Speaking at a seminar on the Seattle ministerial conference, Gulati said distortions had crept into the Uruguay Round of negotiations. There was huge scope for exchange at the Seattle round so that countries could benefit from the comparative advantages of trade, he told .

Gulati said the biggest culprit was the European Union (EU). "EU countries are not only inefficient producers of agricultural goods but they also subsidise and export them."

East Asian countries, too protect their agriculture, he said, but they are not exporters. In Japan, the prices of agricultural commodities are six times higher than those in the international market, the note agricultural economist added.

India on its own will not be a major voice at Seattle, he said. But India can join hands with the Cairns Group-Australia, New Zealand, Brazil, Argentina and Malaysia-to abolish or contain quantitative restrictions, Gulati said.

"There are indications that the United States would pressurise EU to open up. India will have to bargain hard. We will have to open up, too, and there will be some give-and-take," he said.

Responding to the query if India was prepared for WTO, he said, "India is not prepared for anything. But, if there is market access, there will be investment and this will lead to profits. It must be remembered that we export three to four million tonnes of rice."