The International Grains Agreement, 1995 (IGA), which came into force on 1 July 1995, comprises the Grains Trade Convention and the Food Aid Convention, which are separate legal instruments linked by a common Preamble. The Grains Trade Convention, 1995 had initially a three-year life, but has been extended by the Council. The current extension will expire on June 30, 2003. On July 1, 1999, the Food Aid Convention, 1995 was replaced by the Food Aid Convention, 1999, which remains part of the 1995 IGA. The FAC will expire on June 30, 2003 but may be extended further by the Food Aid Committee.

The Grains Trade Convention, 1995 (GTC) applies to trade in wheat, coarse grains, and their products. It seeks to further international cooperation in all aspects of grains trade; to promote expansion, openness and fairness in the grains sector; to contribute to grain market stability; and to enhance world food security. These objectives are to be sought by improving market transparency through information-sharing, analysis and consultation on grain market and policy developments.

The GTC is administered by the International Grains Council (IGC). Some of its administrative functions are delegated to a 14-member Executive Committee, which meets between the regular Council Sessions as required. The IGC's Market Conditions Committee keeps the global grain market situation and outlook under close review.

The Council organizes an annual self-financing IGC Grains Conference each June. Since 1992 these Conferences have provided a high-level forum where senior private-sector representatives and government policy-makers discuss topical issues facing the global grains industry.

The activities of the Council and the operations of the IGC Secretariat are financed by GTC members' annual contributions. The Council's budget for fiscal 2002/03 totalled £1.44 million.

The Food Aid Committee, consisting of all donor members of the FAC, reviews the implementation of members' food aid arrangements. The Committee shares information on policy developments affecting food aid, and discusses the general world food situation and prospects.

Successive FACs have been adapted to meet changing food aid needs, especially of least-developed and low-income countries, and to increase the effectiveness of the aid provided by donor Governments. The Food Aid Convention, 1999 was negotiated to take account inter alia of the WTO Singapore Ministerial Conference, and the declarations of the 1996 World Food Summit, with respect to least-developed countries.

Under the new FAC, minimum commitments total around 5 million tons. Priority is given in supplying aid to least-developed and low-income countries. Donors are free to decide on the distribution of their aid among eligible recipients, but are encouraged to direct it through multilateral channels, in particular the World Food Programme. They are also encouraged to purchase food for their aid operations from developing countries. While remaining primarily a cereals-based Convention, the list of eligible products has been broadened to include other food products which may be needed by recipient countries. All food aid to LDC's covered by a members' commitments is in the form of grants. FAC members are placing greater emphasis on the evaluation of the impact of their aid and are committed to support the efforts of recipient countries to implement their own food security strategies.

COMPOSITION

Grains Trade Convention:
Exporting members: Argentina, Australia, Canada, European Community, Hungary, Kazakhstan, Turkey, Ukraine, United States

Importing members: Algeria, Côte d'Ivoire, Cuba, Ecuador, Egypt, India, Iran (Islamic Republic of), Japan, Kenya, Republic of Korea, Malta, Morocco, Norway, Pakistan, Panama, Russian Federation, South Africa, Switzerland, Tunisia, Vatican City

Food Aid Convention: Argentina, Australia, Canada, European Community and its 15 Member States, Japan, Norway, Switzerland, United States.

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