Proposal for Global Agricultural Trade Reform
U.S. Position on Disciplines for Export Credits
U.S. Submits Proposal on Export Credits at the World Trade Organization Negotiations
At the Nov. 18-20, 2002, World Trade Organization (WTO) agriculture negotiations, the United States submitted a comprehensive and specific proposal on officially supported export credit, credit guarantee, and export credit insurance programs.
The U.S. proposal includes all export credit programs with government support, either direct or indirect, including programs operated by private institutions where there is government participation, and by state trading enterprises that have been granted special rights or privileges. Under the proposal, officially supported export credit programs that do not comply with the disciplines are prohibited.
The proposal sets disciplines on individual elements of export credit, credit guarantee, and export credit insurance programs such as repayment period, minimum interest rate, premiums, coverage and foreign exchange risk.
As a general rule, the proposal sets a maximum repayment term of 180 days, but offers a special and differential treatment component that permits a maximum repayment period of up to 30 months for all recipient developing countries. Interest rates offered for officially supported export credits must not be below the actual costs of borrowing plus a risk-based spread. Fees charged must be adequate to cover long-term operating costs. The proposal also contains a notification and reporting requirement for existing and new programs to enhance transparency.
For more information, view the entire U.S. proposal at http://www.fas.usda.gov or contact:
Multilateral Trade Negotiations Division
International Trade Policy
Foreign Agricultural Service
U.S. Department of Agriculture
Ag Stop 1022
1400 Independence Ave. SW
Washington, D.C. 20250-1022
Tel: (202) 720-1324
Fax: (202) 720-1139
General information about FAS programs, resources, and services is available on the Internet at the FAS home page: http://www.fas.usda.gov