Quarterly Journal of International Agriculture No. 3/09
How much food aid is enough?
Insights for WTO rulemaking
Ryan Cardwell
University of Manitoba, Winnipeg, Canada
William A. Kerr
University of Saskatchewan, Saskatoon, Canada
Abstract
Discipline on food aid has become a contentious international trade
issue. Some WTO members worry that food aid can circumvent the
elimination of export subsidies. A major shift in focus is required to
find a solution that is in the best interest of both potential
recipient and donor countries. A dynamic optimal control model is
developed and used to simulate the delivery of food aid under a number
of potential WTO disciplines. The results indicate that some levels of
food aid produce adverse effects and determining an optimal quantity of
food aid in trade agreements presents a considerable challenge.
Keywords: agriculture, developing countries, food aid, WTO
JEL: O13, Q17, Q18
Vol. 48 (2009), No. 3: 193-218