Commodity Import Programs

CIPs finance the export of U.S. goods to U.S.-aid recipient countries.

Under CIPs, the Agency for International Development (AID) makes dollars
available to the assisted country on a loan or grant basis to pay for
essential commodity imports. In nearly all cases, these imports come from
the United States. CIPs are used to provide relatively fast disbursing
balance of payments support or to generate local currency for budget
support for project goals, particularly in efforts designed to encourage
private sector development.

CIP agreements usually provide for AID's financing of a wide variety of
basic items including agricultural goods, construction and transportation
equipment, fertilizer, chemicals, raw materials, semi-finished products,
and foodstuffs. CIPs do not finance military or police equipment, luxury
items, or items of questionable safety or efficacy. In some cases, the
range of allowable commodities is narrowed in order to tailor them to
development needs of particular sectors in the assisted country or to
accomplish other, specific development goals.