*EPF318 11/20/2002
U.S. Presents Proposal on Agricultural Export Credits at WTO
(Export credits should be subject to WTO disciplines, Johnson says) (320)

By Wendy Lubetkin
Washington File Staff Writer

Geneva -- The United States has presented at the World Trade Organization (WTO) a proposal to include "meaningful disciplines" on export credits in the broader agricultural package currently being negotiated as part of the Doha Agenda.

Ambassador Allen Johnson, U.S. chief agricultural negotiator, told reporters in Geneva November 20 that export credits should be subject to WTO disciplines to "guard against abuse."

Johnson drew a distinction between export subsidies, which he described as "among the most trade-distorting measures" and export credits, which "have a minimal capacity to distort trade and actually can assist developing countries in financing their imports."

Discussion of regulating export credits in the WTO is relatively new, with WTO member states still just analyzing the various types of programs that exist.

"It's a very technically complex subject," Johnson said. "We recognize that there is wide range of export credit programs used by WTO members with varying objectives and levels of involvement."

The U.S. proposal, he said, aims "to strike a balance."

"We are trying to guard against abuse, but, as I mentioned, export credits do provide liquidity to protect food security, particularly of developing countries during financial crisis or commodity crisis, and can assist their development."

Johnson said the U.S. proposal would support only those export credits that comply with rules that would emerge from the ongoing negotiations. All other programs should be prohibited, he said.

All export credit programs directly or indirectly run by governments, including state trading enterprises, should be covered by WTO disciplines, he said.

The United States considered it important to come forward early with a comprehensive proposal on export credits including specific figures even though several other major players have not done so, Johnson said.

He urged other nations to come forward with their proposals in order to move the negotiating process forward.

Johnson called the negotiations under way in Geneva a "unique opportunity to move forward the trade liberalizing agenda" that will have a major impact on growth in agricultural trade over the next 15 to 20 years.

(The Washington File is a product of the Office of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)

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