FOOD AID CONVENTION 1980

PART I OBJECTIVE AND DEFINITIONS

Article I

Objective

The objective of this Convention is to secure, through a joint effort by the international community, the achievement in physical terms of the World Food Conference target of at least 10 million tonnes of food aid annually to developing countries in the form of wheat and other grains suitable for human consumption, and as determined by the provisions of this Convention.

Article II

Definitions

1. For the purposes of this Convention: (a) "cif" means cost, insurance and freight;

(b) "Committee" means the Food Aid Committee referred to in Article V;

(c) "Executive Secretary" means the Executive Secretary of the International Wheat Council;

(d) "fob" means free on board;

(e) "grain" or "grains", unless otherwise stated, means wheat, barley, maize, oats, rye, sorghum and rice, or products derived therefrom, including products of secondary processing, as defined in the Rules of Procedure, subject to the provisions of paragraph 1 of Article III;

(f) "member" means a Party to this Convention;

(g) "Secretariat" means the secretariat of the International Wheat Council;

(h) "tonne" means 1 000 kilograms;

(i) "year" means the period from 1 July to 30 June, unless otherwise stated.

2. Any reference in this Convention to a "government" or "governments" shall be construed as including a reference to the European Economic Community (hereinafter referred to as the EEC). Accordingly, any reference in this Convention to "signature" or to the "deposit of instruments of ratification, acceptance or approval" or "an instrument of accession" or to a "declaration of provisional application" by a government shall, in the case of the EEC, be construed as including signature or declaration of provisional application on behalf of the EEC by its competent authority, and the deposit of the instrument required by the institutional procedures of the EEC to be deposited for the conclusion of an international agreement.

PART II MAIN PROVISIONS

Article III

International food aid

1. The members of this Convention agree to contribute as food aid to the developing countries grains, as defined in Article II paragraph 1 (e), suitable for human consumption and of an acceptable type and quality or the cash equivalent thereof, in the minimum annual amounts specified in paragraph 3 below.

2. To the maximum extent possible contributions shall be made by members and needs estimated by recipient countries on a forward planning basis, so that recipient countries may be able to take account, in their development programmes, of the likely flow of food aid they will receive during each year of this Convention. Furthermore, members should, to the extent possible, indicate the amount of their contributions to be made in the form of gifts or grants.

3. The minimum annual contribution of each member towards the achievement of the objective of Article I is as follows : >PIC FILE= "T0035791">

4. For the purposes of the operation of this Convention, any member which has acceded to this Convention pursuant to paragraph 2 of Article XVI shall be deemed to be listed in paragraph 3 of this Article together with its minimum contribution as determined under the relevant provisions of Article XVI.

5. In the case of a member making the whole or part of its contribution in the form of cash, the quantity determined for that member, or that portion of that quantity not contributed in grain, shall be evaluated at prevailing market prices for wheat. For the purposes of this paragraph, the Committee shall annually determine the prevailing market price for the following year on the basis of the average monthly price of wheat for the preceding calendar year. The Committee shall establish a Rule of Procedure for the determination of the average monthly price of wheat. In determining the prevailing market price, the Committee shall pay due consideration to any significant increase or decrease in the annual average price.

6. The Committee shall establish Rules of Procedure for the purposes of evaluating a member's contribution, committed or shipped, in grain other than wheat, taking into account, where appropriate, the grain content of products and the commercial value of the grain relative to wheat.

7. Food aid under this Convention may be supplied on any of the following terms: (a) gifts of grain or gifts of cash to be used to purchase grain for the recipient country;

(b) sales for the currency of the recipient country which is not transferable and is not convertible into currency or goods and services for use by the donor members (1);

(c) sales on credit, with payment to be made in reasonable annual amounts over periods of 20 years or more and with interest at rates which are below commercial rates prevailing in world markets (2);

on the understanding that such aid shall be supplied to the maximum extent possible by way of gifts, especially in the case of least developed countries, low per capita income countries and other developing countries in serious economic difficulties.

8. Grain purchases under paragraph 7 (a) of this Article shall be made from members of the Food Aid Convention 1980 and the Wheat Trade Convention in force, with preference accorded to developing members of both Conventions, with a view to facilitating exports of, or processing by, developing members of both Conventions. In making purchases it shall be the general aim that the major part of such purchases shall come from developing countries, with priority being given to developing members of the Food Aid Convention. These provisions shall not therefore exclude the purchase of grain from a developing country, not a member of these Conventions. In all purchases under this paragraph, special regard shall be given to the quality, the cif price advantages and the possibilities of speedy delivery to the recipient country, and the specific requirements of the recipient countries themselves. Cash contributions shall not normally be used in any year to purchase a grain from a country which is the same type of grain as that country has received as bilateral or multilateral food aid during the same year, or during the previous year if the grain so provided is still being used.

9. Aid transactions under paragraphs 7 and 8 of this Article shall be carried out in a way consistent with the concerns expressed in the FAO Principles of Surplus Disposal and Guiding Lines.

10. Contributions in the form of grains shall be placed in a fob forward position by members.

11. If transport costs beyond the fob position are borne by donors these shall be regarded as cash contributions under the Convention over and above the minimum annual amounts specified in paragraph 3 of this Article.

12. Members may, in respect of their contributions under this Convention, specify a recipient country or countries.

13. Members may make their contributions through an international organization or bilaterally. However, members shall give full consideration to the advantages of directing a greater proportion of food aid through multilateral channels, in particular the World Food Programme, and shall otherwise act in accordance with the Guidelines and Criteria for Food Aid, approved by the Committee on Food Aid Policies and Programmes of the World Food Programme. (1) Under exceptional circumstances an exemption of not more than 10 % may be granted. (2) The credit sales agreement may provide for payment of up to 15 % of principal upon delivery of the grain.

14. In the case of the inability of a member to fulfil its obligations under this Convention in any one year, such member shall increase its commitments or shipments, as appropriate, in the following year by the residual amount remaining from the preceding year.

Article IV

Special provision for emergency needs

If in any year there is a substantial food grain production shortfall in the low income developing countries as a whole, the chairman of the Committee, after considering information received from the executive secretary, shall call a session of the Committee to consider the seriousness of the production shortfall. The Committee may recommend that members should respond to the situation by increasing the amount of food aid available.

Article V

Food Aid Committee

There shall be established a Food Aid Committee whose membership shall consist of all parties to this Convention. The Committee shall appoint a chairman and a vice-chairman.

Article VI

Powers and functions of the Committee

1. The Committee shall: (a) receive from members, and members shall provide, regular reports on the amount, content, channelling and terms of their contributions under this Convention;

(b) keep under review the purchase of grains financed by cash contributions with particular reference to the obligation in paragraph 8 of Article III concerning purchases of grain from developing countries;

(c) examine the way in which the obligations undertaken under this Convention have been fulfilled ; and

(d) exchange information on a regular basis on the functioning of the food-aid arrangements under this Convention, in particular, where information is available, on its effects on food production in recipient countries.

The Committee shall report as necessary.

2. For the purposes of Article IV and subparagraphs 1 (c) and (d) of this Article the Committee may receive information from recipient countries and may consult with them.

3. The Committee shall establish such rules of procedure as are necessary to carry out the provisions of this Convention.

4. In addition to the powers and functions specified in this Article, the Committee shall have such other powers and perform such other functions as are necessary to carry out the provisions of this Convention.

Article VII

Seat, sessions and quorum

1. The seat of the Committee shall be London, unless the Committee decides otherwise.

2. The Committee shall meet at least twice a year in conjunction with the statutory sessions of the International Wheat Council. The Committee shall meet also at such other times as the chairman shall decide ; or at the request of three members ; or as otherwise required by this Convention.

3. The presence of delegates representing two-thirds of the membership of the Committee shall be necessary to constitute a quorum at any session of the Committee.

Article VIII

Decisions

The decisions of the Committee shall be reached by consensus.

Article IX

Admission of observers

The Committee may, when appropriate, invite representatives of the secretariats of other international organizations, whose membership is limited to governments that are members of the United Nations, or its specialized agencies, to attend its sessions as observers.

Article X

Administrative provisions

The Committee shall use the services of the Secretariat for the performance of such administrative duties as the Committee may request, including the processing and distribution of documentation and reports.

Article XI

Defaults and disputes

In the case of a dispute concerning the interpretation or application of this Convention, or of a default in obligations under this Convention, the Committee shall meet and take appropriate action.

PART III FINAL PROVISIONS

Article XII

Signature

This Convention shall be open for signature in Washington from 11 March 1980 until and including 30 April 1980 by the governments referred to in paragraph 3 of Article III.

Article XIII

Depositary

The Government of the United States of America shall be the depositary of this Convention.

Article XIV

Ratification, acceptance or approval

This Convention shall be subject to ratification, acceptance or approval by each signatory government in accordance with its constitutional procedures. Instruments of ratification, acceptance or approval shall be deposited with the depositary not later than 30 June 1980, except that the Committee under the Food Aid Convention 1971, as extended, or the Committee under this Convention, may grant one or more extensions of time to any signatory government that has not deposited its instrument of ratification, acceptance or approval by that date.

Article XV

Provisional application

Any signatory government may deposit with the depositary a declaration of provisional application of this Convention. Any such government shall provisionally apply this Convention and be provisionally regarded as a party thereto.

Article XVI

Accession

1. This Convention shall be open for accession by any government referred to in paragraph 3 of Article III that has not signed this Convention. Instruments of accession shall be deposited with the depositary not later than 30 June 1980, except that the Committee under the Food Aid Convention 1971, as extended, or the Committee under this Convention, may grant one or more extensions of time to any government that has not deposited its instrument of accession by that date.

2. Once this Convention has entered into force in accordance with Article XVII of this Convention, it shall be open for accession by any government other than those referred to in paragraph 3 of Article III, upon such conditions as the Committee considers appropriate. Instruments of accession shall be deposited with the depositary.

3. Any government acceding to this Convention under paragraph 1 or 2 of this Article may deposit with the depositary a declaration of provisional application of this Convention pending the deposit of its instrument of accession. Any such government shall provisionally apply this Convention and be provisionally regarded as a party thereto.

Article XVII

Entry into force

1. This Convention shall enter into force on 1 July 1980, if by 30 June 1980 the governments referred to in paragraph 3 of Article III have deposited instruments of ratification, acceptance, approval or accession, or declarations of provisional application, and provided that the 1979 Protocol for the fifth extension of the Wheat Trade Convention 1971, or a new Wheat Trade Convention replacing it, is in force.

2. If this Convention does not enter into force in accordance with paragraph 1 of this Article, the governments which have deposited instruments of ratification, acceptance, approval or accession, or declarations of provisional application, may decide by unanimous consent that it shall enter into force among themselves provided that the 1979 Protocol for the fifth extension of the Wheat Trade Convention 1971, or a new Wheat Trade Convention replacing it, is in force, or may take whatever other action they consider the situation requires.

Article XVIII

Duration and extension

1. This Convention shall remain in force until and including 30 June 1981, provided that the 1979 Protocol for the fifth extension of the Wheat Trade Convention 1971, or a new Wheat Trade Convention replacing it, remains in force until and including that date.

2. If the Wheat Trade Convention 1971 is further extended, or if a new Wheat Trade Convention replacing it enters into force, the Committee may extend this Convention for the period of extension of the Wheat Trade Convention 1971, or for the duration of the new Wheat Trade Convention replacing it. At the time of such extension of this Convention, a member which does not wish to participate in this Convention, as extended, may withdraw therefrom by giving written notice of withdrawal to the depositary. Such member shall inform the Committee accordingly, but shall not be released from any obligations under this Convention which have not been discharged.

Article XIX

Relationship of this Convention to the International Wheat Agreement 1971, as extended

This Convention shall replace the Food Aid Convention 1971, as extended, and shall be one of the constituent instruments of the International Wheat Agreement 1971, as extended.

Article XX

Authentic texts

The texts of this Convention in the English, French, Russian and Spanish languages shall all be equally authentic. The originals shall be deposited in the archives of the depositary, which shall transmit certified copies thereof to each signatory and acceding government.

In witness whereof the undersigned, having been duly authorized to this effect by their respective governments or authorities, have signed this Convention on the dates appearing opposite their signatures.

APPENDIX Interpretative notes

Article III - International Food Aid

The Conference declares that the member countries should take the greatest care in order to ensure that the fulfilment of the food-aid obligations under the Food Aid Convention 1980 should not introduce interference with free and fair competition in shipping.

Article III (5) - Contribution of cash

A significant increase or decrease shall be considered to have taken place when the annual average price referred to in Article III (5) rises more than 20 % above, or falls more than 20 % below, that of the previous calendar year, respectively. In that regard, the prevailing market price actually used to evaluate a member's contribution shall not be more than 20 % above nor more than 20 % below that of the previous year.