Main features of GATT (General Agreement on Tariffs & Trade):

I. Reduction in agricultural tariffs by 30% for all agricultural commodities from 1994.

II. Agricultural input subsidies are reduced by 30%, export subsidies by 36% and value of subsidized exports by 21%.

III. Trade liberalization policies would bring about 2-10% rise for agricultural commodity prices in international markets resulting in a gain of $200 billion.

IV. As import tariffs are reduced, the domestic demand for imports increases putting

pressure on trade balances. The developing countries have to resort to real exchange rate devaluation to increase their exports.

V. GATT reforms are more beneficial to developed countries because of high prices for

export goods such as capital goods, machinery etc.

VI. According to GATT, India can offer subsidy to increase its export competitiveness without altering policy related to PDS, food security etc.

VII. Under TRIPS, seeds and plant varieties must be protected either by patents or by an effective system of its own or a combination of both.

VIII. All regulations, rules, restrictions (QRs), export duties, minimum export prices have to be removed to boost exports.

IX. TRIMS: No restrictions on quantum of foreign investment.