economics medium Fill in the Blank

The WTO agreement that specifically addresses the sanitary and phytosanitary measures—such as food safety standards and animal/plant health regulations—that countries apply to imports is known as the ___ Agreement.

  1. constant
  2. stagflation
  3. SPS (or Sanitary and Phytosanitary Measures)
  4. Rules

Answer: SPS (or Sanitary and Phytosanitary Measures)

The SPS Agreement acknowledges a country's sovereign right to protect its citizens and agriculture from pests, diseases, and contaminated food. However, to prevent these measures from being used as disguised protectionism (Non-Tariff Barriers), the WTO mandates that SPS regulations must be based on rigorous scientific evidence, applied only to the extent necessary, and not arbitrarily discriminate between trading partners.

Topic International Economics - WTO
Exam Relevance UPSC Prelims, SSC CGL