AMENDMENT TO THE AGRICULTURAL TRADE ACT OF 1978.

SEC. 1531. AMENDMENT TO THE AGRICULTURAL TRADE ACT OF 1978. The Agricultural Trade Act of 1978 (7 U.S.C. 1761 et seq.) is amended to read as follows: 104 STAT. 3669 “SECTION 1. SHORT TITLE. “This Act may be cited as the ‘Agricultural Trade Act of 1978’. “TITLE I— GENERAL PROVISIONS “SEC. 101. PURPOSE. “It is the purpose of this Act to increase the profitability of farming and to increase opportunities for United States farms and agricultural enterprises by— “(1) increasing the effectiveness of the Department of Agriculture in agricultural export policy formulation and implementation; “(2) improving the competitiveness of United States agricultural commodities and products in the world market; and “(3) providing for the coordination and efficient implementation of all agricultural export programs. “SEC. 102. DEFINITIONS. “As used in this Act— “(1) Agricultural commodity.— The term ‘agricultural commodity’ means any agricultural commodity, food, feed, or fiber, and any product thereof. “(2) Developing country.— The term ‘developing country’ means a country that— “(A) has a shortage of foreign exchange earnings and has difficulty accessing sufficient commercial credit to meet all of its food needs, as determined by the Secretary; and “(B) has the potential to become a commercial market for agricultural commodities. “(3) Secretary.— The term ‘Secretary’ means the Secretary of Agriculture. “(4) Service.— The term ‘Service’ means the Foreign Agricultural Service of the Department of Agriculture. “(5) Unfair trade practice.— “(A) In general.— Subject to subparagraph (B), the term ‘unfair trade practice’ means any act, policy, or practice of a foreign country that— “(i) violates, or is inconsistent with, the provisions of, or otherwise denies benefits to the United States under, any trade agreement to which the United States is a party; or “(ii) is unjustifiable, unreasonable, or discriminatory and burdens or restricts United States commerce. “(B) Consistency with 1974 trade act.— Nothing in this Act may be construed to authorize the Secretary to make any determination regarding an unfair trade practice that is inconsistent with section 301 of the Trade Act of 1974 (19 U.S.C. 2411). “(6) United states.— The term ‘United States’ includes each of the States, the District of Columbia, Puerto Rico, and the territories and possessions of the United States. “(7) United states agricultural commodity.— The term ‘United States agricultural commodity’ means— “(A) with respect to any agricultural commodity other than a product of an agricultural commodity, an agricul-104 STAT. 3670tural commodity entirely produced in the United States; and “(B) with respect to a product of an agricultural commodity— (i) a product all of the agricultural components of which are entirely produced in the United States; or “(ii) any other product the Secretary may designate that contains any agricultural component that is not entirely produced in the United States if— “(I) such component is an added, de minimis component, “(II) such component is not commercially produced in the United States, and “(III) there is no acceptable substitute for such component that is commercially produced in the United States. For purposes of this paragraph, fish entirely produced in the United States include fish harvested by a documented fishing vessel as defined in title 46, United States Code, in waters that are not waters (including the territorial sea) of a foreign country. “SEC. 103. DEVELOPMENT OF AGRICULTURAL TRADE STRATEGY. “(a) In General.— “(1) Development of multi-year strategy.— The Secretary shall develop a long-term agricultural trade strategy for the United States to guide the Secretary in the implementation of Federal programs designed to promote the export of United States agricultural commodities. “(2) Frequency.— A long-term agricultural trade strategy shall be developed under paragraph (1) for each 3-year fiscal period, beginning on October 1, 1991. “(3) Consultation.— In preparing the strategy under paragraph (1), the Secretary shall consult with— “(A) the United States Trade Representative to ensure that such strategy is coordinated with the annual national trade policy agenda under section 163 of the Trade Act of 1974 (19 U.S.C. 2122); “(B) the Agricultural Policy Advisory Committee and Agricultural Technical Advisory Committee established pursuant to section 135 of the Trade Act of 1974 (19 U.S.C. 2155); and “(C) other interested agencies and persons. “(b) Goals.— The long-term agricultural trade strategy established under subsection (a) shall be designed to ensure— “(1) the growth of exports of United States agricultural commodities; “(2) the efficient, coordinated use of Federal programs designed to promote the export of United States agricultural commodities; “(3) the provision of food assistance and the improvement in the commercial potential of markets for United States agricultural commodities in developing countries; and “(4) the maintenance of traditional markets for United States agricultural commodities. “(c) Contents.— In developing the long-term agricultural trade strategy under subsection (a), the Secretary shall— 104 STAT. 3671 “(1) establish, for the 3-year period for which the strategy is developed, trade goals for the desired levels of exports of United States agricultural commodities, including goals for high value, processed agricultural commodities; “(2) develop multiyear plans for the implementation and coordination of United States export assistance programs and foreign food assistance programs to meet such agricultural trade goals; “(3) recommend long-term strategies for growth in agricultural trade and exports, taking into account— “(A) United States competitiveness in the export of agricultural commodities; “(B) United States participation in bilateral and multilateral trade negotiations; “(C) the effects of exchange rate fluctuations and unfair trading practices by foreign governments that limit access to such foreign markets; “(D) distribution, financing, and other requirements necessary to trade in nonmarket economies; “(E) the differences in the markets of developed and developing countries (including the amount of outstanding national debt of particular countries); and “(F) transportation and shipping factors; “(4) design strategies to make the United States a primary and dependable supplier of agricultural commodities in the world market; “(5) estimate the level of expenditures and the impact of Federal export programs on exports of United States agricultural commodities in the priority markets identified under subsection (d); and “(6) consider such other factors as the Secretary determines appropriate. “(d) Establishment of Priority Markets.— “(1) Designation of growth markets.— The Secretary shall develop a list, for inclusion in the long-term agricultural trade strategy developed under subsection (a), of not less than 15 countries (or groups of countries) that are most likely to emerge as growth markets for United States agricultural commodities during the 3- and 6-fiscal year periods beginning on October 1, 1991. “(2) Priority for growth markets.— The Secretary shall designate countries identified on the list developed under paragraph (1) as priority markets for Federal programs designed to promote the export of United States agricultural commodities (other than those programs designed to provide food assistance under the Agricultural Trade Development and Assistance Act of 1954 (as amended) and the program under section 301. “(3) Establishment of market plans.— The Secretary shall develop individual market plans for each priority market designated under paragraph (2). Each such market plan shall set forth— “(A) the trade goals for the desired levels of agricultural exports from the United States to each priority market; and “(B) specific plans to assist in the export of United States agricultural commodities to, and develop markets for such commodities in, each priority market through Federal programs designed to promote the export of such commodities. 104 STAT. 3672 “(e) Review of Strategy.— Not less than once every 3 years, the Secretary shall review the agricultural trade performance of the United States based on the applicable long term agricultural trade strategy. “(f) Confidentiality.— The Secretary may determine that part of the agricultural trade strategy prepared under this section shall not be released to the general public if— “(1) the Secretary determines that the release of such information would disadvantage the United States in international trade negotiations or with respect to its competitors in specific foreign markets; or “(2) the Secretary determines that any such information is determined to be confidential business information. “(g) Information.— Nothing in this section shall be construed to authorize the withholding of information from Congress. “(h) Termination.— The provisions of this section shall be effective for the period beginning January 1, 1991, and ending December 31, 1995. “SEC. 104. PRESERVATION OF TRADITIONAL MARKETS. “The Secretary shall, in implementing programs of the Department of Agriculture intended to encourage or assist exports of agricultural commodities, seek to preserve traditional markets for United States agricultural commodities. “SEC. 105. INDEPENDENCE OF AUTHORITIES. “Each authority granted under this Act shall be in addition to, and not in lieu of, any authority granted to the Secretary or the Commodity Credit Corporation under any other provision of law. “TITLE II— AGRICULTURAL EXPORT PROGRAMS “SEC. 201. DIRECT CREDIT SALES PROGRAM. “(a) Short-Term Program.— To 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 Program.— Subject 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) Determinations.— The 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 104 STAT. 3673 “(3) otherwise promote the export of United States agricultural commodities. “(d) Use of Program.— “(1) General uses.— The 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, particularly developing countries, in meeting their food and fiber needs; and “(D) for such other purposes as the Secretary determines appropriate consistent with the provisions of subsection (c). “(2) General restrictions.— Export 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 Assistance.— Any 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. “SEC. 202. EXPORT CREDIT GUARANTEE PROGRAM. “(a) Short-Term Credit Guarantees.— The Commodity Credit Corporation may guarantee the repayment of credit made available to finance commercial export sales of agricultural commodities from privately owned stocks on credit terms that do not exceed a 3-year period. “(b) Intermediate-Term Credit Guarantees.— Subject to the provisions of subsection (c), the Commodity Credit Corporation may guarantee the repayment of credit made available by financial institutions in the United States to finance commercial export sales of agricultural commodities from privately owned stocks on credit terms that are for not less than a 3-year period nor for more than a 10-year period in a manner that will directly benefit United States agricultural producers. “(c) Required Determinations.— The Commodity Credit Corporation shall not guarantee under subsection (b) the repayment of credit made available to finance an export sale 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. “(d) Purpose of Program.— The Commodity Credit Corporation may use export credit guarantees authorized under this section— 104 STAT. 3674 “(1) to increase exports of agricultural commodities; “(2) to compete against foreign agricultural exports; “(3) to assist countries, particularly developing countries, in meeting their food and fiber needs; and “(4) for such other purposes as the Secretary determines appropriate, consistent with the provisions of subsection (c). “(e) Restrictions on Use of Credit Guarantees.— Export 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. “(f) Restrictions.— The Commodity Credit Corporation shall not make credit guarantees available in connection with sales of agricultural commodities to any country that the Secretary determines cannot adequately service the debt associated with such sale. “(g) Terms.— Export credit guarantees issued pursuant to this section shall contain such terms and conditions as the Commodity Credit Corporation determines to be necessary. “(h) Foreign Agricultural Components.— The Commodity Credit Corporation shall finance or guarantee under this section only United States agricultural commodities. The Commodity Credit Corporation shall not finance or guarantee under this section the value of any foreign agricultural component. “(i) Ineligibility of Financial Institutions.— A financial institution shall be ineligible to receive an assignment of a credit guarantee or proceeds payable under a credit guarantee issued by the Commodity Credit Corporation under this section if it is determined by the Corporation that such financial institution— “(1) is not in a sound financial condition; “(2) is the financial institution issuing the letter of credit or a subsidiary of such institution; or “(3) is owned or controlled by an entity that owns or controls that financial institution issuing the letter of credit. “(j) Conditions for Fish and Processed Fish Products.— In 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. “SEC. 203. MARKET PROMOTION PROGRAM. “(a) In General.— The Commodity Credit Corporation shall establish and carry out a program to encourage the development, maintenance, and expansion of commercial export markets for agricultural commodities through cost-share assistance to eligible trade organizations that implement a foreign market development program. “(b) Type of Assistance.— Assistance under this section may be provided in the form of funds of, or commodities owned by, the Commodity Credit Corporation, as determined appropriate by the Secretary. “(c) Requirements for Participation.— “(1) In general.— To be eligible for cost-share assistance under this section, an organization shall— “(A) be an eligible trade organization; 104 STAT. 3675 “(B) prepare and submit a marketing plan to the Secretary that meets the guidelines governing such plans established by the Secretary; and “(C) meet any other requirements established by the Secretary. “(2) Priority basis for export assistance.— The Secretary shall provide export assistance under this section on a priority basis in the case of an unfair trade practice. “(d) Eligible Trade Organizations.— An eligible trade organization shall be— “(1) a United States agricultural trade organization or regional State-related organization that promotes the export and sale of agricultural commodities and that does not stand to profit directly from specific sales of agricultural commodities; “(2) a cooperative organization or State agency that promotes the sale of agricultural commodities; or “(3) a private organization that promotes the export and sale of agricultural commodities if the Secretary determines that such organization would significantly contribute to United States export market development. “(e) Approved Marketing Plan.— “(1) In general— A marketing plan submitted by an eligible trade organization under this section 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 section is being requested. “(2) Requirements.— To be approved by the Secretary, a marketing plan submitted under this subsection shall— “(A) 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; “(B) establish specific market goals to be achieved as a result of the marketing promotion program; and “(C) contain whatever additional requirements are determined by the Secretary to be necessary. “(3) Amendments.— A marketing plan may be amended by the eligible trade organization at any time, with the approval of the Secretary. “(4) Branded promotion.— An agreement entered into under this section may provide for the use of branded advertising to promote the sale of agricultural commodities in a foreign country under such terms and conditions as may be established by the Secretary. “(f) Other Terms and Conditions.— “(1) Multi-year basis.— The Secretary may provide assistance under this section on a multi-year basis, subject to annual review by the Secretary for compliance with the approved marketing plan. “(2) Termination of assistance.— The Secretary may terminate any assistance made, or to be made, available under this section if the Secretary determines that— “(A) the eligible trade organization is not adhering to the terms and conditions of the program established under this section; 104 STAT. 3676 “(B) the eligible trade organization is not implementing the approved marketing plan or is not adequately meeting the established goals of the marketing promotion program; “(C) the eligible trade organization is not adequately contributing its own resources to the marketing promotion program; “(D) the unfair trade practice that was the basis of the provision of assistance has been discontinued and marketing assistance is no longer required to offset its effects; or “(E) the Secretary determines that termination of assistance in a particular instance is in the best interests of the program. “(3) Evaluations.— The Secretary shall monitor the expenditure of funds received under this section by recipients of such funds. The Secretary shall make evaluations of such expenditure, including— “(A) an evaluation of the effectiveness of the program in developing or maintaining markets for United States agricultural commodities; “(B) an evaluation of whether assistance provided under this section is necessary to maintain such markets; and “(C) a thorough accounting of the expenditure of such funds by the recipient. The Secretary shall make an initial evaluation of expenditures of a recipient not later than 15 months after the initial provision of funds to the recipient. “(g) Level of Marketing Assistance.— “(1) In general.— The Secretary shall justify in writing the level of assistance provided to an eligible trade organization under the program under this section and the level of cost-sharing required of such organization. “(2) Limitation.— Assistance provided under this section for activities described in subsection (e)(4) 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 agricultural commodities with respect to which there has been a favorable decision by the United States Trade Representative under section 301 of the Trade Act of 1974. Criteria for determining that the limitation shall not apply shall be consistent and documented. “(3) Staged reduction in assistance.— In the case of participants that received assistance under section 1124 of the Food Security Act of 1985 prior to the date of enactment of this Act and with respect to which assistance under this section would be limited under paragraph (2), any such reduction in assistance shall be phased down in equal increments over a 5-year period. “SEC. 204. BARTER OF AGRICULTURAL COMMODITIES. “(a) In General.— The 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 Commodities.— Unless otherwise specified, eligible commodities shall include— “(1) agricultural commodities acquired by the Commodity Credit Corporation through price support operations; and 104 STAT. 3677 “(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) Purpose.— The 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 activities.— The Secretary or the Commodity Credit Corporation may provide eligible commodities to exporters to assist such exporters in barter transactions. “(3) Technical assistance.— The 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 Agency or Private Parties.— The 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 Limited.— Nothing 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 Activities.— The 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. “SEC. 205. COMBINATION OF PROGRAMS. “The Commodity Credit Corporation may carry out a program under which commercial export credit guarantees available under section 202 are combined with direct credits from the Commodity Credit Corporation under section 201 to reduce the effective rate of interest on export sales of agricultural commodities. “Subtitle B— Implementation “SEC. 211. FUNDING LEVELS. “(a) Direct Credit Programs.— The 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 201. 104 STAT. 3678 “(b) Export Credit Guarantee Programs.— “(1) Short-term guarantees.— “(A) Minimum amounts.— The Commodity Credit Corporation shall make available for each of the fiscal years 1991 through 1995 not less than $5,000,000,000 in credit guarantees under section 202(a). “(B) Limitation on origination fee.— Notwithstanding any other provision of law, the Secretary may not charge an origination fee with respect to any credit guarantee transaction under section 202(a) in excess of an amount equal to one percent of the amount of credit extended under the transaction. “(2) Intermediate-term credit guarantees.— The Commodity Credit Corporation shall make available for each of the fiscal years 1991 through 1995 not less than $500,000,000 in credit guarantees under section 202(b). “(c) Marketing Promotion Programs.— The Commodity Credit Corporation or the Secretary shall make available for market promotion activities authorized to be carried out by the Commodity Credit Corporation under section 203— “(1) in addition to any funds that may be specifically appropriated to implement a market development program, not less than $200,000,000 for each of the fiscal years 1991 through 1995 of the funds of, or an equal value of commodities owned by, the Commodity Credit Corporation; and “(2) any funds that may be specifically appropriated to carry out a marketing promotion program under section 203. “TITLE III— RESPONSE TO UNFAIR TRADE PRACTICES “SEC. 301. EXPORT ENHANCEMENT PROGRAM. “(a) In General.— The Commodity Credit Corporation shall carry out in accordance with this section a program to discourage unfair trade practices by making United States agricultural commodities competitive. “(b) Export Bonus.— “(1) In general.— In carrying out the program established under this section, the Commodity Credit Corporation may— “(A) make agricultural commodities, acquired by the Commodity Credit Corporation, available to exporters, users, processors, or foreign purchasers at no cost either directly or through the issuance of commodity certificates; and “(B) make cash payments to exporters, users, and processors. “(2) Calculation of bonus levels.— The Commodity Credit Corporation shall— “(A) maintain an established procedure for evaluating program bonus requests, with guidelines for determining prevailing market prices for targeted commodities and destinations to be used in the calculation of acceptable bonus levels; “(B) use a clear set of established procedures for measuring transportation and incidental costs to be used in the104 STAT. 3679 calculation of acceptable bonus levels and for determining the amount of such costs actually incurred; and “(C) maintain consistent and effective controls and procedures for auditing and reviewing payment of bonuses and for securing refunds where appropriate. “(3) Disclosure of information.— The Secretary may, notwithstanding the provisions of section 552 of title 5, United States Code, provide for withholding from the public the procedures and guidelines established under paragraphs (2) (A) and (B) if the Secretary determines that release of such information would adversely affect the operation of the program. Nothing in this paragraph shall be construed to authorize the withholding of information, including such procedures and guidelines, from the Congress. “(4) Competitive disadvantage.— The Secretary shall take such action as is necessary to ensure that equal treatment is provided to domestic and foreign purchasers and users of agricultural commodities in any case in which the importation of a manufactured product made, in whole or in part, from a commodity made available for export under this section would place domestic users of the commodity at a competitive disadvantage. “(5) Different commodities.— The Commodity Credit Corporation may provide to an exporter, user, or processor, or foreign purchaser, under the program established under this section, agricultural commodities of a kind different than the agricultural commodity involved in the transaction for which assistance under this section is being provided. “(6) Other export programs.— The Commodity Credit Corporation may provide bonuses under this section in conjunction with other export promotion programs conducted by the Secretary or the Commodity Credit Corporation. “(7) Avoidance of preferential application.— When using the authorities of this section to promote the exporting of wheat, the Secretary shall make reasonable efforts to avoid giving a preference to one class of wheat disproportionately more than another class. “(8) Displacement.— The Secretary shall avoid the displacement of usual marketings of United States agricultural commodities in carrying out this section. “(c) Priority in the Case of Livestock.— In the case of proposals for bonuses for dairy cattle or other appropriate livestock, the Commodity Credit Corporation shall give priority to proposals that include, in connection with the purchase of the livestock, appropriate herd management training, veterinary services, nutritional training, and other technical assistance necessary for the adaptation of the livestock to foreign environments. “(d) Inapplicability of Price Restrictions.— Any price restrictions that otherwise may be applicable to dispositions of agricultural commodities owned by the Commodity Credit Corporation shall not apply to agricultural commodities provided under this section. “(e) Funding Levels.— The Commodity Credit Corporation shall make available for each of the fiscal years 1991 through 1995 not less than $500,000,000 of the funds or commodities of the Commodity Credit Corporation to carry out the program established under this section. 104 STAT. 3680 “(g) Effect on Third Countries.— It is not the purpose of the program established under this section to affect adversely the exports of fairly traded agricultural commodities. “SEC. 302. RELIEF FROM UNFAIR TRADE PRACTICES. “(a) Use of Programs.— “(1) In general.— The Secretary may, for each article described in paragraph (2), make available some or all of the commercial export promotion programs of the Department of Agriculture and the Commodity Credit Corporation to help mitigate or offset the effects of the unfair trade practice serving as the basis for the proceeding described in paragraph (2). “(2) Commodities specified.— Paragraph (1) shall apply in the case of articles for which the United States has instituted, under any international trade agreement, any dispute settlement proceeding based on an unfair trade practice if such proceeding has been prevented from progressing to a decision by the refusal of the party maintaining the unfair trade practice to permit the proceeding to progress. “(b) Consultations Required.— For any article described in subsection (a)(2), the Secretary shall— “(1) promptly consult with representatives of the industry producing such articles and other allied groups or individuals regarding specific actions or the development of an integrated marketing strategy utilizing some or all of the commercial export programs of the Department of Agriculture and the Commodity Credit Corporation to help mitigate or offset the effects of the unfair trade practice identified in subsection (a)(2); and “(2) ascertain and take into account the industry preference for the practical use of available commercial export promotion programs in implementing subsection (a)(1). “SEC. 303. EQUITABLE TREATMENT OF HIGH-VALUE AND VALUE-ADDED UNITED STATES AGRICULTURAL COMMODITIES. “In the case of any program, such as that established under section 301, operated by the Secretary or the Commodity Credit Corporation during the fiscal years 1991 through 1995, for the purpose of discouraging unfair trade practices, the Secretary shall establish as an objective to expend annually at least 25 percent of the total funds available (or 25 percent of the value of any commodities employed) for program activities involving the export sales of high-value agricultural commodities and value-added products of United States agricultural commodities. “TITLE IV— GENERAL PROVISIONS “Subtitle A— Program Controls “SEC. 401. PROGRAM CONTROLS FOR EXPORT PROGRAMS. “(a) Arrival Certification.— With respect to commodities or other assistance provided, or for which financing or credit guarantees are made available, under the programs authorized in sections 201, 202, and 301, the Commodity Credit Corporation shall— “(1) require the exporter to maintain records of an official or customary commercial nature or other documents as the Sec-104 STAT. 3681retary may require, and have access to such documents or records as needed to verify the arrival of agricultural commodities exported in connection with such programs in the countries that were the intended destination of such commodities; and “(2) obtain certification from the seller or exporter of record of such commodities, that there were no corrupt payments or extra sales services, or other items extraneous to the transaction provided, financed, or guaranteed in connection with the transaction, and that the transaction complied with applicable United States law. “(b) Diversion.— The unauthorized diversion of commodities under the programs authorized in sections 201, 202, and 301 is prohibited. The Commodity Credit Corporation shall establish procedures providing for the annual audit of a sufficient number of export transactions under such programs to ensure that the agricultural commodities that were the subject of such transactions arrived in the country of destination as provided in the sales agreement. “(c) Good Faith.— The failure of an exporter, seller or other person to comply with the provisions of this section shall not affect the validity of any credit guarantee or other obligation of the Commodity Credit Corporation under the programs under this Act with respect to any exporter, seller, or person who had no knowledge of such failure to comply at the time such exporter, seller, or person was assigned the credit guarantee or at the time the Corporation entered into such obligation. “SEC. 402. COMPLIANCE PROVISIONS. “(a) Records.— “(1) In general.— In the administration of the programs established under sections 201, 202, 203, and 301 the Secretary shall require by regulation each exporter or other participant under the program to maintain all records concerning a program transaction for a period of not to exceed 5 years after completion of the program transaction, and to permit the Secretary to have full and complete access, for such 5-year period, to such records. “(2) Nonprogram transactions.— The Secretary may require by regulation an exporter or other participant in the programs to make records available to the Secretary with respect to non-program transactions if such records would pertain directly to the review of program-related transactions undertaken by such exporter or participant, as determined by the Secretary. “(3) Confidentiality.— The personally identifiable information contained in reports under subsection (a) may be withheld in accordance with section 552(b)(4) of title 5, United States Code. Any officer or employee of the Department of Agriculture who knowingly discloses confidential information as defined by section 1905 of title 18, United States Code, shall be subject to section 1905 of title 18, United States Code. Nothing in this subsection shall be construed to authorize the withholding of information from Congress. “(b) Violation.— If any exporter, assignee, or other participant has engaged in fraud with respect to the programs authorized under this Act, or has otherwise violated program requirements under this Act, the Commodity Credit Corporation may— 104 STAT. 3682 “(1) hold such exporter, assignee, or participant liable for any and all losses to the Corporation resulting from such fraud or violation; “(2) require a refund of any assistance provided to such exporter, assignee, or participant plus interest, as determined by the Secretary; and “(3) collect liquidated damages from such exporter, assignee, or participant in an amount determined appropriate by the Secretary. The provisions of this subsection shall be without prejudice to any other remedy that is available under any other provision of law. “(c) Suspension and Debarment.— The Commodity Credit Corporation may suspend or debar for 1 or more years any exporter, assignee, or other participant from participation in one or more of the programs authorized by this Act if the Corporation determines, after opportunity for a hearing, that such exporter, assignee, or other participant has violated the terms and conditions of the program or of this Act and that the violation is of such a nature as to warrant suspension or debarment. “(d) False Certifications.— The provisions of section 1001 of title 18, United States Code, shall apply to any false certifications issued under this Act. “SEC. 403. DEPARTMENTAL ADMINISTRATION SYSTEM. “(a) In General.— With respect to each commercial export promotion program of the Department of Agriculture or the Commodity Credit Corporation, the Secretary shall— “(1) specify by regulation the criteria used to evaluate and approve proposals for that program; “(2) establish a centralized system to permit the Foreign Agricultural Service to provide the history and current status of any proposal; “(3) provide for regular audits of program transactions to determine compliance with program objectives and requirements; and “(4) establish criteria to evaluate loans eligible for guarantees by the Commodity Credit Corporation, so as to ensure that the Corporation does not assume undue risk in providing such guarantees. “(b) Accessibility of Information.— Information pertaining to the status of a particular proposal shall be retrievable within the central system by appropriate categories, as determined appropriate by the Secretary. “SEC. 404. REGULATIONS. “Not later than 180 days after the date of enactment of this Act, the Secretary shall issue regulations implementing the provisions of this Act, including specific regulations pertaining to program compliance requirements under sections 401 and 402. “Subtitle B— Miscellaneous Provisions “SEC. 411. AGRICULTURAL EMBARGO PROTECTION. “(a) Prerequisites; Scope of Compensation.— Notwithstanding any other provision of law, if— 104 STAT. 3683 “(1) the President or other member of the executive branch of the Federal Government causes the export of any agricultural commodity to any country or area of the world to be suspended or restricted for reasons of national security or foreign policy under the Export Administration Act of 1979 (50 U.S.C. App. 2401 et seq.) or under any other provision of law; “(2) such suspension or restriction of the export of such agricultural commodity is imposed other than in connection with a suspension or restriction of all exports from the United States to such country or area of the world; and “(3) sales of such agricultural commodity for export from the United States to such country or area of the world during the year preceding the year in which the suspension or restriction is imposed exceeds 3 percent of the total sales of such commodity for export from the United States to all foreign countries during the year preceding the year in which the suspension or restriction is in effect; the Secretary shall compensate producers of the commodity involved by making payments available to such producers, as provided in subsection (b) of this section. “(b) Amount of Payments.— If the Secretary makes payments available to producers under subsection (a), the amount of such payment shall be determined— “(1) in the case of an agricultural commodity for which payments are authorized to be made to producers under Title I of the Agricultural Act of 1949 (7 U.S.C. 1441 et seq.), by multiplying— “(A) the farm program payment yield for the producer or the yield established for the farm for the commodity involved; by “(B) the crop acreage base established for the commodity; by “(C) the amount by which the average market price per unit of such commodity received by producers during the 60-day period immediately following the date of the imposition of the suspension or restriction is less than 100 percent of the parity price for such commodity, as determined by the Secretary on the date of the imposition of the suspension or restriction; or “(2) in the case of other agricultural commodities for which price support is authorized for producers under the Agricultural Act of 1949 (7 U.S.C. 1421 et seq.), by multiplying the amount by which the average market price per unit of such commodity received by the producers during the 60-day period immediately following the date of the imposition of the suspension or restriction is less than 100 percent of the parity price for such commodity, as determined by the Secretary on the date of the imposition of the suspension or restriction, by the quantity of such commodity sold by the producer during the period that the suspension or restriction is in effect. “(c) Time for Payments.— Payments under paragraph (1) of subsection (b) shall be made for each marketing year or part thereof during which the suspension or restriction is in effect and shall be made in equal amounts at 90-day intervals, beginning 90 days after the date of the imposition of the suspension or restriction. 104 STAT. 3684 “(d) Commodity Credit Corporation.— The Secretary shall use the Commodity Credit Corporation in carrying out the provisions of this section. “(e) Regulations.— The Secretary may issue such regulations as are determined necessary to carry out this section. “SEC. 412. DEVELOPMENT OF PLANS TO ALLEVIATE ADVERSE IMPACT OF EMBARGOES. “To alleviate, to the maximum extent possible, the adverse impact on farmers, elevator operators, common carriers, and exporters of agricultural commodities of the President or other member of the executive branch of the Federal Government causing the export of any agricultural commodity to any country or area of the world to be suspended or restricted, the Secretary of Agriculture shall— “(1) develop a comprehensive contingency plan that shall include— “(A) an assessment of existing farm programs with a view to determining whether such programs are sufficiently flexible to enable the Secretary to efficiently and effectively offset the adverse impact of such a suspension or restriction on farmers, elevator operators, common carriers, and exporters of commodities provided for under such programs; “(B) an evaluation of the kinds and availability of information needed to determine, on an emergency basis, the extent and severity of the impact of such a suspension or restriction on producers, elevator operators, common carriers, and exporters; and “(C) the development of criteria for determining the extent, if any, to which the impact of such a suspension or restriction should be offset in the case of each of the sectors referred to in paragraph (1)(B); “(2) for any suspension or restriction for which compensation is not provided under section 411, prepare and submit to the appropriate Committees of Congress such recommendations for changes in existing agricultural programs, or for new programs, as the Secretary considers necessary to handle effectively, efficiently, economically, and fairly the impact of any such suspension or restriction; “(3) for any suspension or restriction for which compensation is provided under section 411, prepare and submit to the appropriate Committees of Congress a plan for implementing and administering section 411; and “(4) require the Commodity Credit Corporation, prior to such Corporation purchasing any contracts for the purpose of offsetting the impact of a commodity suspension or restriction, to— “(A) prepare an economic justification for each commodity involved in the suspension or restriction to determine if such a purchase is necessary; “(B) estimate any suspension- or restriction-related benefits and detrimental effects to the exporters, and use both estimates in determining the extent, if any, Federal assistance is needed; and “(C) limit its purchases to only those types and grades of commodities suspended or restricted from shipment and make such purchases at prices at or near the current market prices. 104 STAT. 3685 “SEC. 413. CONTRACTING AUTHORITY TO EXPAND AGRICULTURAL EXPORT MARKETS. “(a) In General.— The Secretary may contract with individuals for services to be performed outside the United States as the Secretary determines necessary or appropriate for carrying out programs and activities to maintain, develop, or enhance export markets for United States agricultural commodities and products. “(b) Not Employees of the United States.— Individuals referred to in subsection (a) shall not be regarded as officers or employees of the United States. “SEC. 414. TRADE CONSULTATIONS CONCERNING IMPORTS. “(a) Consultation Between Agencies.— The Secretary shall require consultation between the Administrator of the Service and the heads of other appropriate agencies and offices of the Department of Agriculture, including the Administrator of the Animal and Plant Health Inspection Service, prior to relaxing or removing any restriction on the importation of any agricultural commodity into the United States. “(b) Consultation With Trade Representative.— The Secretary shall consult with the United States Trade Representative prior to relaxing or removing any restriction on the importation of any agricultural commodity or a product thereof into the United States. “SEC. 415. TECHNICAL ASSISTANCE IN TRADE NEGOTIATIONS. “The Secretary shall provide technical services to the United States Trade Representative on matters pertaining to agricultural trade and with respect to international negotiations on issues related to agricultural trade. “SEC. 416. LIMITATION ON USE OF CERTAIN EXPORT PROMOTION PROGRAMS. “(a) In General.— The Secretary may provide that a person shall be ineligible for participation in an export program established under title I of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1691 et seq.), or in any other export credit, credit guarantee, bonus, or other export program carried out through, or administered by, the Commodity Credit Corporation or carried out with funds made available pursuant to section 32 of the Act entitled ‘An Act to amend the Agricultural Adjustment Act, and for other purposes’, approved August 24, 1935 (7 U.S.C. 612c) with respect to the export of any agricultural commodity or product that has been or will be used as the basis for a claim of a refund, as drawback, pursuant to section 313(j)(2) of the Tariff Act of 1930 (19 U.S.C. 1313(j)(2)), of any duty, tax, or fee imposed under Federal law on an imported commodity or product. “(b) Vegetable Oil.— A person shall be ineligible for participation in any of the export programs referred to in subsection (a) with respect to the export of vegetable oil or a vegetable oil product that has been or will be used as the basis for a claim of a refund, as a drawback, pursuant to section 313 of the Tariff Act of 1930, of any duty, tax, or fee imposed under Federal law on an imported commodity or product. “(c) Certification.— If the Secretary takes action under the authority granted under subsection (a), a person applying to export any agricultural commodity under the export programs referred to in subsection (a) shall certify that none of the commodity has been104 STAT. 3686 or will be used as the basis of a claim for any refund specified in subsection (a), except that regardless of whether the Secretary takes action under the authority granted under subsection (a), a person applying to export any vegetable oil or vegetable oil product under such programs shall certify that none of the vegetable oil or vegetable oil product has been or will be used as the basis of a claim for any refund specified in subsection (b). “(d) Regulations.— The Secretary shall promulgate regulations to carry out this section. “(e) Applicability.— This section shall not apply to quantities of agricultural commodities and products with respect to which an exporter has entered into a contract, prior to the effective date of this section, for an export sale. “TITLE V— FOREIGN AGRICULTURAL SERVICE “SEC. 501. UNDER SECRETARY FOR INTERNATIONAL AFFAIRS AND COMMODITY PROGRAMS. “There is hereby established in the Department of Agriculture the position of Under Secretary of Agriculture for International Affairs and Commodity Programs to be appointed by the President, by and with the advice and consent of the Senate. The Under Secretary of Agriculture for International Affairs and Commodity Programs is authorized to exercise such functions and perform such duties related to foreign agriculture and agricultural stabilization and conservation, and shall perform such other duties, as may be required by law or prescribed by the Secretary of Agriculture. “SEC. 502. ADMINISTRATOR OF THE FOREIGN AGRICULTURAL SERVICE. “(a) Establishment.— There is hereby established in the Department of Agriculture the position of Administrator of the Foreign Agricultural Service. “(b) Duties.— The Administrator of the Foreign Agricultural Service is authorized to exercise such functions and perform such duties related to foreign agriculture, and shall perform such other duties, as may be required by law or prescribed by the Secretary of Agriculture. “(c) Use of Service.— In carrying out the duties under this section, the Administrator shall oversee the operations of the Foreign Agricultural Service, the General Sales Manager, and the Agricultural Attache Service. “SEC. 503. ESTABLISHMENT OF THE FOREIGN AGRICULTURAL SERVICE. “The Service shall assist the Secretary in carrying out the agricultural trade policy of the United States by acquiring information pertaining to agricultural trade, carrying out market promotion and development activities, and implementing the programs authorized in this Act, the Agricultural Trade Development and Assistance Act of 1954, and other Acts. “SEC. 504. STAFF OF THE FOREIGN AGRICULTURAL SERVICE. “(a) Personnel of the Service.— To ensure that the agricultural export programs of the United States are carried out in an effective manner, the authorized number of personnel for the Service shall not be less than 900 staff years each fiscal year. 104 STAT. 3687 “(b) Rank of Foreign Agricultural Service Officers in Foreign Missions.— Notwithstanding any other provision of law, the Secretary of State shall, on the request of the Secretary of Agriculture, accord the diplomatic title of Minister-Counselor to the senior Service officer assigned to any United States mission abroad. The number of Service officers holding such diplomatic title at any time may not exceed twelve. “SEC. 506. AUTHORIZATION OF APPROPRIATIONS. “There are hereby authorized to be appropriated for the Service such sums as may be necessary to carry out the provisions of this title. “TITLE VI— REPORTS “SEC. 601. LONG-TERM AGRICULTURAL TRADE STRATEGY REPORT. “(a) In General.— The Secretary shall periodically prepare a long-term agricultural trade strategy report on the long-term agricultural trade strategy developed by the Secretary under section 104. “(b) Frequency.— The initial report prepared under subsection (a) shall be submitted under subsection (f) prior to October 1, 1991. Subsequent reports shall be submitted under subsection (f) prior to October 1 of each third fiscal year occurring after fiscal year 1992. “(c) Contents.— Each report prepared under subsection (a) shall describe in detail each aspect of the long-term agricultural trade strategy prepared under section 104. “(d) Consultation.— In preparing each report under subsection (a), the Secretary shall consult with the United States Trade Representative to ensure that the report is coordinated with the annual national trade policy agenda that is included in the annual report prepared under section 163 of the Trade Act of 1974 for the relevant fiscal year. “(e) Update.— The Secretary shall prepare an annual update to the report required under subsection (a) in each of the 2 fiscal years following the year for which a report is prepared under subsection (a). Such updates shall contain a description of any revisions to the long-term agricultural trade strategy under section 104, any changes in law that are necessary to meet the goals of the long-term agricultural trade strategy, and such other information as the Secretary considers appropriate. “(f) Treatment as Annual Budget Submission.— “(1) Report.— The report required under subsection (a), or the updates required under subsection (e), shall be submitted to Congress annually with the Budget of the United States Government for the appropriate fiscal year. “(2) Recommended levels of spending.— Any provision of a report under subsection (a) or the annual updates under subsection (e) that relates to recommended levels of spending on international activities of the Department of Agriculture shall be included in the Budget of the United States Government submitted by the President for the fiscal year beginning in the year in which such report or update is submitted. Such reports and updates shall be submitted to Congress together with the budget request for other programs of the Department of Agriculture for such fiscal year. 104 STAT. 3688 “(g) Availability of Report.— “(1) Submission to congress.— The Secretary shall submit each report required under subsection (a) and the updates to such report under subsection (e) to the Committee on Agriculture, the Committee on Foreign Affairs, and the Committee on Ways and Means of the House of Representatives and to the Committee on Agriculture, Nutrition, and Forestry and the Committee on Finance of the Senate. “(2) Availability to public.— Except as provided in paragraph (3), the Secretary may make the report required under subsection (a) and the updates under subsection (e) available to the general public, including the department of agriculture of any State. “(3) Confidentiality.— The Secretary may designate parts of the report required under subsection (a) or any update prepared under subsection (e) as confidential and such parts shall not be released to the general public, if— “(A) the Secretary determines that the release of such information would disadvantage the United States with respect to its competitors in specific foreign markets; or “(B) the Secretary determines that any of such information is confidential business information. “(4) Exception of performance.— The provisions of paragraph (3)(A) shall not be applicable with respect to that part of the agricultural trade strategy under section 104 that reviews the agricultural trade performance of the United States over the previous 3-year period. “SEC. 602. EXPORT REPORTING AND CONTRACT SANCTITY. “(a) Export Sales Reports.— “(1) In general.— All exporters of wheat and wheat flour, feed grains, oil seeds, cotton and products thereof, and other commodities that the Secretary may designate as produced in the United States shall report to the Secretary of Agriculture, on a weekly basis, the following information regarding any contract for export sales entered into or subsequently modified in any manner during the reporting period: “(A) type, class, and quantity of the commodity sought to be exported; “(B) the marketing year of shipment; and “(C) destination, if known. “(2) Confidentiality and compilation of reports.— Individual reports shall remain confidential in accordance with subsection (c) but shall be compiled by the Secretary and published in compilation form each week following the week of reporting. “(3) Immediate reporting.— All exporters of agricultural commodities produced in the United States shall, upon request of the Secretary, immediately report to the Secretary any information with respect to export sales of agricultural commodities and at such times as the Secretary may request. When the Secretary requires that such information be reported by exporters on a daily basis, the information compiled from individual reports shall be made available to the public daily. “(4) Monthly reporting permitted.— The Secretary may, with respect to any commodity or type or class thereof during any period in which the Secretary determines that— 104 STAT. 3689 “(A) there is a domestic supply of such commodity substantially in excess of the quantity needed to meet domestic requirements, “(B) total supplies of such commodity in the exporting countries are estimated to be in surplus, “(C) anticipated exports will not result in excessive drain on domestic supplies, and “(D) to require the reports to be made will unduly hamper export sales, provide for such reports by exporters and publishing of such data to be on a monthly basis rather than on a weekly basis. “(b) Failure to Report.— Any person who knowingly fails to make any report required under this section shall be fined not more than $25,000 or imprisoned for not more than 1 year, or both. “(c) Contract Sanctity.— Notwithstanding any other provision of law, the President shall not prohibit or curtail the export of any agricultural commodity under an export sales contract— “(1) that is entered into before the President announces an action that would otherwise prohibit or curtail the export of the commodity, and “(2) the terms of which require delivery of the commodity within 270 days after the date of the suspension of trade is imposed, except that the President may prohibit or curtail the export of any agricultural commodity during a period for which the President has declared a national emergency or for which the Congress has declared war. “SEC. 603. OTHER REPORTS TO CONGRESS. The Secretary shall, on a quarterly basis, prepare and submit to the Committee on Agriculture and the Committee on Foreign Affairs of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report specifying the cumulative amount of export assistance provided by the Commodity Credit Corporation and the Secretary under the programs provided under this Act, the Commodity Credit Corporation Charter Act, and under the Agricultural Trade Development and Assistance Act of 1954 during the current fiscal year. Such information may be provided in individual reports, in a consolidated report, or in the Long-Term Agricultural Trade Strategy Report (and annual updates to such report) prepared under section 601.”.