FACTBOX - Proposals in compromise in WTO talks

GENEVA (Reuters) - Talks among seven key countries produced a possible compromise on Friday in the major issues in deadlocked talks at the World Trade Organisation (WTO).

The proposals, on the basis of ideas floated by WTO Director-General Pascal Lamy and a "middle group" of countries led by Mexico, were reviewed by ministers from 35 key WTO players and will be considered by all 153 WTO members on Saturday.

The compromise amends some of the latest WTO negotiating drafts circulated on July 10. The current round of talks focuses on the core areas of agriculture and industrial goods. Here are the proposals:

AGRICULTURE:

* Total trade-distorting farm subsidies will be cut by 70 percent in the United States and 80 percent in the European Union.

The 70 percent U.S. figure would see the ceiling for U.S. support fall to $14.5 billion (7.3 billion pounds) from $48.2 billion. It is just above the midpoint of the 66-73 percent range in the July 10 text.

It compares with a U.S. offer on Tuesday to cap support at $15 billion, and with current outlays of about $7 billion.

The EU figure would cut subsidies for the 15 pre-2004 EU members to about 28 billion euros ($43 billion) from 110.3 billion and is the midpoint of the 75-85 percent range in the July 10 text.

* Tariffs. Developed country tariffs above 75 percent would be cut by 70 percent.

This removes the last remaining range in the tariff proposals, settling in the upper half of the 66-73 percent range from the July 10 text.

* Tariff caps. Only agricultural products designated as "sensitive" will be allowed tariffs above 100 percent. Such products are limited to 1 percent of tariff lines, with a tariff quota allowing imports at low duties 0.5 percentage points bigger than usual, i.e. 4.5 percent of domestic consumption.

* Sensitive products. Countries can designate up to 4 percent of agricultural tariff lines as "sensitive".

They pay for this with a tariff quota, under which a certain amount of the product is admitted at low duties. This quota is 4 percent of domestic consumption.

A further 2 percent of tariff lines can be designated as sensitive, with a tariff quota 0.5 percentage points bigger than usual, i.e. 4.5 percent of domestic consumption.

The compromise represents an improvement for both food exporters, as the July 10 text offered a range of 4-6 percent of tariff lines that could be declared sensitive, but compensates importers by coming in at the bottom of the 4-6 percent range for tariff quotas.

* Special products. The compromise says developing countries can designate 12 percent of agricultural tariff lines "special" for reasons of livelihood or food security or rural development, to shield them from the full impact of tariff cuts.