Standards are the specifications or grades officially recognized by the governmental department or commercial organizations of a country. They have legal effects and hence are binding upon the traders. If the goods do not conform with the requirements demanded by the standards, they are not to be marketed.

Different countries have different standards. Also, most countries make alterations and amendments to their standards and it is therefore necessary to state the quoted publications of the standard in a contract.

In the trading of agricultural products, F.A.Q. (fair average quality) is often employed to indicate the quality of the goods. F.A.Q. is rather sweeping. From a technical point of view, it indicates the average quality of the current crop. Besides F.A.Q., specifications are still necessary unless the transaction is done between regular trading partners.

To be different from F.A.Q., the term “selected” is sometimes employed. With this term, the seller needs to state the specifications of the goods to show how selected it is.

For the trading of wood and aquatic products, G.M.Q. (good merchantable quality) is employed to indicate the quality of goods. G.M.Q. means the goods is free from defects and is good enough for use or consumption. G.M.Q. is usually not supplemented with specifications and when disputes arise because of the quality of the goods, exporters will have to be invited to make the arbitration.

42. Grades have more detailed descriptions of goods than specifications.

43. One major difference between standards, grades and specifications is that standards are official.

44. It is important for export goods to meet the standards of their target countries.

45. The difference between F.A.Q. and “selected” is that the latter involves less general specifications.

46. Goods with G.M.Q. are usually better in quality than products with F.A.Q.

Passage 2

Let me touch on a few areas where progress in the Doha Development Agenda will help poorer countries reap further gains from trade and enhance their potential for sustainable development.

Agriculture is and has always been a fundamental sector   for many developing countries. Agriculture is critical to the successful conclusion of the negotiations. Ambitious liberalization in this sector can offer big potential gains for all countries, particularly developing countries. WTO members are committed to comprehensive negotiations aimed at addressing market access, export subsidies and trade distorting domestic support. More than 50 developing countries depend on agriculture for over one-third of their merchandise export earnings. The eventual elimination of trade distorting measures which affect agricultural trade will be a tremendous boost for sustainable development. The World Bank has estimated that phasing out restrictions on agriculture could lead to higher income in developing countries of some US$400 billion by 2015. The gains from this are several times larger than all the debt relief granted to developing countries so far.