FACTBOX: Export issues in WTO's Doha round farm talks

(Reuters) - World Trade Organization (WTO) members are trying to reach broad agreement on reforms to farm trade.

Ministers are meeting from July 21 to agree the outlines of a deal in agriculture and industrial goods. The farms talks are taking place on the basis of a draft text revised on July 10 by the chairman of the agriculture talks, New Zealand's WTO ambassador Crawford Falconer.

The talks have three groups of topics -- domestic support (subsidies), market access (tariffs) and export competition.

Here are key issues on export competition:

1. Export subsidies -- Developed countries would eliminate half of these by 2010 and the rest by 2013. Developing countries would eliminate them by 2016. Export subsidies on cotton would be eliminated from the start, with developing countries having one year to implement the ban.

2. Export finance -- Government credits, insurance and guarantees for food exports can be hidden subsidies, so negotiators want to agree on the rules for permissible export finance. Two key areas are the lengths of repayment periods for credits, set at 180 days, with 360-540 days for least developed and net food-importing countries, and a requirement that these programs are self-financing.

3. State trading enterprises -- Washington and Brussels say the monopoly or near-monopoly of institutions such as the Canadian Wheat Board, Australian Wheat Board and New Zealand's Fonterra dairy cooperative distort trade. Ottawa, Canberra and Wellington say these are producer-marketing bodies and are not subsidized, with no distortion to international farm trade.

Developing countries would be allowed to keep agricultural export monopolies to preserve domestic price stability or food security, or if the enterprise has a share of less than 5 percent of world exports in the product it trades in.

4. Food aid -- Food surpluses sent by rich countries to developing countries as aid can undermine the livelihoods of poor farmers there who cannot compete. It is particularly controversial if the food is sold locally (monetized) although some donors and recipients say there is a place for it.

OTHER ISSUES

1. Export restrictions -- Restrictions on food exports have become sensitive in the current food crisis, which has seen some countries banning or taxing exports to protect food security.

The latest proposal requires members to justify any prohibitions or restrictions 90 days after they are imposed. It would phase out existing restrictions within one year, and limit new ones to 12 months, or 18 months, with importers' approval.

A proposal by food importers Japan and Switzerland has failed to attract support. That would require new prohibitions or restrictions to be notified in advance, allow members to call for consultations, and failing agreement send the new ban to a committee of experts for binding arbitration.

2. Geographical indications -- There are two related negotiations going on about geographical indications.

The European Union is the main proponent of these talks, and has won support from a range of developing countries.

One negotiation involves creating a register for wines and spirits, and the second involves extending the protection that trade rules already afford wines and spirits to other products.