Agricultural Competitiveness and Trade Act of 1987

(Measure indefinitely postponed in Senate)

Agricultural Competitiveness and Trade Act of 1987 - Title I: Findings, Policies, and Objectives - Expresses the findings of the Congress regarding: (1) the decline in U.S. agricultural exports; (2) the resulting loss of jobs and economic threat to family farms and rural areas; and (3) the need for increased use of agricultural export programs, including food aid programs and programs to strengthen the purchasing and distribution capacities of importing nations.

States that it is the policy of the United States to: (1) increase U.S. agricultural exports; (2) support programs to make U.S. exports more competitive, including the agricultural export enhancement program; (3) regain traditional market shares by providing credit and direct assistance on a market-by-market basis; and (4) challenge barriers to agricultural trade that are illegal or inconsistent with the General Agreement on Tariffs and Trade (GATT).

Expresses the findings of the Congress regarding: (1) the effectiveness of current international rules governing agricultural trade in preventing distortions in world agricultural trade caused by trade barriers and increased export subsidization; (2) the strengthening of the agricultural trade provisions of the GATT; and (3) the Uruguay Round of the multilateral trade negotiations with respect to trade in agricultural commodities.

Declares it to be U.S. policy: (1) to reduce U.S. agricultural price support programs and barriers to agricultural trade; or (2) if necessary, to maintain such support of the agricultural sector at current or increased levels to promote exports and maintain U.S. agricultural competitiveness.

Declares U.S. negotiating objectives with respect to the GATT, including to: (1) increase U.S. agricultural exports by eliminating barriers to trade and by reducing or eliminating the subsidization of agricultural production; and (2) clarify the GATT rules for agricultural trade.

States that a primary U.S. negotiating objective shall be the elimination of agricultural trade barriers maintained by countries with an unusually large overall trade surplus with the United States.

States that it is the policy of the United States to seek the elimination of agricultural trade barriers.

Title II: Agricultural Trade Initiatives - Authorizes the Secretary of Agriculture (Secretary) to make Commodity Credit Corporation (CCC) commodities available to cooperator organizations for market expansion projects.

Sets minimum personnel levels for the Department of Agriculture's Foreign Agricultural Service (FAS) at 850 full-time employees for each of FY 1987 through 1989. Expresses the sense of the Congress that such personnel levels should permit greater market development activities.

Directs the Administrator of FAS to: (1) establish a program of export market consultations between reassigned agricultural attaches and U.S. producers and exporters; (2) establish a similar educational program between agricultural attaches and FAS officers and representatives of cooperator organizations, State agricultural officials, and other interested parties; (3) provide that the maximum use of personnel resource time be devoted to agricultural export market promotion; and (4) report to the appropriate congressional committees by September 30, 1988, and September 30, 1989, regarding the allocation of personnel resource time during the pertinent fiscal years.

Authorizes the Administrator to establish a private sector market development program in which private sector individuals could work for FAS on a short-time basis and FAS personnel could work in the private sector.

Authorizes the Secretary to contract for agricultural export-related services to be performed outside the United States. States that such persons shall not be considered U.S. employees.

Directs the Secretary to: (1) evaluate the reorganization proposal recommended by the National Commission on Agricultural Trade and Export Policy to improve the Department of Agriculture's management of international trade activities; (2) appoint a private sector advisory committee; and (3) report to the Congress by April 30, 1988.

Authorizes additional FY 1987 through 1990 appropriations for the FAS. Obligates specified amounts for specified agricultural export activities. Directs the Administrator to increase the number, and upgrade the quality, of FAS trade shows and exhibitions.

Provides for the appointment of two members from each of the House of Representatives and Senate with expertise in agricultural matters to serve as official advisers to the U.S. delegation to international conferences and negotiations concerning multilateral agricultural trade agreements under the GATT.

Directs the Secretary to provide specified forms of assistance to citizens and organizations damaged by unfair agricultural trade practices and policies.

Directs the Administrator of FAS to: (1) promote the development of markets for value-added beef, pork, and poultry products; and (2) report annually to the appropriate congressional committees.

Title III: Existing Agricultural Trade Programs - Directs the Secretary to permit producers to repay specified loans made under the Agricultural Act of 1949 for the 1990 wheat, feed grain, and soybean crops at the lesser of the loan level or the prevailing world market price for each such crop if legislation has not been passed implementing a certain trade agreement under the GATT before the beginning of the 1990 marketing year for wheat.

Waives such marketing loan program if the President certifies to the House of Representatives during the 60-day period prior to the beginning of the 1990 marketing year for wheat that: (1) significant progress has been made toward reaching such an agreement; and (2) implementation of such marketing loan program would be harmful to achieving freer agricultural trade and increased U.S. agricultural exports. Requires the President to consult with the congressional agricultural trade advisers appointed under this Act before making such certification.

States that such a waiver shall not apply if a joint resolution of disapproval is enacted during the 60-day period beginning on the date of certification.

Amends the Food Security Act of 1985 to authorize multiyear agreements under the food for progress program.

Reduces minimum amounts of FY 1986 through 1988 target export assistance funds and commodities. Permits the use of such funds to compensate U.S. producers or processors of U.S. agricultural commodities for expenses incurred in defending foreign countervailing duty actions instituted after January 1, 1986. Limits assistance for any single action to $500,000. Directs the Secretary, if such funds are not made available, to notify the appropriate congressional committees.

Expresses the sense of the Congress that CCC short-term export credit guarantees should be made on a country-only basis rather than on a commodity basis or a commodity-country basis.

Revises priority provisions under the agricultural export enhancement program: (1) in the case of wheat and feed grains, to give priority to countries that have traditionally imported or purchased U.S. commodities and to those countries that continue or begin to import or purchase U.S. commodities at levels equal to or greater than previous representative periods; and (2) in the case of other commodities, to give priority to traditional foreign purchasers who continue to purchase U.S. commodities at levels greater than previous representative periods.

Directs the Secretary to use commodities for such export enhancement program with a value of: (1) at least $1,000,000,000 during FY 1986 through 1988; (2) at least $500,000,000 during FY 1989 through 1990; and (3) not more than $2,500,000,000 during such five fiscal years. (Current law provides for at least $2,000,000,000 during FY 1986 through 1988.)

Directs the Secretary to include in the annual compilation of agricultural attache reports information regarding trade barriers and activities undertaken or planned to reduce or eliminate such barriers.

Amends the Farm Credit Act of 1971 to repeal the September 30, 1990, termination date authorizing the financing of certain cooperative import and export activities.

Makes agricultural articles eligible for export credit guarantees under the Commodity Corporation Charter Act and the Food for Peace Act of 1966 if: (1) at least 75 percent of the commodities used to produce such an article were produced in the United States; and (2) the sale meets other payment guarantee criteria. Stipulates that such payment guarantees shall not include the value of any non-U.S. commodities.

Title IV: Agricultural Aid and Trade Missions - Directs the Secretary of Agriculture (Secretary), the Secretary of State, the Administrator of the Agency for International Development, (AID) and the President of the Overseas Private Investment Corporation (Corporation) to establish agricultural aid and trade missions to eligible countries to encourage such countries to participate in U.S. agricultural aid and trade programs in accordance with this Act. Outlines administrative provisions concerning the composition and compensation of the U.S. representatives to such missions. Sets forth specified criteria for the establishment of such missions to eligible countries. Requires the establishment of eight missions within six months, and an additional eight missions within one year, after enactment of this Act. Authorizes the Secretary to establish additional future missions.

Requires members of such missions to: (1) meet with representatives of Government agencies of the United States and the eligible country to plan the extent to which U.S. agricultural aid and trade programs could be used in a mutually beneficial manner; (2) provide technical expertise and information with respect to U.S. agricultural aid and trade programs and agricultural commodities and other assistance available to the eligible country; and (3) assist in obtaining firm commitments for proposals for food aid programs and agreements for commodity sales under agriculture export programs.

Directs each mission, no later than 60 days after its completion, to report to the President, the House Committee on Agriculture, the Senate Committee on Agriculture, Nutrition, and Forestry, the House Committee on Foreign Affairs, the Senate Committee on Foreign Relations, the Secretary, the Secretary of State, the Administrator of AID, and the President of the Corporation on its findings and recommendations in carrying out the purposes of this Act.

Directs the Secretary and the Administrator of AID, during the two-year period beginning one year after the enactment of this Act, to submit quarterly reports to the House Committee on Agriculture, the Senate Committee on Agriculture, Nutrition, and Forestry, the House Committee on Foreign Affairs, and the Senate Committee on Foreign Relations on progress made by such missions.

Requires the use of the Commodity Credit Corporation, within the funds made available to the Corporation, to carry out the purposes of this Act.

Title V: Public Law 480 - Amends the Agricultural Trade Development and Assistance Act of 1954 (Act) to require, for FY 1988 through 1990, each agricultural commodity sale to provide for some foreign currency sales unless the President determines a country is incapable of participating in such foreign currency sale program. (Current law requires at least ten percent of such commodity sales to be foreign currency sales unless reduced by the President.)

Directs the President to give favorable commodity allocation to countries promoting the private sector through foreign currency sales.

Includes the promotion of conservation and study of biological diversity among the self-help measures set forth under such Act for the consideration of the President before entering into an agreement with a developing country for the sale of U.S. agricultural commodities.

Includes cooperatives among the entities to be utilized by the President in the provision of agricultural commodity assistance to meet famine and other extraordinary food requirements of developing countries. Exempts nonemergency programs conducted by nonprofit voluntary agencies or cooperatives from any limitation on the generation and use of foreign currencies as a condition for obtaining such assistance.

Directs the President to report to the Congress by February 15, 1988, and annually thereafter, on sales, barter, and the use of foreign currency proceeds under the Act.

Requires cooperatives (currently only nonprofit voluntary agencies) to include in a request for a nonemergency food assistance agreement a description of the uses of any foreign currency proceeds generated with the commodities provided under the agreement. Increases from five to ten percent of the aggregate value of the commodities distributed under nonemergency programs the amount that shall be used as foreign currency proceeds. Specifies uses of foreign currency proceeds from the sale or barter of commodities by an agency or cooperative.

Directs the President, no later than 45 days after submission to AID, to take final action on a proposal submitted by a nonprofit voluntary agency or cooperative, with the concurrence of the field mission, for the delivery of commodities requested. Directs the President, no later than 30 days prior to the issuance of a final guideline issued to carry out this title, to provide notice of the proposed guideline to participating nonprofit agencies and cooperatives and to make such guideline available for review and comment.

Requires an order for the purchase or the supply, from inventory, of such commodities to be transmitted to the CCC not later than 15 days after receipt of a call from a field mission for such commodities.

Amends the Food Security Act of 1985 to extend the Farmer-to-Farmer program under P.L. 480 through FY 1990.

Title VI: Section 416 - Amends the Agricultural Act of 1949 to specify wheat, rice, and feed grains acquired by the CCC through price support operations as eligible commodities for agricultural assistance programs under title II of the Act.

Makes eligible U.S. commodities available to nonprofit and voluntary agencies and cooperatives conducting programs in a country whose government is receiving such commodities.

Directs the Secretary, upon request, to make multiyear commodity distribution or sale agreements.

Increases: (1) the scope of nonprofit and voluntary agency or cooperative foreign currency programs; and (2) the aggregate value of commodities available for such activities.

Sets forth time period limits for review and comment on nonprofit and voluntary agency or cooperative proposals.

Expresses the sense of the Congress that the Secretary should implement a specified barter program established under such Act no later than September 30, 1987.

Title VII: Miscellaneous Provisions - Subtitle A: General Provisions - Amends the Agricultural Adjustment Act to permit the prohibition on the importation of a commodity to begin in advance of the date when a marketing order is in effect with respect to the same domestic commodity if the Secretary finds that such action is necessary to prevent such importation of such commodity that would otherwise fail to meet the requirements imposed by such marketing order.

Amends the Agricultural Act of 1949 to provide that if producers of the 1990 soybean crop are permitted to repay loans at reduced rates, the Secretary shall: (1) support the price of 1990 sunflower seeds in relation to soybean prices; and (2) support the price of cottonseeds at a level competitive with soybeans.

Amends the Federal Meat Inspection Act to direct the Secretary to investigate the meat inspection requirements of countries which export meat to the United States to determine whether: (1) a country applies standards to U.S. meat that are not substantiated by reliable analytical methods or are different from standards applied to domestic meat; and (2) other trade measures available to the United States are not adequately addressing the problem.

Authorizes the House or Senate agricultural committees to request such an investigation.

Directs the Secretary, upon such findings, to: (1) notify the Congress; and (2) prohibit such country from exporting meat to the United States unless the Secretary certifies that such meat has met applicable U.S. domestic inspection standards.

Directs the Secretary to compile and issue quarterly reports regarding: (1) the value and quantity of imported raw and processed agricultural products; and (2) the quantity of production and consumption of domestically produced raw and processed agricultural products.

Prohibits the use of funds under the Foreign Assistance Act of 1961 from being available for the production, in a foreign country, of an agricultural commodity for export, if such commodity would compete with a similar U.S. commodity. Sets forth specified exceptions.

Expresses the sense of the Congress that: (1) the United States International Trade Commission and the Secretary of Commerce should monitor European Community egg products imported into the United States to determine the extent to which such egg imports are subsidized or sold below fair market value and their impact on the domestic egg industry; (2) the United States Trade Representative should enter into negotiations with the European Community regarding duties and subsidies that limit U.S. egg producers access to European markets; and (3) if such barriers have had a substantial negative effect on the domestic egg industry, appropriate means should be used to encourage more liberalized trade practices.

Subtitle B: Wood and Wood Products - Amends the Agricultural Trade Development and Assistance Act of 1954 to include wood and processed wood products as agricultural commodities under such Act. Includes low-and medium-income housing construction as private sector development activities or private enterprise investments under such Act.

Amends the Food Security Act of 1985 to include wood and wood products as agricultural commodities for short-term export credit purposes under such Act.

Amends the Food for Peace Act of 1966 to include wood and wood products as agricultural commodities for intermediate-term credit purposes under such Act.

Amends the Cooperative Forestry Assistance Act of 1978 to establish a cooperative national forest products marketing program to provide: (1) technical assistance to States, landowners, and small-or medium-sized forest products firms in order to improve foreign and domestic marketing; and (2) matching grants to States for State and regional forest products marketing. Authorizes FY 1989 through 1991 appropriations. Directs the Secretary to submit annual program reports to the Congress, with the final report due by September 30, 1990.

Subtitle C: Safe Food Imports - Directs the Secretary of Health and Human Services (HHS) to prepare a plan for the distribution of Food and Drug Administration (FDA) resources for sampling imported raw agricultural commodities to ensure: (1) compliance with pesticide residue laws; and (2) sharing of violations data among FDA districts.

Directs the Secretary of HHS to prepare a fiscal year summary of sampling activities which shall specify: (1) commodity types and volume; (2) country of export; (3) number of samples taken; and (4) violations, including commodity and pesticide, and the name of the importer.

Directs the Secretary of HHS, when a violation has been found, to monitor such commodity during the successive growing season.

Directs the Secretary of HHS to: (1) submit an enforcement report to the appropriate congressional committees; and (2) include within such report a description of any pesticide residue detection research.

Subtitle D: Studies and Reports - Directs the Secretary to conduct studies and report to the appropriate congressional committees on: (1) dairy import quotas; (2) intermediate export credit financing for import countries' commodity facilities and livestock production; (3) honey imports; and (4) the circumvention of sugar or dairy limitations by imported products containing sugar or dairy products.

Requires the President to update each report that he has submitted to the House Committee on Ways and Means and the Senate Committee on Finance under the Wine Equity and Export Expansion Act of 1984 and to submit such updated report to both committees. Sets forth the contents of such updated report, including: (1) a description of each tariff or nontariff barrier to exports of U.S. wine; and (2) recommendations with respect to actions to be taken against such barriers.