Question
UPSC Prelims 2016 Question:
In the context of which of the following do you sometimes find the terms ‘amber box, blue box and green box’ in the news?
Answer (Detailed Solution Below)
Option 1: WTO affairs
Detailed Solution
Explanation :
- In the World Trade Organisation (WTO), subsidies in general are identified by “Boxes” which are given the colours of traffic lights: green (permitted), amber (slow down — i.e. be reduced) and red (forbidden). In agriculture, due to its complicated nature, the Agriculture Agreement has Amber Box instead of Red Box.
- Green box: It includes supports considered not to distort trade and therefore permitted with no limits.
- Blue box: It includes permitted supports linked to production, but subject to production limits, and therefore minimally trade-distorting.
- Amber box: It includes supports considered to distort trade and therefore subject to reduction commitments.
Therefore, option (1) is the correct answer.
Subject: Economics | Economic Organisations and Conventions
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