Export subsidies are the third pillar. The 1995 agricultural agreement required industrialized countries to reduce export subsidies by at least 36% (in value terms) or by 21% (by volume) over a six-year value. For developing countries, the agreement called for reductions of 24% (in value) and 14% (in volume) over ten years. In view of the General Agreement on Tariffs and Trade (GATT), signed in Geneva in 1947, and the world trade organization (WTO) agreement signed in Marrakech in 1994 (OJ L 1994, p. The European Union and its Member States act in accordance with Article 207 (Common Trade Policy) and Articles 217 and 218 (International Agreements) of the Treaty on the Functioning of the European Union (5.2.2). In principle, agriculture is subject to all WTO agreements and agreements on trade in goods, including the 1994 GATT agreements and WTO agreements on issues such as tariff assessment, import authorisation procedures, due diligence, emergency measures, subsidies and technical barriers to trade. However, in the event of a conflict between these agreements and the agricultural agreement, the provisions of the agreement on agriculture apply. WTO agreements on trade in services and trade aspects of intellectual property rights also apply to agriculture. Although agriculture has always been under GATT, there have been some significant differences in the rules for primary agricultural products as opposed to industrial products before the WTO. The 1947 GATT allowed countries to use export subsidies for primary agricultural products, while export subsidies for industrial products were prohibited. The only conditions were that agricultural export subsidies should not be used to cover more than a fair share of world merchandise exports (Article XVI:3 of GATT).
The GATT rules also allowed countries to resort, under certain conditions, to import restrictions (for example. B import quota), particularly where these restrictions were necessary to impose effective measures to limit domestic production (Article XI, paragraph 2, sub c) of the GATT). This derogation was also conditional on the fact that a minimum share of imports relative to domestic production was maintained. WTO members have taken steps to reform the agricultural sector and address high subsidies and trade barriers that distort agricultural trade. The overall goal is to establish a fairer trading system that improves market access and improves the livelihoods of farmers around the world. The WTO Agreement on Agriculture, which came into force in 1995, is an important step towards reforming agricultural trade and towards fairer and more competitive development. The Committee on Agriculture is monitoring the implementation of the agreement. The Haberler report of 1958 stressed the importance of minimizing the impact of agricultural subsidies on competitiveness and recommended replacing price support with additional non-production-related direct payments, and expected discussions to be ongoing on green box subsidies. But it is only recently that this change has become the heart of the reform of the global agricultural system.  The 1947 GATT initially applied to agriculture, but was incomplete, and the signatory states (or „contracting parties”) excluded this sector from the scope of the principles set out in the general agreement.