Topics handled by WTO committees and agreements
Issues covered by the WTO’s committees and agreements

AGRICULTURE NEGOTIATIONS: BACKGROUNDER
Update Phase 2: food aid

175pxls.gif (835 bytes)
UPDATED 10 OCTOBER 2002

Contents
> In a nutshell
Proposals received in Phase 1
Proposals received in Phase 2
Alliances table
INTRODUCTION
Phase 1
Export subsidies, competition and restrictions
Market access
Domestic support: amber, blue and green boxes
Developing countries
Transition economies
Non-trade concerns
Animal welfare and food quality
The peace clause
Phase 2
Tariffs and quotas
Domestic support: amber, blue and green boxes
Export subsidies and restrictions
State trading
Food security
Food safety
Rural development
Geographical indications
Safeguards
Environment
Trade preferences
> Food aid
Consumer information and labelling
Sectoral initiatives
Development box, single commodity producers, small island developing states, special and differential treatment
Additional issues (food aid, the Green Box, tariff quota expansion)

Modalities 2002–2003
Exports
Market access
Domestic support


Data
Statistics


This briefing document explains current agricultural issues raised before and in the current negotiations. It has been prepared by the Information and Media Relations Division of the WTO Secretariat to help public understanding about the agriculture negotiations. It is not an official record of the negotiations.


Food aid

See also Phase 1 (decision on net food-importing developing countries)

All agree that food aid for humanitarian purposes is essential. Most of the discussion has been about how best to ensure that the aid goes to those really in need, does not harm domestic production in countries receiving aid, does not distort trade (in particular jeopardise exports from competing suppliers), responds genuinely to demand, does not amount to the disposal of surpluses in subsidizing countries, and does not allow countries to get around their export subsidy commitments.

Most countries argue that aid should only be in the form of grants — i.e. not on credit. But some warn that this could be too rigid and prevent food aid from promptly reaching those who need it.

Many developing countries are calling for binding commitments from donor countries on the amounts they supply, with rising amounts of food at times of high prices, aid supplies in response to demand, technical and financial assistance to help countries develop domestic production instead of relying on food aid, and increased transparency through notifications to the WTO Agriculture Committee. Some developed countries also endorse some of these ideas.

Also discussed are ideas for international stock-piling and a revolving fund (proposed by some developing countries in Phase I).

Papers or “non-papers” from: 

Papers or “non-papers” from: 7 developing countries (Cuba, Egypt, Grenada, Mauritius, Nigeria, Sri Lanka, Uganda), EU, Japan, Mercosur, Namibia, Norway.

Previous    Next >


Want to download and print this backgrounder?
Download here


The second phase consists of detailed discussions on the many issues raised in the first phase, organized topic by topic. The meetings are largely “informal”, meaning that there is no official record except for chairperson’s summaries presented at the formal meetings. Papers presented so far have not been official WTO documents. Despite the increased complexity, developing countries continue to participate actively.