For removing trade barriers, GATT requires its members to adopt the following anti-protective measures, however, with certain exceptions:

(i) The members should not use export subsidies, except for agricultural products.

(ii) The members should not impose unilateral quotas on imports, except when imports threaten market disruption.

(iii) Any new tariff or increase in a tariff should be offset by reductions in other tariffs in order to compensate the affected exporting countries.

ADVERTISEMENTS:

The GATT, however, grants the following exceptions to its anti- protective policy:

(i) Protective measures are allowed to the countries facing the balance of payments difficulties.

(ii) Trade restrictions are permitted to the developing countries.

(iii) Import restrictions are permitted on agricultural products if the domestic production of these goods is subject to equally restrictive production or marketing controls.