[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 1375 Introduced in Senate (IS)]







104th CONGRESS
  1st Session
                                S. 1375

 To preserve and strengthen the foreign market development cooperator 
   program of the Department of Agriculture, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            November 1, 1995

   Mr. Burns (for himself, Mr. Craig, Mr. Gorton, Mr. Grassley, Mr. 
  McConnell, Mr. Daschle, Mr. Harkin, Mr. Kerrey, and Mr. Kempthorne) 
introduced the following bill; which was read twice and referred to the 
           Committee on Agriculture, Nutrition, and Forestry

_______________________________________________________________________

                                 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 ``Cooperator Program Act of 1995''.

SEC. 2. FINDINGS, POLICY, AND PURPOSES.

    (a) Findings.--Congress finds that--
            (1) the future prosperity of United States agriculture 
        increasingly will be determined by access to foreign markets 
        and, as agricultural producers of the United States move into 
        the world market, the producers are becoming more dependent on 
        agricultural exports;
            (2) despite gains made in the recently concluded Uruguay 
        Round of trade negotiations as well as pre-existing rules under 
        the General Agreement on Tariffs and Trade, world agricultural 
        trade is neither free nor fair and United States agriculture 
        will continue to face unfair trade practices in the 
        international marketplace;
            (3) 11 of the major agricultural trade competitors of the 
        United States spend a total of $500,000,000 annually on foreign 
        market development programs for the benefit of their producers;
            (4) the foreign market development cooperator program of 
        the Foreign Agricultural Service and the activities of 
        individual foreign market cooperator organizations--
                    (A) have been among the most successful and cost-
                effective means of expanding United States agricultural 
                exports; and
                    (B) provide ongoing, long-term market development 
                services to advance the economic interests of the 
                United States;
            (5) the program and the activities of the cooperator 
        organizations should be supported;
            (6) the Secretary of Agriculture and the private sector 
        should work together to ensure that the program, and the 
        activities of the cooperator organizations, are expanded in the 
        future; and
            (7) as agricultural producers move into the world market, 
        it is timely and appropriate to take steps to preserve and 
        strengthen the foreign market development cooperator program of 
        the Department of Agriculture and the activities of the 
        cooperator organizations.
    (b) Policy.--It is the policy of the United States that it is 
essential and in the public interest to preserve and strengthen the 
foreign market development cooperator program of the Department of 
Agriculture under which eligible trade organizations funded primarily 
by agricultural producers cooperate with the Department in an 
effective, continuous, and coordinated effort to maintain and develop 
foreign markets for United States agricultural commodities and 
products.
    (c) Purposes.--It is the purpose of this Act to provide specific 
authorization for the foreign market development cooperator program of 
the Department of Agriculture, and establish terms governing the 
program, to ensure the continued effective and efficient operation of 
the program.

SEC. 3. FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM.

    The Agricultural Trade Act of 1978 (7 U.S.C. 5601 et seq.) is 
amended by adding at the end the following:

       ``TITLE VII--FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM

``SEC. 701. DEFINITION OF ELIGIBLE TRADE ORGANIZATION.

    ``In this title, the term `eligible trade organization' means a 
United States trade organization that--
            ``(1) promotes the export of 1 or more United States 
        agricultural commodities or products; and
            ``(2) does not have a business interest in or receive 
        remuneration from specific sales of agricultural commodities or 
        products.

``SEC. 702. FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM.

    ``(a) In General.--The Secretary 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 and products.
    ``(b) Cost Sharing Assistance.--The program established under 
subsection (a) shall be carried out through multiyear contracts or 
agreements between the Secretary and eligible trade organizations under 
which cost sharing assistance shall be provided by the Secretary to the 
organizations as cooperators for the conduct of foreign market 
development activities, and to third party cooperators, under annual 
marketing plans established under section 705.

``SEC. 703. ELIGIBILITY.

    ``(a) Eligible Trade Organizations.--To be eligible to enter into a 
contract or agreement with the Secretary for the conduct of foreign 
market development activities as a cooperator under this title, an 
eligible trade organization shall--
            ``(1) demonstrate to the Secretary that the organization is 
        funded primarily by United States members of the industry that 
        the organization represents;
            ``(2) prepare and submit to the Secretary annually a 
        marketing plan under section 705; and
            ``(3) meet other requirements established by the Secretary 
        for participation in the program established under this title.
    ``(b) Criteria for Approval of Contracts and Agreements.--The 
Secretary may enter into a contract or agreement with an eligible trade 
organization for the conduct of foreign market development activities 
under this title only if the Secretary determines that the activities 
under the marketing plan of the organization--
            ``(1) have a strong likelihood of achieving success in 
        maintaining or increasing foreign consumption and imports of 1 
        or more United States agricultural commodities or products;
            ``(2) will make long-range contributions to United States 
        agricultural exports;
            ``(3) focus on a commodity or commodities, or a product or 
        products, the export of which is important to agriculture and 
        the foreign balance of payments of the United States;
            ``(4) 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;
            ``(5) are combined with a commitment by private 
        organizations to support promotional activities with aggressive 
        selling and the quantity and quality of the commodity or 
        product involved that is desired by foreign buyers; and
            ``(6) are focused on markets for which the United States is 
        in competition with other exporting countries.

``SEC. 704. COOPERATOR RESPONSIBILITIES.

    ``(a) Trade Servicing, Technical Assistance, and Consumer 
Education.--
            ``(1) In general.--An eligible trade organization 
        participating in the foreign market development cooperator 
        program under this title 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 and products, through trade 
        servicing, technical assistance, and consumer education.
            ``(2) Specific goals.--Trade servicing, technical 
        assistance, and consumer education by each eligible trade 
        organization provided under paragraph (1) shall be designed 
        to--
                    ``(A) increase foreign consumer and commercial use 
                of the United States commodity and product involved, 
                develop long-term foreign demand for the commodity or 
                product, and help overcome constraints to United States 
                exports of the commodity or product;
                    ``(B) establish a long-term presence in foreign 
                markets for the commodity or product;
                    ``(C) enable foreign users of the commodity or 
                product to enhance the competitiveness of the users, 
                analyze markets, improve end use quality, and respond 
                to consumption trends;
                    ``(D) make maximum use of new technologies, 
                including satellite transmissions, to disseminate trade 
                information, and enhance industry technologies, that 
                will expand demand for the commodity or product;
                    ``(E) increase technical contact between the United 
                States production industry for the commodity or product 
                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) identify third parties that will contribute 
                to the implementation of activities conducted under the 
                annual marketing plan of the organization through cash 
                or in-kind contributions; and
                    ``(G) achieve other goals specified by the 
                Secretary.
    ``(b) Coordination, Assistance, and Consultation.--
            ``(1) Coordination and assistance.--
                    ``(A) Eligible trade organization.--An eligible 
                trade organization participating in the foreign market 
                development cooperator program established under this 
                title shall coordinate the activities of the 
                organization with the activities of the Foreign 
                Agricultural Service.
                    ``(B) Foreign agricultural service.--The Foreign 
                Agricultural Service shall assist 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 and products.
            ``(2) Consultation.--An eligible trade organization shall 
        consult with the Foreign Agricultural Service to ensure that 
        the annual marketing plan of the organization under this title 
        is consistent with and complements the foreign market 
        development activities of the Service.

``SEC. 705. 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 title shall 
develop and submit to the Secretary a marketing plan to carry out trade 
servicing, technical assistance, and consumer education, as provided 
for in section 704(a), for the year.
    ``(b) Requirement for Plans.--An 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 carrying out 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.

``SEC. 706. OVERSIGHT.

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

``SEC. 707. COOPERATOR ORGANIZATIONS.

    ``(a) Commodities for Cooperator Organizations.--The Secretary may 
make available to cooperator organizations agricultural commodities 
owned by the Commodity Credit Corporation, for use by the cooperators 
in projects designed to expand markets for United States agricultural 
commodities and products.
    ``(b) Relationship to Funds.--Commodities made available to 
cooperator organizations under this section shall be in addition to, 
and not in lieu of, funds made available for market development 
activities of the cooperator organizations.
    ``(c) Conflicts of Interest.--The Secretary shall take appropriate 
action to prevent conflicts of interest among cooperator organizations 
participating in the foreign market development cooperator program 
established under this title.

``SEC. 708. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this title 
$40,000,000 for each of fiscal years 1996 through 2002.''.

SEC. 4. CONFORMING AMENDMENTS.

    (a) Collection of Information on Foreign Markets.--Section 601 of 
the Act of August 28, 1954 (commonly known as the ``Agricultural Act of 
1954'') (68 Stat. 908, chapter 104; 7 U.S.C. 1761) is amended--
            (1) by striking ``Sec. 601. For'' and inserting the 
        following:

``SEC. 601. COLLECTION OF INFORMATION ON FOREIGN MARKETS.

    ``(a) In General.--For''; and
            (2) by adding at the end the following:
    ``(b) Coordination With Foreign Market Development Cooperator 
Program.--The Secretary of Agriculture shall coordinate activities 
conducted under subsection (a) with the foreign market development 
cooperator program established under title VII of the Agricultural 
Trade Act of 1978.''.
    (b) Cooperator Organizations.--Section 4214 of the Agricultural 
Competitiveness and Trade Act of 1988 (7 U.S.C. 5234) is repealed.

SEC. 5. IMPLEMENTATION AND TRANSITIONAL PROVISIONS.

    (a) Implementation.--The Secretary of Agriculture shall establish 
the foreign market development cooperator program under title VII of 
the Agricultural Trade Act of 1978 (as added by section 3) (referred to 
in this section as ``the program'') not later than 90 days after the 
date of enactment of this Act.
    (b) Transition.--In establishing the program, the Secretary shall 
ensure that ongoing foreign market development cooperator projects and 
activities are continued and appropriately incorporated into the 
program.
    (c) Transfer of Funds.--Funding made available for obligation for 
the ongoing projects and activities shall be transferred for use in 
carrying out the program. The amount made available to the Department 
of Agriculture for the ongoing projects and activities for fiscal year 
1996 shall be adjusted to reflect the funds transferred under this 
subsection.
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