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Export Enhancement, Dairy Export Incentive Programs Removed from USDA Regulations

Wednesday, January 14, 2015
Sandler, Travis & Rosenberg Trade Report

The Department of Agriculture’s Foreign Agricultural Service has issued a final rule that, effective Jan. 14, removes regulations for the Export Enhancement Program and the Dairy Export Incentive Program from the Code of Federal Regulations. Program operations ceased in 2001 and 2010, respectively, and Congress subsequently repealed authority for the programs in 2008 and 2014, respectively.

The primary objective of these programs was to encourage the commercial sale of U.S. agricultural commodities in world markets at competitive prices. The EEP offered bonuses to enable U.S. exporters to meet prevailing world prices for targeted commodities in targeted destinations, while the DEIP did the same for certain dairy products. Both programs were subject to annual commodity-specific quantity and budgetary ceilings agreed to by the U.S. in the World Trade Organization. However, FAS states that since program operations ceased, affected products have been competitive in world markets and bonuses have not been needed to facilitate sales.

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