Question map
In the context of which of the following do you-sometimes-find the terms 'amber box, blue box and green box' in the news?
Explanation
The correct answer is option A because the terms 'amber box', 'blue box', and 'green box' refer to categories of agricultural subsidies under the WTO's Agreement on Agriculture (AoA)[1]. Green Box subsidies are allowed under AoA with no prescribed limit[1], Blue Box subsidies are tied to programmes that limit production and are less trade distorting, with no limits prescribed under AoA[1], while Amber Box subsidies are deemed to be trade distorting[1]. These color-coded boxes are a distinctive feature of WTO negotiations on domestic support measures in agriculture, helping classify different types of government subsidies based on their trade-distorting effects. The other options—SAARC affairs, UNFCCC affairs, and India-EU FTA negotiations—do not use this specific terminology, which is unique to WTO agricultural trade discussions.
Sources- [1] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 18: International Economic Institutions > Agreement on Agriculture (AoA) > p. 541
PROVENANCE & STUDY PATTERN
Full viewThis is a 'Sitter'—a fundamental static question found in every standard Economy textbook (Singhania, Vivek Singh, Ramesh Singh). If you missed this, your core preparation on International Economic Organizations is critically weak. No current affairs dependency; this is pure static theory.
This question can be broken into the following sub-statements. Tap a statement sentence to jump into its detailed analysis.
- Statement 1: Are the terms "amber box", "blue box", and "green box" used in WTO (World Trade Organization) discussions on agricultural subsidies?
- Statement 2: Are the terms "amber box", "blue box", and "green box" used in SAARC (South Asian Association for Regional Cooperation) affairs?
- Statement 3: Are the terms "amber box", "blue box", and "green box" used in UNFCCC (United Nations Framework Convention on Climate Change) affairs?
- Statement 4: Are the terms "amber box", "blue box", and "green box" used in India–EU free trade agreement (FTA) negotiations?
- Explicitly names Green Box, Blue Box and Amber Box as categories of subsidies under the Agreement on Agriculture (AoA).
- Describes the characteristics of each box (Green = allowed/no limit, Blue = tied to production limits, Amber = trade-distorting), directly linking the terms to WTO agricultural subsidy rules.
- Lists Green Box, Blue Box and Amber Box in the context of what is allowed/restricted under WTO.
- Mentions examples and treatment (e.g., Blue Box payments, public stocks, R&D) showing these are used as classification terms in WTO discussion.
- States AoA discusses three types of subsidies and begins to list Green Box among them, linking the boxes to the Agreement on Agriculture framework.
- Places the boxes within the AoA/domestic support discussion, reinforcing their use in WTO agricultural policy discourse.
- Explicitly shows the terms 'Blue', 'Green' and 'Amber' box used as categories in international/domestic support policy (WTO/Doha/Uruguay Round context).
- Demonstrates these are standard WTO/FAO policy terms, not specifically tied to SAARC in this passage.
- Refers to commitments specific to trade-distorting domestic support as 'Amber Box, Blue Box and de minimis support', reinforcing that these terms are used in WTO/domestic support discussions.
- Passage situates the boxes within multilateral trade negotiation language, not within SAARC-specific affairs.
- This document lists SAARC (South Asian Association for regional Co-operation) in its abbreviations, showing the term SAARC appears in the provided corpus.
- Nowhere in this passage (abbreviations list) are the 'amber/blue/green box' terms associated with SAARC, indicating no evidence here of those boxes being SAARC-specific.
Explicitly identifies 'Amber Box' as a category used in WTO-related discussion of India's subsidies (Agreement on Agriculture context).
A student could take this rule—these 'box' terms are used in WTO/AoA subsidy classification—and check whether SAARC documents adopt WTO terminology or instead focus on separate SAARC/SAFTA wording.
Lists 'Green Box' and 'Blue Box' as categories with examples of measures allowed/exempted under WTO rules (Agreement on Agriculture), showing the terms are part of international trade/agriculture taxonomy.
Use this as a pattern that the 'box' taxonomy belongs to WTO/AoA contexts; a student could compare SAARC/SAFTA agreements to WTO texts to see if the same taxonomy appears.
Describes SAARC as a regional forum that encouraged cooperation and mentions SAFTA (a regional free-trade agreement), indicating SAARC's arena is regional economic cooperation where WTO terms might or might not be adopted.
Knowing SAARC handles regional trade (SAFTA), a student could reasonably check whether SAFTA/SAARC legal texts borrow WTO subsidy classifications or instead rely on their own provisions.
States SAARC members signed SAFTA to form a free-trade zone for South Asia, reinforcing that SAARC activity includes trade policy where WTO terminology could be relevant or contrasted.
A student might examine SAFTA/SAARC communiqués on agriculture/trade to see whether 'amber/blue/green box' terms appear or whether WTO is referenced instead.
- Explicitly lists “Blue” box, “Green” box and “Amber” box under the Uruguay Round domestic support context.
- Shows the terms are used in WTO/agriculture policy (Uruguay Round), not in a UNFCCC context; the passage names the trade negotiation rounds.
- Discusses WTO negotiation objectives mentioning reductions in Amber Box and Blue Box alongside export subsidies.
- Frames the terms within WTO negotiation language, with no reference to UNFCCC or climate affairs in this passage.
- Refers to Amber Box and Blue Box as categories of trade-distorting domestic support in WTO commitments.
- Affirms these terms are part of agricultural/domestic-support commitments, again within trade law rather than UNFCCC text.
This snippet explicitly defines 'Green Box', 'Blue Box', and 'Amber Box' as categories in the Agreement on Agriculture (AoA) under WTO rather than a climate forum.
A student could infer these 'box' terms are trade/AoA jargon and therefore check UNFCCC/COP texts to see if they use different categories or terminology.
Provides functional definitions of Green Box, Blue Box, and Amber Box (types of subsidies) and situates them within AoA rules.
Use the clear WTO/AoA context to distinguish trade-subsidy categories from climate-policy terminology and look for parallel concepts in UNFCCC documents (e.g., finance, mitigation/adaptation classifications).
Mentions the 'Green Climate Fund' as a financial mechanism adopted under the UNFCCC, showing 'green' is used in UNFCCC contexts but in a different institutional sense.
A student can note that 'green' appears in UNFCCC vocabulary (as a fund name) but that this is not evidence the 'green box' subsidy classification from WTO is used by UNFCCC; they could compare naming conventions across the two regimes.
Also links the Green Climate Fund to the UNFCCC framework, reinforcing that 'Green' appears in climate finance terminology rather than AoA subsidy boxes.
Combine this with the AoA evidence to hypothesize that similarly named terms may exist across international regimes but with different meanings—so verify specific UNFCCC usage in COP decisions or UNFCCC glossary.
Explains the UNFCCC is a separate international convention (with distinct secretariat and coordination), implying institutional separation from WTO/AoA where the 'box' terms arise.
A student could use institutional separation as a reason to expect different technical vocabularies and then check authoritative UNFCCC sources to confirm whether 'amber/blue/green box' appear there.
Explains the WTO 'Green/Blue/Amber Box' classification of domestic agricultural support, showing these are standard technical terms in trade policy.
A student could infer that any FTA dealing with agricultural support between WTO members (India and EU) might reference these established WTO categories and then check FTA agricultural chapters or negotiating texts for those terms.
Gives a concrete Indian example (MSP/PDS) being classified under 'Amber Box' and mentions WTO caps and restrictions—demonstrates India uses the term in policy discussions.
Because India applies 'amber box' to its domestic subsidies, one can reasonably look for the term in bilateral/agreement negotiations where India defends or discusses such measures with partners like the EU.
Notes the 'Peace Clause' relating specifically to Amber Box limits and food security—shows international negotiation contexts import Amber Box language.
Since the Peace Clause is an element of multilateral trade negotiation vocabulary, a student could check whether bilateral FTA talks adopt this vocabulary when discussing food-security or subsidy safeguards.
States WTO members must notify domestic support measures under Green/Blue/Amber Boxes to the WTO—underscores these are formal, reportable categories in international trade governance.
A student could reason that because these boxes are official reporting categories, negotiators in an India–EU FTA may use the same categories to align bilateral commitments with WTO obligations; thus check negotiation texts or press releases for such terminology.
Defines FTAs as preferential trade agreements and indicates India engages in FTAs—links the institutional context where agricultural terms might be negotiated bilaterally.
Knowing India negotiates FTAs, a student could search India–EU FTA negotiation documents or summaries (especially agricultural chapters) for references to WTO-origin terms like amber/blue/green box.
- [THE VERDICT]: Sitter. Direct hit from standard Economy modules (WTO > Agreement on Agriculture).
- [THE CONCEPTUAL TRIGGER]: The 'Three Pillars' of the Agreement on Agriculture (AoA): Market Access, Domestic Support, and Export Subsidies.
- [THE HORIZONTAL EXPANSION]: Memorize the Box Logic: Green (Non-distorting, no limit, e.g., R&D); Blue (Production-limiting, exempt); Amber (Trade-distorting, subject to reduction). Sibling terms: De Minimis limits (5% developed vs 10% developing), Peace Clause (Bali 2013), Special Safeguard Mechanism (SSM).
- [THE STRATEGIC METACOGNITION]: UPSC frequently asks 'Term X is seen in news in context of Y'. Maintain a 'Term-Institution' glossary. Don't just read 'WTO'; list its unique vocabulary (TRIPS, TRIMS, MFN, National Treatment, AoA Boxes).
These exact terms are used in the Agreement on Agriculture to classify types of domestic support/subsidies under WTO rules.
High-yield for UPSC because questions often ask about WTO rules on agriculture and subsidy disciplines. Mastering the boxes helps answer questions on permissible support, trade-distortion criteria, and negotiation positions of member countries. Study by memorising definitions, examples, and policy implications; link to India’s food security debates.
- Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 18: International Economic Institutions > Agreement on Agriculture (AoA) > p. 541
- Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 13: International Organizations > 13.5.2Agreement on Agriculture (AoA) > p. 381
AoA’s structure—domestic support, market access, export subsidies—frames why the box classifications matter for WTO negotiations.
Useful for essay and prelims/GS mains questions on WTO agricultural reform and trade policy. Understanding pillars connects institutional rules to real policy issues (subsidies, tariffs, export controls). Prepare by mapping each pillar to examples and current debates.
- Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 9: Agriculture > AGREEMENT ON AGRICULTURE > p. 350
- Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 18: International Economic Institutions > Agreement on Agriculture (AoA) > p. 540
References reference the Peace Clause and public stockholding issues, which interact with box classifications when members defend subsidies for food security.
Important for questions on India’s WTO stance and contemporary negotiations; shows how legal exceptions and interim measures work. Learn key clauses, their purpose, and implications for national policy and trade disputes.
- Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 18: International Economic Institutions > Impact of AoA on India \Phi > p. 542
- Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 13: International Organizations > Total Aggregate Measurement of Support (AMS) and De-minimis level: > p. 382
References explicitly mention 'Amber Box', 'Blue Box' and 'Green Box' in the context of WTO Agreement on Agriculture and domestic subsidies.
High-yield for economy/international relations: UPSC questions often test WTO commitments, domestic subsidy constraints (e.g., MSP/PDS) and their classifications. Master the definitions, examples (MSP/public stocks), and implications for national policy and disputes. Prepare by memorising box criteria and studying India-specific examples.
- Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 18: International Economic Institutions > Impact of AoA on India \Phi > p. 541
- Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 13: International Organizations > 13.5.2Agreement on Agriculture (AoA) > p. 381
References describe SAARC's membership, objectives and the South Asian Free Trade Agreement (SAFTA) as the regional trade initiative.
Important for polity/IR: UPSC frequently asks about regional groupings, their aims, limitations and India–neighbour dynamics. Know SAARC membership, core areas of cooperation, SAFTA's purpose, and political constraints (India–Pakistan tensions). Prepare by mapping members, major agreements and key limitations.
- Contemporary World Politics, Textbook in political science for Class XII (NCERT 2025 ed.) > Chapter 3: Contemporary South Asia > Peace and Cooperation > p. 42
- Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 16: India–Political Aspects > GEOPOLITICS OF SOUTH ASIA > p. 60
The evidence shows the box categories used in WTO contexts and separate references describing SAARC—indicating different institutional vocabularies.
Useful for analytical UPSC answers: many questions require distinguishing global trade rules (WTO AoA) from regional organisations' mandates (SAARC/SAFTA). Helps avoid conflating multilateral obligations with regional forum practices. Prepare by contrasting mandates, scope and typical terminologies of global vs regional bodies using example cases.
- Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 18: International Economic Institutions > Impact of AoA on India \Phi > p. 541
- Contemporary World Politics, Textbook in political science for Class XII (NCERT 2025 ed.) > Chapter 3: Contemporary South Asia > Peace and Cooperation > p. 42
References [9] and [10] explicitly describe 'Green Box', 'Blue Box' and 'Amber Box' in the context of the Agreement on Agriculture (AoA) — showing where these terms are used.
High-yield for UPSC: these classifications appear in questions on international trade policy and agricultural subsidies. Mastering them helps distinguish allowed vs. trade-distorting supports under WTO rules and is useful in essays/comparisons with environmental regimes. Study by mapping each box to its definition, examples, and policy implications.
- Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 13: International Organizations > 13.5.2Agreement on Agriculture (AoA) > p. 381
- Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 18: International Economic Institutions > Agreement on Agriculture (AoA) > p. 541
The 'Special Safeguard Mechanism' (SSM). While the Boxes control subsidies, the SSM is a tool developing countries want to use to temporarily raise tariffs to protect farmers from import surges. It is the logical 'next step' in WTO agriculture questions.
Use the 'Traffic Light' logic. Amber (Caution/Slow down), Green (Go/Allowed). While 'Green' appears in Climate (UNFCCC), 'Amber' and 'Blue' do not fit the climate narrative of 'mitigation/adaptation'. The traffic light system of regulation is a classic regulatory/trade framework feature, pointing straight to WTO.
Connects directly to GS-3 Agriculture (MSP & Food Security). India's MSP regime falls under the 'Amber Box' (trade-distorting). The conflict between India's food security needs (PDS) and WTO's 10% De Minimis cap is a perennial Mains theme.