US embassy cable - 05DARESSALAAM1299

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