
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: 7USC5622]

 
                          TITLE 7--AGRICULTURE
 
                      CHAPTER 87--EXPORT PROMOTION
 
               SUBCHAPTER II--AGRICULTURAL EXPORT PROGRAMS
 
                            Part A--Programs
 
Sec. 5622. Export credit guarantee program


(a) Short-term credit guarantees

                           (1) In general

        The Commodity Credit Corporation may guarantee the repayment of 
    credit made available to finance commercial export sales of 
    agricultural commodities, including processed agricultural products 
    and high-value agricultural products, from privately owned stocks on 
    credit terms that do not exceed a 3-year period.

                        (2) Supplier credits

        In carrying out this section, the Commodity Credit Corporation 
    may issue guarantees for the repayment of credit made available for 
    a period of not more than 180 days by a United States exporter to a 
    buyer in a foreign country.

(b) Intermediate-term credit guarantees

    Subject to the provisions of subsection (c) of this section, 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, including processed 
agricultural products and high-value agricultural products, 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) of this section 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.

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) Purpose of program

    The 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, consistent with the provisions of subsection (c) of 
    this section.

(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

                           (1) In general

        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.

                   (2) Criteria for determination

        In making the determination required under paragraph (1) with 
    respect to credit guarantees under subsection (b) of this section 
    for a country, the Secretary may consider, in addition to financial, 
    macroeconomic, and monetary indicators--
            (A) whether an International Monetary Fund standby 
        agreement, Paris Club rescheduling plan, or other economic 
        restructuring plan is in place with respect to the country;
            (B) whether the country is addressing issues such as--
                (i) the convertibility of the currency of the country;
                (ii) adequate legal protection for foreign investments;
                (iii) the viability of the financial markets of the 
            country; and
                (iv) adequate legal protection for the private property 
            rights of citizens of the country; or

            (C) any other factors that are relevant to the ability of 
        the country to service the debt of the country.

(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) United States agricultural commodities

    The Commodity Credit Corporation shall finance or guarantee under 
this section only United States agricultural commodities.

(i) Ineligibility of financial institutions

                           (1) In general

        A 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

        The Commodity Credit Corporation may guarantee under subsections 
    (a) and (b) of this section the repayment of credit made available 
    to finance an export sale irrespective of whether the obligor is 
    located in the country to which the export sale is destined.

(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.

(k) Processed and high-value products

                           (1) In general

        In issuing export credit guarantees under this section, the 
    Commodity Credit Corporation shall, subject to paragraph (2), ensure 
    that not less than 25 percent for each of fiscal years 1996 and 
    1997, 30 percent for each of fiscal years 1998 and 1999, and 35 
    percent for each of fiscal years 2000, 2001, and 2002, of the total 
    amount of credit guarantees issued for a fiscal year is issued to 
    promote the export of processed or high-value agricultural products 
    and that the balance is issued to promote the export of bulk or raw 
    agricultural commodities.

                           (2) Limitation

        The percentage requirement of paragraph (1) shall apply for a 
    fiscal year to the extent that a reduction in the total amount of 
    credit guarantees issued for the fiscal year is not required to meet 
    the percentage requirement.

(Pub. L. 95-501, title II, Sec. 202, as added Pub. L. 101-624, title XV, 
Sec. 1531, Nov. 28, 1990, 104 Stat. 3673; amended Pub. L. 102-237, title 
III, Sec. 334, Dec. 13, 1991, 105 Stat. 1859; Pub. L. 102-511, title 
VII, Secs. 708, 709(a), Oct. 24, 1992, 106 Stat. 3351; Pub. L. 104-127, 
title II, Secs. 243(a), 277(c)(3), Apr. 4, 1996, 110 Stat. 965, 979.)

                       References in Text

    The cargo preference laws, referred to in subsec. (e), include act 
Mar. 26, 1934, ch. 90, 48 Stat. 500, and act Aug. 26, 1954, ch. 936, 68 
Stat. 832, which are classified to sections 1241-1 and 1241, 
respectively, of Title 46, Appendix, Shipping.


                            Prior Provisions

    A prior section 202 of Pub. L. 95-501 enacted section 1707c of this 
title prior to the complete revision of Pub. L. 95-501 by Pub. L. 101-
624.


                               Amendments

    1996--Subsec. (a). Pub. L. 104-127, Sec. 243(a)(1), designated 
existing provisions as par. (1), inserted heading, and added par. (2).
    Subsec. (d)(3)(B). Pub. L. 104-127, Sec. 277(c)(3), substituted 
``emerging markets'' for ``emerging democracies''.
    Subsec. (f). Pub. L. 104-127, Sec. 243(a)(2), designated existing 
provisions as par. (1), inserted heading, and added par. (2).
    Subsec. (h). Pub. L. 104-127, Sec. 243(a)(3), added subsec. (h) and 
struck out heading and text of former subsec. (h). Text read as follows: 
``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.''
    Subsec. (i). Pub. L. 104-127, Sec. 243(a)(4), designated existing 
provisions as par. (1), inserted heading, struck out former par. (1) 
which read as follows: ``is not in a sound financial condition;'', 
redesignated pars. (2) and (3) as subpars. (A) and (B), respectively, of 
par. (1), and added par. (2).
    Subsec. (k). Pub. L. 104-127, Sec. 243(a)(5), added subsec. (k) and 
struck out heading and text of former subsec. (k). Text read as follows:
    ``(1) In general.--In issuing export credit guarantees under this 
section in connection with sales to the independent states of the former 
Soviet Union, the Commodity Credit Corporation shall, to the extent 
practicable and subject to paragraph (2), ensure that no less than 35 
percent of the total amount of credit guarantees issued for a fiscal 
year are issued to promote the export of processed and high-value 
agricultural products and that the balance are issued to promote the 
export of bulk or raw agricultural commodities.
    ``(2) Limitation.--The 35 percent requirement of paragraph (1) shall 
apply for a fiscal year only to the extent that the percentage of the 
total amount of credit guarantees issued for that fiscal year under this 
section to promote the export to all countries of processed and high-
value agricultural products is less than 25 percent.''
    1992--Subsecs. (a), (b). Pub. L. 102-511, Sec. 709(a)(1), inserted 
``, including processed agricultural products and high-value 
agricultural products,'' after ``agricultural commodities''.
    Subsec. (c). Pub. L. 102-511, Sec. 708(a), inserted sentence at end.
    Subsec. (d)(3). Pub. L. 102-511, Sec. 708(b), amended par. (3) 
generally. Prior to amendment, par. (3) read as follows: ``to assist 
countries, particularly developing countries, in meeting their food and 
fiber needs; and''.
    Subsec. (k). Pub. L. 102-511, Sec. 709(a)(2), added subsec. (k).
    1991--Subsec. (i). Pub. L. 102-237 substituted ``issued by the 
Commodity Credit Corporation under this section if it is determined by 
the Corporation, at the time of the assignment, that'' for ``or proceeds 
payable under a credit guarantee issued by the Commodity Credit 
Corporation under this section if it is determined by the Corporation 
that''.


                               Regulations

    Section 243(d) of Pub. L. 104-127 provided that: ``Not later than 
180 days after the date of enactment of this Act [Apr. 4, 1996], the 
Secretary of Agriculture shall issue regulations to carry out the 
amendments made by this section [amending this section and sections 5602 
and 5641 of this title].''


          Promotion of Agricultural Exports to Emerging Markets

    Section 1542 of title XV of Pub. L. 101-624, as amended by Pub. L. 
102-237, title III, Sec. 338, Dec. 13, 1991, 105 Stat. 1859; Pub. L. 
102-511, title VII, Sec. 706, Oct. 24, 1992, 106 Stat. 3350; Pub. L. 
103-182, title III, Sec. 321(g), Dec. 8, 1993, 107 Stat. 2112; Pub. L. 
104-127, title II, Secs. 277(a), 278, Apr. 4, 1996, 110 Stat. 977, 979, 
provided that:
    ``(a) Funding.--The Commodity Credit Corporation shall make 
available for fiscal years 1996 through 2002 not less than 
$1,000,000,000 of direct credits or export credit guarantees for exports 
to emerging markets under section 201 or 202 of the Agricultural Trade 
Act of 1978 (7 U.S.C. 5621 and 5622), in addition to the amounts 
acquired or authorized under section 211 of the Act (7 U.S.C. 5641) for 
the program.
    ``(b) Facilities and Services.--A portion of such export credit 
guarantees shall be made available for--
        ``(1) the establishment or improvement of facilities, or
        ``(2) the provision of services or United States produced goods,
in emerging markets by United States persons to improve handling, 
marketing, processing, storage, or distribution of imported agricultural 
commodities and products thereof if the Secretary of Agriculture 
determines that such guarantees will primarily promote the export of 
United States agricultural commodities (as defined in section 102(7) of 
the Agricultural Trade Act of 1978 [7 U.S.C. 5602(7)]). The Commodity 
Credit Corporation shall give priority under this subsection to--
        ``(A) projects that encourage the privatization of the 
    agricultural sector or that benefit private farms or cooperatives in 
    emerging markets; and
        ``(B) projects for which nongovernmental persons agree to assume 
    a relatively larger share of the costs.
    ``(c) Consultations.--Before the authority under this section is 
exercised, the Secretary of Agriculture shall consult with exporters of 
United States agricultural commodities (as defined in section 102(7) of 
the Agricultural Trade Act of 1978 [7 U.S.C. 5602(7)]), nongovernmental 
experts, and other Federal Government agencies in order to ensure that 
facilities in an emerging market for which financing is guaranteed under 
paragraph (1)(B) do not primarily benefit countries which are in close 
geographic proximity to that emerging market.
    ``(d) E (Kika) de la Garza Agricultural Fellowship Program.--The 
Secretary of Agriculture (hereafter in this section referred to as the 
`Secretary') shall establish a program, to be known as the `E (Kika) de 
la Garza Agricultural Fellowship Program', to develop agricultural 
markets in emerging markets and to promote cooperation and exchange of 
information between agricultural institutions and agribusinesses in the 
United States and emerging markets, as follows:
        ``(1) Development of agricultural systems.--
            ``(A) In general.--
                ``(i) Establishment of program.--For each of the fiscal 
            years 1991 through 2002, the Secretary of Agriculture 
            (hereafter in this section referred to as the `Secretary'), 
            in order to develop, maintain, or expand markets for United 
            States agricultural exports, is directed to make available 
            to emerging markets the expertise of the United States to 
            make assessments of the food and rural business systems 
            needs of such democracies [markets], make recommendations on 
            measures necessary to enhance the effectiveness of the 
            systems, including potential reductions in trade barriers, 
            and identify and carry out specific opportunities and 
            projects to enhance the effectiveness of those systems.
                ``(ii) Extent of program.--The Secretary shall implement 
            this paragraph with respect to at least 3 emerging markets 
            in each fiscal year.
            ``(B) Experts from the united states.--The Secretary may 
        implement the requirements of subparagraph (A)--
                ``(i) by providing assistance to teams consisting 
            primarily of agricultural consultants, farmers, other 
            persons from the private sector, and government officials 
            expert in assessing the food and rural business systems of 
            other countries to enable such teams to conduct the 
            assessments, make the recommendations, and identify the 
            opportunities and projects specified in subparagraph (A) in 
            emerging markets;
                ``(ii) by providing necessary subsistence expenses in 
            the United States and necessary transportation expenses by 
            individuals designated by emerging markets to enable such 
            individuals to consult with food and rural business system 
            experts in the United States to enhance such systems of such 
            emerging markets; and
                ``(iii) by providing for necessary subsistence expenses 
            in emerging markets and necessary transportation expenses of 
            United States agricultural producers and other individuals 
            knowledgeable in agricultural and agribusiness matters to 
            assist in transferring their knowledge and expertise to 
            entities in emerging markets.
            ``(C) Cost-sharing.--The Secretary shall encourage the 
        nongovernmental experts described in subparagraph (B) to share 
        the costs of, and otherwise assist in, the participation of such 
        experts in the program under this paragraph.
            ``(D) Technical assistance.--The Secretary is authorized to 
        provide, or pay the necessary costs for, technical assistance 
        (including the establishment of extension services) to enable 
        individuals or other entities to implement the recommendations 
        or to carry out the opportunities and projects identified under 
        paragraph (1)(A). Notwithstanding any other provision of law, 
        the assistance shall include assistance for administrative and 
        overhead expenses of the International Cooperation and 
        Development Program Area of the Foreign Agriculture Service, to 
        the extent that the expenses were incurred pursuant to 
        reimbursable agreements entered into prior to September 30, 
        1993, the expenses do not exceed $2,000,000 per year, and the 
        expenses are not incurred for information technology systems.
            ``(E) Reports to secretary.--A team that receives assistance 
        under subparagraph (B) shall prepare such reports as the 
        Secretary may designate.
            ``(F) Advisory committee.--To provide the Secretary with 
        information that may be useful to the Secretary in carrying out 
        the provisions of this paragraph, the Secretary shall establish 
        an advisory committee composed of representatives of the various 
        sectors of the food and rural business systems of the United 
        States.
            ``(G) Use of ccc.--The Secretary shall implement this 
        paragraph through the funds and facilities of the Commodity 
        Credit Corporation. The authority provided under this paragraph 
        shall be in addition to and not in place of any other authority 
        of the Secretary or the Commodity Credit Corporation.
            ``(H) Level of assistance.--The Secretary shall provide 
        assistance under this paragraph of not more than $10,000,000 in 
        any fiscal year.
        ``(2) Agricultural information program.--
            ``(A) Establishment of program.--The Secretary shall 
        establish a program, administered to complement the emerging 
        markets export promotion program developed under this section, 
        to initiate and develop collaboration between the United States 
        Department of Agriculture, United States agribusinesses, and 
        appropriate agricultural institutions in emerging markets in 
        order to promote the exchange of information and resources that 
        will make a long-term contribution to the establishment of free 
        market food production and distribution systems in emerging 
        markets and the enhancement of agricultural trade with the 
        United States.
            ``(B) Implementation.--The Secretary shall draw on the 
        Department of Agriculture's experience to design, implement, and 
        evaluate, on a cost-sharing basis with cooperating agricultural 
        institutions, a program to--
                ``(i) compile, through contacts with the governments of 
            emerging markets and private sector officials in emerging 
            markets, a list of their agricultural institutions, 
            including the location, capabilities, and needs of the 
            institutions;
                ``(ii) make such information available through an 
            appropriate agency of the Department of Agriculture to 
            agribusinesses and agricultural institutions in the United 
            States and other agencies of the United States Government; 
            and
                ``(iii) carry out a program--
          ``(I) to review available agricultural information resources, 
                to determine which would be useful for the purposes of 
                this program;
          ``(II) to arrange for the exchange of persons associated with 
                such agricultural institutions and agribusinesses with 
                experience or interest in the areas of need identified 
                in clause (i);
          ``(III) to help establish contacts between agricultural 
                entrepreneurs and businesses in the United States and 
                emerging markets, which may include individuals and 
                entities participating in the program established under 
                paragraph (1), to facilitate cooperation and joint 
                enterprises; and
          ``(IV) to provide for the exchange of administrators and 
                faculty members from agricultural and other institutions 
                to strengthen and revise educational programs in 
                agricultural economics, agribusiness, and agrarian law, 
                to support change towards a free market economy in 
                emerging markets.
            ``(C) Consultation and coordination.--The Secretary shall 
        consult and coordinate with the Secretary of State and the 
        Agency for International Development in the formulation and 
        implementation of this program in conjunction with overall 
        assistance to emerging markets.
            ``(D) Authorization for appropriations.--There are 
        authorized to be appropriated such sums as may be necessary to 
        carry out the program established under this paragraph.
    ``(e) Foreign Debt Burdens.--
        ``(1) Effect of credits.--In carrying out the program described 
    in subsection (a), the Secretary of Agriculture shall ensure that 
    the credits for which repayment is guaranteed under subsection (a) 
    do not negatively affect the political and economic situation in 
    emerging markets by excessively adding to the foreign debt burdens 
    of such countries.
        ``(2) Consultation and report.--Subject to section 217 of the 
    Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 
    6917), not later than 6 months after the effective date of this 
    title [Nov. 28, 1990], and not later than the end of each 6-month 
    period occurring thereafter, the Secretary of Agriculture, in 
    consultation with other appropriate Federal departments, shall 
    prepare and transmit to the Committee on Foreign Affairs [now 
    Committee on International Relations] and the Committee on 
    Agriculture of the House of Representatives, and the Committee on 
    Agriculture, Nutrition, and Forestry of the Senate a report to 
    assist the Congress in assessing the extent to which credits for 
    which repayment is guaranteed under subsection (a) meet the 
    requirements of paragraph (1). The report shall include--
            ``(A) the amount and allocation, by country, of credit 
        guarantees issued under subsection (a);
            ``(B) the aggregate foreign debt burdens of countries 
        receiving commodities or facilities under such credit 
        guarantees, expressed in terms of debt on account of 
        agricultural commodities or products thereof, or facilities for 
        which guarantees may be made under subsection (a)(1)(B), and all 
        other debt;
            ``(C) the activities of creditor governments and private 
        creditors to reschedule or reduce payments due on existing debt 
        owed to such creditors by a country in cases where such country 
        has been unable to fully meet its debt obligations; and
            ``(D) an analysis of--
                ``(i) the economic effects of the foreign debt burden of 
            each recipient country, and in particular the economic 
            effects on each recipient country of the credits for which 
            repayment is guaranteed under subsection (a); and
                ``(ii) the relationship between any negative economic 
            effects on any recipient country caused by its overall 
            foreign debt burden and debt incurred under subsection (a) 
            and such country's political stability.
    ``(f) Emerging Market.--In this section and section 1543 [7 U.S.C. 
3293], the term `emerging market' means any country that the Secretary 
determines--
        ``(1) is taking steps toward a market-oriented economy through 
    the food, agriculture, or rural business sectors of the economy of 
    the country; and
        ``(2) has the potential to provide a viable and significant 
    market for United States agricultural commodities or products of 
    United States agricultural commodities.''

           Presidential Determination of Emerging Democracies

    Determination of President of the United States, No. 95-35, Aug. 10, 
1995, 60 F.R. 44723, provided:
    Pursuant to the authority vested in me by section 1542(f) of the 
Food, Agriculture, Conservation and Trade Act of 1990, as amended (7 
U.S.C. 5622 note) (hereinafter ``the Act''), I hereby determine that the 
following countries are taking the steps set forth in section 1542(f) of 
the Act to qualify as emerging democracies for purposes of that section:
    Albania, Bangladesh, Belarus, Bosnia and Herzegovina, Bulgaria, 
Cambodia, Croatia, Czech Republic, Egypt, El Salvador, Estonia, the 
Former Yugoslav Republic of Macedonia, Ghana, Guatemala, Hungary, 
Jordan, Kazakhstan, Latvia, Lithuania, Morocco, Namibia, Nicaragua, 
Pakistan, Panama, the Philippines, Poland, Romania, Russia, Slovak 
Republic, Slovenia, South Africa, Tanzania, Tunisia, Ukraine, Yemen, and 
Zimbabwe.
    In making this determination, I have considered the eligibility only 
of those countries for which programs are underway or currently 
contemplated by the Department of Agriculture.
    The Secretary of State is authorized and directed to publish this 
determination in the Federal Register.
                                                     William J. Clinton.

                  Section Referred to in Other Sections

    This section is referred to in sections 5625, 5641, 5661, 5662 of 
this title.
