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.
- constant
- stagflation
- SPS (or Sanitary and Phytosanitary Measures)
- 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.