world_organizations medium Fill in the Blank

The WTO's Agreement on Subsidies and Countervailing Measures (SCM Agreement) disciplines the use of trade-distorting subsidies by establishing rules on prohibited subsidies (e.g., export subsidies), actionable subsidies (subject to challenge if causing adverse effects), and non-_____ subsidies (generally permitted).

  1. actionable
  2. permitted
  3. prohibited
  4. regulated

Answer: actionable

The SCM Agreement balances policy space and trade fairness: it allows subsidies for research, regional development, or environmental adaptation (non-actionable provisions expired but principles remain), while prohibiting export subsidies and allowing challenges to subsidies causing injury to other members' industries.

Topic World Trade Organization
Exam Relevance UPSC, Banking, SSC
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