The EU and US Food Aid - Effects on Local Production


It is often claimed that food aid is a covert form of subsidising the export of agricultural products from the sending country, i.e., as a means of supporting prices of domestic production, or, alternatively, to develop commercial export of domestic agricultural products. Lately this question has received much attention in the WTO.

The ambition is to regulate aid so that it is not used as a subsidisation that causes disturbances to local production or commercial trade. Are there noticeable differences in the effects of food aid from the two major economies in world trade, the EU and the US?

The report studies empirically the relation between aid on the one hand and production and trade on the other. It also compares the effects of aid from the EU and the US respectively. The report is the result of a co-operation between SIEPS and The Swedish Institute for Food and Agricultural Economics.

The report was presented at the seminar Conflict of Interest in the World Trading System - Global T  and is a part of the research project The EU and US Food Aid - Effects on Local Production and Import.

 icon EU och USA:s livsmedelsbistånd - effekter på lokal produktion och import (653.6 kB)