The Commodity Credit Corporation issues a new regulation to establish the Agricultural Trade Promotion Program. United States industries receive assistance in promotion of domestic agricultural commodities in foreign markets. The promotion helps commodities which receive a negative impact to trade or other significant barriers in foreign markets. The announcement establishes eligibility requirement, reimbursement eligible activities, contribution requirements, and application procedures.
Recent international trade actions, imposition of tariffs by other countries have a negative impact on U.S. agricultural products. Due to these circumstances are out of the industry’s control, Section 5 of the CCC Charter Act gives permission to develop foreign markets through promotion. The funds are for generic or brand promotions to assist to develop markets for U.S. agricultural products. On behalf of the CCC, the Foreign Agricultural Service will administer the program.
This program is a cost-share program that will reimburse approved non-profit foreign market promotion acting entities, who demonstrates damage the entity suffers, as a result of U.S. agricultural product’s tariff imposition.
Nonprofit U.S. trade organizations with the broadest product representation receive priority from the CCC. A U.S. for-profit entity might be able to receive assistance in their generic or branded marketing activities, if their size does not exceed 300% of the standard for small businesses in their industry. Participants must publish their program and allow participation throughout relevant region or coverage area.
The Agreement is lengthy with the following sections:
- General purpose and scope.
- Participation eligibility.
- Application process.
- Application review and formation of agreements.
- Operational procedures for brand programs.
- Contribution rules.
- Reimbursement rules.
- Reimbursement procedures.
- Financial management.
- Compliance reviews and notices.
- Failure to make required contribution.
- Disclosure of program information.
- Ethical conduct.
- Contracting procedures.
- Property standards.
- Anti-fraud requirements.
- Program income.
- Noncompliance with an agreement.
- Suspension, termination, and closeout of agreements.
- Paperwork reduction requirements.
Non-profit organizations generate good will and cooperation between United States and foreign countries. It is important that non-profits are able to operate as they prove their are individuals and groups out there not entirely driven by profit, as much as possible.
Entrepreneurs who understand that non-profits can survive if on donations, and grants may be able to do some good while finding their passion.
Although tariffs may be to encourage recover costs of past open trade barriers; we can see that tariffs have higher costs than they appear. This program is to assist domestic agricultural participants who have been negatively impacted by the recent foreign market tariff imposition.
THIS IS NOT LEGAL ADVICE. THIS IS COMMENTARY ON REGULATION.
Regulations can be a source of opportunity, as they make a major part in the determination of barriers to entry. An industry or practice is difficult to enter if there is a significant amount of regulative procedures and requirements, versus when restrictions are removed an opportunity may be presented. In this way we are doing our small part to encourage an informed people.
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