe Secretary may increase the contribution level in any subsequent year that an eligible trade organization receives assistance for nonbranded promotion. (10) AdditionalityThe Secretary should require each participant in the Market Access Program to certify that any Federal funds received supplement, but do not supplant, private or third party participant funds or other contributions to Program activities. (11) Independent auditsIf as a result of an evaluation or audit of activities of a participant under the Market Access Program, the Secretary determines that a further review is justified in order to ensure compliance with the requirements of the Program, the Secretary should require the participant to contract for an independent audit of the Program activities, including activities of any subcontractor. (12) TobaccoNo funds made available under the Market Access Program may be used for activities to develop, maintain, or expand foreign markets for tobacco. (c) Foreign Market Development Cooperator Program(1) Definition of eligible trade organizationIn this subsection, the term “eligible trade organization” means a United States trade organization that—(A) promotes the export of 1 or more United States agricultural commodities; and (B) does not have a business interest in or receive remuneration from specific sales of agricultural commodities. (2) EstablishmentThe Secretary shall establish and, in cooperation with eligible trade organizations, carry out a program to be known as the “Foreign Market Development Cooperator Program” to maintain and develop foreign markets for United States agricultural commodities. (3) Use of fundsFunds made available to carry out this subsection shall be used only to provide—(A) cost-share assistance to an eligible trade organization under a contract or agreement with the eligible trade organization; and (B) assistance for other costs that are appropriate to carry out the Foreign Market Development Cooperator Program, including contingent liabilities that are not otherwise funded. (d) E (Kika) de la Garza Emerging Markets Program(1) Definition of emerging marketIn this subsection, the term “emerging market” means any country, foreign territory, customs union, or other economic market that the Secretary determines—(A) is taking steps toward a market-oriented economy through the food, agriculture, or rural business sectors of its economy; and (B) has the potential to provide a viable and significant market for United States agricultural commodities. (2) EstablishmentThe Secretary shall establish and carry out a program, to be known as the “E (Kika) de la Garza Emerging Markets Program”—(A) to develop agricultural markets in emerging markets; and (B) to promote cooperation and exchange of information between agricultural institutions and agribusinesses in the United States and emerging markets. (3) Development of agricultural systems(A) In general(i) ImplementationTo develop, maintain, or expand markets for exports of United States agricultural commodities, the Secretary shall make available to emerging markets the expertise of the United States—(I) to make assessments of food and rural business systems needs; (II) to make recommendations on measures necessary to enhance the effectiveness of the food and rural business systems described in subclause (I), including potential reductions in trade barriers; and (III) to identify and carry out specific opportunities and projects to enhance the effectiveness of the food and rural business systems described in subclause (I). (ii) Extent of programThe Secretary shall implement this subparagraph with respect to at least 3 emerging markets in each fiscal year. (B) Experts from the United StatesThe Secretary may implement subparagraph (A) by providing—(i) assistance to teams (consisting primarily of agricultural consultants, agricultural producers, other persons from the private sector, and government officials expert in assessing the food and rural business systems of other countries) to enable those teams to conduct the assessments, make the recommendations, and identify the opportunities and projects described in subparagraph (A)(i) in emerging markets; (ii) for necessary subsistence and transportation expenses of—(I) United States food and rural business system experts, including United States agricultural producers and other United States individuals knowledgeable in agricultural and agribusiness matters, to enable such United States food and rural business system experts to assist in transferring knowledge and expertise to entities from emerging markets; and (II) individuals designated by emerging markets to enable such designated individuals to consult with such United States experts to enhance food and rural business systems of such emerging markets and to transfer knowledge and expertise to such emerging markets. (C) Cost-sharingThe Secretary shall encourage the nongovernmental experts described in subparagraph (B) to share the costs of, and otherwise assist in, the participation of those experts in the E (Kika) de la Garza Emerging Markets Program. (D) Technical assistanceThe Secretary is authorized to provide, or pay the necessary costs for, technical assistance (including the establishment of extension services) to enable individuals or other entities to carry out recommendations, projects, and opportunities in emerging markets, including recommendations, projects, and opportunities described in subclauses (II) and (III) of subparagraph (A)(i). (E) Reports to SecretaryA team that receives assistance under subparagraph (B)(i) shall prepare and submit to the Secretary such reports as the Secretary may require. (F) Advisory committeeTo provide the Secretary with information that may be useful to the Secretary in carrying out this subsection, the Secretary may establish an advisory committee composed of representatives of the various sectors of the food and rural business systems of the United States. (G) EffectThe authority provided under this subsection shall be in addition to and not in place of any other authority of the Secretary or the Commodity Credit Corporation. (e) Technical assistance for specialty crops(1) EstablishmentThe Secretary of Agriculture shall establish an export assistance program, in this subsection referred to as the “program”, to address existing or potential unique barriers that prohibit or threaten the export of United States specialty crops. (2) PurposeThe program shall provide direct assistance through public and private sector projects and technical assistance, including through the program under section 3157(e) of this title, to remove, resolve, or mitigate existing or potential sanitary, phytosanitary, and technical barriers to trade. (3) PriorityThe program shall address time sensitive and strategic market access projects based on—(A) trade effect on market retention, market access, and market expansion; and (B) trade impact. (4) Multiyear projectsThe Secretary may provide assistance under the program to a project for longer than a 5-year period if the Secretary determines that further assistance would effectively support the purpose described in paragraph (2). (5) Outreach and technical assistanceThe Secretary shall—(A) conduct outreach to inform eligible organizations of the requirements of the program and the process by which such organizations may submit proposals for funding; (B) provide technical assistance to eligible organizations to assist in developing proposals and complying with the requirements of the program; and (C) solicit input from eligible organizations on improvements to streamline and facilitate the provision of assistance under this subsection. (6) Regulations and procedures(A) In generalNot later than 1 year after December 20, 2018, the Secretary shall review program regulations, procedures, and guidelines for assistance under this subsection and make revisions to streamline, improve, and clarify the application, approval and compliance processes for such assistance, including revisions to implement the requirements of paragraph (5). (B) ConsiderationsIn reviewing and making revisions under subparagraph (A), the Secretary shall consider—(i) establishing accountability standards that are appropriate for the size and scope of a project; and (ii) establishing streamlined application and approval processes, including for smaller-scale projects or projects to address time-sensitive trade barriers. (7) Annual reportEach year, the Secretary shall submit to the appropriate committees of Congress a report that contains, for the period covered by the report, a description of—(A) each factor that affects the export of specialty crops, including each factor relating to any—(i) significant sanitary or phytosanitary issue; (ii) trade barrier; or (iii) emerging sanitary or phytosanitary issue or trade barrier; and (B)(i) any funds provided under subsection (f)(3)(A)(iv) that were not obligated in a fiscal year; and (ii) the reason such funds were not obligated. (f) Funding and administration(1) Commodity Credit CorporationThe Secretary shall use the funds, facilities, and authorities of the Commodity Credit Corporation to carry out this section. (2) Funding amountFor each of fiscal years 2019 through 2023, of the funds of, or an equal value of commodities owned by, the Commodity Credit Corporation, the Secretary shall use to carry out this section $255,000,000, to remain available until expended. (3) Allocation(A) In generalFor each of fiscal years 2019 through 2023, the Secretary shall allocate funds to carry out this section in accordance with the following:(i) Market access programFor market access activities authorized under subsection (b), of the funds of, or an equal value of commodities owned by, the Commodity Credit Corporation, not less than $200,000,000 for each fiscal year. (ii) Foreign market development cooperator programTo carry out subsection (c), of the funds of, or an equal value of commodities owned by, the Commodity Credit Corporation, not less than $34,500,000 for each fiscal year. (iii) E (Kika) de la Garza Emerging Markets ProgramTo provide assistance under subsection (d), of the funds of, or an equal value of commodities owned by, the Commodity Credit Corporation, not more than $8,000,000 for each fiscal year. (iv) Technical assistance for specialty cropsTo carry out subsection (e), of the funds of, or an equal value of the commodities owned by, the Commodity Credit Corporation, $9,000,000 for each fiscal year. (v) Priority trade fund(I) In generalIn addition to the amounts allocated under clauses (i) through (iv), and notwithstanding any limitations in those clauses, as determined by the Secretary, for 1 or more programs under this section for authorized activities to access, develop, maintain, and expand markets for United States agricultural commodities, $3,500,000 for each fiscal year. (II) ConsiderationsIn allocating funds made available under subclause (I), the Secretary may consider providing a greater allocation to 1 or more programs under this section for which the amounts requested under applications exceed available funding for the 1 or more programs. (B) ReallocationAny funds allocated under clauses (i) through (iv) of subparagraph (A) that remain unobligated one year after the end of the fiscal year in which they are first made available shall be reallocated to the priority trade fund under subparagraph (A)(v). To the maximum extent practicable, the Secretary shall allocate such reallocated funds to support exports of those types of United States agricultural commodities eligible for assistance under the program for which the funds were originally allocated under subparagraph (A). (4) CubaNotwithstanding section 7207 of title 22 or any other provision of law, funds made available under this section may be used to carry out the programs authorized under subsections (b) and (c) in Cuba. Funds may not be used as described in the previous sentence in contravention with directives set forth under the National Security Presidential Memorandum entitled “Strengthening the Policy of the United States Toward Cuba” issued by the President on June 16, 2017, during the period in which that memorandum is in effect. (5) Authorization of appropriationsIn addition to any other amounts provided under this subsection, there are authorized to be appropriated such sums as are necessary to carry out the programs and authorities under paragraph (3)(A)(v) and subsections (b) through (e).

7 U.S.C. § 5623a Supplemental agricultural trade promotion program

(a) In generalThe Secretary of Agriculture shall carry out a program to encourage the accessibility, development, maintenance, and expansion of commercial export markets for United States agricultural commodities. (b) FundingOf the funds of the Commodity Credit Corporation, the Secretary of Agriculture shall make available to carry out this section $285,000,000 for fiscal year 2027 and each fiscal year thereafter.

7 U.S.C. § 5624 Barter of agricultural commodities

(a) In generalThe Secretary or the Commodity Credit Corporation may provide eligible commodities in barter for foreign products under such terms and conditions as the Secretary or the Corporation shall prescribe. (b) Eligible commoditiesUnless otherwise specified, eligible commodities shall include—(1) agricultural commodities acquired by the Commodity Credit Corporation through price support operations; and (2) agricultural commodities acquired by the Secretary or the Commodity Credit Corporation in the normal course of business and available for disposition. (c) Barter by exporters of agricultural commodities(1) PurposeThe Secretary or the Commodity Credit Corporation shall encourage exporters of agricultural commodities to barter such commodities for foreign products—(A) to acquire such foreign products needed by such exporters; and (B) to develop, maintain, or expand foreign markets for United States agricultural exports. (2) Eligible activitiesThe Secretary or the Commodity Credit Corporation may provide eligible commodities to exporters to assist such exporters in barter transactions. (3) Technical assistanceThe Secretary or the Commodity Credit Corporation shall provide technical advice and assistance relating to the barter of agricultural commodities to any United States exporter who requests such advice or assistance. (d) Transfer of foreign products to other Government agenciesThe Secretary or the Commodity Credit Corporation may transfer any foreign products that the Secretary or such Corporation obtains through barter activities to other Government agencies if the Corporation receives assurances that it will receive full reimbursement from the agency within the same fiscal year in which such transfer occurs. (e) Corporation authority not limitedNothing contained in this section shall limit the authority of the Commodity Credit Corporation to acquire, hold, or dispose of such foreign materials as such Corporation determines appropriate in carrying out the functions and protecting the assets of the Corporation. (f) Prohibited activitiesThe Secretary or the Commodity Credit Corporation shall take reasonable precautions to prevent the misuse of eligible commodities in a barter or exchange program, including activities that—(1) displace or interfere with commercial sales of United States agricultural commodities that otherwise might be made; (2) unduly disrupt world prices of agricultural commodities or the normal patterns of commercial trade with recipient countries; or (3) permit the resale or transshipment of eligible commodities to countries other than the intended recipient country.

7 U.S.C. § 5625 Combination of programs

The Commodity Credit Corporation may carry out a program under which commercial export credit guarantees available under section 5622 of this title are combined with direct credits from the Commodity Credit Corporation under section 5621 of this title to reduce the effective rate of interest on export sales of agricultural commodities.

7 U.S.C. § 5641 Funding levels

(a) Direct credit programsThe Commodity Credit Corporation may make available for each fiscal year such funds of the Commodity Credit Corporation as it determines necessary to carry out any direct credit program established under section 5621 of this title. (b) Export credit guarantee programThe Commodity Credit Corporation shall make available for each fiscal year $5,500,000,000 of credit guarantees under section 5622(a) of this title.

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