The WTO/GATT provides that production subsidies be:
A) eliminated at all costs.
B) increased in low-income nations and decreased in high-income nations.
C) disregarded in making trade decisions.
D) disclosed to trading partners and reduced to a minimum.

Question

Quizplus · Accepted Answer

The WTO/GATT requires that production subsidies be disclosed to trading partners and reduced to a minimum. This is because production subsidies can distort international trade and production patterns, giving an unfair advantage to the subsidized goods over competitors in the global market. By requiring disclosure and reduction of production subsidies, the WTO/GATT aims to promote fair and open competition in international trade.

The WTO/GATT Provides That Production Subsidies Be