Agriculture: fairer markets for farmer The original GATT did apply to agricultural trade, but it contained loopholes.

For example, it allowed countries to use some non-tariff measures such as import quotas, and to subsidize. Agricultural trade became highly distorted, especially with the use of export subsidies which would not normally have been allowed for industrial products. The Uruguay Round produced the first multilateral agreement dedicated to the sector. It was a significant first step towards order, fair competition and a less distorted sector. It was implemented over a six year period (and is still being implemented by developing countries under their 10-year period), that began in 1995. The Uruguay Round agreement included a commitment to continue the reform through new negotiations. These were launched in 2000, as required by the Agriculture Agreement. The Agriculture Agreement: new rules and commitments The objective of the Agriculture Agreement is to reform trade in the sector and to make policies more market-oriented. This would improve predictability and security for importing and exporting countries alike. The new rules and commitments apply to:

market access various trade restrictions confronting imports domestic support subsidies and other programmes, including those that raise or guarantee farmgate prices and farmers incomes export subsidies and other methods used to make exports artificially competitive.

The agreement does allow governments to support their rural economies, but preferably through policies that cause less distortion to trade. It also allows some flexibility in the way commitments are implemented. Developing countries do not have to cut their subsidies or lower their tariffs as much as developed countries, and they are given extra time to complete their obligations. Least-developed countries dont have to do this at all. Special provisions deal with the interests of countries that rely on imports for their food supplies, and the concerns of least-developed economies. Peace provisions within the agreement aim to reduce the likelihood of disputes or challenges on agricultural subsidies over a period of nine years, until the end of 2003.

AGREEMENT ON TEXTILES AND CLOTHING

SIX KEY ELEMENTS OF THE AGREEMENT ON TEXTILES AND CLOTHING

Product Coverage.

 Programme for Integration. Progressive Liberalisation of the Restraints through Improved Growth Rates. Treatment of Quantitative Restrictions (other than MFA Restraints). Transitional Safeguard Mechanism. Textiles Monitoring Body. BASIS FOR PRODUCT COVERAGE Products, which were previously subject to MFA or MFA-type restraints. HS lines covering raw materials were not included. In the case of raw natural materials (silk, cotton, wool, vegetable fibres), the ATC coverage began with the first manufacturing process. THE INTEGRATION OF TEXTILE AND CLOTHING PRODUCTS INTO GATT RULES Article 2 of the ATC. Quantitative Restrictions in Force at the Outset. The Integration Programmes Four Stages. Selection of Products for Integration Notification of the Products to be Integrated Termination IMPACT OF WTO. ON TEXTILE INDUSTRY IN INDIA Textile Industry is unique in the terms that it is an independent industry, from the basic requirement of raw materials to the final products, with huge value-addition at every stage of processing. Textile industry in India has vast potential for

creation of employment opportunities in the agricultural, industrial, organized and decentralized sectors & rural and urban areas, particularly for women and the disadvantaged. Indian textile industry is constituted of the following segments: Readymade Garments, Cotton Textiles including Handlooms, Man-made Textiles, Silk Textiles, Woolen Textiles, Handicrafts, Coir, and Jute. Till the year 1985, development of textile sector in India took place in terms of general policies. In 1985, for the first time the importance of textile sector was recognized and a separate policy statement was announced with regard to development of textile sector. In the year 2000, National Textile Policy was announced. Its main objective was: to provide cloth of acceptable quality at reasonable prices for the vast majority of the population of the country, to increasingly contribute to the provision of sustainable employment and the economic growth of the nation; and to compete with confidence for an increasing share of the global market. The policy also aimed at achieving the target of textile and apparel exports of US $ 50 billion by 2010 of which the share of garments will be US $ 25 billion. Multi Fiber Agreement The MFA was introduced in 1974 as a short-term measure intended to allow developed countries to adjust to imports from the developing world. The Agreement was not negative for all developing countries. Ex European Union (EU) and Bangladesh. But however at the GATT 1994, it was decided to bring the textile trade under the jurisdiction of the World Trade Organization (WTO)

TRIMs Agreement
One of the Uruguay Round Agreements1994

 To be signed / accepted by all Members of WTO Principle of Single Undertaking / Acceptance It covers conditions on investment which are related to trade in goods Measures which are outside the domain of trade in goods are not covered by it It prohibits investment restriction which conflict with the obligation of a member in the WTO agreement Members not to apply TRIMs that are inconsistent with: Article III of GATT 1994 Article XI of GATT 1994 PROHIBITED MEASURES The measures to be covered by the prohibition, the general condition is that: 1. These are mandatory or enforceable under a domestic law or under administrative rulings, or 2. Compliance with these is necessary to obtain an advantage Elimination of Notified TRIMs Developed countries: within 2 years Developing countries: within 5 years Least developed countries: within 7 years

 Extension possible on application to Council for Trade in Goods (of coming into force of WTO agreements)

Administration of TRIMs Agreement Agreement establishes a Committee on TRIMs Committee to monitor operation and implementation of Agreement Committee to report annually to Council for Trade in Goods