Question 11
AOptions
BSolution
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.
CStrategy
When encountering specific jargon or terms in the news, particularly in international relations or economy, try to identify the global organization or agreement they are associated with. Often, these terms are unique to a particular framework or negotiation.
DSyllabus Analysis
This question falls under International Relations, specifically related to international economic organizations like the WTO and their agreements, and also relates to current events.
EQuestion Analysis
Easy. These terms are fundamental to understanding the WTO's Agreement on Agriculture and are frequently mentioned in news related to international trade and agricultural policy.