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

Answer: (a)        

Explanation:

World Trade Organisation (WTO)

• In WTO terminology, domestic subsidies in agriculture are identified by “Boxes” namely Green Box, Amber Box & Blue Box.

​Amber Box:

• All domestic support measures that distort production and trade (with some exceptions) fall into the amber box.

Blue 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.

Green Box:

• 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.