The U.S. proposal builds on the structure of the existing WTO rules for agriculture and identifies a framework and ambitious reform goals with the objective of substantially reducing high levels of protection and support that disadvantage U.S. farmers, ranchers and processors.

• substantial reductions in all tariffs and increases in all tariff-rate quotas, in all markets;

• elimination of export subsidies;

• disciplines on the use of export restrictions and embargoes on agricultural products;

• disciplines on state trading enterprises;

• simplification of rules applying to domestic support, and establishment of a ceiling on trade-distorting support that applies equally to all countries; and

• rules to ensure market access for products of new technologies.

The United States proposal:

• is a framework for reform, to be amplified with more specific approaches by next spring,

• is comprehensive, with proposals addressing trade-distorting measures in each of the areas of market access, export competition, and domestic support;

• is reformist, calling for elimination of export subsidies and substantial reductions in tariffs and trade-distorting domestic support;

• addresses disparities in allowed levels of protection and support, focusing on bringing down high tariff and excessive trade-distorting subsidies that benefit our competitors and keep us out of foreign markets;

• will simplify world trade in agriculture by closing loopholes that allow countries to maintain high subsidy levels and complicated tariff and customs procedures;

• affords flexibility to the U.S. Congress as it prepares for the next Farm Bill by allowing for unlimited rural and farm support through non-trade-distorting programs and allowing a continuation of trade-distorting subsidies at more equal levels;

• encourages resource conservation and environmental protection programs;

• is proportionate, the more trade-distorting the measure, the deeper the reform:

• elimination of export subsidies,

• substantial reforms in border protection through an aggressive approach that will put pressure on countries with high tariffs in agriculture,

• establishing a shared standard for the level of trade-distorting domestic support,

• continuing availability of export credit and food aid programs,

• and allowing unlimited amounts of support through non-trade-distorting measures;

• is balanced, calling for substantial reforms that can be realistically and expeditiously achieved in this round of negotiations.

Background: WTO agriculture negotiations were mandated to begin this year under the provisions of the Uruguay Round agreement in 1994. WTO members set a deadline of the end of the year for initial negotiating proposals, with latitude for countries to amend and amplify their initial proposals in the first quarter of 2001.