Fact Sheet



                 U.S. WTO AGRICULTURE PROPOSAL
                                
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.

Key Elements of the U.S. Proposal:

     * 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.