(a) Substantial injuryLocal currencies that are made available for use under this chapter may not be used to finance the production for export of agricultural commodities (or products thereof) that would compete in the world market with similar agricultural commodities (or products thereof) produced in the United States, if such competition would cause substantial injury to the United States producers, as determined by the President.
(b) Exception for narcotics controlNotwithstanding subsection (a), the President may provide assistance under this chapter, including assistance through the use of local currencies generated by the sale of commodities under such chapter, for economic development activities undertaken in an eligible country that is a major illicit drug producing country (as defined in section 2291(i)(2) 11 So in original. Probably should be section “2291(e)(2)”. of title 22), for the purpose of reducing the dependence of the economy of such country on the production of crops from which narcotic and psychotropic drugs are derived.
Structure US Code
SUBCHAPTER IV— GENERAL AUTHORITIES AND REQUIREMENTS
§ 1731. Commodity determinations
§ 1736. Use of Commodity Credit Corporation
§ 1736–1. Special Assistant for Agricultural Trade and Food Assistance
§ 1736a. Administrative provisions
§§ 1736c, 1736d. Repealed. , §§ 218, 219, ,
§ 1736f. Authorization of appropriations
§ 1736f–1. Establishment of commodity trust
§ 1736g. Coordination of foreign assistance programs
§ 1736g–1. Assistance in furtherance of narcotics control objectives of United States
§ 1736g–2. Micronutrient fortification programs
§ 1736g–3. Use of certain local currency
§ 1736h. Congressional consultation on bilateral commodity supply agreements
§§ 1736i to 1736k. Repealed. , ,
§ 1736l. Consultation on grain marketing
§§ 1736m, 1736n. Repealed. , §§ 226, 266, , , 974
§ 1736o–1. McGovern-Dole International Food for Education and Child Nutrition Program
§ 1736p. Trade policy declaration
§ 1736r. Trade negotiations policy
§§ 1736s, 1736t. Repealed. , ,
§ 1736u. Cooperator market development program
§§ 1736v to 1736x. Repealed. , ,
§ 1736y. Contract sanctity and producer embargo protection
§§ 1736z, 1736aa. Repealed. , ,