Details of House-Passed Ag Bill with Brazil Cotton Payment Ban
On June 16, 2011, the House amended and passed the fiscal year 2012 Agriculture and FDA Appropriations bill1. The bill would prohibit funding of payments to Brazil to settle a WTO cotton dispute, cut FDA appropriations and project additional funding from user fees, etc.
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(Although the House has passed H.R. 2112, it is not yet in effect. Generally, in order for a bill to be implemented, identical versions of that bill must be passed by both the House and Senate, and then the bill must be approved (enacted) by the President.
Prior to its passage, the Administration had expressed concerns about certain aspects of H.R. 2112, including the elimination of cotton payments to Brazil and reduced funding levels for FDA and FSIS. The Administration plans to work with Congress to revise the legislation so it can support it.)
The following are highlights of the trade-related provisions of H.R. as passed:
Brazil Cotton Settlement Payments Would Not be Funded
H.R. 2112 would prohibit funding from being used to provide payments to the Brazil Cotton Institute in settlement of a World Trade Organization dispute.
Brazil threatens retaliation. On June 17, 2011, Brazil stated that it plans to resume retaliation against the U.S. if it refuses to continue payments related to the WTO ruling on illegal U.S. cotton subsidies.
(See ITT’s Online Archives or 06/16/11 news, 11061663, for BP summary of the inclusions of a Brazil cotton payment ban in the House-passed H.R. 2112. See ITT’s Online Archives or 06/20/11 news, 11062015, for BP summary of Brazil’s threat of retaliation.)
FDA, APHIS, and FSIS Funding Would be Decreased from FY 2010 Levels
H.R. 2112 would decrease funding for the Food and Drug Administration (FDA), Animal and Plant Health Inspection Service (APHIS), and Food Safety and Inspection Service (FSIS) below the amounts that were appropriated in FY 2011.
FDA funding decrease could be offset by more user fees. According to the House Appropriations Committee’s report2, the decrease in FDA funding in H.R. 2112 is projected to be more than offset by expected receipts from various user fees, including those established by the Food Safety Modernization Act (FSMA).
FSIS funding decrease could require HQ/district staff decisions. In its report2, the House Appropriations Committee stated that while decreased funding may force FSIS to make some choices about the staffing levels that are currently maintained at district and headquarters offices, it ensures that inspection and sampling activities will be carried out uninterrupted.
Funding for Some Meat/Poultry Activities, Horse Inspections Would be Prohibited
H.R. 2112 would prohibit funding for Federal Meat Inspection Act Section 410 panel activities, and Poultry Products Inspection Act Section 30 panel activities. The measure would also prohibit funding to pay the salaries and expenses of personnel to: (i) inspect horses under 21 USC 603; (ii) inspect horses under 7 USC 1901 note; or (iii) implement or enforce section 9 CFR 352.19.
1FY 2012 Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations bill
2Although the Appropriations Committee’s report does not have statutory force; departments and agencies are not legally bound by their declarations. It does, however, explain congressional intent and frequently have effect because departments and agencies must justify their budget requests annually to the Appropriations Committees.
(See ITT’s Online Archives or 06/07/11 news, 11060716, for BP summary of House Appropriations Committee-reported version of H.R. 2112.
See ITT’s Online Archives or 06/15/11 news, 11061514, for BP summary of the Administration’s SAP.
H.R. 2112 as passed by House available here