US food aid seen squeezed by Bush budget: NGOs

By Sophie Walker

WASHINGTON (Reuters) – President George W. Bush will not
ask Congress to increase U.S. food aid when he presents his
2007 budget next week and some countries will be cut from
donation programs to make funds go further, NGO sources said on
Tuesday.

Bush is likely to ask for $1.15 billion in food aid
donations, the same as this year and down some $500 million
from 2003, said sources in nongovernmental organizations that
combat hunger. The fiscal 2007 budget will be released next
week.

“To fund the program adequately, $2 billion is needed, so a
targeted program for vulnerable populations will continue, even
while emergency needs continue to require about $1.5 billion
each year,” Ellen Levinson, executive director of the
Washington-based Coalition for Food Aid, told Reuters.

“The upshot is that US AID is making plans to eliminate
about 17 countries out of 32 for the food aid programs,” added
Levinson, whose coalition represents 16 nongovernmental
organizations.

America is the largest provider of food aid to poor
nations, supplying about half. The issue blew up into a dispute
between United States and European Union trade officials at a
World Trade Organization meeting last month, when the EU
insisted the United States move to cash from commodities
resources.

The United States currently sends donations to developing
countries in the form of its own domestic corn, wheat and other
commodities. The European Union argues that cash is quicker and
less likely to affect the delicate balance of local trade.

In last year’s budget, Bush proposed cutting the nation’s
major donation program to $885 million and putting $300 million
into an emergency famine fund, which would be spent on buying
food locally in disaster areas.

Following an angry response from Congress — which refused
to transfer the money — he is expected this time around to
propose that of the $1.15 billion, up to 25 percent be allowed
for overseas purchases of food for emergencies.

“The administration is taking a different strategy because
it got a lot of flak last year for trying to decimate an
existing program that’s successful and has a lot of support,”
Levinson said.

“Our view is, let’s not get taken over by the distraction
this year of how much is cash purchase. It is very dangerous
for the WTO to get involved; the trade negotiators are not
experts in this field,” she said.

“Let’s focus on the bigger issue — the big fight in a time
of tight budget of getting adequate funding.”

Of the 17 countries to be eliminated from food aid
programs, 10 will be in Africa, Levinson said, including
countries where U.S. food aid is part of integrated development
programs including HIV/AIDS, mother and child health care and
food for education.

“Eliminating 17 countries is something we don’t accept as a
good solution, but if Congress doesn’t provide the money and
the U.S. keeps being the one who has to keep providing the
money for emergencies, this is the squeeze place,” she said.