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U.S. Food Aid Exports: The Role of Cargo Preference

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Report Type Reports and Testimonies
Report Date June 17, 1993
Report No. T-GGD-93-34
Subject
Summary:

In April 1993, the White House announced the availability of $700 million in agricultural credits to Russia under the Food for Progress Program. Considerable press interest has focused on the additional cost of using U.S.- rather than foreign-flagged ships to transport at least 75 percent of the commodities, as required by the cargo preference laws. This testimony discusses the costs involved in using U.S.-flagged vessels, declines in the number of U.S.-flagged vessels, and the U.S. experience in shipping cargo during the Persian Gulf War.

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