Goods are being imported at low prices due to a high level of state support to agriculture in the exporting country. Clearly this cannot continue, though we have managed to halt the decline that set in after 1989. Agro-industry needs support, otherwise recession will raise its head again. If we are struggling to keep our heads above water all the time, there will be precious little time left to think about improving competitiveness. Another economic lever for supporting agriculture is loan policy.
Commercial methods are also available to maintain output and quality of agricultural production.
Until now, we have had a partly non-tariff system with the notorious exception of the 10 percent import surcharge. Even when the surcharge is reduced, we intend to keep it on foodstuffs. But we also have to take into account other protectionist measures, which we, as GATT members, are pledged to give consideration to. I should like to mention an important fact in this respect closely linked to the above import surcharge. The previous regime grossly underestimated this problem, because of the vastly different principles applied within the bipolar division of the world and markets, and we ended up in a zone with virtually the lowest level of tariff protection of any domestic market.