Full text of Agricultural Trade Act of 1978

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PUBLIC LAW 95-501—OCT. 21, 1978

92 STAT. 1685

Public Law 95-501
95th Congress
An Act
To strengthen the economy of the United States through increased sales abroad
of United States agricultural commodities.

Oct. 2 1 , 1978
[S. 3447]

Be it enacted hy the Senate and House of Representatives of the
United States of America in Congress assembled, That this Act mav Agricultural
be cited as the "Agricultural Trade Act of 1978".
" Trade Act of
1978.

T I T L E I—INTERMEDIATE CREDIT

7 USC1761 note.

SEC. 101. Section 4 of the Food for Peace Act of 1966 is amended to 7 USC 1707a.
read as follows:
"SEC. 4. (a) Commercial export sales of agricultural commodities Export sales,
out of private stocks on credit terms of not to exceed three years may
be financed by the Commodity Credit Corporation under its export
credit sales program.
"(b)(1) Export sales of agricultural commodities out of Commodity
Credit Corporation and private stocks on credit terms in excess of
three years, but not more than ten years, may be financed by the Commodity Credit Corporation.
"(2) No export sale may be financed under this subsection unless
the Secretary of Agriculture determines that the sale will—
"(A) develop, expand, or maintain the importing nation as a
1
foreign market, on a long-term basis, for the commercial sale and
export of United States agricultural commodities without displacing normal commercial sales; or
>
"(B) otherwise improve the capability of the importing nation
to purchase and use, on a long-term basis. United States agricultural commodities.
"(3) Consistent with the provisions of paragraph (2) of this subsection, intermediate credit financing under this subsection may be
made available for the following uses:
"(A) to establish reserve stocks consistent with international
commodity agreements or other stock building plans acceptable
to the United States;
"(B) the export sale of breeding animals (including, but not
limited to, cattle, swine, sheep, and poultry), including the cost of
•' ,' '*•
freight from the United States to designated points of entry in
' '" ' '
other nations;
"(C) where determined feasible, for the establishment of facilities in the importing nation to improve handling, marketing,
processing, storage, or distribution of imported agricultural commodities (through the use of local currency generated from the
import and sale of United States agricultural commodities to
finance all or part of such facilities); and
"(D) to meet credit competition for agricultural export sales.
jr
"(4) Intermediate credit financing under this subsection may not
be used to encourage credit competition, or for the purpose of foreign
aid or debt rescheduling.

92 STAT. 1686

PUBLIC LAW 95-501—OCT. 21, 1978

Terms of credit.

"^5) The terms of credit for export sales financed under this subsection shall include the following terms:
" (A) Repayment shall be in dollars with interest at a rate equal,
as nearly as practicable, to the rate charged by the Commodity
i .
; •
Credit Corporation for financing under the Corporation's shortterm export credit sales program.
"(B) The Secretary may, if the Secretary deems such action
appropriate to protect the interests of the United States, require
, ,; , .
an initial payment from the purchaser at the time of sale or ship•.ji
ment of the agricultural commodity.
"(6) The Secretary shall, wherever feasible, obtain commitments
K " . '<
from purchasers that will prevent resale or transshipment to other
nations of agricultural commodities purchased with financing provided
under this subsection.
Review.
"(7) (A) Agreements to finance export sales of agricultural commodities entered into under this subsection, except agreements to
finance export sales for the establishment of reserve stocks, shall be
subject to such other terms and conditions as the Secretary may deem
necessary or appropriate and shall be subject only to review by the
National Advisory Council on International Monetary and Financial
Policies.
"(B) Agreements to finance export sales of agricultural commodities
under this subsection for the establishment of reserve stocks shall be
subject to such other terms and conditions as the Secretary may deem
necessary and appropriate. No such agreement may become effective
Presidential
or be carried out until the expiration of thirty days following the
determination.
Transmittal to
date on which a detailed summary of such proposed agreement,
congressional
together with a determination by the President that such financing is
committees.
not adverse to the interests of United States producers of agricultural
commodities, is transmitted by the Secretary to the Committee on
Agriculture, Nutrition, and Forestry of the Senate and the Committee on Agriculture of the House of Representatives, if transmitted
while Congress is in session, or sixty days following the date of transmittal if transmitted while Congress is not in session.
"(8) The provisions of the cargo preference laws shall not apply
to export sales financed under this subsection.
"(9) The authority provided under this subsection shall be in addition to, and not in place of, any authority granted to the Secretary or
the Commodity Credit Corporation under any other provision of law.
"Agricultural
"(c) The term 'agricultural commodity' as used in this section
commodity."
includes any agricultural commodity or product thereof.".
TITLE II—COMMODITY CREDIT CORPORATION FINANCING OF D E F E R R E D PAYMENT SALES; CREDIT SALES
TO T H E P E O P L E ' S REPUBLIC OF CHINA
COMMODITY CREDIT CORPORATION FINANCING OF DEFERRED PAYMENT SALES

7 use 1707b.

SEC 201. (a) To develop new market opportunities for the sale of
United States agricultural commodities and to maintain and expand
existing foreign markets for such commodities, the Secretary of Agriculture may provide Commodity Credit Corporation financing to
exporters of such commodities who wish to provide deferred payment
terms to buyers in other nations in order to meet sales competition
from other nations or to make additional export sales. Except as otherwise provided in section 202 of this title, financing under this section
shall be available only with respect to sales to those nations that are

PUBLIC LAW 95-501—OCT. 21, 1978
eligible for financing under the short-term export credit sales program
conducted by the Commodity Credit Corporation..
(b) Exporters who are willing to sell United States agricultural
commodities to foreign buyers on deferred payment terms of not to
exceed three years and who must provide such deferred payment terms
in order to meet sales competition from other nations, or to make
additional export sales, may apply to the Commodity Credit Corporation for financing such sales. Financing under this section shall not
be provided by the Corporation until the applicant's export sales plan
has been approved by the Corporation and the applicant has established
to the satisfaction of the Corporation that exports have been made in
accordance with the approved plan.
(c) Repayment to the Commodity Credit Corporation shall be made
in dollars by the exporter in accordance with the terms and at interest
rates contained in the approved export sales plan. Interest rates on
such financing shall be no higher than those charged for financing
under the short-term export credit sales program conducted by the
Corporation.
(d) The Secretary may, if the Secretary deems such action appropriate to protect the interests of the United States, require a performance guarantee from the exporter at the time of the sale.
(e) Financing agreements with exporters entered into under this
section shall be subject to such other terms and conditions as the Secretary may deem necessary or appropriate and shall be subject only to
review by the National Advisory Council on International Monetary
and Financial Policies.
(f) The authority provided under this section shall be in addition to,
and not in place of, any authority granted to the Secretary or the
Commodity Credit Corporation under any other provision of law*

92 STAT. 1687

"

•.

•:
4

Repayment in
dollars,
= i
Perfonnance
guarantee,
Review.

CREDIT SALES TO T H E P E O P L E ' S REPUBLIC OF CHnSTA

SEC. 202. Notwithstanding any other provision of law, in order to 7 USC 1707c.
expand and develop markets for United States agricultural commodities, the Commodity Credit Corporation may provide financing for
commercial sales of agricultural commodities out of private stocks on
terms of not to exceed three years to the People's Republic of China
under (1) the short-term export credit sales program conducted by
the Corporation, and (2) the deferred payment sales program for
exporters established und^r section 201 of this title.
DEFINITION

SEC. 203. The term "agricultural commodity" as used in this title 7 USC 1707d.
includes any agricultural commodity or product thereof.
T I T L E III—AGRICULTURAL COUNSELORS
SEC. 301. Title VI of the Act of August 28,1954 (68 Stat. 908-910,
as amended; 7 U.S.C. 1761-1768), is amended by—
(1) amending the title designation to read as follows:
"TITLE VI—FOREIGN MARKET DEVELOPMENT";
(2) inserting immediately before section 601 the subtitle designation as follows:

.^

92 STAT. 1688

PUBLIC LAW 95-501—OCT. 21, 1978
"Subtitle A—General Provisions; Agricultural Counselors and *
Agricultural Attaches";

7 use 1761.

7 use 1762,
1764, 1765.
7 use 1762.

Agricultural
eounselor.

Ante, p. 1685.
7 u s e 1764.
Availability of
Federal agency
services,
personnel, and
facilities.

(3) in section 601, striking out "agricultural products" wherever that phrase appears therein and inserting in lieu thereof
"agricultural commodities", and striking out "said products" and
inserting in lieu thereof "such commodities";
(4) in sections 602(a), 602(e), 604, and 605, striking out "this
title" wherever that phrase appears therein and inserting in lieu
thereof "this subtitle";
(5) amending section 602(b) to read as follows:
"(b) Officers or employees assigned or appointed to posts abroad
under this subtitle shall have the designation of Agricultural Counselor, Agricultural Attache, or such other titles or designations that
shall be agreed to by the Secretary of State and the Secretary of Agriculture, and shall be accorded the same rank and privileges as those of
other counselors or attaches in United States embassies. An Agricultural Counselor shall be appointed in any nation—
" (1) to which a substantial number of governments with which
the United States competes directly for agricultural markets in
such nation assign agricultural representatives with the diplomatic status of counselor or its equivalent; or
"(2) in which—
"(A) the potential is great for long-term expansion of a
market for United States agricultural commodities, and
"(B) competition with other nations for existing and
potential agricultural markets is extremely intense.
Not less than ten Agricultural Counselors shall be appointed within
three years after the date of enactment of the Agricultural Trade Act
of 19'r8.";and
(6) adding at the end of section 604 a new subsection (c) as
follows:
" (c) Upon the request of the Secretary of Agriculture, each Federal
agency may make its services, personnel, and facilities available to
officers and employees appointed and assigned to a post abroad under
this subtitle in the performance of the functions of such officers and
employees. The Secretary of Agriculture may reimburse or advance
funds to any such agency for services, personnel, and facilities so
made available.".
T I T L E IV—ESTABLISHMENT OF UNITED STATES
AGRICULTURAL TRADE O F F I C E S
SEC. 401. Title VI of the Act of August 28,1954, as amended by title
I I I of this Act, is further amended by—
(1) adding immediately after section 605 a new subtitle B as
follows:
'

Agricultural
Trade Offices,
establishment.
7 u s e 1765a.

"Subtitle B—United States Agricultural Trade Offices

"SEC. 605A. (a) For the purpose of developing, maintaining, and
expanding international markets for United States agricultural commodities, the Secretary of Agriculture, after consultation with the
Secretary of State, shall establish not less than six nor more than
twenty-five United States Agricultural Trade Offices in other nations.
" (b) each United States Agricultural Trade Office shall be directed
and administered by an Agricultural Trade Officer who by reason of
training, experience, and attainments is qualified to carry out the pur-

PUBLIC LAW 95-501—OCT. 21, 1978
poses of this subtitle. Such Officer shall be appointed by the Secretary
of Agriculture.
"(c) Each Agricultural Trade Officer may be appointed without
regard to the provisions of title 5 of the United States Code governing appointments in the competitive service, and may be paid without
regard to the provisions of chapter 51 and subchapter I I I of chapter
53 of title 5 relating to classification and General Schedule pay rates,
except that no Agricultural Trade Officer (1) may be paid basic pay
at a rate in excess of the maximum annual rate of basic pay payable
for GS-17 of the General Schedule under section 5332 of such title, or
(2) may be paid at a rate in excess of the highest rate paid to an Agricultural Counselor or Attache, as the case may be, who is appointed
under subtitle A of this title to the nation in which such Officer is to
serve.
"(d) Each Agricultural Trade Officer shall, through the Agricultural Counselor or Attache or other senior representative of the Secretary of Agriculture in each nation in which the United States
Agricultural Trade Office administered by such Officer exercises its
functions, keep the Chief of the United States diplomatic mission fully
and currently informed with respect to all activities and operations of
such Office.
"(e) Each Agricultural Trade Officer shall be responsible for the
exercise of the functions of the United States Agricultural Trade
Office, and shall have the authority to direct and supervise all personnel and activities thereof.
"(f) To carry out the functions of United States Agricultural Trade
Offices, the Secretary of Agriculture may appoint such other personnel as the Secretary determines to be necessary and may, with the concurrence of the Secretary of State, assign such personnel abroad and
employ local nationals for necessary professional and clerical help.
"(g) No employee of any United States Agricultural Trade Office
may engage in any business, vocation, or other employment, or have
other interests, that are inconsistent with official responsibilities.
"(h) Upon the request of the Secretary of Agriculture, the Secretary of State shall request for Agricultural Trade Officers and personnel of United States Agricultural Trade Offices diplomatic
privileges and immunities equivalent to those enjoyed by Foreign
Service personnel of comparable rank and salary.
"SEC. 605B. The functions of each United States Agricultural Trade
Office shall be to—
"(1) increase the effectiveness of agricultural export promotion
efforts through consolidation of activities, providing services and
facilities for foreign buyers and United States trade representatives, and coordination of market development activities
sponsored by the Department of Agriculture;
"(2) establish goals by nation or region and agricultural commodity for developing, expanding, and maintaining markets for
United States agricultural commodities;
"(3) initiate programs to achieve the export marketing goals
approved by the Department of Agriculture;
"(4) maintain facilities for use by nonresident cooperators,
private trade groups, and other individuals engaged in the import
and export of United States agricultural commodities where the
use of such facilities would aid in the conduct of market development activities, and cooperate, to the maximum extent practicable,
with such cooperators, groups, and individuals to expand the level
,J
of United States agricultural exports;

92 STAT. 1689
Appointment,

5 USC 5101 et
seq. 5332 note,
*

•

Ante, p. 1688.
Transmittal of
information.

Diplomatic
privileges and
immunities.

Functions.

7 USC 1765b.

92 STAT. 1690

PUBLIC LAW 95-501—OCT. 21, 1978

"(5) develop and maintain a current listing of trade, government, and other appropriate organizations for each agricultural
commodity area and make such listing available to persons with
a bona fide interest in exporting or importing United States agricultural commodities;
"(6) originate and provide assistance for exhibits, sales teams,
and other functions for the promotion of United States agricultural commodities;
"(7) provide practical assistance for the use of the programs
under the Agricultural Trade Development and Assistance Act
7 u s e 1691 note.
of 1954, the export credit sales program, the export incentives
program, and related programs of the United States Government
where use of such programs will serve as a market development
tool for United States agriculture;
"(8) supervise project agreements with United States cooperators, coordinate the activities of the United States Agricultural
Trade Office with those of the cooperators, and submit annual recommendations to the Secretary of Agriculture on the efficacy of
cooperator programs;
"(9) publicize the services offered by the United States AgriPublication.
cultural Trade Office through advertisements in trade journals
or by other appropriate means; and
"(10) perform such other functions as the Secretary of A ^ culture, in consultation with the Secretary of State, determines
to be necessary and proper for achieving the purposes of this
subtitle.
"SEC. 605C. Each United States Agricultural Trade Office shall
Consultation.
7 u s e 1765c.
carry out its functions under section 605B in the nation where the
United States Agricultural Trade Office is located and in such other
nations as the Secretary of Agriculture, in consultation with the Secretary of State, may prescribe in order to carry out the purposes of
this subtitle.
"SEC. 605D. Upon the request of the Secretary of Agriculture, the
7 u s e 1765d.
Secretary of State may use the authorities contained in the Foreign
Service Buildings Act, 1926, to acquire sites and buildings, including
22 u s e 292.
living quarters, for the purpose of establishing United States Agricultural Trade Offices.
"SEC. 605E. United States Agricultural Trade Offices shall be cen7 u s e 1765e.
trally located in the cities of assignment to facilitate foreign trade
meetings and foreign trade reliance on such offices for assistance in
marketing activities.
"SEC. 605F. Upon the request of the Secretary of Agriculture, each
7 u s e 1765f.
Federal agency may make its services, personnel, and facilities available to a United States Agricultural Trade Office in the performance
of its functions. The Secretary of Agriculture may reimburse or
advance funds to any such agency for services, personnel, and facilities
so made available.
"SEC. 605G. The provisions of section 604(a) of this title shall applv
7 u s e 1765g.
7 u s e 1764.
with respect to personnel appointed and assigned under this subtitle.";
7 u s e 1766.
(2) redesignating section 606 as section 606A and inserting
Supra.
immediately after new section 605G, as added by this section, the
subtitle designation and new section 606 as follows:
"Subtitle C—Representation Allowances, Regulations, General Provisions, and Authorization for Appropriations
7 use 1765h.

"SEC. 606. Any Agricultural Trade Officer and the senior representative of tlie Secretary of Agriculture assigned to a nation under subtitle A of this title may, under regulations prescribed by the Secretary

PUBLIC LAW 95-501—OCT. 21, 1978
of Agriculture, be entitled to receive a representation allowance in an
amount determined by considering (1) the extent to which such Agricultural Trade Officer or senior representative can effectively use such
funds to further the purposes of this title, (2) travel and entertainment expenses customary in the private trade for persons of comparable rank and salary, and (3) customs and practices in the nation
where such Agricultural Trade Officer or senior representative is
assigned.";
(3) redesignatingsections 602(d), 602(f), and 603 as sections
606B, 606C, and 606D, respectively, and inserting the redesignated
sections immediately after section 606A, as redesignated by paragraph (2) of this section;
(4) in section 606C, as redesignated by paragraph (3) of this
section, striking out "subsection" wherever that word appears
therein and inserting in lieu thereof "section";
(5) redesignating section 602(e) as 602(d); and
(6) adding at the end thereof a new section 609 as follows:
"SEC. 609. The term 'agricultural commodity' as used in this title
includes any agricultural commodity or product thereof.".

92 STAT. 1691

7 u s e 1762,
1763, 1766a,
1766b, 1766c.
Supra.
7 u s e 1762.
"Agricultural
commodity."
7 u s e 1769.

T I T L E V—REORGANIZATION
SEC. 501. (a) There is hereby established in the Department of 7 USe 2211a.
Agriculture the position of Under Secretary of Agriculture for International Affairs and Commodity Programs to be appointed by the
President, by and with the advice and consent of the Senate. The
Under Secretary of Agriculture for International Affairs and Commodity Programs is authorized to exercise such functions and perform
such duties related to foreign agriculture and agricultural stabilization
and conservation, and shall perform such other duties, as may be
required by law or prescribed by the Secretary of Agriculture.
(b) Section 5314 of title 5 of th^ United States Code is amended
by adding at the end thereof a new paragraph (69) as follows:
" (69) Under Secretary of Agriculture for International Affairs
and Commodity Programs.".
(c) The designation of "Assistant Secretary of Agriculture for In- 7 USe 2211a
ternational Affairs and Commodity Programs" shall not be used after note.
the date of enactment of this Act.
T I T L E VI—GENERAL PROVISIONS AND REPORTS
IMPLEMENTATION OF THIS ACT; REGULATIONS

SEC. 601. (a) The Secretary of Agriculture shall implement the pro- 7 USe 1761 note,
visions of this Act as expeditiously as possible consistent with the
efficient and effective administration of the programs established under
this Act and their integration with related foreign agricultural
programs.
-(b) The Secretary may issue such regulations as may be necessary
to carry out the provisions of this Act.
A N N U A L REPORT ON EXPORT PROMOTION

SEC. 602. The Secretary of Agriculture shall submit to Congress Submittal to
each year a report providing a comprehensive statement of the activi- eongress.
ties and accomplishments of the Department of Agriculture, includ- 7 u s e 1765b-l.
ing specifically those of the United States Agricultural Trade Offices, in
developing, maintaining, and expanding foreign markets for LTnited
States agricultural commodities.

PUBLIC LAW 95-501—OCT. 21, 1978

92 STAT. 1692
••i

7 u s e 612C-3
note.
7 u s e 612c-3.
Legislative
recommedations
to congressional
committees.

INTERAGENCY TASK FORCE ON EXPORT SAUES REPORTINO

'

SEC. 603. The Secretary of Agriculture shall appoint an interagency
task force within the Department of Agriculture for the purpose of
analyzing the effectiveness of the export sales reporting provisions
of section 812 of the Agricultural Act of 1970. The Secretary shall
submit, not later than January 3, 1979, a report of the finding of the
task force, including legislative recommendations for improving such
reporting provisions, to the Committee on Agriculture, Nutrition, and
Forestry oi the Senate and the Committee on Agriculture of the House
of Representatives.
REPORT ON TITLE IV OF THE TRADE ACT OF 1 9 7 4

Submittal to
Congress.
19 u s e 2431
note.
19 u s e 2431.

SEC. 604. Within six months after the date of enactment of this Act,
the Secretary of Agriculture shall submit to Congress a report detailing the effect on United States agriculture of title I V of the Trade
Act of 1974, including a recommendation as to whether the provisions
of such title should be repealed or amended.
Approved October 21, 1978.

LEGISLATIVE HISTORY:
HOUSE REPORTS: No. 95-1338, Pt. I (eomm. on Agriculture) and No. 95-1338,
Pt. II (eomm. on International Relations) both parts
accompanying H.R. 10584; and No. 95-1755 (eomm. of
eonference).
SENATE REPORTS: No. 95-1142 (eomm. on Agriculture, Nutrition, and Forestry) and
No. 95-1315 (eomm. of eonference).
eONGRESSIONAL RECORD, Vol. 124 (1978):
Sept. 8, considered and passed Senate.
Sept. 25, H.R. 10584 considered and passed House; passage vacated and
S. 3447, amended, passed in lieu.
Oct. 11, Senate agreed to conference report.
Oct. 15, House agreed to conference report.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, VOL. 14, No. 43:
Oct. 21, Presidential statement.