Food Aid and the WTO: Tanzanian response

UNCLAS DAR ES SALAAM 001299

SIPDIS

E.O. 12958: N/A
TAGS: EAID ETRD TZ
SUBJECT: Food Aid and the WTO: Tanzanian response

Ref: State 119974


1. On June 30, Emboff and USAID Agricultural Officer
delivered the points in reftel to the Acting Trade Director
at the Ministry of Industry and Trade, Mr. John Mihinya and
to Assistant Director of Multilateral Trade Programs Bede
Lyimo. In discussing the impact of the proposed
restrictions on in-kind humanitarian food assistance, Emboff
drew on the example of the 400,000 refugees who have lived
in camps in western Tanzania for up to ten years. During
that time, the refugees have relied both on in-kind food
assistance, primarily from the US, and on cash donations
applied to the purchase of local agricultural surpluses.
Emboff emphasized the importance of maintaining flexibility
so donors can respond to food emergencies while avoiding
food market distortions.


2. Neither Mr. Mihinya nor Mr. Lyimo had been aware of the
proposed EU and Swiss disciplines that would sharply
restrict or eliminate in-kind food assistance. They
listened carefully to the response, and said that they would
discuss the matter with their superiors. Mr. Mihinya noted
that Tanzania welcomed all opportunities to sell its
agricultural surpluses; he worried that in some cases, in
kind humanitarian food assistance could be a pretext for
dumping. Mr. Lyimo agreed that maintaining a wide range of
options, including both in-kind and cash donations, could
ensure the most effective responses to humanitarian crises.
He was concerned that any sudden or drastic changes to the
WTO disciplines on food aid could result in market
dislocation and increased problems for developing countries.


3. The USAID officer said that he would seek a meeting with
counterparts in the Tanzanian agriculture ministry, to
reiterate these points.

Owen