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[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2950 Introduced in House (IH)]

  2d Session
                                H. R. 2950

 To preserve and strengthen the Foreign Market Development Cooperator 
   Program of the Department of Agriculture, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            February 1, 1996

 Mr. Nethercutt (for himself, Mr. McHugh, Mr. Cooley, Mr. Hastings of 
Washington, Mrs. Chenoweth, and Mr. Johnson of South Dakota) introduced 
 the following bill; which was referred to the Committee on Agriculture

_______________________________________________________________________

                                 A BILL

 
 To preserve and strengthen the Foreign Market Development Cooperator 
   Program of the Department of Agriculture, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Agriculture Market Development Act 
of 1995''.

SEC. 2. ESTABLISHMENT AND IMPLEMENTATION.

    (a) Establishment.--The Secretary of Agriculture shall establish 
and, in cooperation with eligible trade organizations, carry out a 
foreign market development cooperator program to maintain and develop 
foreign markets for United States agricultural commodities.
    (b) Implementation.--The program authorized under subsection (a) 
shall be carried out through multi-year contracts or agreements between 
the Secretary of Agriculture and eligible trade organizations under 
which cost-share assistance is provided to such organizations as 
cooperators for the conduct of foreign market development activities, 
and to third party cooperators, under annual marketing plans provided 
for in section 5.
    (c) Authorization of Appropriations.--Subject to section 7(c), 
there are authorized to be appropriated to the Department of 
Agriculture for use in providing cost-share assistance to eligible 
trade organizations under contracts and agreements entered into under 
subsection (b) and for other costs of the foreign market development 
cooperator program established under this Act (including contingent 
liabilities not otherwise funded) such sums as may be necessary for 
each of fiscal years 1996 through 2000.

SEC. 3. ELIGIBLE TRADE ORGANIZATIONS; REQUIREMENTS FOR PARTICIPATION.

    (a) Eligible Trade Organization.--For purposes of this Act, the 
term ``eligible trade organization'' means a United States trade 
organization that promotes the export of one or more United States 
agricultural commodities and that does not have a business interest in 
or receive remuneration from specific sales of agricultural 
commodities.
    (b) Requirements for Participation.--
            (1) Eligible trade organization.--In order for an eligible 
        trade organization to enter a contract or agreement with the 
        Secretary of Agriculture for the conduct of foreign market 
        development activities as a cooperator under this Act, the 
        organization shall--
                    (A) establish that it is funded primarily by United 
                States members of the industry it represents;
                    (B) prepare and submit to the Secretary of 
                Agriculture annually a marketing plan as provided for 
                under section 5; and
                    (C) meet any other appropriate requirements 
                established by the Secretary for participation in the 
                foreign market development cooperator program 
                established under this Act.
        In addition, each participant shall endeavor to provide an 
        annual contribution for activities under the marketing plan 
        that is equal to or greater than the amount provided for such 
        activities by the Department of Agriculture.
            (2) Criteria for approval of contracts and agreements.--The 
        Secretary of Agriculture may enter into a contract or agreement 
        with an eligible trade organization for the conduct of foreign 
        market development activities under this Act only if the 
        Secretary determines that the activities under the eligible 
        trade organization's marketing plans--
                    (A) have a strong likelihood of achieving success 
                in maintaining or increasing foreign consumption and 
                imports of one or more United States agricultural 
                commodity;
                    (B) will make long-range contributions to United 
                States agricultural exports;
                    (C) focus on a commodity or commodities the export 
                of which is important to United States agriculture and 
                this Nation's foreign balance of payments;
                    (D) include the provision by the eligible trade 
                organization of a competent United States-based staff 
                and other resources to ensure adequate development, 
                supervision, and execution of project activities;
                    (E) are coupled with a commitment by private 
                organizations to back up promotional activities with 
                aggressive selling and adequate supplies of the 
                commodity involved or the quality desired by foreign 
                buyers; and
                    (F) are focused on markets for which the United 
                States is in competition with other exporting 
                countries.

SEC. 4. COOPERATOR RESPONSIBILITIES.

    (a) Trade Servicing, Technical Assistance, and Consumer 
Education.--
            (1) In general.--Eligible trade organizations participating 
        in the foreign market development cooperator program under this 
        Act shall provide market development and customer support 
        services outside the United States directed at foreign 
        purchasers, potential purchasers, and users of United States 
        agricultural commodities, through trade servicing, technical 
        assistance, and consumer education.
            (2) Specific goals.--Trade servicing, technical assistance, 
        and consumer education by each eligible trade organization 
        under subsection (a) shall be conducted so as to achieve the 
        following goals (as well as other appropriate goals specified 
        by the Secretary by regulation):
                    (A) To increase foreign consumer and commercial use 
                of the United States commodity involved and products 
                made from such commodity, to develop long-term foreign 
                demand for the commodity, and to help overcome 
                constraints to United States exports of the commodity 
                involved.
                    (B) To establish a long-term presence in foreign 
                markets for the commodity involved.
                    (C) To enable foreign users of the commodity and 
                products made from the commodity to enhance their 
                competitiveness, analyze markets, improve end use 
                quality, and respond to consumption trends.
                    (D) To make maximum use of new technologies, 
                including satellite transmissions, to disseminate trade 
                information and enhance industry technologies that will 
                expand demand for the commodity.
                    (E) To increase technical contact between the 
                United States production industry for the commodity and 
                foreign customers and users so as to achieve better and 
                more accurate market analyses and trade intelligence 
                collected in the public and private sector.
                    (F) To identify third parties to contribute to the 
                implementation of activities conducted under the 
                eligible trade organization's annual marketing plan 
                either through cash or in-kind contributions.
    (b) Coordination, Assistance, and Consultation.--
            (1) Coordination and assistance.--Eligible trade 
        organizations participating in the foreign market development 
        cooperator program under this Act shall coordinate their 
        activities with those of agricultural trade officers of the 
        Foreign Agricultural Service. In turn, such officers and other 
        Foreign Agricultural Service personnel shall assist the 
        eligible trade organizations in the development and operation 
        of trade promotion programs that use product exhibits, trade 
        teams, market information services, and trade referral services 
        to expand international markets for United States agricultural 
        commodities.
            (2) Consultation.--Eligible trade organizations shall 
        consult with the staff of the Foreign Agricultural Service to 
        ensure that their annual marketing plans under this Act are 
        consistent with and complement the foreign market development 
        activities of the Service.

SEC. 5. ANNUAL MARKETING PLANS.

    (a) In General.--An eligible trade organization participating in 
and receiving assistance for any year under the foreign market 
development cooperator program established under this Act shall develop 
and submit to the Secretary of Agriculture a marketing plan to carry 
out trade servicing, technical assistance, and consumer education, as 
provided for in section 4(a), for such year.
    (b) Requirement for Plans.--Each annual marketing plan submitted by 
an eligible trade organization under subsection (a) shall specifically 
describe the manner in which assistance received by the organization in 
conjunction with funds and services provided by or through the 
organization will be expended in implementing the plan.
    (c) Amendments.--An annual marketing plan may be amended at any 
time by the eligible trade organization with the approval of the 
Secretary of Agriculture.

SEC. 6. OVERSIGHT.

    (a) Monitoring.--The Secretary of Agriculture shall monitor the 
expenditure of funds received by each eligible trade organization under 
this Act.
    (b) Reports, Books, and Records.--Each eligible trade organization 
receiving assistance under this Act shall--
            (1) keep financial accounts of, submit regular reports 
        providing information on, activities conducted and funds spent 
        under the organization's annual marketing plan; and
            (2) make available to the Secretary of Agriculture for 
        inspection, at any reasonable time and place, the books and 
        records of its business and financial transactions.
    (c) Audits.--Each eligible trade organization receiving assistance 
under the foreign market development cooperator program under this Act 
shall have conducted an audit or financial review of the organization's 
activities under such program, which shall accurately account for funds 
and services received and expended under this Act.
    (d) Evaluation.--
            (1) In general.--The Secretary of Agriculture shall 
        periodically evaluate the foreign market development activities 
        of each eligible trade organization to determine whether the 
        organization is in compliance with its annual marketing plan 
        and to determine the effectiveness of the organization's 
        activities under the plan in maintaining and developing markets 
        for United States agricultural commodities, taking into 
        consideration the difficulty of precisely quantifying the 
        effects of long-term trade servicing and technical assistance.
            (2) High-volume agricultural commodities.--With respect to 
        activities directed toward maintenance and development of 
        markets for high-volume agricultural commodities, in performing 
        such evaluations, the Secretary shall consider--
                    (A) the long-term benefits of a United States 
                presence in foreign markets for such commodity given 
                the benefit to the United States economy as a whole of 
                a strong high-volume commodity export sector; and
                    (B) the intense competition by other exporting 
                countries in the international markets for such 
                commodities.

SEC. 7. IMPLEMENTATION DATE AND TRANSITION.

    (a) Implementation Date.--The Secretary of Agriculture shall 
establish the foreign market development cooperator program authorized 
under this Act not later than 90 days after the enactment of this Act.
    (b) Transition.--In establishing the program authorized under this 
Act, the Secretary shall ensure that on-going foreign market 
development cooperator projects and activities are continued and 
appropriately incorporated into the program under this Act.

SEC. 8. CONFORMING PROVISIONS.

    (a) Amendment to Agricultural Act of 1954.--Section 601 of the 
Agricultural Act of 1954 (7 U.S.C. 1761) is amended by redesignating 
the existing text as subsection (a) and adding at the end a new 
subsection as follows:
    ``(b) The Secretary of Agriculture shall coordinate activities 
conducted under subsection (a) with the conduct of the programs 
authorized under the `Agriculture Market Development Act of 1995'.''.
    (b) Agricultural Competitiveness and Trade Act of 1988.--
            (1) Applicability of provisions.--Subsections (d) and (e) 
        of section 4214 of the Agricultural Competitiveness and Trade 
        Act of 1988 (7 U.S.C. 5234) shall apply to the activities of 
        the eligible trade organizations to which assistance is 
        provided under this Act.
            (2) Amendment of payment-in-kind provision.--Subsection (b) 
        of section 4214 of the Agricultural Competitiveness and Trade 
        Act of 1988 (7 U.S.C. 5234) is amended by adding at the end the 
        following: ``The Secretary of Agriculture shall coordinate 
        activities conducted under this subsection with the conduct of 
        the programs authorized under the Agriculture Market 
        Development Act of 1995.''.
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