FACTBOX-Sectoral deals at the WTO trade talks

GENEVA (Reuters) - World Trade Organisation (WTO) members are discussing proposals to cut duties in some industrial sectors as part of broader talks to open up world trade under the WTO's Doha round.

The proposals have become highly contentious, lining up rich countries like the United State and European Union members against emerging powers India and China.

But it is not simply a rich-poor discussion as some developing countries have also proposed sectoral deals.

Under the mandate for the Doha talks, participation in sectoral deals is voluntary.

But the United States and others have made it clear that they will take participation in the deals into account when negotiating other aspects of the Doha round.

In a compromise on core elements of the talks on agriculture an industry sketched out last week by WTO Director-General Pascal Lamy, developing countries would be eligible for smaller cuts in overall industrial tariffs if they take part in sectoral deals. Members are encouraged to take part in at least two.

It is this "credit" that China and India object to, as they believe it erodes the voluntary nature of the deals.

If developing countries take part in a sectoral, they lose the ability to protect that sector from competition. But if they stay outside, they risk seeing trade in the sector move away to the countries who do take part, who will retain higher tariffs in other areas.

Here is a list of the 14 sectoral deals under discussion at the WTO, with the proposing country, final tariff rate, where available, and the critical mass of world trade that is sought, where available:

1. Automotive and related parts

Japan, end rate: zero, critical mass: 99 percent of world trade in cars, 98 percent of world trade in car parts

2. Bicycles and related parts

Taiwan, zero, at least 90 percent of world trade

3. Chemicals

United States, zero, critical mass not specified

4. Electronics and electrical products