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April 11th, 2021

Overall Benefit For India From Gatt Agreement

43The results of this simulation are compared to the results published previously using the RUNS model. The year shows much more modest price changes (by no means more than 1.7%). In previous studies using the same model, price variations ranged from -8.2% for coffee to 8% for sugar. Given that this price change would occur during the 1995-2002 period, simulation i indicates that the Uruguay Round is unlikely to have a significant impact on world prices. 19 Where is India in this regard? Indian exporters of agricultural raw materials do not benefit from direct export subsidies. The only subsidies available to agricultural exporters are: (i) exemption from income tax on profits from export sales and (ii) subsidies for transportation costs (export shipments) of certain products such as fruits, vegetables and flowers. 46 On the occasion of the application of individual applications documented in the december 1993 final act, Simulation IV examines the impact of the customs reform formula (reducing tariffs by 36% in OECD countries and 24% in non-OECD countries) contained in the draft final act of the Uruguay Round of December 1992114. This doubles more than the expected benefits in Simulation II. This simulation leads to a stronger increase in world prices, particularly for sugar, meat and dairy products, where tariffs have not been affected by the Uruguay Round agreement. As a result of this significant rise in world agricultural prices, the impact of terms of trade on agricultural exporters is improving and benefiting, with the exception of net food-importing countries in Africa and developing countries in the Middle East. This series of meetings and reduced rates would continue, allowing for new GATT provisions in the process.

The average tariff rate rose from about 22% when the GATT was first signed in Geneva in 1947, to about 5% until the end of the 1993 Uruguay Cycle, which also negotiated the creation of the WTO. 4 That is not why it is appropriate to ask how Uruguay Round has helped to make this NB more flexible for both agricultural and non-agricultural products? The answer is not simple, as NB also covers agriculture, textiles and clothing. One of the points for NB is that grey area measures such as voluntary export restrictions and orderly marketing agreements have been prohibited in the Uruguay Round Agreement. Grey zone measures are measures whose legality was not clear under the former GATT. These are now prohibited and must expire over a period of four years. However, developed countries can use the safeguard agreement to avoid this. In addition, developed countries can resort to political substitution. This means substituting prohibited NBs for new measures that have not been banned. This is probably the case, for example, with safety measures, anti-dumping and food and health requirements. 5 Exports were opened in May, but since much of the supply had already taken place, the CFI did not release wheat to exporters until October 1995. In 1996, the wheat export quota was first reduced from 2.5 million tonnes to 1.5 million tonnes, and by the end of 1996, exports of wheat and wheat products were totally banned.

16The AMS in India has remained negative over the years and has been in a narrow range over the 1986-1994 period. The AMS estimates presented in Table 2 show that there is no significant variation in AMS on triennium TE 1988-89 and TE 1994-95.9. The level of taxation (negative support) has increased from minus 23% to minus 18% during this period.10 The reduction in taxation during TE 1994-95 reflects the drastic prices of raw materials such as wheat and rice, announced in 1992-93 and 1993-94 11, this taxation of the agricultural sector reflects the fact that the negative support of certain crops such as rice , wheat and cotton exceeds positive support for crops such as olive seeds and sugar cane, as well as input subsidies such as

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