U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 

1 

49–012 2014

113th Congress, 2d Session – – – – – – – – – – – – House Document 113–160 

THE BUDGET PROGRAM REVISIONS FOR THE 

COMMODITY CREDIT CORPORATION FOR FY 2015 

COMMUNICATION 

FROM

THE PRESIDENT OF THE UNITED STATES 

TRANSMITTING

THE BUDGET PROGRAM REVISIONS FOR THE COMMODITY CREDIT 

CORPORATION FOR FY 2015 

NOVEMBER 12, 2014.—Referred to the Committee on Appropriations and 

ordered to be printed 


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THE WHITE HOUSE, 

Washington, October 14, 2014. 

Hon. JOHN BOEHNER, 

Speaker of the House of Representatives, 

Washington, DC. 

DEAR MR. SPEAKER: Consistent with section 5 of the Commodity 

Credit Corporation Charter Act (15 U.S.C. 714c) and the Government Corporation Control Act (31 U.S.C. Chapter 91), I hereby notify the Congress of a budget program revision for the Commodity 

Credit Corporation (CCC) for Fiscal Year (FY) 2015. The revisions 

total up to $300 million and reflect the payments that the United 

States is making, pursuant to a Memorandum of Understanding 

between the United States and Brazil of October 1, 2014, in connection with termination of the World Trade Organization (WTO) 

‘‘Cotton dispute’’ (WT/DS267) brought by Brazil with respect to 

which the WTO made adverse rulings regarding certain United 

States cotton programs and export credit guarantees (GSM–102). 

For FY 2015, the budget estimates for CCC, as amended by the 

Mid-Session Review, of $6.074 billion in net outlays would be increased by $300 million, to $6.374 billion. 

The details of this action are set forth in the enclosed letter from 

the Director of the Office of Management and Budget. I concur 

with the Director’s comments and observations. 

Sincerely, 

BARACK OBAMA. 

Enclosure. 


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EXECUTIVE OFFICE OF THE PRESIDENT, 

OFFICE OF MANAGEMENT AND BUDGET

Washington, DC, October 14, 2014. 

THE PRESIDENT, 

The White House, 

Washington, DC. 

DEAR MR. PRESIDENT: Submitted for your consideration is a request for a Fiscal Year (FY) 2015 budget revision totaling $300 million that reflects the payments that the United States is required 

to make, pursuant to a Memorandum of Understanding (MOU) between the United States and Brazil of October 1 2014, in connection with termination of the World Trade Organization (WTO) ‘‘Cotton dispute’’ brought by Brazil with respect to which the WTO 

made adverse rulings regarding certain United States cotton programs and export credit guarantees (GSM–102). 

This request would constitute an official revision of the budget 

program for the Commodity Credit Corporation (CCC) for FY 2015. 

For FY 2015, the budget estimates for CCC of $6.074 billion in net 

outlays would be increased by $300 million, to $6.374 billion. 

These funds will be used for the United States to make a onetime payment to the Brazilian Cotton Institute in accordance with 

the MOU. The MOU is an agreement pursuant to which Brazil and 

the United States memorialize negotiated resolution of the Cotton 

dispute and the adverse WTO rulings regarding certain United 

States cotton programs and GSM–102 export credit guarantees. 

The agreement is in the best interest of both the United States and 

Brazil. Under the agreement, the United States avoids the imposition of countermeasures against U.S. trade, including U.S. exports 

and, potentially, intellectual property rights. In exchange, the 

United States agreed with Brazil to pay $300 million to the Brazilian Cotton Institute. 

In conclusion, Section 5 of the CCC Charter Act sets forth specific powers of the corporation in fulfillment of its purposes. Among 

these specific powers are those set forth in section 5(f): ‘‘Export, or 

cause to be exported, or aid in the development of foreign markets 

for, agricultural commodities (other than tobacco)(including fish 

and fish products, without regard to whether such fish are harvested in aquacultural operations).’’ In light of the eventual likelihood of imposition of retaliatory tariffs against myriad U.S. agricultural commodities, in the aggregate potentially cutting off or greatly impeding American agricultural exports into the Brazilian market worth hundreds of millions of dollars annually for an indefinite 

period of years, the proposed expenditure of CCC funds for these 

purposes and in the manner contemplated would serve to cause to 

be exported U.S. agricultural commodities into the Brazilian market that would, in large measure, not occur but for the exercise of 


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such power. Such expenditure of funds therefore is authorized 

under section 5(1) of the CCC Charter Act. 

I have carefully reviewed this proposal and am satisfied that it 

is necessary at this time. Therefore, I join the Secretary of Agriculture and the United States Trade Representative in recommending that you approve the budget program revision by signing 

the enclosed letter to the Speaker of the House of Representatives. 

No further congressional action will be required. 

Sincerely, 

SHAUN DONOVAN, Director. 

Enclosure. 


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NOTIFICATION REQUIRED BY THE COMMODITY CREDIT CORPORATION

AND THE GOVERNMENT CORPORATION CONTROL ACT

In accordance with Section 5 of the Commodity Credit Corporation Act (15 U.S.C. 714c) and the Government Corporation Control 

Act (31 U.S.C., Chapter 91), the President has revised the budget 

program for the Commodity Credit Corporation (CCC) for FY 2015. 

For FY 2015, the budget estimates for CCC of $6.074 billion in net 

outlays would be increased by $300 million, to $6.374 billion. 

These funds will be used for the United States to make a onetime payment to the Brazilian Cotton Institute in accordance with 

the Memorandum of Understanding (MOU) that the Government of 

the United States and the Government of Brazil entered into on 

October 1, 2014, as a negotiated resolution to the World Trade Organization (WTO) dispute between Brazil and the United States 

entitled United States—Subsidies on Upland Cotton (WT/DS 267). 

The agreement is in the best interest of both the United States 

and Brazil. As part of the overall agreement between the parties, 

Brazil agrees to terminate the WTO dispute and the attendant 

right to impose countermeasures against U.S. agricultural exports 

upon satisfaction of certain conditions. One of these conditions is 

payment by the United States of $300 million into the same Brazilian fund to which previous payments were made. 

Æ 


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