WORLD TRADE
ORGANIZATIONG/AG/NG/W/139*
G/AG/W/50
21 March 2001
(01-1371)
Committee on Agriculture
Special SessionOriginal:  English
EXPORT CREDITS  FOR AGRICULTURAL PRODUCTS
Proposal by MERCOSUR (Argentina, Brazil, Paraguay and Uruguay),
Bolivia, Chile, Costa Rica, Guatemala, India and Malaysia†1
Background:
During the Uruguay Round, Members undertook, under the Agreement on Agriculture, to
"work toward the development of internationally agr eed disciplines to govern the provision of export
credits, export credit guarantees or insurance programmes and, after agreement on such disciplines, to
provide export credits, export credit guarantees or insurance programmes only in conformity
therewith" .
This set of disciplines has not yet been developed in the WTO, which is the appropriate forum
for the negotiation of the "internationally agreed disciplines" on export credits.  Thus, Article 10.2 of
the Agreement on Agriculture remains unimplemented.
The lack of disciplines to govern the granting of export credits to agricultural products is,
therefore, an outstanding issue, which requires pr iority in the WTO in order to prevent its use to
circumvent export subsidy commitments.
According to Article 10.1 of the Agreement on Agri culture, export subsidies other than those
listed in paragraph 1 of Article 9 (e.g. export credits, export credit guarantees or insuranceprogrammes) "shall not be applied in a manner which results in, or which threatens to lead to,
circumvention of export subsidy commitments".
Consequently, whilst export credits, export credit guarantees or insurance programmes are
covered by the general rules and disciplines (i.e. Articles 3.3, 8, 9 and 10.1) applicable to export
subsidies, we need to develop the specific disciplines called for in Article 10.2.
Accordingly it is proposed that a set of discipline s to govern these practices be negotiated and
agreed in the WTO, so that all interested parties to this negotiation (users, recipients and potentially
affected countries) have the opportunity to make their views known and taken into consideration in
this exercise.
Objective:
Agricultural export credits, export credit guarantees and export insurance programmes must
be brought under specific multilateral discipline under the WTO with a view to ending government
                                                     
* This document cancels and replaces documen t G/AG/NG/W/139-G/AG/W/50,  dated 20 March 2001,
in English only.
†1 Please note that this proposal will also be tabled in the Committee on Agriculture in the context of
the item regarding the implementation of Article 10.2 of the Agreement on Agriculture.G/AG/NG/W/139
G/AG/W/50
Page 2
subsidization of such credits, taking into account the needs of developing countries.  In addition, a
clear approach is required to prevent circumvention of export subsidy commitments.
Proposal:
Consistent with the objective of the reform process concerning reductions in support and
protection, it is proposed that WTO members negotiate and agree on a specific set of disciplines to
govern the provision of export credits, export credit guarantees and export insurance programmes.
As we negotiate and agree on these disciplines in the WTO, the following issues, inter alia ,
should be addressed:
(a) a definition of "officially supported export credit";(b) identification and listing of the variety of forms of officially supported export credit
operations;
(c) identification and listing of types of institutions and programmes to be covered by such
disciplines;
(d) terms and  conditions for use of such credits which include, but are not limited to:
• source of the funds employed in the operation;
• maximum repayment term
• starting point of the credit
• repayment of principal;
• payment of interest;
• cash payments;
• sharing of risk;
• minimum interest rates;
• validity period for export credits
• minimum premium.
(e) notification requirements of all officially supported export credit transactions that exceed 180
days.  The notifications shall provide the following information on an aggregated basis by programme
or institution:
• products concerned (volume and amount of credit);
• countries of destination;
• terms and conditions of the transaction as specified in letter (d).
Export credits, export credit guarantees and export insurance programmes given by private financial
institutions are not required to be notified on a regular basis, provided that, upon request, the relevant
information mentioned in letters (d) and (e) be granted.
Special and Differential Treatment
(a) Appropriate minimum interest rates, inter alia , shall be established  to address the interests of
exporting developing countries;G/AG/NG/W/139
G/AG/W/50
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(b) In recognition of the "Decision on Measures Concerning the Possible Negative Effects of the
Reform Programme on Least-Developed and Net Fo od-Importing Developing Countries", adopted in
Marrakech, the disciplines to be adopted must include appropriate provisions for differential treatment
in favour of least-developed and net food-importing developing countries.  These provisions shouldinclude longer repayment periods and should be consistent with the exemptions already provided in
the Agreement on Agriculture for developing countries and with the modifications resulting from the
negotiations to the general rules and disciplines applicable to export subsidies.
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