Export subsidies for agricultural goods are viewed as the most trade-distorting form of farm aid which amounts to $300 billion (€249 billion) worldwide.
Export subsidy payments are made to European exporters as a compensation for selling goods at low world prices.
At one stage in the 1990s when cattle were being exported live to the Middle East, the value of the export subsidy was greater than the price paid for the cattle. The US tends to pay a higher level of direct aid to its farmers, but it also operates an export subsidy system.
On industrial goods, the basic aim of the agreement is to find ways to reduce import barriers to goods as varied as cement, shoes, chemicals and calculators.
This will be done by a formula under which the highest tariffs get cut the most.