[Senate Executive Report 106-17]
[From the U.S. Government Publishing Office]



106th Congress                                              Exec. Rept.
                                 SENATE
 2d Session                                                      106-17

======================================================================



 
                        FOOD AID CONVENTION 1999

                                _______
                                

               September 5, 2000.--Ordered to be printed

                                _______
                                

          Mr. Helms, from the Committee on Foreign Relations,
                        submitted the following

                              R E P O R T

                   [To accompany Treaty Doc. 106-14]

    The Committee on Foreign Relations, to which was referred 
the Food Aid Convention 1999, which was open for signature at 
the United Nations Headquarters, New York, from May 1 through 
June 30, 1999, and signed by the United States on June 16, 
1999, having considered the same, reports favorably thereon 
with three declarations and one proviso, and recommends that 
the Senate give its advice and consent to the ratification 
thereof as set forth in this report and the accompanying 
resolution of ratification.

                                CONTENTS

                                                                   Page

  I. Purpose..........................................................1
 II. Background.......................................................2
III. Summary..........................................................3
 IV. Entry Into Force and Termination.................................6
  V. Committee Action.................................................7
 VI. Committee Recommendation and Comments............................7
VII. Explanation of Proposed Convention...............................7
VIII.Text of the Resolution of Ratification...........................7


                               I. Purpose

    The purpose of the Food Aid Convention 1999 (``the 
Convention''), which replaces the Food Aid Convention 1995, is 
to establish a level of food aid commitments that would cover 
as wide a range of donors and donative foodstuffs as possible 
in order to meet the legitimate needs of developing countries. 
The Convention provides an international, donors-only forum to 
discuss food assistance. Donor members make minimum annual 
commitments which can be designated either by quantity or, 
pursuant to a new provision, the value of the food aid they 
will provide to developing countries. Under the 1999 
Convention, the United States will continue to be

committed to donate or sell on favorable terms at least 2.5 
million tons of food aid annually.
    Innovations in the new Convention include broadening of the 
list of eligible commodities beyond grains and legumes to 
include such critical food products as edible oils and milk 
powder; encouragement of parties to fortify contributed food 
and to provide dietary supplements such as vitamins by counting 
these products toward a party's annual contribution; 
encouragement of parties to provide food aid to difficult-to-
reach destinations by permitting transport and other 
operational costs to be counted toward a party's contribution; 
promoting local agricultural development and markets in 
recipient countries; and improving information-sharing and 
coordination among members.

                             II. Background

    The Food Aid Convention 1999 replaces the Food Aid 
Convention 1995, which expired on June 30, 1999. The Convention 
was signed by the United States on June 16, 1999. It entered 
into force on July 1, 1999, and will remain in force until June 
30, 2002, unless extended further.
    Under Article XXII(b) of the Convention, each signatory 
state was given until June 30, 1999, to deposit its instrument 
of ratification for the Convention. At the June 12-13, 2000, 
meeting of the Food Aid Committee in Regina, Alberta, Canada, 
the United States obtained an extension until June 30, 2001, to 
deposit its instrument of ratification of the Convention. In 
the interim, the United States has continued to participate 
provisionally in the Food Aid Convention.
    Under the Convention, parties will continue to commit 
themselves to minimum levels of food aid to developing 
countries. All parties to the 1995 Convention (see Senate Exec. 
Rept. 105-16), including the United States, the European 
Community and its member states, Japan, Canada, Australia, 
Norway, Switzerland and Argentina, are either already parties 
to the 1999 Convention or intend to become parties. Under the 
1999 Convention, the United States will continue to be 
committed to donate or sell on favorable terms at least 2.5 
million tons of food aid annually.
    The foreign food aid programs of the United States are 
either authorized in permanent statute under the Agricultural 
Act of 1949, as amended, or through fiscal year 2002 under the 
Federal Agricultural Improvement and Reform Act of 1996, and 
appropriations are made each year through the Agricultural 
appropriations legislation. Other food aid is in the form of 
loan programs operated under the Commodity Credit Corporation. 
There is no apparent conflict between the requirements of the 
Convention and U.S. programs.
    Prior Food Aid Conventions have been adopted simultaneously 
with the Grains Trade Agreement. However, because of 1996 
developments at the Singapore Ministerial on food and the World 
Food Conference in Rome, the parties decided to update the Food 
Aid Convention independently of the Grains Trade Agreement, and 
accordingly adopted the 1999 Food Aid Convention. The Grains 
Trade Agreement remains in effect, and separating the two 
agreements for the purpose of updating the Food Aid Convention 
has no adverse operational or legal effect on either.

                              III. Summary


                             A. IN GENERAL

    In submitting the Convention to the Senate, the Executive 
Branch stated that the Convention will not require United 
States implementing legislation. Further discussion of the 
Convention's objectives is set forth in Treaty Doc. 106-14.
    The Convention consists of a preamble and four main parts, 
including a total of twenty seven articles.

Part I--Objectives and Definitions (Articles I and II)

    Part I of the Convention sets out the Convention's 
objectives, and contains definitions of terms used in the 
Convention. As stated in Article I, the main objectives of the 
agreement are to ``contribute to world food security and to 
improve the international ability to respond to food 
emergencies and other food needs of developing countries by 
making food aid available on a predictable basis.'' The 
Convention defines a ``developing country'' as ``any country or 
territory eligible to receive food aid under Article VII.'' 
(Art. II(a)(vii)). Article II defines ``eligible products'' as 
a product which may be counted as food aid by a donor as part 
of its commitment under the Convention (Art. II(a)(viii)).

Part II--Contributions and Needs (Articles III-XIV)

    Part II of the Convention sets out the basic food aid 
commitments of the parties, and the guidelines for the types of 
aid which fulfill the commitments of each party (Art. III). 
Donor countries listed in the Convention are Argentina, 
Australia, Canada, the European Community and its member 
States, Japan, Norway, Switzerland and the United States (Art. 
III(e)).
    Permitting party commitments to be expressed in terms of 
value is one of the innovations in the 1999 Convention. Article 
III establishes the commitment of each of the members, which 
may be expressed in terms of either tons of wheat equivalent or 
in value, where ``value'' means the commitment in convertible 
currency, or a combination of tonnage and value. Donors 
expressing a commitment in value must also specify a guaranteed 
annual tonnage.
    Permitting some transport and operational costs to count 
toward fulfillment of a commitment is a new feature of the 1999 
Convention, intended to encourage parties to contribute food 
aid to remote destinations. Annex A lists the types of costs 
permitted to count as part of a commitment.
    Under Article IV, the basic list of eligible products to be 
included as food aid under the commitments of this Convention 
has been expanded beyond the grains, grain products, and 
pulses/legumes on the list in the 1995 Convention. The new 
Convention's basic list now includes edible oil, root crops 
(potatoes, yams, taro, cassava) provided through triangular 
transactions or in local purchases, skimmed milk powder, sugar, 
seed for eligible products, and products which are a part of 
the traditional diet of the recipients or are part of a 
supplementary feeding program.
    Another new Article IV feature of the 1999 Convention 
permits parties to count vitamins and minerals toward their 
commitments, and encourages parties to provide fortified food 
aid products. Article V provides that food aid contributions 
shall be counted in terms of their wheat equivalent, as calculated 
in accordance with Rules of Procedure established by the Food Aid 
Committee. A Food Aid Committee Rule will also determine the wheat 
equivalent of micro-nutrients and products fortified with 
micro-nutrients. 
    Article VI provides guidelines for the permissible carry- 
over of annual commitments from year-to-year. Article VII 
defines which countries are eligible for food aid under the 
Convention. Article VIII sets out the general principles for 
distributing food aid, according to the greatest need, and 
provides for more consultation and better communication among 
parties with respect to needs evaluation and prioritization. 
These guidelines are new in the 1999 Convention.
    Article IX prescribes the forms and terms of food aid in 
greater detail than the previous Convention. Aid may be in the 
form of (1) grants of food or of cash to purchase food; (2) 
sales of food in exchange for the currency of the recipient 
country, which is not transferable nor convertible into 
currency, goods or services for use by the donor; and (3) sales 
of food on credit, with payment extended over 20 or more years 
and at interest rates below the prevailing commercial rates.
    Article X sets out food aid transportation and delivery 
guidelines. Transportation costs beyond the free on board 
(f.o.b.) stage shall as far as possible be covered by the 
donors. Article XI provides that parties may channel their food 
aid bilaterally, through intergovernmental or other 
international organizations, or non-governmental organizations. 
Article XII provides for the promotion of local agricultural 
development, local markets, and long-term food security through 
triangular transactions.
    Article XIII sets out principles and guidelines intended to 
maximize the effectiveness and positive impact of food aid, 
while minimizing potential negative impact on local markets. 
Article XIV provides for regular reporting by the parties to 
the Food Aid Committee on every aspect of their food aid 
contributions and operations, including, among other things, 
amount, content, transportation costs, cash contributions, any 
local purchases or triangular transactions, and any 
arrangements for the future supply of food aid.

Part III--Administration (Articles XV-XX)

    Part III of the Convention establishes the Food Aid 
Committee, its functions, composition, meetings, and the 
settlement of disputes.
    Article XV provides that every party to the Convention is a 
member of the Committee and that each shall designate a 
representative who shall reside at the seat of the Committee 
and to whom all Committee communications may be addressed. 
Article XVI authorizes the Committee to make decisions and 
establish Rules of Procedure necessary to implement the 
Convention. Article XVII provides for the appointment of a 
Chairman and a Vice-Chairman for the following year at the last 
session held each year and describes the duties of the Chairman 
in presiding over the sessions, with the Vice-Chairman serving 
in place of the Chairman when the Chairman is absent.
    Article XVIII provides for biannual sessions in conjunction 
with the statutory sessions of the International Grains 
Council. The Committee shall also meet at such other times as 
the Chairman shall decide, at the request of three members, or 
as otherwise required by the Convention. The seat of the 
committee shall be in London. Article XIX provides that the 
Committee shall rely on the Secretariat of the International 
Grains Council for administrative support, and an Executive 
Director shall perform other duties established by the 
Convention and the Rules of Procedure.
    Under Article XX, the Committee shall meet to take 
appropriate action in any dispute concerning the interpretation 
and application of the Convention and any ``default'' in 
meeting commitments under the Convention. The members shall 
``take account of'' any decisions and conclusions reached by 
consensus by the Committee in disputes. The Committee on 
Foreign Relations understands that such decisions and 
conclusions are not mandatory or binding upon the United 
States.

Part IV--Final Provisions (Articles XXI-XXVII)

    Part IV provides for the terms of signature, ratification, 
accession, entry into force, and withdrawal and duration.
    Under Article XXV, the Convention shall remain in force 
until and including June 30, 2002, unless extended or 
terminated earlier, provided that the Grains Trade Convention 
remains in force. Article XXVI provides that this 1999 
Convention shall replace the 1995 Convention, as extended, and 
shall be one of the constituent instruments of the 
International Grains Agreement, 1995. Article XXVII provides 
that the English, French, Russian and Spanish texts of the 
Convention shall be equally authentic.

                           B. KEY PROVISIONS

    The heart of the Convention is Article III, which defines 
donor contributions in detail.
    Article III establishes the minimum contribution commitment 
of each of the parties, which may be expressed in terms of 
either tonnes of wheat equivalent, where a ``tonne'' means a 
metric ton of 1,000 kilograms, or in value, where ``value'' 
means the commitment in convertible currency, or as a 
combination of both. Donor parties expressing their commitment 
in value must also specify a guaranteed annual tonnage. 
Permitting party commitments to be expressed in terms of value 
is one of the innovations in the 1999 Convention.
    Where the party commitment is expressed wholly or in part 
as value, the value may include the transport and other 
operational costs related to food aid operations. A party may 
include an indicative value representing its total estimated 
cost, including the transport and other costs associated with 
food aid operations. Permitting transport and operational costs 
to count toward fulfillment of a commitment is a new feature of 
the 1999 Convention, intended to encourage parties to 
contribute food aid to remote destinations. Annex A lists the 
types of costs which may be credited as part of a commitment.
    Transport and other costs credited as part of a party's 
commitment must be associated with a food aid operation which 
is also eligible to be counted towards a party's commitment. A party 
cannot count transport and other operational costs in excess of 
the acquisition cost of eligible products towards its 
commitment, except for internationally recognized emergencies. 
Food aid products must meet international quality standards, be 
compatible with the dietary habits and nutritional needs of the 
recipients and be suitable for human consumption.
    In the 1999 Convention, the commitment of each country 
which was a party to the 1995 Convention is specified; the 
United States is committed to 2.5 million tons (as in the 
previous Convention) with a total indicative value of $900 
million to $1 billion. As in the case of the 1995 Convention, 
under the 1999 Convention the United States is the largest 
donor nation, followed by the European Community. Minimum party 
commitments (in tons) are set forth in Article III(e) as 
follows:




Argentina..................................................       35,000
Australia..................................................      250,000
Canada.....................................................      420,000
European Community and its member states...................    1,320,000
Japan......................................................      300,000
Norway.....................................................       30,000
Switzerland................................................       40,000
United States of America...................................    2,500,000



    As noted above, parties ``shall, to the extent possible,'' 
bear the costs of transporting and delivering food aid beyond 
the f.o.b. stage, particularly in the case of emergency food 
aid or food aid provided to priority recipient countries (Art. 
X(a)).
    New parties acceding to the 1999 Convention who were not 
parties to the 1995 convention shall be deemed to be listed 
under Article III with their respective commitments, which 
shall be not less than 20,000 tons, applicable in full from the 
first year of accession. However, to facilitate accession of 
new parties, the Food Aid Committee may agree that a new 
party's commitment shall be phased in over a period of not more 
than three years, provided that the commitment is at least 
10,000 tons in the first year and increases by at 5,000 tons 
yearly thereafter. The Food Aid Committee may approve an 
appropriate value other than the amounts specified as the 
minimum commitment for new parties.

                  IV. Entry Into Force and Termination

                          A. ENTRY INTO FORCE

    The Convention entered into force on July 1, 1999. On 
October 13, 1999, the President submitted the Convention to the 
Senate for advice and consent. The Convention limits accession 
until June 30, 2000, unless extensions are granted. The United 
States has been granted an extension until June 30, 2001, and 
may accede to the Convention by submitting its instrument of 
accession to the Secretary General of the United Nations.

                             B. WITHDRAWAL

    Parties may withdraw from the Convention at the end of any 
calendar year by giving written notice of withdrawal to the 
Secretary General of the United Nations at least ninety days 
prior to the end of that year. However, the party's unfulfilled 
obligations under the Convention continue through the end of 
the withdrawal year.

                          V. Committee Action

    The Committee on Foreign Relations held an informal public 
meeting on the Convention on July 20, 2000 (a transcript of the 
session and questions for the record can be found in the 
appendix to Executive Report 106-16, Convention (No. 176) 
Concerning Safety and Health in Mines, also filed this day).\1\ 
The Committee considered the Convention on July 26, 2000, and 
ordered it favorably reported by voice vote, with the 
recommendation that the Senate give its advice and consent to 
the ratification of the proposed Convention subject to three 
declarations and one proviso.
---------------------------------------------------------------------------
    \1\ On the day the Committee was scheduled to conduct a hearing on 
the treaty, permission to do so pursuant to Senate Rule 26(5)(a) had 
not been granted. Therefore, the Committee proceeded in informal 
session. A transcript is appended to Executive Report 106-16.
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               VI. Committee Recommendation and Comments

    The Committee on Foreign Relations recommends favorably the 
proposed Convention. On balance, the Committee believes that 
the proposed Convention is in the interest of the United States 
and urges the Senate to act promptly to give its advice and 
consent to ratification.

                VII. Explanation of Proposed Convention

    For the Executive's description of the proposed Convention, 
see the corresponding Letter of Submittal from the Secretary of 
State, which is set forth at pages V-VI of Senate Treaty Doc. 
106-14.

              VIII. Text of the Resolution of Ratification

    Resolved, (two-thirds of the Senators present concurring 
therein), That the Senate advise and consent to the 
ratification of the Food Aid Convention, 1999, which was open 
for signature at the United Nations Headquarters, New York, 
from May 1 through June 30, 1999, and signed by the United 
States on June 16, 1999 (Treaty Doc. 106-14), referred to in 
this resolution of ratification as ``The Convention,'' subject 
to the declarations of subsection (a) and the proviso of 
subsection (b).
    (a) Declarations.--The advice and consent of the Senate is 
subject to the following declarations:
          (1)No Diversion.--United States contributions 
        pursuant to this Convention shall not be diverted to 
        government troops or security forces in countries which 
        have been designated as state sponsors of terrorism by 
        the Secretary of State.
          (2)Private Voluntary Organizations.--To the maximum 
        feasible extent, distribution of United States 
        contributions under this Convention should be 
        accomplished through private voluntary organizations.
          (3) Treaty Interpretation.--The Senate affirms the 
        applicability to all treaties of the constitutionally 
        based principles of treaty interpretation set forth in 
        Condition (1) of the resolution of ratification of the 
        INF Treaty, approved by the Senate on May 27, 1988, and 
        Condition (8) of the resolution of ratification of the 
        Document Agreed Among the State Parties to the Treaty 
        on Conventional Armed Forces in Europe, approved by the 
        Senate on May 14, 1997.
    (b) Proviso.--The advice and consent of the Senate is 
subject to the following provisos:
          (1) Supremacy of the Constitution.--Nothing in the 
        Convention requires or authorizes legislation or other 
        action by the United States of America that is 
        prohibited by the Constitution of the United States as 
        interpreted by the United States.

                                  
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