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Contributions from
the Column
Facts and trends
WFP opposes strict WTO rules
G8 cancels debt and cuts aid
Climate protection after Kyoto
EU looks for its role in development policy
Africa suffers from lack of harmonisation
KfW Development Bank gains
Spam mails impede development
Aid does not reach the poor
Trade: Renminbi appreciation would have no effect
07/2005
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[ Food aid ]
World Food Programme opposes strict WTO rules
The World Food Programme (WFP) worries that new World Trade Organisation (WTO) rules might restrict the availability of food aid. Within the framework of the Doha Round, WTO members are currently negotiating how food aid should be assessed in trade terms. The talks are focussing predominantly on the US practice of giving away grain surpluses as aid or selling them cheaply to governments in developing countries. Other exporters of agricultural products such as the European Union, New Zealand, Australia or Argentina view this as trade-distorting subsidisation of farms in the USA. Some donor and recipient countries therefore want WTO agricultural agreements, which are yet being debated, to include a rule stipulating that in principle financial aid should be given and food aid in kind be permitted only in exceptional cases. Furthermore, food aid should only be given as grants. In a recent study, Oxfam, the international charity, supports the demand for stricter WTO rules on food aid.
On the other hand, in May, WFP head James Morris warned WTO delegates from developing countries against applying too strict criteria to the allocation of food aid, pointing out that aid donations had been dropping sharply in recent years: “The simple truth is that food aid commitments and deliveries are nose-diving, while the WTO is discussing their discipline. Please remember that simple fact and that the world’s hungry children are paying the price.”
The head of WFP is suggesting that the legitimacy of food aid be assessed on the basis of its intended use, not its origin. He says there is nothing wrong with giving away agricultural surpluses to those in desperate need, as recipients don’t care where the aid comes from. They are only concerned about it arriving regularly and on time, Morris says. “WFP absolutely opposes any discipline that would discourage donations of commodities,” because some donors tie food aid to the use of goods produced in their own countries. From a trade perspective, the only problem Morris sees is the sale of surplus commodities at dumping prices. According to Morris, food aid amounted to only 0.3 percent of the global cereals production in 2004. “Why discuss such small amounts here at WTO? Why focus on one grain of sand at the beach?” (ell)
Further information:
Speech by Morris, head of WFP:
http://www.wfp.org/newsroom/speeches/2005/0508_WTO.pdf
Oxfam study:
http://oxfam.org/eng/pdfs/bp71_food_aid_240305.pdf
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