Agricultural Trade Act
PL 95-501 (S.3447), enacted 10/21/1978

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. 21, 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. 
TITLE 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 Com-
modity 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 displac-
ing normal commercial sales; or 
> 
"(B) otherwise improve the capability of the importing nation 
to purchase and use, on a long-term basis. United States agricul-
tural commodities. 
"(3) Consistent with the provisions of paragraph (2) of this sub-
section, 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 facili-
ties in the importing nation to improve handling, marketing, 
processing, storage, or distribution of imported agricultural com-
modities (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 
Review. 
Terms of credit. 
"^5) The terms of credit for export sales financed under this sub-
section 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 short-
term 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. 
"(7) (A) Agreements to finance export sales of agricultural com-
modities 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 
or be carried out until the expiration of thirty days following the 
date on which a detailed summary of such proposed agreement, 
together with a determination by the President that such financing is 
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 Com-
mittee on Agriculture of the House of Representatives, if transmitted 
while Congress is in session, or sixty days following the date of trans-
mittal 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 addi-
tion 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.". 
Presidential 
determination. 
Transmittal to 
congressional 
committees. 
TITLE II—COMMODITY CREDIT CORPORATION FINANC-
ING OF DEFERRED PAYMENT SALES; CREDIT SALES 
TO THE PEOPLE'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 Agri-
culture 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 other-
wise 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 
92 STAT. 1687 
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 Corpora-
tion for financing such sales. Financing under this section shall not 
• . 
• : 
be provided by the Corporation until the applicant's export sales plan 
4 
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 Repayment in 
in dollars by the exporter in accordance with the terms and at interest dollars, 
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 
= i 
Corporation. 
(d) The Secretary may, if the Secretary deems such action appro- Perfonnance 
priate to protect the interests of the United States, require a perform- guarantee, 
ance guarantee from the exporter at the time of the sale. 
(e) Financing agreements with exporters entered into under this Review. 
section shall be subject to such other terms and conditions as the Secre-
tary 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* 
CREDIT SALES TO THE 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 commodi-
ties, 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. 
TITLE 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 desig-
nation as follows: 
92 STAT. 1688 
PUBLIC LAW 95-501—OCT. 21, 1978 
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. 
"Subtitle A—General Provisions; Agricultural Counselors and * 
Agricultural Attaches"; 
(3) in section 601, striking out "agricultural products" wher-
ever 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 Coun-
selor, Agricultural Attache, or such other titles or designations that 
shall be agreed to by the Secretary of State and the Secretary of Agri-
culture, and shall be accorded the same rank and privileges as those of 
other counselors or attaches in United States embassies. An Agricul-
tural 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 diplo-
matic 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.". 
Agricultural 
Trade Offices, 
establishment. 
7 u s e 1765a. 
TITLE IV—ESTABLISHMENT OF UNITED STATES 
AGRICULTURAL TRADE OFFICES 
SEC. 401. Title VI of the Act of August 28,1954, as amended by title 
III of this Act, is further amended by— 
(1) adding immediately after section 605 a new subtitle B as 
follows: 
' 
"Subtitle B—United States Agricultural Trade Offices 
"SEC. 605A. (a) For the purpose of developing, maintaining, and 
expanding international markets for United States agricultural com-
modities, 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 
92 STAT. 1689 
Transmittal of 
information. 
poses of this subtitle. Such Officer shall be appointed by the Secretary Appointment, 
of Agriculture. 
"(c) Each Agricultural Trade Officer may be appointed without 
regard to the provisions of title 5 of the United States Code govern-
ing appointments in the competitive service, and may be paid without 
regard to the provisions of chapter 51 and subchapter III of chapter 
53 of title 5 relating to classification and General Schedule pay rates, 5 USC 5101 et 
except that no Agricultural Trade Officer (1) may be paid basic pay seq. 5332 note, 
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 Agri- 
* 
• 
cultural 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 Ante, p. 1688. 
serve. 
"(d) Each Agricultural Trade Officer shall, through the Agricul-
tural Counselor or Attache or other senior representative of the Sec-
retary 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 person-
nel and activities thereof. 
"(f) To carry out the functions of United States Agricultural Trade 
Offices, the Secretary of Agriculture may appoint such other person-
nel as the Secretary determines to be necessary and may, with the con-
currence 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 Secre-
tary of State shall request for Agricultural Trade Officers and per-
sonnel 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 repre-
sentatives, and coordination of market development activities 
sponsored by the Department of Agriculture; 
"(2) establish goals by nation or region and agricultural com-
modity 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 develop-
ment activities, and cooperate, to the maximum extent practicable, 
with such cooperators, groups, and individuals to expand the level 
, J 
of United States agricultural exports; 
Diplomatic 
privileges and 
immunities. 
Functions. 
7 USC 1765b. 
92 STAT. 1690 
PUBLIC LAW 95-501—OCT. 21, 1978 
7 use 1691 note. 
Publication. 
Consultation. 
7 use 1765c. 
7 use 1765d. 
22 use 292. 
7 use 1765e. 
7 use 1765f. 
7 use 1765g. 
7 use 1764. 
7 use 1766. 
Supra. 
7 use 1765h. 
"(5) develop and maintain a current listing of trade, govern-
ment, 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 agri-
cultural commodities; 
"(6) originate and provide assistance for exhibits, sales teams, 
and other functions for the promotion of United States agricul-
tural commodities; 
"(7) provide practical assistance for the use of the programs 
under the Agricultural Trade Development and Assistance Act 
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 cooper-
ators, coordinate the activities of the United States Agricultural 
Trade Office with those of the cooperators, and submit annual rec-
ommendations to the Secretary of Agriculture on the efficacy of 
cooperator programs; 
"(9) publicize the services offered by the United States Agri-
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 
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 Sec-
retary 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 
Secretary of State may use the authorities contained in the Foreign 
Service Buildings Act, 1926, to acquire sites and buildings, including 
living quarters, for the purpose of establishing United States Agri-
cultural Trade Offices. 
"SEC. 605E. United States Agricultural Trade Offices shall be cen-
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 
Federal agency may make its services, personnel, and facilities avail-
able 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 
with respect to personnel appointed and assigned under this subtitle."; 
(2) redesignating section 606 as section 606A and inserting 
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 Pro-
visions, and Authorization for Appropriations 
"SEC. 606. Any Agricultural Trade Officer and the senior representa-
tive of tlie Secretary of Agriculture assigned to a nation under sub-
title A of this title may, under regulations prescribed by the Secretary 
PUBLIC LAW 95-501—OCT. 21, 1978 
92 STAT. 1691 
of Agriculture, be entitled to receive a representation allowance in an 
amount determined by considering (1) the extent to which such Agri-
cultural Trade Officer or senior representative can effectively use such 
funds to further the purposes of this title, (2) travel and entertain-
ment expenses customary in the private trade for persons of compar-
able 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 para-
graph (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.". 
TITLE V—REORGANIZATION 
7 use 1762, 
1763, 1766a, 
1766b, 1766c. 
Supra. 
7 use 1762. 
"Agricultural 
commodity." 
7 use 1769. 
SEC. 501. (a) There is hereby established in the Department of 7 USe 2211a. 
Agriculture the position of Under Secretary of Agriculture for In-
ternational 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 Com-
modity 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. 
TITLE 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. 
ANNUAL REPORT ON EXPORT PROMOTION 
SEC. 602. The Secretary of Agriculture shall submit to Congress 
each year a report providing a comprehensive statement of the activi-
ties and accomplishments of the Department of Agriculture, includ-
ing specifically those of the United States Agricultural Trade Offices, in 
developing, maintaining, and expanding foreign markets for LTnited 
States agricultural commodities. 
Submittal to 
eongress. 
7 use 1765b-l. 
92 STAT. 1692 
PUBLIC LAW 95-501—OCT. 21, 1978 
7 u s e 612C-3 
note. 
7 u s e 612c-3. 
Legislative 
recommedations 
to congressional 
committees. 
••i 
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. 
Submittal to 
Congress. 
19 u s e 2431 
note. 
19 u s e 2431. 
REPORT ON TITLE IV OF THE TRADE ACT OF 197 4 
SEC. 604. Within six months after the date of enactment of this Act, 
the Secretary of Agriculture shall submit to Congress a report detail-
ing the effect on United States agriculture of title IV 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.