UGC NET COMMERCE July 2018 Q65
| List-I | List-II |
| (a) Tariffication | (i) They have demonstrably adverse effects on other member countries. |
| (b) Prohibited subsidies | (ii) They act on goods which are contingent upon export performance. |
| (c) Actionable subsidies | (iii) Replacement of existing non-tariff restrictions. |
| (d) Non-actionable subsidies | (iv) For industrial research in disadvantaged regions. |
CODES
| (a) | (b) | (c) | (d) | |
| 1 | (ii) | (iii) | (i) | (iv) |
| 2 | (iv) | (i) | (ii) | (iii) |
| 3 | (iii) | (ii) | (i) | (iv) |
| 4 | (ii) | (iv) | (iii) | (i) |
- Option : C
- Explanation : Tariffication and Tariff Cuts: Tariffication means the replacement of existing non-tariff restrictions on trade such as import quotas by such tariffs as would provide substantially the same level of protection. From the first year of the Agreement’s implementation, nearly all border protection was to be bound by tariffs, which (in principle) were to be no higher than the tariff equivalent of the protection levels prevailing in the base periods. Tariff binding means fixing the maximum rate of import duty, above which the country shall not raise the duty unilaterally.
On agricultural tariffs, developing countries have had the flexibility of indicating maximum ceiling binding. India had indicated ceiling bindings of 100 per cent on primary products and 300 per cent on edible oils.
Subsidies and Domestic Support Policies: The UR Agreement deals with three categories of subsidies.
Prohibited Subsidies: Prohibited subsidies are those contingent upon export performance or the use of domestic instead of imported goods. Actionable Subsidies: Actionable subsidies are those that have demonstrably adverse effects on other member countries.
Non-actionable Subsidies: Non-actionable subsidies include those provided (with stipulated limitations) to industrial research and procompetitive development activity to disadvantaged regions, or to existing facilities to adapt themselves to new environmental requirements.
