A proposed change in the way USDA operates export credit guarantee programs has won praise from the U.S. Wheat Associates, the exporting arm of the wheat industry. The informal proposal calls for a limit on all official agricultural export credits at two years, then brings that down to 18 months over a 30-month period.

Least developed and net-food importing countries would be given an extra nine months more than the applicable cap. The proposal, made in Paris to the Organization for Economic Cooperation and Development (OECD) by USDA General Sales Manager Richard Fritz, also provides that countries with serious economic disruption or other emergencies will receive consideration for more generous lending terms.

Another provision in the proposal calls for detailed reporting and transparency for all sales backed by official export credits (including sales by state trading monopolies) with information on: commodity(ies), value, country(ies), credit terms, tenor, premium, and any applicable fees. Importantly, the detailed reporting must be in place before the agreement is implemented, says USWA.

"We think the general sales manager has struck a near-perfect balance in this latest proposal," observed Nelson Denlinger, USWA vice president for government affairs, "and we congratulate him on his obvious commitment to a level playing field between exporters while still addressing the very important needs of importers."