G/AG/NG/S/4
Page 1

World Trade
Organization
G/AG/NG/S/4
27 April 2000
(00-1688)
Committee on Agriculture
Special Session

DECISION ON MEASURES CONCERNING THE POSSIBLE NEGATIVE EFFECTS OF THE REFORM PROGRAMME ON LEAST-DEVELOPED AND NET FOOD-IMPORTING DEVELOPING COUNTRIES (NFIDC DECISION)

Actions Taken Within the Framework of the Decision as Notified by Members

Background Paper by the Secretariat

  1. At the first Special Session of the Committee on Agriculture on 23-24 March 2000, it was agreed that the Secretariat would provide, inter alia, "a background paper on implementation of the least-developed and net-food importing developing countries' Decision" (paragraph 7(d) of G/AG/NG/1). This paper complements the paper on the implementation of the NFIDC Decision (G/AG/NG/S/3 refers) and should be read in conjunction with it. The present paper revises and further updates the information compiled from Members' notifications first provided within the framework of the Process of Analysis and Information Exchange as documents AIE/S8 dated 27 May 1998 and AIE/S8/Rev.1 dated 22 February 1999. The paper takes into account the notifications by Members circulated by the Secretariat up to 15April2000.
  2. Ten Members have notified the Committee on Agriculture of measures taken within the framework of the above Decision, namely Argentina, Australia, Canada, the European Communities, Japan, New Zealand, Norway, South Africa, Switzerland and the United States (see Sections 1 to 4 and their respective Annexes below for details). One of these Members has notified the first five years of implementation on a calendar year basis (1995-1999 – Argentina). Two Members have made notifications for the first three years, either on a calendar year basis (1995 and 1996-1997 – EC), or on a fiscal year basis (95/96, 96/97 and 97/98 – New Zealand). Another Member has made one notification on a calendar year basis valid for the four years 1995-1998 (Switzerland). The notifications of the other five Members cover the first four years of implementation, either on a calendar year basis (Japan, Norway and South Africa) or on a fiscal/financial year basis (Australia, Canada and the United States). Another eleven Members (Brazil, Burkina Faso, Cuba, Fiji, Indonesia, Korea, Malta, Morocco, Philippines, United Arab Emirates and Uruguay) have notified the Committee on Agriculture that they have not provided food aid during the period covered by their NF:1 notifications.
  3. For the purposes of this paper, the information contained in the NF:1 notifications has been re-arranged according to the four categories under which notifications should be made (G/AG/2, page34 refers):

(i)Section 1 of this paper, together with Annex 1, contains the information notified under the heading "Quantity of food aid provided to leastdeveloped and net foodimporting developing countries". A more complete analysis of the development of food aid is contained in document G/AG/S/3.

(ii)Section 2 covers the information provided under the heading "Indication of the proportion in fully grant form or appropriate concessional terms".

(iii)Section 3 and Annex 2 reproduce the information provided under the heading "Technical and financial assistance under paragraph 3(iii) of the Decision". The information in this section gives details regarding assistance under various aid programmes, relevant under paragraph 3(iii) of the NFIDC Decision.

(iv)Section 4 and Annex 3, "Other relevant information with respect to actions taken within the framework of the Decision ", set out information not readily fitting under any of the three first headings, such as assistance programmes by non-governmental organizations, assistance by provincial governments, details of food aid under the Food Aid Convention, long-term development programmes and emergency relief.

  1. Annex 4 reproduces the text of the Ministerial Decision on Measures Concerning the Possible Negative Effects of the Reform Programme on Least-Developed and Net Food-Importing Developing Countries. Annex 5 reproduces the relevant section of the notification requirements (G/AG/2, pages 33-34 refer).
  2. A guide to the information available under Section 1 to 4 of the NF:1 notifications is presented in Table 1.

Table 1

Information available under Sections 1 - 4

(reporting period per category)

Members / Section 1
Quantity of food aid provided / Section 2
Concessionality of food aid / Section 3
Technical and financial assistance / Section 4
Other information
Argentina
Calendar year / 95
-
-
98
99
/ 95
-
-
98
99
/ -
96
97
98
99
/ -
-
-
-
-
Australia
Financial year / 95/96
96/97
97/98
98/99 / 95/96
96/97
97/98
98/99 / 95/96
96/97
97/98
98/99 / 95/96
96/97
97/98
98/99
Canada
Fiscal year / 95/96
96/97
97/98
98/99 / 95/96
96/97
97/98
98/99 / 95/96
96/97
97/98
98/99 / 95/96
96/97
97/98
98/99
EC
Calendar year / 95
96 and 97 / 95
96 and 97 / 95
96 and 97 / -
-
Japan
Calendar year / 95
96
97
98 / 95
96
97
98 / 95
96
97
98 / 95
96
97
98
New Zealand
Financial year / 95/96
96/97
97/98 / -
96/97
97/98 / 95/96
96/97
97/98 / 95/96
96/97
97/98
Norway
Calendar year / 95
96
97
98 / 95
96
97
98 / 95
96
97
98 / 95
-
-
-
South Africa
Calendar year / -
-
-
- / -
-
-
- / 95
96
97
98 / -
-
-
-
Switzerland
Calendar year / 95-98 / 95-98 / 95-98 / -
United States
Marketing year and Fiscal year, respectively / 1.7.95-30.6.96
1.7.96-30.6.97
1.7.97-30.6.98
1.7.98-30.6.99 / 1.7.95-30.6.96
1.7.96-30.6.97
1.7.97-30.6.98
1.7.98-30.6.99 / 1.10.95-30.9.96
1.10.96-30.9.97
1.10.97-30.9.98
1.10.98-30.9.99 / -
-
-
-

Table of Contents

SECTION 1

Quantity of food aid provided to leastdeveloped and net foodimporting developing

countries

ARGENTINA6

AUSTRALIA7

CANADA8

EUROPEAN COMMUNITIES10

JAPAN10

NEW ZEALAND11

NORWAY11

SOUTH AFRICA12

SWITZERLAND13

UNITED STATES OF AMERICA14

SECTION 2

Indication of the proportion in fully grant form or appropriate concessional terms

ARGENTINA16

AUSTRALIA16

CANADA17

EUROPEAN COMMUNITIES17

JAPAN17

NEW ZEALAND18

NORWAY18

SOUTH AFRICA18

SWITZERLAND19

UNITED STATES OF AMERICA19

SECTION 3

Technical and financial assistance under paragraph 3(iii) of the Decision

ARGENTINA21

AUSTRALIA24

CANADA37

EUROPEAN COMMUNITIES47

JAPAN49

NEW ZEALAND50

NORWAY53

SOUTH AFRICA58

SWITZERLAND60

UNITED STATES OF AMERICA61

SECTION 4

Other relevant information with respect to actions taken within the framework of the

Decision

AUSTRALIA65

CANADA67

EUROPEAN COMMUNITIES68

JAPAN69

NEW ZEALAND70

NORWAY71 SOUTH AFRICA 71

UNITED STATES OF AMERICA71

ANNEX 1 – Quantity of food aid provided

Attachments – Australia72

Attachments – Canada76

Attachments - European Communities82

Attachments – Japan90

Attachments – Switzerland96

ANNEX 2 – Technical and financial assistance

Attachments – Australia99

Attachments – Canada111

Attachments - European Communities132

Attachments – Norway137

Attachments – Switzerland163

Attachments - United States170

ANNEX 3 – Other relevant information

Attachments - Australia173

Attachments - Canada181

ANNEX 4

Decision on Measures Concerning the Possible Negative Effects of the Reform

Programme on Least-Developed and Net Food-Importing Developing Countries188

ANNEX 5

Notification requirements (G/AG/2, pages 33-34)189

Sections 1 to 4 and Annexes 1 to 3 below reproduce information provided by Members in their NF:1 notifications to the Committee on Agriculture, with editorial changes as appropriate to references and other editorial adjustments for the sake of consistency between the various sections and annexes of this background note. The data on food aid in Annex4 has been provided by the International Grains Council and the data in Annex5 is from the World Food Programme's website on the Internet.

SECTION 1

Quantity of food aid provided to leastdeveloped and net foodimporting developing countries

ARGENTINA

Reporting period: calendar year 1995

  1. Argentina donated US$2 million worth, or 13,400 metric tonnes (MT), of maize to Haiti. The maize was distributed as follows: 4,605 MT were distributed in the schools taking part in the school food project and to the farmers participating in the soil conservation and agricultural rehabilitation project; 8,642 MT were monetized in Haiti for a total value of US$1,728,400 ($200/MT). Of these funds, US$1,130,200 were used to cover maritime transport costs of US$146,265, storage, maintenance, milling and distribution costs of US$434,437.30 and stevedoring costs of US$76,112. This operation was begun in September 1995.

Reporting period: calendar year 1996

-

Reporting period: calendar year 1997

-

Reporting period: calendar year 1998

  1. Operation 5802 – LDCs: Argentine contribution to Sierra Leone as part of the emergency operation in response to the food needs of the population. Amount of aid: US$1 million worth, or 1,556MT of maize flour. This operation was approved in 1997, but in view of the political situation in Sierra Leone, was only brought into effect in December 1998. The shipment was sent to Freetown. Transport costs are included in the donation. Direct operational costs amounted to US$203,835, broken down as follows: port cargo handling and storage, US$34,567; costs from the port to the distribution centre (EDP), US$86,202; operations at the EDP, US$13,046; and distribution costs US$70,020.

Reporting period: calendar year 1999

  1. Argentina supplied food aid in the form of 8,288 tonnes of maize and 2,000 tonnes of wheat flour, distributed as follows:
  1. Operation 6079 – Reconstruction and rehabilitation assistance for families in Central America affected by Hurricane Mitch. The aid was focused exclusively on Nicaragua. Total amount of the aid: US$2 million worth, or 8,288 MT, of maize. The shipment was sent from Argentina to Corinto. The operation was carried out in March 1999. Transport costs are included in the donation. Direct operational costs amounted to US$286,769; land transport, storage and handling to US$449,669; and maritime transport to US$356,900.
  2. Operation 6040 – Emergency aid to Kosovo. The operation took the form of a 2,000 MT shipment of wheat flour. Total amount of the operation: US$1 million. Shipping country: Argentina. The operation was carried out in November 1999. Transport costs are included in the donation. Maritime transport costs were estimated at US$229,074; inland transport at US$163,145; direct support costs at US$161,751; and indirect support costs at US$56,604.

AUSTRALIA

Reporting period: financial year 1995/96 (G/AG/N/AUS/5):

  1. Australia fully met its Food Aid Convention (FAC) commitment to provide 300,000 tonnes of food aid or wheat equivalent in 1995/96. Of this amount, a wheat equivalent tonnage of 255,280, representing nearly all Australia's commitment under the FAC, was provided to Least- Developed (LDC) and Net Food-Importing Developing Countries (NFIDCs). This amounted to a total of $A91,189,596 in food aid in 1995/96; see Attachment 1 of Annex 1, for a breakdown of this amount by channel of assistance and to individual countries.

Reporting period: financial year 1996/97 (G/AG/N/AUS/13):

  1. Australia fully met its FAC commitment to provide 300,000 tonnes of food aid or wheat equivalent in 1996/97. Of this amount, a wheat equivalent tonnage of 217,000, representing some 72per cent of Australia's FAC commitment, was provided to LDCs and NFIDCs. This amounted to a total of $A 82 million in 1996/97; see Attachment 2 of Annex 1 for a breakdown of this amount by channel of assistance and to individual countries.

Reporting period: financial year 1997/98 (G/AG/N/AUS/21):

  1. Australia was unable to fully meet its FAC commitment to provide 300,000 tonnes of food aid or wheat equivalent in 1997-98. In the event, Australia provided 293,552tonnes (wheat equivalent) of food aid, representing 97.9 per cent of Australia's FAC commitment, and also provided transport for the drought emergency in PNG and for similar operations in the Indonesian province of Irian Jaya. Of the total amount provided, 181,318 tonnes (wheat equivalent) representing some 62 per cent was provided to LDCs[1] and NFIDCs)[2]. Thisamounted to a total of $A 76 million in 1997-98 (see Attachment 3 of Annex 1).

Reporting period: financial year 1998/99 (G/AG/N/AUS/25):

  1. Australia was able to surpass, by almost 11 per cent, its FAC commitment to provide 250,000 tonnes of food aid or wheat equivalent for the financial year of 1998-99. Australia provided 276,217tonnes (wheat equivalent) of food aid, including 110,943 tonnes of emergency food aid. Of the total food aid provided, some 132,410 tonnes (wheat equivalent) or 48 per cent was provided to LDCs[3] and NFIDCs[4]. This amounted to a total of $A 50.6 million in 1998-99 (Attachment 4 of Annex1).

CANADA

Reporting period: fiscal year 1995/96 (G/AG/N/CAN/11):

  1. For the period of 1 August 1995 to 31 July 1996, Canada provided a total of 314.9 thousand tonnes of food aid to Least-Developed Countries (LDC = 290,177 mt) and to Net Food-Importing Developing Countries (NFIDCs = 24,724 mt). This amount totalled Can$111.9 million in food aid in 1995/96 (LDCs = Can$98.86 million and NFIDCs = Can$13.07 million); see Attachment 5 of Annex1 for a breakdown of this amount by individual LDC and NFIDC.
  2. In FY 1995/96[5], Canada also provided a total of Can$145.86 million in additional food aid to other developing countries as well as through African and Asian regional programmes.
  3. In accordance with the Food Aid Convention (FAC 1995), for the crop year 1 July 1995 to 30June 1996, Canada fully met its undertaking to provide a minimum of 400,000 tonnes of food aid in wheat equivalent.

Reporting period: fiscal year 1996/97 (G/AG/N/CAN/18):

  1. For the period of 1 August 1996 to 31 July 1997, Canada provided a total of 348,526 tonnes of food aid to LDC and NFIDCs. This volume of food aid had a total value of Can$154.77 million in 1996/97; see Attachment6 of Annex 1.
  2. In addition, in FY1996/97, Canada provided a total of Can$96.10 million in food aid to other developing countries (nonLDC/NFIDC countries).
  3. In accordance with the FAC 1995, for the crop year 1 July 1996 to 30June 1997, Canada fully met its undertaking to provide a minimum of 400,000 tonnes of food aid in wheat equivalent.

Reporting period: fiscal year 1997/98 (G/AG/N/CAN/25):

  1. For the period of 1 August 1997 to 31 July 1998, Canada provided a total of 269,905 tonnes of food aid to LDCs and NFIDCs. This volume of food aid had a total value of Can$106.85 million in 1997/98. See Attachment7 of Annex 1 which provides information for the period in question of the quantity of Canadian food aid provided to LDCs and NFIDCs with a breakdown by region and individual country and by commodity, quantity in metric tonnes, total value, and value of the portion which is channelled through the World Food Programme (WFP).[6] In addition to the food aid directed to these specific LDCs and NFIDCs, Can$0.99 million worth of Canadian food aid was distributed through the WFP to 'Central America Regional', a portion of this food aid may have impacted on LDCs and NFIDCs in the region.
  2. In addition, in FY1997/98, Canada provided a total of Can$112.05 million in food aid to other developing countries (non-LDCs and NFIDCs).
  3. In accordance with the FAC 1995, for the crop year 1 July 1997 to 30June 1998, Canada fully met its undertaking to provide a minimum of 400,000 tonnes of food aid in wheat equivalent.

Report period: fiscal calendar year 1998/99 (G/AG/N/CAN/34)

  1. For the period of 1 August 1998 to 31 July 1999, Canada provided a total of 241,651 tonnes of food aid to LDCs and NFIDCs. This volume of food aid had a total value of Can$95.27 million in 1998/99. See Annex 1, Attachment 8, "Canadian Food Aid to LDCs and NFIDCs, 1 August 1998 – 31 July 1999", which provides information for the period in question on the quantity of Canadian food aid provided to LDCs and NFIDCs with a breakdown by region and individual country and by commodity, quantity in metric tonnes, total value, and value of the portion which is channelled through the World Food Programme (WFP).[7] In addition to the food aid directed to these specific LDCs and NFIDCs, Can$1.18 million worth of Canadian food aid was distributed through the WFP to 'Central America Regional', a portion of this food aid may have impacted on LDCs and NFIDCs in the region.
  2. In addition, in FY1998/99, Canada provided a total of Can$148.53 million in food aid to other developing countries (non-LDCs and NFIDCs).
  1. In accordance with the FAC 1995, for the crop year 1 July 1998 to 30June 1999, Canada fully met its undertaking to provide a minimum of 400,000 tonnes of food aid in wheat equivalent.

EUROPEAN COMMUNITIES

Reporting period: calendar year 1995 (G/AG/N/EEC/9):

  1. In 1995, overall Community food aid from the Community budget reached a level of nearly 1billion ECU and amounted to over 3 million tonnes of food products. Nearly 45 per cent of commodities purchased for food aid were purchased in developing countries either as local, regional or triangular operations. In 1995, 35 per cent of aid was provided on a government basis, 33 per cent was provided via NGOs, and 32 per cent was provided through UN and other international Organizations.
  2. For the quantity of food aid provided by the European Communities under the Food Aid Convention, see Attachment 9 of Annex 1.

Reporting period: calendar years 1996 and 1997 (G/AG/N/EEC/21)

  1. In 1996, payments for food aid and food security operations reached a level of 413 million ECU of which 273 million ECU were spent on food and financial allocations, and 140 million ECU on logistics and other support measures.
  1. In 1997, payments for food aid and support operations arrived at 409.5 million ECU, 285.5million ECU for food aid and financial allocations and 124 million ECU for transport, distribution and other support measures. Concerning food aid provided by the European Communities, please refer to Attachment 10 of Annex 1.

JAPAN

Reporting period: calendar year 1995 (G/AG/N/JPN/15):

  1. The Government of Japan grants funds to be used to purchase grain. The total amount of funds granted in calendar year 1995 was US$70.27 million. The quantity of food aid is not available; for more detailed information, see Attachment 11 of Annex 1.

Reporting period: calendar year 1996 (G/AG/N/JPN/27):

  1. The Government of Japan grants funds to be used to purchase grain. The total amount of funds granted in calendar year 1996 was US$20.22 million. For more detailed information, see Attachment12 of Annex 1.

Reporting period: calendar year 1997 (G/AG/N/JPN/33):

  1. The Government of Japan grants funds to be used to purchase grain. The total amount of funds granted in calendar year 1997 was US$35.53 million. For more detailed information, see Attachment13 of Annex 1.

Reporting period: calendar year 1998 (G/AG/N/JPN/46)

  1. The Government of Japan grants funds to be used to purchase grain. The total amount of funds granted in calendar year 1998 was US$95.78 million. (See Attachment 14 of Annex 1, on shipments made July 1998 to June 1999).

NEW ZEALAND

Reporting period: financial year 1995/96 (G/AG/N/NZL/6):

  1. New Zealand does not make in-kind food aid donations. All New Zealand food aid assistance is provided in monetary form; see WFP/IFAD references in paragraph 116 below.

Reporting period: financial year 1996/97 (G/AG/N/NZL/13):

  1. New Zealand does not make in-kind food aid donations. All New Zealand food aid assistance is provided in monetary form; see WFP/IFAD references in paragraph 119 below.

Reporting period: financial year 1997/98 (G/AG/N/NZL/17):

  1. New Zealand does not make in kind food aid donations. All New Zealand food aid assistance is provided in monetary form; see WFP/IFAD references in paragraph 122 below.

NORWAY

Reporting period: calendar year 1995 (G/AG/N/NOR/6):

  1. Norway fully met its Food Aid Convention (FAC) commitment of 30,000 tonnes of food aid or wheat equivalent in 1995. The commitment was met through cash contribution in support of the World Food Programme's (WFP) multilateral development work. The WFP used the contribution to purchase grains in developing countries.
  2. Norwegian assistance furthermore includes long-term development programmes as well as emergency relief aid. For information on the food and agricultural elements of this assistance, please refer to Section3 below.

Reporting period: calendar year 1996 (G/AG/N/NOR/19 and Corr.1):

  1. Norway fully met its FAC commitment of 20,000 tonnes of food aid or wheat equivalents in 1996. This contribution is provided as cash in lieu of commodities and is made available for the WFP to procure grains from developing countries. Section 3 below gives information about the composition of the additional Norwegian food aid contribution through the WFP. Over and above the FAC contribution, Norway made in 1996 an amount of NOK33 million available to the WFP to support purchases of food in developing countries to benefit the development programme.
  2. Norwegian assistance furthermore includes long-term development programmes as well as emergency relief aid. Please refer to Section 3 below.

Reporting period: calendar year 1997 (G/AG/N/NOR/20 and Corr.1):