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Cargo Preference and U.S. International Food Aid Programs

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  • Stephanie Mercier
  • Vincent Smith

Abstract

The United States is the world's largest donor of humanitarian assistance. However, that aid's effectiveness is hampered by decades‐old rules that restrict where food aid commodities are purchased and how they are transported to recipient countries. This paper evaluates costs associated with one of those restrictions—food aid cargo preference—which requires that at least half of all U.S. food aid shipped in a given year be carried on U.S.‐flagged vessels. The empirical analysis presented in this study, based on individual food aid shipments between January 2012 and May 2015, indicates that cargo preference added $42 million annually to program costs.

Suggested Citation

  • Stephanie Mercier & Vincent Smith, 2020. "Cargo Preference and U.S. International Food Aid Programs," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 42(4), pages 759-776, December.
    • Handle: RePEc:wly:apecpp:v:42:y:2020:i:4:p:759-776
    DOI: 10.1093/aepp/ppz008
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    References listed on IDEAS

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    1. Elizabeth R. Bageant & Christopher B. Barrett & Erin C. Lentz, 2010. "Food Aid and Agricultural Cargo Preference," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 32(4), pages 624-641.
    2. Bageant, Elizabeth R. & Barrett, Christopher B. & Lentz, Erin C., 2010. "U.S. Food Aid and Agricultural Cargo Preference Policy," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61250, Agricultural and Applied Economics Association.
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