Order Code RS21279 Updated October 18, 2006 CRS Report for Congress Received through the CRS Web International Food Aid: U.S. and Other Donor Contributions Charles E. Hanrahan Senior Specialist in Agricultural Policy Resources, Science, and Industry Division Carol Canada Technical Information Specialist Knowledge Services Group Summary The United States is the world’s major provider of international food aid to lowincome developing countries. This report provides three indicators of the U.S. contribution to global food aid: (1) shipments of major donors compiled by the International Grains Council, (2) U.S. contributions to the United Nations World Food Program (WFP), and (3) the U.S. commitment under the Food Aid Convention (FAC). U.S. food aid accounted for 59% of food aid shipments by major donors during 1995-2005. A substantial portion of U.S. food aid is channeled through the WFP. During 1996-2004, around 48% of the food aid distributed by the WFP came from the United States. The Food Aid Convention (FAC), now expired, was an agreement among donor countries to provide a minimum amount of food aid to low-income developing countries. The food aid commitment by all FAC signatories was approximately 4.9 million metric tons (mmt). The United States pledged to provide 2.5 mmt or 51% of the total commitment. Contributions of Major Donors to International Food Aid The United States is the major contributor to international food aid, supplying on average, since 1995, around 59% of the annual total food aid (see Figure 1) donated by members of the Food Aid Committee of the International Grains Council (IGC) and signatories of the 1999 Food Aid Convention.1 U.S. contributions increased from around 2.8 million metric tons (mmt) measured in wheat equivalent in 1995/1996 to about 5.4 1 Information on the International Grains Council, the Food Aid Convention, and the Food Aid Committee is available at [http://www.igc.org.uk/]. Congressional Research Service ˜ The Library of Congress CRS-2 Figure 1. Food Aid by Major Donors, 1995-2005 mmt in 2004/2005 (see Appendix Table 1).2 U.S. contributions averaged 5 mmt EU 25.2% Japan 5.9% annually. Food aid from the European Union (including food aid provided by the Canada 4.9% European Commission and Australia 3.0% by individual EU member countries) has been more Other 1.7% stable and averaged around 2.1 mmt or 25% of average annual food aid shipments. Japan and Canada provided 6% and 5%, respectively, USA 59.2% of the total from major donors. Japan’s contributions are provided as cash Source: Food Aid Shipments 2004/05, International Grains Council Food Aid Committee. rather than commodities. Because the IGC’s food aid data are reported on a July/June marketing year basis, they do not correspond, for example, to fiscal year food aid data reported by the U.S. Department of Agriculture in budget documents or by the U.S. Agency for International Development in annual food aid reports. The source of the data in Figure 1 and Appendix Table 1 is the annual report Food Aid Shipments, prepared by the Food Aid Committee of the International Grains Council.3 Food Aid Contributions to the World Food Program Most U.S. food aid is provided on a bilateral basis, but a substantial portion is channeled through the United Nations World Food Program (WFP), the intergovernmental agency that provides food aid for development projects and humanitarian relief in low income countries. More than 56 donors, mainly countries, but also some non-governmental organizations and private corporations, contribute to the WFP. The United States is the major donor, providing over the last ten years around 47% of total WFP contributions (see Figure 2 and Appendix Table 2). Over that same tenyear period, the EU (again combining European Commission with EU member countries’ contributions) accounted for around 30% of total WFP contributions. Japan, whose contributions are in cash, provided around 6%. The remaining donors combined provided about 16% to WFP food aid resources. Donor contributions to the WFP are not in addition to, but are included in, the data reported in Figure 1 and Appendix Table 1. 2 Data on food aid shipments provided by the International Grains Council are reported on a marketing year basis (July-June). 3 International Grains Council, Food Aid Committee, Food Aid Shipments 2002/2003: Report on Shipments by Members of the Food Aid Convention, July 2004. CRS-3 Commitments under the Food Aid Convention The Food Aid Convention (FAC), first agreed to in 1968 during the Kennedy Round multilateral trade negotiations held under the auspices of the General Agreements on Tariffs and Trade (GATT), was an international agreement that constituted a framework of cooperation on food aid Figure 2. Food Aid Contributions to the World between major donors. The Food Program, 1996-2006* food aid commitment under the FAC was a minimum USA 47.4% commitment and was intended to be a guarantee of food security for lowincome developing countries. The signatories of the FAC were Argentina, Austra lia, Canada, the European Japan 6.4% Union and its member Other 16.0% countries, Japan, Norway, Switzerland, and the United States. Signatories could provide more than their EU 30.2% minimum commitment. The current FAC was negotiated *Data as of October 9, 2006. in 1999 and expired in 2003. Source: World Food Programme. Under the FAC, the donors could express their annual food aid commitments in either tonnage or in value, but most continue to use the former. Japan is the major exception, although the EU also provides some food aid in the form of cash. The total commitment under the most Figure 3. Food Aid Commitments under the Food recent FAC (1999-2003) Aid Convention, 1999 was 4.9 mmt (see Figure 3 and Appendix Table 2). EU 27.0% The United States made the largest commitment, 2.5 Canada 8.6% mmt or 51% of the total. Japan 6.1% The combined EU commitNorway 0.6% ment was around 27%. Australia 5.1% Switzerland 0.8% Commitments by Canada, Argentina 0.7% Japan, and Australia were, respectively, 8.6%, 6.1%, and 5.1%. Only two of eight FAC signatories (Norway and the United States) have met or exceeded their FAC USA 51.1% commitments on average over the life of the FAC (1999-2003). Source: International Grains Council Food Aid Committee, Food Aid Convention. CRS-4 Although the FAC expired in 2003, a working committee of the IGC has been established to prepare for its renegotiation.4 The Food Aid Committee of the IGC continues to meet periodically to review donor food aid contributions in relation to commitments under the 1999 FAC and to global food needs and agreed that the existing FAC should be extended for a further two-year period after July 1, 2005. Concurrently, trade-related aspects of food aid are being negotiated in the multilateral trade round known as the Doha Development Agenda (DDA). Renegotiation of the FAC, however, appears unlikely until the DDA trade negotiations have been concluded. Now that Doha Round negotiations have been indefinitely suspended, the future of the FAC is uncertain. Table 1. Annual Commitments under the 1999 Food Aid Convention (metric tons wheat equivalent) Argentina Australia Canada EU Japan Norway Switzerland USA Total Annual Commitments 35,000 250,000 420,000 1,320,000 300,000 30,000 40,000 2,500,000 4,895,000 Percent 0.72% 5.11% 8.58% 26.97% 6.13% 0.61% 0.82% 51.07% 100.00% Average Food Aid Shipments 1999-2003 Percent 553 0.01% 235,242 2.42% 386,859 3.98% 2,072,822 21.34% 550,945 5.67% 109,318 1.13% 62,217 0.64% 6,294,145 64.81% 9,712,101 100.00% Source: International Grains Council Food Aid Committee, The Food Aid Convention. 4 IGC-FAC Press Release, 8 December 2004, available at [http://www.igc.org.uk/press/ pr041208.htm]. CRS-5 Appendix Table 1. Food Aid by Major Donor, 1995-2005 (in metric tons wheat equivalent) Argentina Australia Canada EU Japan Norway Switzerland USA Total 1995/96 1996/97 1997/98 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 13,400 10,135 2,740 26 298,146 305,127 293,221 273,064 296,713 251,865 245,828 203,820 177,984 448,764 468,431 417,917 487,095 470,640 293,477 408,209 451,537 310,430 2,413,991 2,049,691 2,201,162 1,969,892 1,970,768 2,357,778 1,836,717 1,980,781 2,218,065 474,870 326,835 302,626 561,643 337,357 637,749 531,755 666,910 580,953 6,233 32,816 19,306 61,293 75,960 85,876 74,318 144,927 165,510 75,479 38,636 57,915 38,939 61,295 54,169 58,042 67,892 69,689 2,849,384 2,553,283 2,818,500 4,734,121 5,692,116 6,798,280 7,124,407 6,054,197 5,801,724 6,580,267 5,774,819 6,110,647 8,136,182 8,907,589 10,479,194 10,279,302 9,570,064 9,324,355 Source: International Grains Council Food Aid Committee, Food Aid Shipments 2001-2005. 2004/05 168,083 396,405 2,151,958 578,261 145,586 71,854 5,363,186 8,875,333 Annual Average Total Percent Metric Tons 26,301 0.03% 2,630 2,513,851 2.99% 251,385 4,152,905 4.94% 415,291 21,150,803 25.17% 2,115,080 4,998,959 5.95% 499,896 811,825 0.97% 81,183 593,910 0.71% 59,391 49,789,198 59.25% 4,978,920 84,037,752 100.00% 8,403,775 CRS-6 Appendix Table 2. Food Aid Contributions to the World Food Program, 1996-2006 (thousand dollars) 1996 1997 United States of America 494,980 408,380 European Union 603,981 550,522 EU Commission 196,873 237,254 EU Countries 407,108 313,269 Austria 4,774 4,910 Belgium 19,472 17,416 Cyprus* Czech Republic* Denmark 53,064 44,248 Finland 16,045 13,768 France 19,203 21,884 Germany 96,036 68,487 Greece 150 170 Hungary* Ireland 3,149 4,284 Italy 34,876 9,112 Lithuania* Luxembourg 218 Netherlands 78,804 45,972 Poland* Slovakia* Slovenia* Spain 13,720 12,245 Sweden 33,164 35,985 United Kingdom 34,434 34,789 Japan 124,032 98,991 All Others 222,166 253,647 TOTAL 1,445,159 1,311,540 * Joined European Union in 2004. Source: World Food Program. 1998 1999 2000 2001 2002 2003 876,284 522,397 184,645 337,752 3,853 16,908 718,856 461,800 168,098 293,702 3,710 10,782 795,676 442,495 117,509 324,986 2,854 6,284 1,210,543 436,559 118,411 318,149 1,117 5,294 933,217 560,653 179,205 381,448 3,302 5,748 1,459,324 620,929 201,463 419,466 2,199 8,480 43,384 13,801 24,742 61,779 25 46,900 15,345 27,693 53,089 1 41,908 15,219 26,170 46,750 130 39,385 14,467 35,929 58,088 39,964 17,445 14,457 60,920 39,335 17,793 14,939 46,458 200 4,378 10,632 5,021 20,817 7,639 19,936 7,317 36,060 10,390 38,016 11,815 40,480 270 45,532 130 55,003 1,205 62,801 1,735 59,481 2,919 58,795 3,913 50,422 2,725 29,511 80,212 123,757 204,811 1,727,248 2,511 28,415 24,284 106,438 268,274 1,555,369 3,256 30,778 60,056 260,099 252,853 1,751,123 3,946 27,711 27,620 91,139 165,999 1,904,241 2,607 31,167 95,718 92,896 222,338 1,809,104 5,357 42,341 135,734 129,938 362,983 2,573,174 2004 2005 1,044,168 1,174,918 692,984 876,111 200,501 263,940 492,483 612,171 2,189 4,344 10,750 13,952 5 98 1,236 43,247 52,838 17,860 23,557 30,288 37,676 65,126 70,721 16 3,637 65 120 13,684 19,708 47,613 47,908 As of October 9, 2006 932,164 638,761 225,163 413,598 1,839 10,303 400 308 40,410 13,868 21,303 49,160 2,193 65 23,934 7,333 37 4,759 71,551 200 49 5,413 10,681 77,738 115,348 356 200 25 30 33 97 17,553 11,595 16,430 44,540 84,259 57,873 115,884 114,264 91,583 135,730 160,528 40,963 342,017 515,410 575,959 2,214,899 2,726,967 2,187,847 Total 10,048,510 6,407,192 2,093,061 4,314,131 35,091 125,388 405 1,642 484,683 179,168 274,284 676,614 6,522 250 111,317 312,784 37 31,243 721,447 756 104 130 91,945 445,745 814,577 1,364,511 3,386,457 21,206,670