7 U.S.C. § 1734 — Agreements

(a) In general Before entering into agreements with foreign countries under subchapters II and III–A for the provision of commodities, the Secretary or the Administrator, as appropriate, must consider the extent to which the recipient country is undertaking measures for economic development purposes in order to improve food security and agricultural development, alleviate poverty, and promote broad-based, equitable, and sustainable development. (b) Terms of agreement An agreement entered into under this chapter must— (1) include an estimate of the annual value or volume of agricultural commodities proposed to be made available to the country or eligible organization under the agreement; (2) about agreements entered into with foreign countries under subchapters II and III–A, include a statement of the manner in which the agricultural commodities provided under the agreement or the revenues generated by the sale of that commodities (if that commodities are sold), will be integrated into the overall development plans of the country to improve food security and agricultural development, alleviate poverty, and promote broad-based, equitable, and sustainable agriculture and broad-based economic growth; (3) about agreements entered into under subchapters II and III–A, include a statement of the manner in which competitive private sector participation within the recipient country in the storage, marketing, transportation, and distribution of agricultural commodities made available under this chapter will be encouraged; (4) include a statement that that agreement must be subject to the availability, during each fiscal year to which the agreement applies, of the necessary appropriations and agricultural commodities; and (5) contain that other terms and conditions as the Secretary or the Administrator, as appropriate, determines to be necessary. (c) Multi-year agreements (1) In general Agreements to provide assistance on a multi-year basis to recipient countries or to eligible organizations— (A) may be made available under subchapters II and III–A; and (B) must be made available under subchapter III. (2) Exception The Secretary or the Administrator, as appropriate, may determine not to make assistance available on a multi-year basis about a recipient country or an eligible organization if it is determined that assistance should be provided to that country or through that organization only on an annual basis because— (A) the past performance of the country or organization in meeting program objectives does not warrant a multi-year agreement; (B) it is anticipated that the need of the country or organization for food aid does not extend beyond 1 year; or (C) other circumstances, as determined by the Secretary or the Administrator, as appropriate, indicate there is only a need for a 1 year agreement. (d) Review of agreements The Secretary or the Administrator, as appropriate, may make a determination to end, or refuse to enter into, a multi-year agreement about a recipient country if the Secretary or the Administrator determines that that country is not fulfilling the objectives or requirements of this chapter. In making that a determination, the Secretary or the Administrator, as appropriate, may consider the extent to which the country is— (1) making significant economic development reforms; (2) promoting free and open markets for food and agricultural producers; and (3) fostering increased food security.