Food Aid Reform: Cargo Preference
The United States is one of the world’s largest food aid providers, yet its practices are inefficient, in part because of the transportation restrictions. Currently, 50% of all aid given must be sent on U.S.-flagged ships, a rule known as Cargo Preference. The argument for this rule is to maintain a reserve of vessels for times of war, and to support the maritime industry. At the start of 2014 Congress passed some modest food aid reforms in what is known as the Food for Peace Act. These reforms included ways we could more quickly reach the hungry at a lower cost to U.S. taxpayers, such as purchasing local food in the target countries.
The House passed the Coast Guard and Maritime Transportation Act of 2014 on April 1. Within the bill, Cargo Preference would increase from 50 to 75 percent, meaning the U.S. would have to send 3/4ths of its food aid on U.S.-flagged ships. This would cost an estimated $60 million to the Food for Peace Act, an amount that should be going to feed the hungry, not to transportation. In fact, it is calculated that because of this new rule, 1 million people will miss access to crucial food aid. Catholic Relief Services explains how food programs will be negatively impacted, here.
It is understandable the U.S. Navy and maritime industries are priorities for members of Congress. However, food aid accounts for only 5 percent of government-purchased goods shipped each year – a very small volume. Additionally, 70 percent of the ships approved for Cargo Preference do not even meet military-use criteria. It is difficult to see any added benefit the new Cargo Preference would be providing.
The House has already passed the bill, but there is still time to urge the Senate to vote against it. Please join the campaign to remind your representatives that increased Cargo Preferences would only hurt the hungry and hinder our food aid programs. The modest reforms we gained in January would be negated with the extra costs Cargo Preference demands, keeping our practices inefficient and limited.