Q: In the context of which of the following do you sometimes find the terms `amber box, blue box and green box’ in the news?
a) WTO affairs
b) SAARC affairs
c) UNFCCC affairs
d) India-EU negotiations on FTA
The correct answer is Option 1.
World Trade Organisation (WTO)
- Domestic agricultural subsidies are denoted by “Boxes” in WTO terminology, namely the Green Box, Amber Box, and Blue Box. Hence, Option 1 is correct.
Amber Box:
- All domestic assistance programmes that distort production and commerce (with a few exceptions) are classified as amber.
Blue Box:
- It refers to a type of domestic assistance or subsidy under the World Trade Organization’s Agriculture Agreement.
- This is the “amber box with conditions” – conditions aimed to decrease distortion.
- Any support that would ordinarily be in the amber box is moved to the blue box if it also forces farmers to limit production.
Green Box:
- Subsidies that do not distort trade or produce minor distortion are placed in the Green Box.
- These subsidies must be government-funded (rather than charged to consumers) and must not involve price support.
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