Question

India and China jointly submitted a proposal to the World Trade Organisation (WTO) calling for the elimination -by developed countries - of the most trade-distorting form of farm subsidies, known in WTO parlance as __________ support as a prerequisite for consideration of other reforms in domestic support negotiations.

Options

• Amber Box

• Green Box

• Blue Box

• Orange Box

Answer 1

Amber Box

Explanation: In WTO terminology, subsidies, in general, are identified by "boxes" which are given the colours of traffic lights:  green (permitted), amber (slow down - i.e. need to be reduced), red (forbidden). In agriculture, things are, as usual, more complicated. The Agriculture Agreement has no red box, although domestic support exceeding the reduction commitment levels in the amber box is prohibited; and there is a blue box for subsidies that are tied to programmes that limit production. There are also exemptions for developing countries (sometimes called an "S&D box" or "development box", including provisions in Article 6.2 of the Agreement).