Further, to safeguard farmers against surge in imports or fall in international prices, developing countries will be able to use a Special Safeguard Mechanism with both import quantity and price triggers. Domestic support given to farmers in countries like India having a preponderance of small farmers has also been fully preserved.
Besides, the complete elimination of export subsidies in all agricultural products by developed countries will not only help in protecting farmers in developing countries from unfair competition in the domestic market, but will also open up new opportunities for export of developing countries.
Meanwhile, India's merchandise exports grew at an accelerated pace during 2005, with exports continuing to record double-digit growth during April-November 2005-06. During 2004-05, India's merchandise exports at US $ 80 billion far exceeded the target.
It is anticipated that the export target of US $ 92 billion for 2005-06 will also be exceeded. To improve competitiveness of India's agri exports, almost Rs.100 crore worth of cess presently levied on export of several agricultural products under different enactments is proposed to be abolished and a Bill to this effect has been introduced in the Parliament.
In a major new initiative, the Annual Supplement to the Foreign Trade Policy announced in April 2005 provided for the setting up of an Inter State Trade Council to actively engage State Governments in promoting India's international trade, besides containing a series of other measures to simplify procedures, reduce transaction costs and enhance competitiveness of Indian exports, especially in the manufacturing sector
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