[House Document 113-160]
[From the U.S. Government Publishing Office]
113th Congress, 2d Session - - - - - - - - - - - - House Document 113-160
THE BUDGET PROGRAM REVISIONS FOR THE COMMODITY CREDIT CORPORATION FOR
FY 2015
__________
COMMUNICATION
from
THE PRESIDENT OF THE UNITED STATES
transmitting
THE BUDGET PROGRAM REVISIONS FOR THE COMMODITY CREDIT CORPORATION FOR
FY 2015
November 12, 2014.--Referred to the Committee on Appropriations and
ordered to be printed
The White House,
Washington, October 14, 2014.
Hon. John Boehner,
Speaker of the House of Representatives,
Washington, DC.
Dear Mr. Speaker: Consistent with section 5 of the
Commodity Credit Corporation Charter Act (15 U.S.C. 714c) and
the Government Corporation Control Act (31 U.S.C. Chapter 91),
I hereby notify the Congress of a budget program revision for
the Commodity Credit Corporation (CCC) for Fiscal Year (FY)
2015. The revisions total up to $300 million and reflect the
payments that the United States is making, pursuant to a
Memorandum of Understanding between the United States and
Brazil of October 1, 2014, in connection with termination of
the World Trade Organization (WTO) ``Cotton dispute'' (WT/
DS267) brought by Brazil with respect to which the WTO made
adverse rulings regarding certain United States cotton programs
and export credit guarantees (GSM-102).
For FY 2015, the budget estimates for CCC, as amended by
the Mid-Session Review, of $6.074 billion in net outlays would
be increased by $300 million, to $6.374 billion.
The details of this action are set forth in the enclosed
letter from the Director of the Office of Management and
Budget. I concur with the Director's comments and observations.
Sincerely,
Barack Obama.
Enclosure.
Executive Office of the President,
Office of Management and Budget
Washington, DC, October 14, 2014.
The President,
The White House,
Washington, DC.
Dear Mr. President: Submitted for your consideration is a
request for a Fiscal Year (FY) 2015 budget revision totaling
$300 million that reflects the payments that the United States
is required to make, pursuant to a Memorandum of Understanding
(MOU) between the United States and Brazil of October 1 2014,
in connection with termination of the World Trade Organization
(WTO) ``Cotton dispute'' brought by Brazil with respect to
which the WTO made adverse rulings regarding certain United
States cotton programs and export credit guarantees (GSM-102).
This request would constitute an official revision of the
budget program for the Commodity Credit Corporation (CCC) for
FY 2015. For FY 2015, the budget estimates for CCC of $6.074
billion in net outlays would be increased by $300 million, to
$6.374 billion.
These funds will be used for the United States to make a
one-time payment to the Brazilian Cotton Institute in
accordance with the MOU. The MOU is an agreement pursuant to
which Brazil and the United States memorialize negotiated
resolution of the Cotton dispute and the adverse WTO rulings
regarding certain United States cotton programs and GSM-102
export credit guarantees. The agreement is in the best interest
of both the United States and Brazil. Under the agreement, the
United States avoids the imposition of countermeasures against
U.S. trade, including U.S. exports and, potentially,
intellectual property rights. In exchange, the United States
agreed with Brazil to pay $300 million to the Brazilian Cotton
Institute.
In conclusion, Section 5 of the CCC Charter Act sets forth
specific powers of the corporation in fulfillment of its
purposes. Among these specific powers are those set forth in
section 5(f): ``Export, or cause to be exported, or aid in the
development of foreign markets for, agricultural commodities
(other than tobacco)(including fish and fish products, without
regard to whether such fish are harvested in aquacultural
operations).'' In light of the eventual likelihood of
imposition of retaliatory tariffs against myriad U.S.
agricultural commodities, in the aggregate potentially cutting
off or greatly impeding American agricultural exports into the
Brazilian market worth hundreds of millions of dollars annually
for an indefinite period of years, the proposed expenditure of
CCC funds for these purposes and in the manner contemplated
would serve to cause to be exported U.S. agricultural
commodities into the Brazilian market that would, in large
measure, not occur but for the exercise of such power. Such
expenditure of funds therefore is authorized under section 5(1)
of the CCC Charter Act.
I have carefully reviewed this proposal and am satisfied
that it is necessary at this time. Therefore, I join the
Secretary of Agriculture and the United States Trade
Representative in recommending that you approve the budget
program revision by signing the enclosed letter to the Speaker
of the House of Representatives. No further congressional
action will be required.
Sincerely,
Shaun Donovan, Director.
Enclosure.
Notification Required by the Commodity Credit Corporation and the
Government Corporation Control Act
In accordance with Section 5 of the Commodity Credit
Corporation Act (15 U.S.C. 714c) and the Government Corporation
Control Act (31 U.S.C., Chapter 91), the President has revised
the budget program for the Commodity Credit Corporation (CCC)
for FY 2015. For FY 2015, the budget estimates for CCC of
$6.074 billion in net outlays would be increased by $300
million, to $6.374 billion.
These funds will be used for the United States to make a
one-time payment to the Brazilian Cotton Institute in
accordance with the Memorandum of Understanding (MOU) that the
Government of the United States and the Government of Brazil
entered into on October 1, 2014, as a negotiated resolution to
the World Trade Organization (WTO) dispute between Brazil and
the United States entitled United States--Subsidies on Upland
Cotton (WT/DS 267).
The agreement is in the best interest of both the United
States and Brazil. As part of the overall agreement between the
parties, Brazil agrees to terminate the WTO dispute and the
attendant right to impose countermeasures against U.S.
agricultural exports upon satisfaction of certain conditions.
One of these conditions is payment by the United States of $300
million into the same Brazilian fund to which previous payments
were made.