Agricultural Trade Enhancement Act of 1985

Agricultural Trade Enhancement Act of 1985 - Establishes an Agricultural Trade Committee composed of the Secretary of Agriculture, the U.S. Trade Representative, and other persons appointed by the President. Directs the Committee to: (1) identify all major unfair trade practices of foreign countries that adversely affect farm commodities and their products; (2) develop recommendations for eliminating or mitigating such adverse effects; and (3) report its findings and recommendations to the President within six months of enactment of this Act. Terminates the Committee after submission of its report.

Directs the President, as soon as practicable after submission of such report, to: (1) use any remedies available under any international agreement to eliminate or mitigate the adverse effects of the unfair practices identified by the Committee; and (2) direct the appropriate agencies to take the necessary steps to eliminate or mitigate such adverse effects.

Amends the Food for Peace Act of 1966 to authorize the Commodity Credit Corporation (CCC) to guarantee the repayment of loans made to finance commercial export sales of agricultural commodities out of private stocks to certain developing countries.

Permits export sales to be financed and loans to be guaranteed under the export credit sales program if the sale will promote the export of U.S. agricultural commodities.

Requires that export sales of agricultural commodities financed or guaranteed under the export credit sales program must: (1) to the maximum extent possible, be made available to purchasers from countries that are previous recipients of credit extended under the Agricultural Trade Development and Assistance Act of 1954; and (2) be made to purchasers from countries unable to use other short-term export credit programs. Permits using intermediate credit financing or guarantees under the export credit sales program to meet competition for agricultural export sales and to promote the export sales of agricultural commodities.

Deletes the prohibition against using intermediate credit financing or guarantees to encourage credit competition.

Requires the CCC to set the terms for contracts of guarantee under the export credit sales program.

Sets the maximum level of funds that the CCC shall make available for financing or guaranteeing export sales under the export credit sales program for each of FY 1986, 1987, and 1988. Sets the maximum level of funds that the CCC shall make available for such purposes for FY 1989, 1990, and 1991.

Authorizes the Secretary of Agriculture to formulate and carry out a program under which agricultural commodities acquired through price support operations by the CCC are provided to U.S. exporters and users and foreign purchasers at no cost to encourage the expansion of export markets for such commodities. Sets forth the duties of the Secretary of Agriculture with respect to such program. Makes a foreign purchaser of U.S. agricultural commodities eligible for supplemental distribution of such commodities under such program if the foreign purchaser sells in the importing country commodities received under such program and uses the receipts from such sales for the construction or rehabilitation of facilities in the importing country to improve the handling of such commodities in the importing country. Sets forth factors the Secretary shall consider in making supplemental distributions.

Declares that the cargo preference laws shall not apply to export activities of the Department of Agriculture or CCC (other than those undertaken to carry out an agreement entered into before enactment of this Act) under which: (1) stocks of agricultural commodities acquired by the CCC are made available to U.S. exporters, users or foreign purchasers for the maintenance or expansion of export markets for U.S. agricultural commodities; (2) commercial credit guarantees are blended with CCC interest-free credits to reduce the interest rate on export sales of such commodities; or (3) commodities are made available for emergency food relief.

Expresses the sense of the Congress that the President should initiate a new round of multilateral trade negotiations in order to: (1) strengthen the General Agreement on Tariffs and Trade (GATT) in a manner that promotes a more open and fair world trading system; (2) improve that GATT dispute settlement procedures so that industries receive more expeditious relief from unfair trade practices and so that affected parties comply with GATT decisions; and (3) bring agricultural trade issues within the purview of strengthened and more effective GATT rules and procedures.

Earmarks a specified minimum amount of FY 1986, 1987, and 1988 CCC funds or commodities for export only in connection with agricultural commodities for which exports have been adversely affected by price subsidies, credit subsidies, unfair marketing arrangements, or trading practices used by other countries in connection with their agricultural exports.

Amends the Commodity Credit Corporation Charter Act to direct the CCC, to the maximum extent practicable, in consultation with the Secretary of State to barter U.S. agricultural commodities for strategic and critical materials produced abroad. Directs the Secretary of Agriculture, in effecting such barter, to: (1) use normal commercial trade channels; (2) avoid displacing usual marketings of U.S. agricultural commodities; (3) take reasonable precautions to prevent the resale or transshipment to other countries, or use for other than domestic use in the importing countries, of agricultural commodities used for such exchange; and (4) give priority to commodities easily storable and those that stimulate production of critical and strategic materials. Requires the CCC to accept petroleum products in exchange for agricultural commodities if the volume of petroleum products stored in the Stategic Petroleum Reserve is less than the level prescribed by the Energy Policy and Conservation Act.