UPSC Prelims 2016·GS1·economy·open economy

In the context of which of the following do you sometimes find the terms 'amber box, blue box and green box' in the news?

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Last updated 23 May 2026, 3:31 pm IST
  1. AWTO affairsCorrect
  2. BSAARC affairs
  3. CUNFCCC affairs
  4. DIndia-EU negotiations on FTA

Explanation

The terms 'amber box,' 'blue box,' and 'green box' are central to the World Trade Organization (WTO) agreements, particularly the Agreement on Agriculture. They refer to different categories of domestic support (subsidies) that countries provide to their agricultural sectors: Amber Box: Refers to domestic support measures that are considered to distort trade and production. These are subject to reduction commitments. Blue Box: Covers subsidies that are linked to production-limiting programmes, but which are applied to fixed areas or yields. These are less distorting than amber box measures and are therefore subject to less stringent reduction commitments. Green Box: Includes domestic support measures that are considered to be non-trade-distorting or minimally trade-distorting. These are allowed without limits as they include support for services such as research, disease control, infrastructure, and food security programmes. These terms are crucial in discussions and negotiations related to agricultural trade policies within the WTO framework.
economy: In the context of which of the following do you sometimes find the terms 'amber box, blue box and green box' in the news

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