§ 1701. — Trade and development assistance.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC1701]
TITLE 7--AGRICULTURE
CHAPTER 41--AGRICULTURAL TRADE DEVELOPMENT AND ASSISTANCE
SUBCHAPTER II--TRADE AND DEVELOPMENT ASSISTANCE
Sec. 1701. Trade and development assistance
(a) In general
The President shall establish a program under this subchapter to
provide for the sale of agricultural commodities to developing countries
and private entities for dollars on credit terms, or for local
currencies (including for local currencies on credit terms) for use
under this subchapter. Such program shall be implemented by the
Secretary.
(b) General authority
To carry out the policies and accomplish the objectives described in
section 1691 of this title, the Secretary may negotiate and execute
agreements with developing countries and private entities to finance the
sale and exportation of agricultural commodities to such countries and
entities.
(July 10, 1954, ch. 469, title I, Sec. 101, 68 Stat. 455; Pub. L. 85-
931, Sec. 1, Sept. 6, 1958, 72 Stat. 1790; Pub. L. 87-128, title II,
Sec. 201(1), Aug. 8, 1961, 75 Stat. 306; Pub. L. 88-205, pt. IV,
Sec. 403(a), Dec. 16, 1963, 77 Stat. 390; Pub. L. 88-638, Sec. 1(1),
(2), Oct. 8, 1964, 78 Stat. 1035; Pub. L. 89-808, Sec. 2(B), Nov. 11,
1966, 80 Stat. 1526; Pub. L. 97-113, title IV, Sec. 401(1), Dec. 29,
1981, 95 Stat. 1537; Pub. L. 99-198, title XI, Sec. 1111(c), Dec. 23,
1985, 99 Stat. 1474; Pub. L. 100-202, Sec. 8, Dec. 22, 1987, 101 Stat.
1329-447; Pub. L. 101-624, title XV, Sec. 1512, Nov. 28, 1990, 104 Stat.
3633; Pub. L. 104-127, title II, Sec. 202, Apr. 4, 1996, 110 Stat. 951.)
Amendments
1996--Subsec. (a). Pub. L. 104-127, Sec. 202(1), inserted ``and
private entities'' after ``developing countries''.
Subsec. (b). Pub. L. 104-127 inserted ``and private entities'' after
``developing countries'' and ``and entities'' after ``such countries''.
1990--Pub. L. 101-624 amended section generally, substituting
present provisions for provisions authorizing President to negotiate
agreements with friendly countries for sales of commodities for dollars
on credit terms, or for foreign currencies, on credit or on terms
permitting conversion to dollars, setting minimum level for sales in
foreign currencies, limiting extent of sales for foreign currency to
amounts that can be productively used in private sector of foreign
country, and requiring that sales for foreign currency through financial
intermediaries be on terms and conditions specified in agreements.
1987--Subsec. (b)(1). Pub. L. 100-202, Sec. 8(1), inserted
provisions which required for each of fiscal years 1988 through 1990
that each agreement provide for some sale of foreign currencies for use
under section 1708 of this title unless the President determines that
the level of agricultural commodities furnished under this subchapter
will be significantly reduced as a result of this sentence.
Subsec. (b)(2). Pub. L. 100-202, Sec. 8(2), inserted ``, or enter
into sales agreements not providing for sales for foreign currencies for
use under section 1708 of this title,'' after ``currencies''.
1985--Pub. L. 99-198 in amending section generally, incorporated
existing text in provisions designated subsec. (a) and added subsecs.
(b) to (d).
1981--Pub. L. 97-113 substituted ``, to the extent that sales for
dollars under the terms applicable to such sales are not possible, for
foreign currencies on credit terms and on terms which permit conversion
to dollars at the exchange rate applicable to the sales agreement'' for
``for foreign currencies''.
1966--Pub. L. 89-808 substituted ``agreements with friendly
countries to provide for the sale of agricultural commodities for
dollars on credit terms or for foreign currencies'' for ``agreements
with friendly nations or organizations of friendly nations to provide
for the sale of surplus agricultural commodities for foreign
currencies'' and struck out subsecs. (a) to (d), (f), and (g), relating
to safeguarding usual marketings and disruption of world prices and
normal patterns of commercial trade with friendly countries, use of
private channels to maximum extent practicable, development and
expansion of foreign markets, restrictive commitments from participating
countries, exchange rates, and currency conversion, now covered by
section 1703(c), (e) to (h), and (m)(1) of this title, respectively, and
subsec. (e), relating to maximum opportunity for friendly nation to
purchase surplus agricultural commodities.
1964--Subsec. (f). Pub. L. 88-638, Sec. 1(1), inserted ``, and which
are not less favorable than the highest of exchange rates obtainable by
any other nation'', and struck out ``from the government or agencies
thereof'' before ``in the respective countries''.
Subsec. (g). Pub. L. 88-638, Sec. 1(2), added subsec. (g).
1963--Subsec. (f). Pub. L. 88-205 substituted ``the highest of
exchange rates legally obtainable from the Government or agencies
thereof'' for ``the rates at which United States Government agencies can
buy currencies from the United States disbursing officers''.
1961--Subsec. (f). Pub. L. 87-128 added subsec. (f).
1958--Subsec. (a). Pub. L. 85-931 required President to take
reasonable precautions to assure that sales of surplus commodities would
not disrupt normal patterns of commercial trade with friendly countries.
Effective Date of 1990 Amendment
Amendment by Pub. L. 101-624 effective Jan. 1, 1991, see section
1513 of Pub. L. 101-624, set out as a note under section 1691 of this
title.
Effective Date of 1966 Amendment
Amendment by Pub. L. 89-808 effective Jan. 1, 1967, see section 5 of
Pub. L. 89-808, set out as a note under section 1691 of this title.
Emergency Food Assistance to India
Pub. L. 90-7, Apr. 1, 1967, 81 Stat. 7, provided: ``That the
Congress approves the participation of the United States in cooperation
with other countries and with multilateral organizations, including the
International Bank for Reconstruction and Development, the Organization
for Economic Cooperation and Development, the Food and Agriculture
Organization, and others, in urgent international efforts designed to--
``(a) develop a comprehensive self-help approach to the war on
hunger based on a fair sharing of the burden among the nations of
the world;
``(b) encourage and assist the Government of India in achieving
food self-sufficiency; and
``(c) help meet India's critical food and nutritional needs by
making available agricultural commodities or other resources needed
for food procurement or production.
``Because uncertainty in connection with Public Law 480 transactions
tends to depress market prices, it is the sense of Congress that, in
carrying out this Aid to India program, the Administration should,
subject to the requirement of section 401 of Public Law 480 [section
1731 of this title] with respect to the availability of the commodity at
the time of exportation, make announcements of intention, purchases and
shipments of commodities on schedules and under circumstances which will
protect and strengthen farm market prices to the maximum extent
possible.
``The Congress endorses the President's policy of equal
participation on the part of the United States with all other nations,
under terms and conditions set forth in Public Law 480, as amended [this
chapter], in assisting the Government of India to meet these needs.
``Further, the Congress recommends, on the basis of estimates now
available, that the United States provide an additional amount of food
grain not to exceed three million tons at an estimated cost of
$190,000,000 as the United States share toward meeting the India food
deficit, provided it is appropriately matched, and specifically extends
its support to the allocation of approximately $190,000,000 of funds
available to the Commodity Credit Corporation in calendar year 1967
which will be required to accomplish this purpose.
``The Congress further recommends that the President provide an
additional $25,000,000 of emergency food relief for distribution by CARE
and other American voluntary agencies.''
Cotton and Cotton Products
Section 8 of Pub. L. 85-931 as amended by Pub. L. 89-808, Sec. 3(d),
Nov. 11, 1966, 80 Stat. 1538, provided that: ``In carrying out the
provisions of the Agricultural Trade Development and Assistance Act of
1954, as amended [this chapter], extra long staple cotton shall be made
available for sale pursuant to the provisions of title I of the Act
[this subchapter] in the same manner as upland cotton or any other
surplus agricultural commodity is made available, and products
manufactured entirely from upland or long staple cotton shall be made
available for sale pursuant to the provisions of title I of the Act
[this subchapter] as long as cotton is in surplus supply in the same
manner as any other agricultural commodity or product is made available,
and no discriminatory or other conditions shall be imposed which will
prevent or tend to interfere with their sale or availability for sale
under the Act [this chapter].''
Amendment by Pub. L. 89-808 effective Jan. 1, 1967, see section 5 of
Pub. L. 89-808, set out as a note under section 1691 of this title.
Cargo Preference Law Exemption
Section 3 of act Aug. 3, 1956, ch. 933, 70 Stat. 988, provided that:
``Sales of fresh fruit and the products thereof under title I of the Act
[sections 1701 to 1704, 1705 to 1707, 1708 to 1711 of this title] shall
be exempt from the requirements of the cargo preference laws (Public
Resolution 17, Seventy-third Congress [46 App. U.S.C. 1241-1] and
section 901(b) of the Merchant Marine Act, 1936 [46 App. U.S.C.
1241(b)]).''
Implementation of Program
Program under this subchapter to provide for sale of agricultural
commodities to developing countries to be implemented by Secretary of
Agriculture, see Ex. Ord. No. 12752, Sec. 1(a), Feb. 25, 1991, 56 F.R.
8255, set out as a note under section 1691 of this title.
Section Referred to in Other Sections
This section is referred to in section 1702 of this title.
