7 USC 5622 - Export credit guarantee program

Collapse to view only § 5622. Export credit guarantee program

§ 5621. Direct credit sales program
§ 5622. Export credit guarantee program
§ 5623. Agricultural trade promotion and facilitation
§ 5624. Barter of agricultural commodities
§ 5625. Combination of programs

§ 5621. Direct credit sales program

(a) Short-term program

(b) Intermediate-term program

(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;

(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 restrictions

(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) Restrictions

(Pub. L. 95–501, title II, § 201, as added Pub. L. 101–624, title XV, § 1531, Nov. 28, 1990, 104 Stat. 3672; amended Pub. L. 102–511, title VII, § 707(a)–(c), Oct. 24, 1992, 106 Stat. 3350, 3351; Pub. L. 104–127, title II, § 277(c)(2), Apr. 4, 1996, 110 Stat. 979.)

§ 5622. Export credit guarantee program

(a) Short-term credit guarantees

(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.

(d) Restrictions

(e) Terms

(f) 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 banks

(h) Conditions for fish and processed fish products

(i) Consultation on agricultural export credit programs

(j) Administration

(1) Definition of long term

(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.

(Pub. L. 95–501, title II, § 202, as added Pub. L. 101–624, title XV, § 1531, Nov. 28, 1990, 104 Stat. 3673; amended Pub. L. 102–237, title III, § 334, Dec. 13, 1991, 105 Stat. 1859; Pub. L. 102–511, title VII, §§ 708, 709(a), Oct. 24, 1992, 106 Stat. 3351; Pub. L. 104–127, title II, §§ 243(a), 277(c)(3), Apr. 4, 1996, 110 Stat. 965, 979; Pub. L. 107–171, title III, § 3102(a)–(c), May 13, 2002, 116 Stat. 289; Pub. L. 110–246, title III, § 3101(a), (c), June 18, 2008, 122 Stat. 1831, 1832; Pub. L. 113–79, title III, § 3101(a), Feb. 7, 2014, 128 Stat. 778.)

§ 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 general

(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 plan

(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 promotion

(E) Amendments

(4) Level of assistance and cost-share requirements

(A) In general

(B) Limitation on branded promotion

(5) Other terms and conditions

(A) Multiyear basis

(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 funds

(8) Priority

(9) Contribution level

(A) In general

(B) Increases in contribution level

(10) Additionality

(11) Independent audits

(12) Tobacco

(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) Establishment

(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 program

(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.

(D) Technical assistance

(E) Reports to Secretary

(F) Advisory committee

(G) Effect

(e) Technical assistance for specialty crops

(1) Establishment

(2) Purpose

(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 projects

(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 general

(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 Corporation

(2) Funding amount

(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 program

(ii) Foreign market development cooperator program

(iii) E (Kika) de la Garza Emerging Markets Program

(iv) Technical assistance for specialty crops

(v) Priority trade fund(I) In general(II) Considerations

(B) Reallocation

(4) Cuba

(5) Authorization of appropriations

(Pub. L. 95–501, title II, § 203, as added Pub. L. 101–624, title XV, § 1531, Nov. 28, 1990, 104 Stat. 3674; amended Pub. L. 102–237, title III, § 309, Dec. 13, 1991, 105 Stat. 1856; Pub. L. 103–66, title I, § 1302(b)(1), Aug. 10, 1993, 107 Stat. 330; Pub. L. 103–465, title IV, § 411(d), Dec. 8, 1994, 108 Stat. 4963; Pub. L. 104–127, title II, § 244(a)(1), (b), Apr. 4, 1996, 110 Stat. 967, 968; Pub. L. 110–246, title III, § 3102(a), June 18, 2008, 122 Stat. 1832; Pub. L. 115–334, title III, § 3201(a), Dec. 20, 2018, 132 Stat. 4608.)

§ 5624. Barter of agricultural commodities

(a) In general

(b) Eligible commodities

Unless 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.

(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

(3) Technical assistance

(d) Transfer of foreign products to other Government agencies

(e) Corporation authority not limited

(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.

(Pub. L. 95–501, title II, § 204, as added Pub. L. 101–624, title XV, § 1531, Nov. 28, 1990, 104 Stat. 3676; amended Pub. L. 102–237, title III, § 320, Dec. 13, 1991, 105 Stat. 1857.)

§ 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.

(Pub. L. 95–501, title II, § 205, as added Pub. L. 101–624, title XV, § 1531, Nov. 28, 1990, 104 Stat. 3677.)