
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 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.
