The dispute between the European Union and the United States is mainly about

[26] At the heart of the dispute is whether food aid to developing countries should be in the form of cash or agricultural products, often subsidized by donors. [27] The European Union argues that cash donations are the best way to quickly purchase food in an emergency because food shipments are sometimes sold in local markets at the receiving end. And European countries say flooding markets with cheap imported food drives local farmers out of business. Edward Clay, Senior Research Associate at the Overseas Development Institute in London says the European approach makes food aid more flexible. [28] The United States argues that the European cash-only approach has been ineffective, causing a steep decline in food aid since the 1990s. According to a report published by the World Food Program, food aid contributions suffered a ＄1 billion shortfall last year. In contrast, the U.S. sends donations to developing countries in the form of com, wheat and other commodities.