Subsidies and Countervailing Measures Agreement

The Subsidies and Countervailing Measures Agreement (SCM Agreement) is a World Trade Organization (WTO) treaty that aims to ensure fair international trade by regulating how countries provide subsidies—financial support to their industries—that can distort competition. If a country suspects a foreign subsidy is unfairly harming its businesses, it can investigate and potentially impose countervailing duties to offset the subsidy’s impact. The agreement sets rules to prevent harmful subsidies and guides how countries respond to them, promoting fairer trading conditions globally.