A(n) ________ is a subsidy that may be challenged as trade distorting if it injures the domestic industry of another WTO member state, nullifies or impairs the benefits due to another member state, or causes or threatens to cause serious prejudice to the interests of another member state.

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An actionable subsidy is a subsidy that may be challenged as trade distorting if it injures the domestic industry of another WTO member state, nullifies or impairs the benefits due to another member state, or causes or threatens to cause serious prejudice to the interests of another member state. Nonactionable subsidies are those that are not subject to challenge under the WTO agreements, while consumption subsidies are provided to consumers and do not necessarily affect trade. Prohibited subsidies are those that are expressly prohibited under the WTO agreements.

A(n) ________ Is a Subsidy That May Be Challenged as Trade