Sec. 3102. Consolidation of current programs as new International Market Development Program

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Section 205 of the Agricultural Trade Act of 1978 ( 7 U.S.C. 5625 ) is amended to read as follows: The Secretary and the Commodity Credit Corporation shall establish and carry out a program, to be known as the International Market Development Program , to encourage the development, maintenance, and expansion of commercial export markets for United States agricultural commodities. As one of the components of the International Market Development Program, the Commodity Credit Corporation shall carry out a program to encourage the development, maintenance, and expansion of commercial export markets for United States agricultural commodities through cost-share assistance to eligible trade organizations that implement a foreign market development program.

Assistance under this subsection may be provided in the form of funds of, or commodities owned by, the Commodity Credit Corporation, as determined appropriate by the Secretary. To be eligible for cost-share assistance under this subsection, an eligible trade organization shall— prepare and submit a marketing plan to the Secretary that meets the guidelines governing such a marketing plan specified in this paragraph or otherwise established by the Secretary; meet any other requirements established by the Secretary; and enter into an agreement with the Secretary.

A marketing plan submitted under this paragraph shall describe the advertising or other market oriented export promotion activities to be carried out by the eligible trade organization with respect to which assistance under this subsection is being requested. To be approved by the Secretary, a marketing plan submitted under this paragraph shall— specifically describe the manner in which assistance received by the eligible trade organization, in conjunction with funds and services provided by the eligible trade organization, will be expended in implementing the marketing plan; establish specific market goals to be achieved under the marketing plan; and contain whatever additional requirements are determined by the Secretary to be necessary.

A marketing plan approved by the Secretary may provide for the use of branded advertising to promote the sale of United States agricultural commodities in a foreign country under such terms and conditions as may be established by the Secretary. An approved marketing plan may be amended by the eligible trade organization at any time, subject to the approval by the Secretary of the amendments. The Secretary shall justify in writing the level of assistance to be provided to an eligible trade organization under this subsection and the level of cost sharing required of the organization.

Assistance provided under this subsection for activities described in paragraph (3)(D) shall not exceed 50 percent of the cost of implementing the marketing plan, except that the Secretary may determine not to apply such limitation in the case of United States agricultural commodities with respect to which there has been a favorable decision by the United States Trade Representative under section 301 of the Trade Act of 1974 ( 19 U.S.C. 2411 ). Criteria used by the Secretary for determining that the limitation shall not apply shall be consistent and documented.

The Secretary may provide assistance under this subsection on a multi-year basis, subject to annual review by the Secretary for compliance with the approved marketing plan. The Secretary may terminate any assistance made, or to be made, available under this subsection if the Secretary determines that— the eligible trade organization is not adhering to the terms and conditions applicable to the provision of the assistance; the eligible trade organization is not implementing the approved marketing plan or is not adequately meeting the established goals of the plan; the eligible trade organization is not adequately contributing its own resources to the implementation of the plan; or the Secretary determines that termination of assistance in a particular instance is in the best interests of the program.

Beginning not later than 15 months after the initial provision of assistance under this subsection to an eligible trade organization, the Secretary shall monitor the expenditures by the eligible trade organization of such assistance, including the following: An evaluation of the effectiveness of the marketing plan of the eligible trade organization in developing or maintaining markets for United States agricultural commodities. An evaluation of whether assistance provided under this subsection is necessary to maintain such markets.

A thorough accounting of the expenditure by the eligible trade organization of the assistance provided under this subsection. Assistance provided under this subsection to an eligible trade organization shall not be used— to provide direct assistance to any foreign for-profit corporation for the corporation’s use in promoting foreign-produced products; or to provide direct assistance to any for-profit corporation that is not recognized as a small business concern, excluding a cooperative, an association described in the first section of the Act entitled An Act To authorize association of producers of agricultural products , approved February 18, 1922 ( 7 U.S.C. 291 ), or a nonprofit trade association.

Assistance provided under this subsection to a United States agricultural trade association, cooperative, or small business may be used for individual branded promotional activity related to a United States branded product, if the beneficiaries of the activity have provided funds for the activity in an amount that is at least equivalent to the amount of assistance provided under this subsection. In providing assistance under this subsection, the Secretary, to the maximum extent practicable, shall— give equal consideration to— proposals submitted by organizations that were participating organizations in prior fiscal years; and proposals submitted by eligible trade organizations that have not previously participated in the program established under this title; give equal consideration to— proposals submitted for activities in emerging markets; and proposals submitted for activities in markets other than emerging markets.

In providing assistance for branded promotion, the Secretary should give priority to small-sized entities. The Secretary should require a minimum contribution level of 10 percent from an eligible trade organization that receives assistance for nonbranded promotion. The Secretary may increase the contribution level in any subsequent year that an eligible trade organization receives assistance for nonbranded promotion. The Secretary should require each participant in the program to certify that any Federal funds received supplement, but do not supplant, private or third party participant funds or other contributions to program activities.

If as a result of an evaluation or audit of activities of a participant under the program, the Secretary determines that a further review is justified in order to ensure compliance with the requirements of the program, the Secretary should require the participant to contract for an independent audit of the program activities, including activities of any subcontractor. No funds made available under the market promotion program may be used for activities to develop, maintain, or expand foreign markets for tobacco.

As one of the components of the International Market Development Program, the Secretary shall carry out a foreign market development cooperator program to maintain and develop foreign markets for United States agricultural commodities. The Secretary shall carry out the foreign market development cooperator program in cooperation with eligible trade organizations. Funds made available to carry out the foreign market development cooperator program shall be used only to provide— cost-share assistance to an eligible trade organization under a contract or agreement with the organization; and assistance for other costs that are necessary or appropriate to carry out the foreign market development cooperator program, including contingent liabilities that are not otherwise funded.

In providing assistance under this subsection, the Secretary, to the maximum extent practicable, shall— give equal consideration to— proposals submitted by eligible trade organizations that were participating organizations in the foreign market development cooperator program in prior fiscal years; and proposals submitted by eligible trade organizations that have not previously participated in the foreign market development cooperator program; and give equal consideration to— proposals submitted for activities in emerging markets; and proposals submitted for activities in markets other than emerging markets.

As one of the components of the International Market Development Program, the Secretary shall carry out an export assistance program to address existing or potential barriers that prohibit or threaten the export of United States specialty crops. The export assistance program required by this subsection shall provide direct assistance through public and private sector projects and technical assistance to remove, resolve, or mitigate existing or potential sanitary and phytosanitary and technical barriers to trade.

The export assistance program required by this subsection shall address time sensitive and strategic market access projects based on— trade effect on market retention, market access, and market expansion; and trade impact. The Secretary shall submit to the appropriate committees of Congress an annual report that contains, for the period covered by the report, a description of each factor that affects the export of specialty crops, including each factor relating to any significant sanitary or phytosanitary issue or trade barrier.

The Secretary, in order to develop, maintain, or expand export markets for United States agricultural commodities, is directed— to make available to emerging markets the expertise of the United States to make assessments of the food and rural business systems needs of such emerging markets; to make recommendations on measures necessary to enhance the effectiveness of the systems, including potential reductions in trade barriers; and to identify and carry out specific opportunities and projects to enhance the effectiveness of those systems.

The Secretary shall implement this paragraph with respect to at least 3 emerging markets in each fiscal year. The Secretary may implement the requirements of paragraph (1)— by providing assistance to teams consisting primarily of agricultural consultants, farmers, other persons from the private sector and government officials expert in assessing the food and rural business systems of other countries to enable such teams to conduct the assessments, make the recommendations, and identify the opportunities and projects specified in such paragraph in emerging markets; and by providing for necessary subsistence and transportation expenses of— United States food and rural business system experts, including United States agricultural producers and other United States individuals knowledgeable in agricultural and agribusiness matters, to enable such United States food and rural business system experts to assist in transferring knowledge and expertise to entities in emerging markets; and individuals designated by emerging markets to enable such designated individuals to consult with such United States experts to enhance food and rural business systems of such emerging markets and to transfer knowledge and expertise to such emerging markets.

The Secretary shall encourage the nongovernmental experts described in paragraph

(2)to share the costs of, and otherwise assist in, the participation of such experts in the program under this paragraph. The Secretary is authorized to provide, or pay the necessary costs for, technical assistance (including the establishment of extension services) necessary to enhance the effectiveness of food and rural business systems needs of emerging markets, including potential reductions in trade barriers. A team that receives assistance under paragraph

(2)shall prepare such reports with respect to the use of such assistance as the Secretary may require. In this section: In subsection (b), the term eligible trade organization means— a United States agricultural trade organization or regional State-related organization that promotes the export and sale of United States agricultural commodities and that does not stand to profit directly from specific sales of United States agricultural commodities; a cooperative organization or State agency that promotes the sale of United States agricultural commodities; or a private organization that promotes the export and sale of United States agricultural commodities if the Secretary determines that such organization would significantly contribute to United States export market development. In subsection (c), the term eligible trade organization’ means a United States trade organization that— promotes the export of one or more United States agricultural commodities; and does not have a business interest in or receive remuneration from specific sales of United States agricultural commodities. The term emerging market means any country that the Secretary determines— is taking steps toward a market-oriented economy through the food, agriculture, or rural business sectors of the economy of the country; and has the potential to provide a viable and significant market for United States agricultural commodities. The term small-business concern has the meaning given that term in section 3(a) of the Small Business Act ( 15 U.S.C. 632(a) ). The term United States agricultural commodity has the meaning given the term in section 102 of the Agriculture Trade Act of 1978 ( 7 U.S.C. 5602 ) and includes commodities that are organically produced (as defined in section 2103 of the Organic Foods Production Act of 1990 ( 7 U.S.C. 6502 )). . Subsection

(c)of section 211 of the Agricultural Trade Act of 1978 ( 7 U.S.C. 5641 ) is amended to read as follows: Of the funds of the Commodity Credit Corporation, the Secretary shall make available for the International Market Development Program under section 205 $255,000,000 for each of the fiscal years 2019 through 2023. Such amounts shall remain available until expended. Of the funds made available under paragraph

(1)for a fiscal year, not less than $200,000,000 shall be used for the market access program component of the International Market Development Program under subsection

(b)of section 205. Of the funds made available under paragraph

(1)for a fiscal year, not less than $34,500,000 shall be used for the foreign market development cooperator component of the International Market Development Program under subsection

(c)of section 205. Of the funds made available under paragraph

(1)for a fiscal year, not more than $9,000,000, shall be used for the specialty crops component of the International Market Development Program under subsection

(d)of section 205. Of the funds made available under paragraph

(1)for a fiscal year, not more than $10,000,000 shall be used to promote agricultural exports to emerging markets under the International Market Development Program under subsection

(e)of section 205. . Section 203 of the Agricultural Trade Act of 1978 ( 7 U.S.C. 5623 ) is repealed. Section 1302 of the Omnibus Budget Reconciliation Act of 1993 is repealed. Title VII of the Agricultural Trade Act of 1978 ( 7 U.S.C. 5721–5723 ) is repealed. Section 3205 of the Farm Security and Rural Investment Act of 2002 ( 7 U.S.C. 5680 ) is repealed. Section 1542 of the Food, Agriculture, Conservation, and Trade Act of 1990 ( 7 U.S.C. 5622 note; Public Law 101–624 ) is amended by striking subsection

(d)and by redesignating subsection

(e)and

(f)as subsections

(d)and (e), respectively. The Agricultural Trade Act of 1978 is amended— in section 202 ( 7 U.S.C. 5622 ), by adding at the end the following new paragraph: The Commodity Credit Corporation may carry out a program under which commercial export credit guarantees available under this section are combined with direct credits from the Commodity Credit Corporation under section 201 to reduce the effective rate of interest on export sales of United States agricultural commodities. ; and in section 402(a)(1) ( 7 U.S.C. 5662(a)(1) ), by striking 203 and inserting 205(b) . Section 282(f)(2)(C) of the Agricultural Marketing Act of 1946 ( 7 U.S.C. 1638a(f)(2)(C) ) is amended by striking section 203 of the Agricultural Trade Act of 1978 ( and inserting 7 U.S.C. 5623 ) section 205 of the Agricultural Trade Act of 1978 . Section 1543(b)(5) of the Food, Agriculture, Conservation, and Trade Act of 1990 ( 7 U.S.C. 3293(b)(5) ) is amended by striking 1542(f) and inserting 1542(e) .

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