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Report recommends end of food aid cargo preference

A George Mason University report released Friday recommends that Congress eliminate food aid cargo preference.

It further recommends that the Maritime Administration and Department of Defense provide adequate data and analysis on whether there are sufficient mariners to help man the Navy’s surge fleet.

It also recommends that the Maritime Administration’s development of a National Maritime Strategy include cost benefit analyses of any proposals to subsidize the addition of more U.S.-flag oceangoing merchant vessels to the U.S. flag foreign trade fleet.

The report also says that until Congress eliminates food aid cargo preference, the Maritime Administration should fully reimburse USAID and USDA for the added costs of using U.S. flag vessels to ship food aid, and Congress should provide USAID and USDA with the flexibility to ship U.S. food aid on vessels that are readily available and cheaper.

George Mason University — Impact of U.S. Government Food Aid Reforms On the U.S. Shipping Industry: Preliminary Results
The Political Economy of Shipping U.S. Food Aid Under the CargoPreference Regime