S 1651 IS

To amend the Agricultural Trade Act of 1978 to require the Secretary of Agriculture to take certain actions if the European Union does not reduce and subsequently eliminate agricultural export subsidies.

To amend the Agricultural Trade Act of 1978 to require the Secretary of Agriculture to take certain actions if the European Union does not reduce and subsequently eliminate agricultural export subsidies.

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 `Agricultural Trade Fairness Act of 1999'.

SEC. 2. FINDINGS.

Congress finds that--

(1) United States agricultural producers are facing financial ruin due to unanticipated declines in prices for agricultural commodities;

(2) foreign export subsidies of agricultural commodities depress prices further and prevent access to export markets by United States agricultural producers;

(3) the European Union, the entity that provides by far the largest agricultural export subsidies, provides 84 percent of the agricultural export subsidies provided in the world;

(4) the export enhancement program carried out by the United States under section 301 of the Agricultural Trade Act of 1978 (7 U.S.C. 5651) is authorized to be funded at over $500,000,000 for each of fiscal years 1998 through 2000 (consistent with the Uruguay Round reduction commitments), but has been funded at well below the authorized levels; and

(5) the European Union continues to use agricultural export subsidies to bridge the gap between high domestic support prices and lower world prices, resulting in extreme market distortions.

SEC. 3. RESPONSE TO UNFAIR TRADE PRACTICES BY EUROPEAN UNION.

Title III of the Agricultural Trade Act of 1978 (7 U.S.C. 5651 et seq.) is amended by adding at the end the following:

`SEC. 304. RESPONSE TO UNFAIR TRADE PRACTICES BY EUROPEAN UNION.

`(a) REDUCTION OF AGRICULTURAL EXPORT SUBSIDIES-

`(1) IN GENERAL- If by January 1, 2002, the European Union does not reduce agricultural export subsidies by at least 50 percent of the level of agricultural export subsidies provided as of October 1, 1999 (as determined by the Secretary), the Secretary shall take appropriate measures to protect the interests of producers of United States agricultural commodities and ensure the international competitiveness of United States agriculture.

`(2) MEASURES- In carrying out paragraph (1), the Secretary shall, to the maximum extent practicable--

`(A) target the European Union's most sensitive export markets for feed grains; and

`(B) make available to carry out the export enhancement program under section 301(e)(1) not more than $1,000,000,000 to encourage the commercial sale of United States agricultural commodities in the chief export markets of the European Union.

`(b) ELIMINATION OF AGRICULTURAL EXPORT SUBSIDIES-

`(1) IN GENERAL- If by January 1, 2003, the European Union and the United States do not enter into an agricultural trade agreement under which the European Union agrees to eliminate agricultural export subsidies (as determined by the Secretary), the Secretary shall take appropriate measures to protect the interests of producers of United States agricultural commodities and ensure the international competitiveness of United States agriculture.

`(2) MEASURES- In carrying out paragraph (1), the Secretary shall, to the maximum extent practicable--

`(A) target the European Union's most sensitive export markets for feed grains;

`(B) make available to carry out the export enhancement program under section 301(e)(1) not more than $2,000,000,000 to encourage the commercial sale of United States agricultural commodities in the chief export markets of the European Union;

`(C) increase the amount of funds made available to carry out direct credit programs and export credit guarantee programs under subsections (a) and (b) of section 211 to promote the commercial export sale of United States agricultural commodities in the chief export markets of the European Union; and

`(D) increase the amount of funds made available to carry out the market access program under section 211(c)(1) to encourage the development, maintenance, and expansion of commercial export markets for United States agricultural commodities in the chief export markets of the European Union.'.