In the context of which of the following do you sometimes find the terms ‘amber box, blue box and green box’ in the news?
[UPSC Civil Services Exam – 2016 Prelims]
(a) WTO affairs
(b) SAARC affairs
(c) UNFCCC affairs
(d) India-EU negotiations on FTA
World Trade Organisation (WTO)
- In WTO terminology, domestic subsidies in agriculture are identified by “Boxes” namely Green Box, Amber Box & Blue Box.
- All domestic support measures that distort production and trade (with some exceptions) fall into the amber box.
- It refers to a category of domestic support or subsidies under the WTO’s Agreement on Agriculture.
- This is the “amber box with conditions” – conditions designed to reduce distortion.
- Any support that would normally be in the amber box, is placed in the blue box if the support also requires farmers to limit production.
- Subsidies that do not distort trade or at most cause minimal distortion are placed in Green Box.
- These subsidies have to be government-funded (not by charging consumers higher prices) and must not involve price support.