International Food Aid: U.S. and Other Donor Contributions Charles E. Hanrahan Senior Specialist in Agricultural Policy Carol Canada Information Research Specialist February 11, 2011 Congressional Research Service 7-5700 www.crs.gov RS21279 CRS Report for Congress Prepared for Members and Committees of Congress International Food Aid: U.S. and Other Donor Contributions Summary The United States is the world’s major provider of international food aid to low-income 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 (IGC), (2) U.S. contributions to the United Nations World Food Program (WFP), and (3) the U.S. commitment under the 1999 Food Aid Convention (FAC). Data from the International Grains Council show that U.S. food aid accounted for 58% of food aid shipments by major donors during 1995/96-2008/09. A substantial portion of U.S. food aid is channeled through the WFP. During 1996-2010, around 48% of donor contributions to 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 agreed to by all FAC signatories in 1999 was approximately 4.9 million metric tons (mmt). The United States pledged to provide 2.5 mmt or 51% of the total commitment. Although the Food Aid Convention has expired, member countries of the IGC’s Food Aid Committee have continued to meet regularly to review food aid needs and food aid shipments. At its December 2010 meeting, Food Aid Committee member countries agreed to begin a formal process of renegotiating the convention. Congressional Research Service International Food Aid: U.S. and Other Donor Contributions Contents International Food Aid Shipments of Major Donors.....................................................................1 Food Aid Contributions to the World Food Program ....................................................................2 Commitments under the Food Aid Convention ............................................................................3 Figures Figure 1. Average Annual Food Aid Contributions (%) by Major Donors, 1995/1996-2008/2009 ..............................................................................................................1 Figure 2. Food Aid Contributions to the World Food Program, 1996-2010...................................2 Figure 3. Donor Food Aid Commitments under the Food Aid Convention ...................................3 Tables Table 1. Annual Commitments under the Food Aid Convention ...................................................4 Appendixes Appendix A. Food Aid by Major Donor, 1995/96-2006/07 ..........................................................5 Appendix B. Food Aid Contributions to the World Food Program, 1996-2010 .............................6 Appendix C. Food Aid Convention 1999—Annual Operations: 2000/2001-2009/2010 (July/June) ...............................................................................................................................9 Contacts Author Contact Information ...................................................................................................... 10 Congressional Research Service International Food Aid: U.S. and Other Donor Contributions International Food Aid Shipments of Major Donors The United States is the major contributor to international food aid, supplying on average, since 1995, around 57% of the annual total food aid donated by members of the Food Aid Committee of the International Grains Council (IGC) and signatories of the 1999 Food Aid Convention (Figure 1).1 U.S. contributions have averaged 5.8 mmt annually, but U.S. food aid shipments have varied from year to year (Appendix A). 2 The lowest amount shipped was 2.5 mmt in 1996/1997; the largest shipments, 7.1 mmt, were in 2001/2002. U.S. shipments of commodity food aid were 4.2 mmt in 2008/2009. Food aid from the European Union (including food aid provided both by the European Commission and by individual EU member countries) has been more stable and averaged around 2.6 mmt or 27% of average annual food aid shipments. Japan and Canada provided 6% and 5%, respectively, of the total from major donors. Historically, the United States, the EU, Canada, Japan, and Australia have accounted for about 98% of total food aid shipments. The United States contributes U.S. commodities, while the European Union and its member countries and Canada provide a mix of cash and commodities. Japan’s contributions are provided primarily as cash rather than commodities. Figure 1. Average Annual Food Aid Contributions (%) by Major Donors, 1995/1996-2008/2009 EU 26.7% Japa n 5 .8% C anada 5.4% Au stralia 2.8% O th er 2. 0% U SA 57. 4% Source: Food Aid Operations 2008/09, International Grains Council Food Aid Committee. Because the IGC’s food aid data are reported on a July/June marketing year basis, its data for U.S. food aid shipments do not correspond, for example, to fiscal year food aid data reported by the U.S. Department of Agriculture in annual budget documents or by the U.S. Agency for 1 Information on the International Grains Council, the Food Aid Convention, and the Food Aid Committee is available at http://www.igc.int/en/Default.aspx and at http://www.foodaidconvention.org/en/Default.aspx. The member countries of the Food Aid Committee are Argentina, Australia, Canada, the European Union, Japan, Norway, Switzerland and the United States. 2 Data on food aid shipments provided by the International Grains Council are reported on a marketing year basis (JulyJune). Congressional Research Service 1 International Food Aid: U.S. and Other Donor Contributions International Development in its budget documents or annual food aid reports. The source of the data in Figure 1 and Appendix A is the annual report Food Aid Shipments, prepared by the Food Aid Committee of the International Grains Council, which has been renamed Food Aid Operations.3 Food Aid Contributions to the World Food Program A substantial portion of U.S. food aid 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 15 years around 45% of total WFP contributions (Figure 2 and Appendix B). Over that same 15-year period, the EU (European Commission plus EU member countries’ contributions) accounted for 29% of total WFP contributions. Japan, whose contributions are in cash, provided around 6%. The remaining donors combined provided 20% 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 A. Figure 2. Food Aid Contributions to the World Food Program, 1996-2010 USA 45.2% Japan 5.7% Other 20.4% EU 28.7% Source: World Food Programme. Note: Data as of January 11, 2010. 3 International Grains Council, Food Aid Committee, Food Aid Operations 2008/2009: Report on Operations by Members of the Food Aid Convention, February 2010, viewed at http://www.igc.int/downloads/publications/fas/ faoperations_0809.pdf. Congressional Research Service 2 International Food Aid: U.S. and Other Donor Contributions Commitments under the Food Aid Convention The Food Aid Convention (FAC), first agreed to in 1967 during the Kennedy Round of 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 between major donors. The food aid commitment under the FAC was a minimum commitment and was intended to be a guarantee of food security for low-income developing countries. The signatories of the FAC were Argentina, Australia, Canada, the European Union and its member countries, Japan, Norway, Switzerland, and the United States. Signatories could provide more than their minimum commitment. The current FAC was negotiated in 1999 and expired in 2003. Under the FAC, the donors could express their annual food aid commitments in either tonnage or in value. Other donors—the EU, Canada, and Japan—use a mix of commodities and cash. The total commitment under the most recent FAC (1999-2003) was 4.9 mmt (see Figure 3 and Appendix B). The United States made the largest commitment, 2.5 mmt or 51% of the total. The combined EU commitment (Commission and member countries) was around 27%. Commitments by Canada, Japan, and Australia were, respectively, 8.6%, 6.1%, and 5.1% (Table 1). Figure 3. Donor Food Aid Commitments under the Food Aid Convention (% of total commitment) Source: International Grains Council Food Aid Committee, Food Aid Convention. Although the FAC expired in 2003, a working committee of the IGC was 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 has agreed to periodic extensions of the 1999 FAC. Concurrently, traderelated aspects of food aid are being negotiated in the multilateral trade round known as the Doha 4 IGC-FAC Press Release, 8 December 2004, viewed at http://www.igc.org.uk/press/pr041208.htm. Congressional Research Service 3 International Food Aid: U.S. and Other Donor Contributions Development Agenda (DDA). Renegotiation of the FAC has been on hold pending completion of DDA trade negotiations. However, at their biennial meeting in December 2010, members of the Food Aid Committee agreed to begin the formal process of renegotiating the Food Aid Convention.5 Table 1. Annual Commitments under the Food Aid Convention (metric tons wheat equivalent) Annual Commitments Percent Average Food Aid Shipments 1999-2003 Percent Argentina 35,000 0.72% 553 0.01% Australia 250,000 5.11% 235,242 2.42% Canada 420,000 8.58% 386,859 3.98% 1,320,000 26.97% 2,072,822 21.34% 300,000 6.13% 550,945 5.67% Norway 30,000 0.61% 109,318 1.13% Switzerland 40,000 0.82% 62,217 0.64% USA 2,500,000 51.07% 6,294,145 64.81% Total 4,895,000 100.00% 9,712,101 100.00% EU Japan Source: International Grains Council Food Aid Committee, The Food Aid Convention. 5 Food Aid Committee, Press Release, December 20, 2010, “Meeting of the Food Aid Committee, London 14 December 2010,” viewed at http://www.foodaidconvention.org/Pdf/p_r/prfacdec10.pdf. Congressional Research Service 4 International Food Aid: U.S. and Other Donor Contributions Appendix A. Food Aid by Major Donor, 1995/96-2006/07 1995/96 1996/97 2000/01 2001/02 Argentina 13,400 — — 10,135 2,740 — 26 Australia 298,146 305,127 293,221 273,064 296,713 251,865 245,828 Canada 448,764 468,431 417,917 487,095 470,640 293,477 412,082 2,413,991 2,049,691 2,201,162 1,969,892 1,970,768 2,357,778 1,836,717 474,870 326,835 302,626 561,643 337,357 637,749 531,755 6,233 32,816 19,306 61,293 75,960 85,876 74,318 75,479 38,636 57,915 38,939 61,295 54,169 58,042 USA 2,849,384 2,553,283 2,818,500 4,734,121 5,692,116 6,798,280 7,124,407 Total 6,580,267 5,774,819 6,110,647 8,136,182 8,907,589 10,479,194 10,283,175 2002/03 2003/04 — — — — — — — Australia 203,820 177,984 168,083 180,667 114,530 216,726 163,857 Canada 499,382 351,168 437,341 448,534 474,438 520,903 551,475 1,980,781 2,218,065 2,151,958 2,853,063 2,488,053 2,178,310 2,263,456 Japan 666,910 580,953 578,261 354,289 318,964 428,301 556,078 Norway 144,927 165,510 145,586 196,034 179,408 102,955 89,382 67,892 69,689 71,854 61,608 71,051 69,872 59,368 USA 6,054,197 5,801,724 5,363,186 4,830,710 3,869,162 3,630,343 4,256,834 Total 9,617,909 9,365,093 8,916,269 8,924,905 7,515,606 7,147,410 7,940,450 Total Annual Average (percent) (metric tons) EU Japan Norway Switzerland Argentina EU Switzerland Argentina 1997/98 1998/99 1999/00 (metric tons wheat equivalent) 2004/05 2005/06 2006/07 (metric tons wheat equivalent) 26,301 0.02% 2,192 Australia 3,189,631 2.76% 227,831 Canada 6,281,647 5.43% 448,689 30,933,685 26.74% 2,209,549 Japan 6,656,591 5.75% 475,471 Norway 1,379,604 1.19% 98,543 855,809 0.74% 61,129 USA 66,376,247 57.37% 4,741,161 Total 115,699,515 100.00% 8,264,251 EU Switzerland 2007/08 2008/09 Source: International Grains Council Food Aid Committee, Food Aid Shipments renamed to Food Aid Operations, various issues. Congressional Research Service 5 Appendix B. Food Aid Contributions to the World Food Program, 1996-2010 (thousand dollars) Government Donors 1996* 1997* 1998 1999 2000 United States of America 494,980 408,380 873,051 721,157 795,676 1,201,223 939,349 1,458,913 European Union 603,981 550,522 522,601 464,844 443,049 449,679 563,054 623,392 EU Commission 196,873 237,254 184,645 167,576 117,794 126,833 177,326 200,874 EU Countries 407,108 313,269 337,956 297,268 325,255 322,846 385,728 422,518 Austria 4,774 4,910 3,853 3,710 2,832 1,117 3,302 2,199 Belgium 19,472 17,416 16,908 10,782 6,284 5,342 5,831 8,405 2002 2003 Bulgaria 0 0 0 0 0 0 0 0 Cyprus 0 0 0 0 0 0 0 0 Czech Republic 0 0 0 0 0 0 0 0 53,064 44,248 43,384 46,900 41,922 39,786 40,158 39,268 Estonia 0 0 0 0 0 0 0 0 Finland 16,045 13,768 13,801 15,345 15,219 14,352 17,444 17,793 France 19,203 21,884 24,742 27,693 26,170 35,957 14,457 14,939 Germany 96,036 68,487 61,779 53,089 46,750 58,228 60,920 46,503 150 170 25 1 130 0 0 200 0 0 65 74 65 65 65 65 3,149 4,284 4,378 5,021 7,644 7,338 10,349 11,815 34,876 9,112 10,632 20,824 19,936 39,748 41,787 41,074 Latvia 0 0 0 0 0 0 0 0 Lithuania 0 0 0 0 0 0 0 0 218 0 270 130 1,205 1,748 2,919 4,132 0 0 28 0 0 0 0 1 78,804 45,972 45,532 55,003 62,801 59,173 58,795 50,422 Poland 0 0 0 684 225 200 215 215 Portugal 0 0 185 2,285 0 358 0 447 Denmark Greece Hungary Ireland Italy Luxembourg Malta Netherlands CRS-6 2001 Government Donors 1996* 1997* 1998 1999 2000 2001 2002 2003 Romania 0 0 0 0 0 0 0 0 Slovakia 0 0 25 518 15 15 15 697 Slovenia 0 0 227 141 0 57 36 0 13,720 12,245 2,725 2,511 3,256 3,952 2,607 6,754 Spain Sweden 33,164 35,985 29,511 28,415 30,778 27,721 31,224 42,341 UK 34,434 34,789 80,212 24,284 60,056 27,694 95,718 135,734 Japan 124,032 98,991 123,757 106,438 260,099 90,592 92,896 130,136 All Others 222,166 253,647 200,133 220,074 195,017 165,160 226,342 342,673 Total Government Donors 0 0 1,719,541 1,509,679 1,682,692 1,902,530 1,816,080 2,530,865 Total Financial Institutions, 0 0 4,479 2,833 11,149 4,125 5,560 24,250 1,445,159 1,311,540 1,724,019 1,512,512 1,693,841 1,906,655 1,821,641 2,555,115 2004 2005 2006 2007 2008 2009 2010 Total 1,065,404 1,173,720 1,123,696 1,184,181 2,076,430 1,749,214 1,551,859 16,817,231 Pooled Funding,, and Private Sector Donors Total Government Donors United States of America European Union 647,631 871,802 747,321 763,147 1,262,752 1,173,994 970,232 10,660,161 EU Commission 200,501 263,940 265,762 250,437 355,435 344,078 289,928 3,379,256 EU Countries 447,130 607,862 481,559 512,710 907,317 829,916 680,303 7,280,904 Austria 2,189 4,093 1,839 3,794 3,935 1,722 1,329 45,598 Belgium 11,705 13,941 11,132 17,642 24,784 39,111 37,349 246,104 Bulgaria 5 0 10 10 15 0 0 40 Cyprus 5 0 400 656 200 814 684 2,759 Czech Republic 98 1,236 308 561 817 309 159 3,489 43,436 53,202 43,817 44,731 56,544 41,885 40,158 672,502 Estonia 0 0 0 42 242 0 94 378 Finland 18,000 23,794 18,320 25,562 28,257 28,585 26,473 292,757 France 30,424 37,809 25,294 32,149 40,357 21,666 20,684 393,428 Germany 65,331 69,533 59,680 65,836 100,747 132,086 95,350 1,080,356 Denmark CRS-7 Government Donors 2004 2005 2006 2007 2008 2009 2010 Total Greece 16 3,637 4,201 5,094 8,540 5,438 Hungary 65 120 65 65 65 65 13,684 19,820 31,005 34,414 39,852 22,549 19,318 234,620 0 45,790 12,394 31,601 101,656 30,000 29,831 469,263 Ireland Italy 356 27,958 844 Latvia 0 0 0 0 0 0 37 37 Lithuania 0 0 112 306 27 0 0 446 5,413 10,933 15,387 12,207 14,276 13,273 12,362 94,472 0 0 0 0 0 0 0 29 77,738 115,348 79,985 75,630 117,435 77,594 74,424 1,074,657 Poland 356 200 1,200 755 1,164 535 691 6,438 Portugal 723 874 488 111 111 112 0 5,693 Luxembourg Malta Netherlands Romania 0 0 0 147 301 75 72 595 Slovakia 25 30 48 44 72 30 15 1,548 Slovenia 34 97 0 107 135 108 119 1,062 Spain 17,466 11,552 16,993 29,641 117,116 213,848 80,727 535,113 Sweden 44,540 84,259 58,520 64,754 81,708 72,487 84,768 750,177 115,884 111,595 100,372 66,851 168,961 127,624 155,301 1,339,508 135,730 160,472 71,386 118,902 178,181 202,684 214,406 2,108,700 UK Japan All Others 393,259 512,212 756,949 648,906 1,528,867 888,823 1,030,636 7,582,706 Total Government Donors 2,219,586 2,680,726 2,422,954 2,519,578 4,669,046 3,693,205 3,441,837 32,808,318 Total Financial Institutions, 22,437 37,479 276,398 195,558 377,184 321,510 325,296 2,242,023 2,718,205 2,699,352 2,715,137 5,046,230 4,014,715 3,767,133 1,608,260 Pooled Funding, and Private Sector Donors Total 37,173,277 Source: World Food Program. Data as of January 11, 2011. See http://www.wfp.org/about/donors/wfp-donors. * 1996 and 1997 includes both the totals for government donors and financial institutions, pooled funding, and private donors. If a country contributed to the WFP program before joining the EU then the amounts contributed are shown in this table; however, their contributions were not added to the total for the EU countries or EU total. Instead it was added to all others. CRS-8 Appendix C. Food Aid Convention 1999—Annual Operations: 2000/20012009/2010 (July/June) (metric tons: wheat equivalent) annual commitment Donor 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 - - - - - Argentina 35,000 - - - - Australia 150,000 251,865 245,828 203,820 177,984 168,083 180,667 114,530 216,726 163,857 165,081 420,000 307,575 412,082 499,382 351,168 437,341 448,534 474,438 520,903 551,475 524,148 2,337,508 1,836,717 1,980,781 2,218,065 2,151,958 2,853,063 2,488,053 2,178,310 2,263,456 1,691765 Canada Uniona European tonnage: 1,320,000 + value: €130,000,000 Japan 300,00 637,749 531,755 666,910 580,953 578,261 354,289 318,964 428,301 556,078 691,326 Norway 30,000 85,876 74,318 144,927 165,510 145,586 196,034 179,408 102,955 89,382 62,774 Switzerland 40,000 54,169 58,042 67,892 69,689 71,854 61,608 71,051 69,872 59,368 47,861 2,500,000 6,798,280 7,124,407 6,054,197 5,801,724 5,363,186 4,830,710 3,869,162 3,630,343 4,256,834 3,745,514 10,473,022 10,283,149 9,617,909 9,365,093 8,916,269 8,924,904 7,515,606 7,147,410 7,940,450 6,928,469 United States TOTALb Source: Food Aid Convention. See http://www.foodaidconvention.org/en/default.aspx. Notes: These figures refer to the wheat equivalent of actual shipments completed during the years shown, including EU value commitments (as estimated by the IGC Secretariat). They are not adjusted for any product limits under Article IV of the Food Aid Convention 1999 and do not necessarily represent the performance of members in relation to their annual commitments. a. And EU member States. Shipments include estimated tonnage under FAC “value” contributions. b. Includes contributions under IEFR Immediate Response Account (IRA), as reported by WFP. CRS-9 International Food Aid: U.S. and Other Donor Contributions Author Contact Information Charles E. Hanrahan Senior Specialist in Agricultural Policy chanrahan@crs.loc.gov, 7-7235 Congressional Research Service Carol Canada Information Research Specialist ccanada@crs.loc.gov, 7-7619 10