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‘‘(G) STATUS OF REASSIGNED BASE.—After
acreage base has been reassigned in accordance
with this subparagraph, the acreage base shall—
‘‘(i) remain on the farm; and
‘‘(ii) be subject to the transfer provi-
sions of paragraph (1).’’; and
(2) in subsection (d)—
(A) in paragraph (1)—
(i) by inserting ‘‘affected’’ before ‘‘crop-
share owners’’ each place it appears; and
(ii) by striking ‘‘, and from the proc-
essing company holding the applicable allo-
cation for such shares,’’; and
(B) in paragraph (2), by striking ‘‘based
on’’ and all that follows through the end of sub-
paragraph (B) and inserting ‘‘based on—
‘‘(A) the number of acres of sugarcane base
being transferred; and
‘‘(B) the pro rata amount of allocation at
the processing company holding the applicable
allocation that equals the contribution of the
grower to allocation of the processing company
for the sugarcane acreage base being trans-
ferred.’’.
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(h) APPEALS.—Section 359i of the Agricultural Ad-
justment Act of 1938 (7 U.S.C. 1359ii) is amended—
(1) in subsection (a), by inserting ‘‘or 359g(d)’’
after ‘‘359f’’; and
(2) by striking subsection (c).
(i) REALLOCATING SUGAR QUOTA IMPORT SHORT-
FALLS.—Section 359k of the Agricultural Adjustment Act
of 1938 (7 U.S.C. 1359kk) is repealed.
(j) ADMINISTRATION OF TARIFF RATE QUOTAS.—Part
VII of subtitle B of title III of the Agricultural Adjustment
Act of 1938 (7 U.S.C. 1359aa) (as amended by subsection
(i)) is amended by adding at the end the following:
‘‘SEC. 359k. ADMINISTRATION OF TARIFF RATE QUOTAS.
‘‘(a) ESTABLISHMENT.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2) and notwithstanding any other provision of
law, at the beginning of the quota year, the Secretary
shall establish the tariff-rate quotas for raw cane
sugar and refined sugars at the minimum level nec-
essary to comply with obligations under international
trade agreements that have been approved by Con-
gress.
‘‘(2) EXCEPTION.—Paragraph (1) shall not
apply to specialty sugar.
‘‘(b) ADJUSTMENT.—
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‘‘(1) BEFORE APRIL 1.—Before April 1 of each
fiscal year, if there is an emergency shortage of sugar
in the United States market that is caused by a war,
flood, hurricane, or other natural disaster, or other
similar event as determined by the Secretary—
‘‘(A) the Secretary shall take action to in-
crease the supply of sugar in accordance with
sections 359c(b)(2) and 359e(b), including an in-
crease in the tariff-rate quota for raw cane sugar
to accommodate the reassignment to imports;
and
‘‘(B) if there is still a shortage of sugar in
the United States market, and marketing of do-
mestic sugar has been maximized, the Secretary
may increase the tariff-rate quota for refined
sugars sufficient to accommodate the supply in-
crease, if the further increase will not threaten to
result in the forfeiture of sugar pledged as collat-
eral for a loan under section 156 of the Federal
Agriculture Improvement and Reform Act of
1996 (7 U.S.C. 7272).
‘‘(2) ON OR AFTER APRIL 1.—On or after April
1 of each fiscal year—
‘‘(A) the Secretary may take action to in-
crease the supply of sugar in accordance with
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sections 359c(b)(2) and 359e(b), including an in-
crease in the tariff-rate quota for raw cane sugar
to accommodate the reassignment to imports;
and
‘‘(B) if there is still a shortage of sugar in
the United States market, and marketing of do-
mestic sugar has been maximized, the Secretary
may increase the tariff-rate quota for raw cane
sugar if the further increase will not threaten to
result in the forfeiture of sugar pledged as collat-
eral for a loan under section 156 of the Federal
Agriculture Improvement and Reform Act of
1996 (7 U.S.C. 7272).’’.
(k) PERIOD OF EFFECTIVENESS.—Part VII of subtitle
B of title III of the Agricultural Adjustment Act of 1938
(7 U.S.C. 1359aa) (as amended by subsection (j)) is amend-
ed by adding at the end the following:
‘‘SEC. 359l. PERIOD OF EFFECTIVENESS.
‘‘(a) IN GENERAL.—This part shall be effective only
for the 2008 through 2012 crop years for sugar.
‘‘(b) TRANSITION.—The Secretary shall administer
flexible marketing allotments for sugar for the 2007 crop
year for sugar on the terms and conditions provided in this
part as in effect on the day before the date of enactment
of this section.’’.
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(l) UNITED STATES MEMBERSHIP
IN
THE INTER-
NATIONAL SUGAR ORGANIZATION.—Not later than 1 year
after the date of enactment of this Act, the Secretary shall
work with the Secretary of State to restore, to the maximum
extent practicable, United States membership in the Inter-
national Sugar Organization.
SEC. 1505. SENSE OF THE SENATE REGARDING NAFTA
SUGAR COORDINATION.
It is the sense of the Senate that in order to further
strengthen the operations of the North American Free Trade
Agreement—
(1) the United States Government and the Gov-
ernment of Mexico should coordinate the operation of
their respective sugar policies, to the fullest extent
consistent with the international obligations of the
United States; and
(2) the United States Government should consult
with the Government of Mexico on policies to avoid
disruptions of the United States and Mexican sweet-
ener markets in order to maximize the benefits of
sugar policies for growers, processors, and consumers
of sugar in the United States and Mexico, while sup-
porting the interests of corn growers, corn refiners,
and sweetener users in both markets.