§ 1550.3 - Market Development Project Agreements.

(a) Eligible Organizations. In selecting trade and Agricultural groups as cooperators, representative nonprofit U.S. agricultural trade organizations will be used to the maximum extent possible. Organizations selected should represent the commodity being promoted on the broadest possible basis, with priority given to those which are industry-wide or nationwide in membership and scope. Cooperators must demonstrate an ability to provide U.S.-based staff capable of developing, supervising, and carrying out projects overseas, and be willing and able to contribute resources to a joint project.

(b) Use of Third Parties. A Cooperator that enters into a Market Development Project Agreement may undertake market development activities directly or through a third party provided that such Cooperator remains responsible for the activities of the third party.

(c) Contributions. Cooperators are expected to contribute funds or make in-kind contributions towards completion of approved market development projects. Contributions by third parties will be accepted as partially satisfying the contribution obligation of the Cooperator.

(d) Project Funds. FAS will make funds available, up to the amount stated in the Market Development Project Agreement, to reimburse Cooperators for expenditures incurred in conducting activities authorized by the agreement and budgeted in a marketing plan approved in advance by FAS. Funds will be paid in United States dollars unless the Cooperator and FAS specifically agree that payment will be made in foreign currencies.

(e) Consideration of Projects. Market Development Project Agreements will be entered into by FAS only if it is determined that such agreements could contribute to the effective creation, expansion, or maintenance of foreign markets for U.S. agricultural commodities based on available supplies of those commodities for export and international market conditions. Marketing plans will be required from organizations selected to participate in Market Development Project Agreements and will serve as a basis for the expenditure of funds committed to Market Development Project Agreements. Marketing plans will be reviewed according to the following criteria:

(1) The market potential for the commodities covered in the markets identified for promotional effort and the identification of conditions affecting the level of U.S. exports which could be influenced by the projects proposed;

(2) The extent and complexity of activities proposed in relation to each Cooperator's prior export market development experience and U.S.-based staff resources;

(3) The likelihood of these activities influencing conditions affecting the level of U.S. exports.