Export subsidies materialize in different forms. While only a handful of nations use STEs, each nation is an important trading partner to the U.S. and other WTO members. The Canadian Wheat Board serves as an example. This organization and other STEs compete with private enterprises in the US and other nations. STEs gain an advantage in the market because they are able to mask subsidies that reduce prices and the cost of operations.
Tariffs remain excessive on too many agricultural products in too many countries.
Presently, the world average tariff is 56 percent while the US average is three percent. This will provide greater market access opportunity for products subject to TRQs. Clarify rules on other measures that can act to circumvent export subsidy disciplines and create new disciplines for other practices that distort export competition. Improve the transparency in the operations of STEs. Reduce tariff rates and end the use of export taxes applied in sporadic and distorting manners on specific agricultural products.