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Problems with Implementation:

Apart fiom the rules themselves, the experience of the developing countries with the implementation of some of the  important rules by the developed countries has  not  .been  happy. The developed countries discharged their obligations  in some  areas  in purely technical sense and yet no benefit flowed  to the developing countries, much to their dismay. Some examples will illustrate this feature.

It  was expected that  the developed countries would  reduce their domestic subsidy in agriculture.  This  would  have saved the poor  farmers of the developing countries aght  competition  from  the  import of highly subsidised products fiom the major developed countries. Also it would have given the farmers of the developing countries a fair chance to export to third country. markets. The developed countries hlfilled their obligation of reducing some subsidy  in agriculture as  was required by the rules, but, they actually increased the quantum  of total subsidy. This was possible because, the agreement  stipulates some  subsidies that are  immune  fiom  reduction. While reducing some subsidy that was to be reduced, they increased the subsidies that were immune fiom  reduction, making the resulting total subsidy  higher.  

special trade restrictive regime in  this sector, the Agreement on Textile and Clothing required  the  developed countries to progressively liberalise their import  of  textile. The developed countries fulfilled their obligation of  liberalisation, but,  in effcct,  there was only very partial liberalisation for nearly  ten years  of the implementation of the agreement  on  textiles (1995-2004).  This was made possible, because the developed  countries took advantage of  a  loophole  in  the  annex  to  the Agreement on Textiles in the WTO. The annex contains a huge list of textile items. The agreement  left  the choice of products  for liberalisation to the importing countries and the developed countries, that were importers and had been  imposing restraints, chose only such products  from  the annex  for liberalisation that were not under import restraint.  In this manner they fulfilled their obligation  in a  technical sense,  but without significantly  liberalising  their textile import until the end of 2004 when all the restraints got automatically abolished.

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