. /.WORLD TRADE
ORGANIZATIONG/AG/GEN/35
1 April 1999
(99-1317)
Committee on Agriculture Original:  English
FOLLOW-UP TO THE RECOMMENDATIONS OF THE SINGAPORE MINISTERIAL
CONFERENCE CONCERNING THE IMPLEMENTATION WITH REGARD TO FOOD
AID MATTERS OF THE MARRAKESH MINISTERIAL DECISION ON MEASURES
CONCERNING THE POSSIBLE NEGATIVE EFFECTS OF THE REFORM
PROGRAMME ON LEAST-DEVELOPED AND NET FOOD-IMPORTING
DEVELOPING COUNTRIES
The following is the text of the communication from the Executive Director of the
International Grains Council/Food Aid Committee to the Director-General which was presented at the25-26 March meeting of the Committee on Agriculture (Part II, agenda item A(ii) refers).
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In my letter of 3 December 1997, I informed you that members of the Food Aid Committee
had decided to open the Food Aid Convention, 1995 for re-negotiation, thus following up on the
Recommendations that WTO Ministers adopted at their Singapore Conference in respect of Least-
Developed and Net Food-Impor ting Developing Countries.
These negotiations were completed on 24 March.  Under cover, I have pleasure in conveying
to you the text of a new Food Aid Convention 1999 (FAC) which, subject to the necessary actions bymember Governments, will come into effect on 1 July 1999.
1
The objectives of the FAC 1999 are "to contribute to world food security and to improve the
ability of the international community to respond to emergency food situations and other food needs
of developing countries".
Under the new Convention, the list of eligible products which may be supplied has been
broadened significantly beyond cereals.  There are also stronger provisions to cover transportation and
other operational costs associated with food aid transactions, especially when food aid is directed to
least-developed countries and in emergencies.
FAC donors may now express their commitments in to nnage, or in value, or in a combination
of tonnage and value.  Accordingly, the mini mum annual tonnage and value commitments of FAC
members amount in total to 4,895,000 tonnes (wheat equivalent) and  €130 million, respectively.
When allocating their food aid, FAC members will give priority to Least-Developed
Countries and Low-Income Countries – many of which are on the WTO list of Net Food-Importing
Developing Countries (NFIDCs).  Eligible food aid recipients will include Lower Middle-Income
Countries and all other countries on the present WTO list of NFIDCs, when experiencing food
                                                     
1 Copies are available from the Agriculture and Commodities Division , Office 1035.G/AG/GEN/35
Page 2
emergencies or internationally recognized financial crises leading to food shortage emergencies, or
when food aid operations are targeted on vulnerable groups.
The new FAC contains stronger provisions to promote local agricultural development in
recipient countries.  This includes possible "triangular transactions" i.e. donor countries using theircash contributions to purchase food in developing countries for supply to a recipient country, and
"local purchases", i.e. food being purchased by donors in one part of a developing country for supply
to a deficit area in that country.
All FAC food aid to least-developed country recipients covered by members' commitments
will be in the form of grants.  Overall, food aid pr ovided in the form of grants under this Convention
will represent not less than 80 per cent of a member's contributions and, to the extent possible,members will seek progressively to exceed this percentage.
In determining whether, and the extent to which, food aid provision on long-term
concessional credit terms should continue to be covered under any Food Aid Convention, FAC
members will take account of the results of relevant multilateral negotiations bearing on food aid.
All FAC members agreed that the provisions of the new Convention should neither prejudice
nor constrain future negotiations, including those in the framework of the WTO, on the status of food
aid provisions on concessional credit terms.  The EU and some other members re-affirmed their
opinion that food aid provided under credit terms shoul d no longer be included in the list of food aid
operations.
The new FAC will seek to improve the effectiveness and the impact of food aid transactions,
inter alia , in terms of the assessment of food aid needs, the monitoring of the aid provided, and co-
operation between food aid donors, recipients and others concerned.  In addition, the provision offood aid under the FAC will not be tied in any wa y to commercial exports of goods or services to
recipient countries.
During the negotiations, a dialogue was maintained with food aid recipient countries.  Efforts
to broaden the list of FAC donors were also made and will continue.  I am also pleased to note that
close co-operation with the WTO was maintained throughout, regular progress reports being made to
the Committee on Agriculture.
FAC members have emphasized that the new Food Aid Convention is evidence of their desire
to maintain international cooperation in support of world food security and to follow up on the WTO
Singapore Ministerial recommendations.  Whether their specific FAC commitments are expressed in
volume or in value, they are all about meeting th e food aid needs of developing countries adequately,
irrespective of fluctuations in world food prices and supplies.
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