§ 1702. — Agreements regarding eligible countries and private entities.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC1702]
TITLE 7--AGRICULTURE
CHAPTER 41--AGRICULTURAL TRADE DEVELOPMENT AND ASSISTANCE
SUBCHAPTER II--TRADE AND DEVELOPMENT ASSISTANCE
Sec. 1702. Agreements regarding eligible countries and private
entities
(a) Priority
In selecting agreements to be entered into under this subchapter,
the Secretary shall give priority to agreements providing for the export
of agricultural commodities to developing countries that--
(1) have the demonstrated potential to become commercial markets
for competitively priced United States agricultural commodities;
(2) are undertaking measures for economic development purposes
to improve food security and agricultural development, alleviate
poverty, and promote broad-based equitable and sustainable
development; and
(3) demonstrate the greatest need for food.
(b) Private entities
An agreement entered into under this subchapter with a private
entity shall require such security, or such other provisions as the
Secretary determines necessary, to provide reasonable and adequate
assurance of repayment of the financing extended to the private entity.
(c) Agricultural market development plan
(1) ``Agricultural trade organization'' defined
In this subsection, the term ``agricultural trade organization''
means a United States agricultural trade organization that promotes
the export and sale of a United States agricultural commodity and
that does not stand to profit directly from the specific sale of the
commodity.
(2) Plan
The Secretary shall consider a developing country for which an
agricultural market development plan has been approved under this
subsection to have the demonstrated potential to become a commercial
market for competitively priced United States agricultural
commodities for the purpose of granting a priority under subsection
(a) of this section.
(3) Requirements
(A) In general
To be approved by the Secretary, an agricultural market
development plan shall--
(i) be submitted by a developing country or private
entity, in conjunction with an agricultural trade
organization;
(ii) describe a project or program for the development
and expansion of a commercial market for a United States
agricultural commodity in a developing country, and the
economic development of the country, using funds derived
from the sale of agricultural commodities received under an
agreement described in section 1701 of this title;
(iii) provide for any matching funds that are required
by the Secretary for the project or program;
(iv) provide for a results-oriented means of measuring
the success of the project or program; and
(v) provide for graduation to the use of non-Federal
funds to carry out the project or program, consistent with
requirements established by the Secretary.
(B) Agricultural trade organization
The project or program shall be designed and carried out by
the agricultural trade organization.
(C) Additional requirements
An agricultural market development plan shall contain such
additional requirements as are determined necessary by the
Secretary.
(4) Administrative costs
(A) In general
The Secretary may make funds made available to carry out
this subchapter available for the reimbursement of
administrative expenses incurred by agricultural trade
organizations in developing, implementing, and administering
agricultural market development plans, subject to such
requirements and in such amounts as the Secretary considers
appropriate.
(B) Duration
The funds may be made available to agricultural trade
organizations for the duration of the applicable agricultural
market development plan.
(C) Termination
The Secretary may terminate assistance made available under
this subsection if the agricultural trade organization is not
carrying out the approved agricultural market development plan.
(July 10, 1954, ch. 469, title I, Sec. 102, 68 Stat. 455; Apr. 25, 1955,
ch. 27, 69 Stat. 44; Pub. L. 88-638, Sec. 1(3), Oct. 8, 1964, 78 Stat.
1035; Pub. L. 89-808, Sec. 2(B), Nov. 11, 1966, 80 Stat. 1526; Pub. L.
90-436, Sec. 9, July 29, 1968, 82 Stat. 451; Pub. L. 95-88, title II,
Sec. 201(a), Aug. 3, 1977, 91 Stat. 545; Pub. L. 95-113, title XII,
Sec. 1201, Sept. 29, 1977, 91 Stat. 955; Pub. L. 101-624, title XV,
Sec. 1512, Nov. 28, 1990, 104 Stat. 3634; Pub. L. 104-127, title II,
Sec. 203, Apr. 4, 1996, 110 Stat. 951.)
Amendments
1996--Pub. L. 104-127 amended section generally, substituting
present provisions for provisions outlining eligibility of developing
countries for assistance under this subchapter and factors in
determining priority for assistance.
1990--Pub. L. 101-624 amended section generally, substituting
present provisions for provisions authorizing Commodity Credit
Corporation to finance sales from its own and private stocks, and
allowing it, upon request, to serve as purchasing and/or shipping agent.
1977--Pub. L. 95-113 inserted provisions authorizing the
Corporation, when requested by the purchaser of commodities, to serve as
the purchasing or shipping agent, or both, in arranging the purchasing
or shipping of the commodities.
Pub. L. 95-88 struck out proviso prohibiting the financing by the
Commodity Credit Corporation of the sale and export of agricultural
commodities where the exporter had engaged in any sales, trade, or
commerce with North Vietnam, or with any resident thereof, or which
owned or controlled any company so engaged either directly or
indirectly, and struck out an additional proviso requiring that
financing applications be accompanied by statements in which were listed
the branches, etc., in which the applicant had a controlling interest
and the companies which had a controlling interest in the applicant
company.
1968--Pub. L. 90-436 inserted proviso that the Commodity Credit
Corporation should not finance the sale and export of any agricultural
commodities where the exporter has engaged in any sales, trade or
commerce with North Vietnam, or with any resident thereof, or which owns
or controls any company so engaged, or which is owned or controlled by
any company or person so engaged either directly or indirectly, and the
further proviso that the financing application be accompanied by a
statement in which are listed the branches, etc., in which the applicant
has a controlling interest and the companies which have a controlling
interest in the applicant company.
1966--Pub. L. 89-808 incorporated provisions formerly constituting
subsec. (a)(2), and struck out other provisions of subsec. (a) and
(a)(1) relating to availability of stocks acquired in price support
operations and ocean freight charges, such charges now covered by
section 1708 of this title, and subsec. (b) for letters of commitment
against funds or guaranties and establishment of accounts.
1964--Subsec. (a). Pub. L. 88-638 authorized Commodity Credit
Corporation to finance ocean freight charges incurred under agreements
entered into after Dec. 31, 1964, to extent such charges are higher
because of requirement that commodities be shipped in United States flag
vessels, and provided that such agreements require balance of such
charges to be paid in dollars.
1955--Subsec. (a). Act Apr. 25, 1955, struck out requirement that
exporters of privately owned stocks acquire an equivalent quantity of
Commodity Credit Corporation stocks.
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 1977 Amendments
Amendment by Pub. L. 95-113 effective Oct. 1, 1977, see section 1901
of Pub. L. 95-113, set out as a note under section 1307 of this title.
Section 215 of Pub. L. 95-88 provided that: ``The provisions of this
title [enacting sections 1712 to 1714 and 1727 to 1727f of this title,
amending this section and sections 1427, 1431, 1692, 1703, 1706, 1711,
1721, 1722, 1723, 1726, 1731, and 1736b of this title, and enacting
provisions set out as notes under sections 1708 and 1722 of this title]
shall become effective October 1, 1977.''
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.
