Statement by the International Grains Council and
Food ASSISTANCE COMMIttee

110^th meeting of the WTO Committee on Agriculture on 26-27 November 2024

Submission by the International Grains Council (IGC) and Food Assistance Committee

The following submission, dated 22 November 2024, is being circulated at the request of the International Grains Council (IGC) and Food Assistance Committee.

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1  Food Assistance Convention – 2023 Annual Narrative Report

1.1.  The Food Assistance Convention (FAC) is the latest in a long series of multilateral cooperation instruments in operation since 1967, and was preceded by the Food Aid Convention 1991. The FAC expands the traditional focus of previous Food Aid Conventions that were focused exclusively on commitments of in-kind food aid for direct consumption. The new Convention, FAC, includes a broader toolbox of eligible activities and food assistance products, including cash, vouchers, and products intended for protecting livelihoods, a great focus on nutrition, as well as a commitment to improved transparency and accountability.

1.2.  Currently the parties are: Australia, Austria, Canada, Denmark, European Union, Finland, France, Japan, Republic of Korea, Luxembourg, Russian Federation, Slovenia, Spain, Sweden, Switzerland, and United States of America.

1.3.  In 2023, the number of people in a state of acute food insecurity and chronic hunger once more surpassed previous records: according to the Global Report on Food Crises 2023, more than 281 million people in 59 countries were dependent on humanitarian food assistance to cover even their most basic food needs (IPC/CH Phase 3 or above). This translates to an increase of almost 25 million people compared to 2022. Conflicts, economic shocks, natural disasters, climate change and its consequences continued to exacerbate pre-existing fragilities and drive food needs around the world. A notable trend in 2023 is that the influence of weather extremes as primary driver of food insecurity increases rapidly and leaves more and more people in a state of chronic hunger and malnutrition. These developments, coupled with the escalation of several conflicts resulted in an ever-increasing inability for vulnerable communities to access food.

1.4.  In 2023, all parties fulfilled or substantially exceeded their commitments by collectively contributing over USD 7.9 billion to the improvement of worldwide food security. Cash based transfers (CBT) as well as mixed Cash and Voucher Assistance (CVA) continued to receive increased support by many of the FAC parties. The majority of total contributions were provided fully in grant form, with a substantial part consisting of earmarked or lightly earmarked contributions, predominately at country level. Multi-year funding and un-earmarked contributions were mainly provided to WFP and to a lesser extent to the International Red Cross and Red Crescent Movement. Generally, the FAC members' interventions were implemented in collaboration with various agencies and programs of the United Nations, the International Red Cross and Red Crescent Movement, and civil-society organizations.

1.5.  Geographically, the interventions of FAC members focused on food assistance in some of the most critical humanitarian crises in 2023. Amongst others, this included Afghanistan, Bangladesh and Myanmar, Burkina Faso, Mali and Niger, the Democratic Republic of Congo, Palestine, Somalia and Ethiopia, Sudan and South Sudan, Syria and its neighbouring countries, Ukraine and Yemen. Apart from these contributions, several parties to the FAC provided food assistance to people living in so-called forgotten crises, such as the Central African Republic, Haiti, Bolivarian Republic of Venezuela and Colombia. For 2023 Narrative Report see: Food Assistance Convention.

2  Grains Trade Convention:

2.1.  The text of the Grains Trade Convention was established at a Conference of Governments arranged by the International Wheat Council on 7 December 1994. Among its objectives, the Convention should promote the expansion of international trade in grains by the freest possible flow of grains, including the elimination of trade barriers and unfair and discriminatory practices, in the interest of all Members, in particular developing Members. The market intelligence provided by its secretariat should contribute to the enhancement of the world food security, and the development of countries whose economies are heavily dependent on commercial sales of grain.

2.2.  On 12^th June 2023, the International Grains Council (IGC) and the Government of Japan co‑organized the "Dialogue on the Food Security Crisis between Food Exporting and Importing Countries". A wide range of stakeholders from governments, international organizations and the private sector took part in the Dialogue. The participants discussed what actions are recommended for market actors including food exporting and importing countries in times of a food security crisis to prevent worsening situations. The outcome document of this first dialogue was published and endorsed by 13 countries, International Organisations as well as organisations' representatives from the trade sector. This outcome document can be downloaded from: https://www.igc.int/downloads/brochure/outcome_document.pdf.

2.3.  Based on the success of this first edition of the international dialogue between grains producing and importing countries, the IGC has made this a regular feature in its annual grains conference. On 11^th-12^th June 2024, the International Grains Council (IGC) organized the 2^nd high-level dialogue between grains producing and importing countries. Delegates explored the new relationship between trade and food security. A wide range of stakeholders from governments, international organizations and the private sector discussed the role of global trade in the global food system and measures, policies, and initiatives that could be implemented to enhance the role of trade in food security.

The key discussions were focused on :

·_              Markets have been prone to significant volatility and exchange rate fluctuations in recent years. This new era has altered perceptions of how markets function. Therefore, transparency remains key in ensuring the efficiency of markets;

·_              Innovation should be seen as an enabler for global trade and Food security. Therefore, policies should address simultaneously the promotion of innovation and adoption of new technologies to improve the efficiency of the global market;

·_              More frequent market disruptions have shifted buying habits. Many buyers have moved from a "just in time" inventory approach to a more cautious "just in case" strategy. Therefore, trade facilitation, self-regulatory actions, digitalization of trading practices are among the measures to improve the market efficiency.

The full text of outcome document based on the dialogue between grains producing and importing countries is now available on the following link: Outcome document-2024.pdf.

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