Friday, April 5, 2013

U.S. food companies want aid to continue


A group of 21 food-industry organizations is lobbying the United States government to continue buying domestic grain and meat to ship overseas as aid.

It seems U.S. business is the real recipient of food aid, not hungry people overseas.

The way the United States handles its food aid programs has been widely condemned by many who work in international relief and development.

Some features of the U.S. food aid program violate the terms of a global voluntary set of disciplines on food aid.

The U.S. would be forced to comply with the global standards if the new World Trade agreement, which has been under negotiation for 11 years, ever does get signed.

There is agreement to bring the voluntary code into the trade agreement, which means disciplines could be enforced for failure to comply, but the negotiations have been stalled for more than a year.

Agriculture reforms are the key stumbling block in those negotiations. Third World countries, led by India, are also objecting to U.S. pressure to open financial markets and adopt global standards for intellectual property rights.

They say that growing, manufacturing, packaging and transporting the food donations creates jobs and stimulates economic activity.

The U.S. lobbing groups sent a letter to the White House in support of sustained funding for the program.

"Bags of U.S.-grown food bearing the U.S. flag and stamped as 'From the American People' serve as ambassadors of our nation’s goodwill, which can help to address the root causes of instability," the groups wrote.

"In a time of growing global food insecurity and extremism, these programs need to be expanded, not eliminated. We therefore oppose shifting resources to overseas commodity procurement and strongly encourage you to sustain funding for the Food for Peace and Food for Progress programs, preserving the unique aspects of these programs that have made them the world’s most successful, most dependable humanitarian assistance programs."

Critics note that requiring aid shipments to be transported on U.S.-registered ships and to be handled by union workers sharply increases costs without providing any benefits for the people who need the food.

They also argue that aid shipments from the U.S. sometimes undercut the local economy, especially farmers and food companies that depend on local food production. The food is also often not the type the local people eat.

Most other food aid donors, including Canada, have stopped massive overseas shipments and instead buy what’s needed as close as practical to the region in need and the types of food that are popular with the local people.

That helps farmers and food companies in the region as well as more appropriately meeting the needs of the hungry people.

Sometimes donor countries do use domestic food in their aid programs, but usually selling it into global commercial markets and then using the money to buy food closer to the places where the food aid is needed.