Q. Which of the following is NOT part of WTO box (Agricultural subsidies)?

[A] Amber box

[B] Red box

[C] Green box

[D] White box

Answer: D

Explanation: The agricultural subsidies, in the WTO terminology have in general been identified by ‘boxes’ which have been given the colours of the traffic lights —green (means permitted), amber (means slow down, i.e., to be reduced) and red (means forbidden). In the agriculture sector, as usual, things are more complicated.

  • The WTO provisions on agriculture have nothing like red box subsidies, although subsidies exceeding the reduction commitment levels are prohibited in the ‘amber box’.
  • The ‘blue box’ subsidies are tied to programmes that limit the level of production.
  • There is also a provision of some exemptions for the developing countries sometimes called the ‘S & D box’.

Source: TMH Ramesh Singh