Social Science (087) — AI-generated practice question

In the USA, agriculture contributes only about 1% to GDP and employs just 0.5% of the workforce. Yet the US government gives massive subsidies to its farmers for production and exports. This allows US farmers to sell farm products at abnormally low prices in world markets.

When these surplus products are sold cheaply in developing countries like India, local farmers cannot compete with such low prices, even though they receive little or no government support. Developing countries have removed trade barriers as per WTO rules, while developed countries have ignored these same rules by continuing to subsidise their farmers. This creates an uneven playing field, making it an unfair trade practice against farmers in developing countries.

Source: Chapter 4 — World Trade Organisation, Debate on Trade Practices

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• The examiner wants three clear points: (1) the fact of US subsidies, (2) the effect — artificially low prices hurting developing-country farmers, and (3) the hypocrisy/WTO angle — developed nations demand liberalisation from others while protecting their own farmers.
• Use the key term trade barrier or subsidy and the WTO context.
• Avoid padding; this should be tight and factual.