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Q11 (IAS/2016) Economy › External Sector & Trade › World Trade Organization Official Key

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

Result
Your answer: —  ·  Correct: A
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. [1] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 18: International Economic Institutions > Agreement on Agriculture (AoA) > p. 541
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Q. In the context of which of the following do you-sometimes-find the terms 'amber box, blue box and green box' in the news? [A] WTO affair…
At a glance
Origin: Books + Current Affairs Fairness: Low / Borderline fairness Books / CA: 2.5/10 · 5/10
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This 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.

How this question is built

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?
Origin: Direct from books Fairness: Straightforward Book-answerable
From standard books
Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 18: International Economic Institutions > Agreement on Agriculture (AoA) > p. 541
Presence: 5/5
“to research, lack of training, lack of marketing information, weak rural infrastructure, etc. Green Box subsidies are allowed under AoA with no prescribed limit. Blue Box - These subsidies are tied to programmes that limit production. ii. In other words, even if they directly link production to subsidies, they also set limits on production by way of quotas. Thus, Blue Box subsidies are less trade distorting. At present, there are no limits prescribed under AoA on spending by Government for Blue Box subsidies. Amber Box - Subsidies under this box are deemed to be trade distorting. iii. by encouraging excessive production through subsidies on fertilisers, seeds, irrigation and power.”
Why this source?
  • 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.
Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 13: International Organizations > 13.5.2Agreement on Agriculture (AoA) > p. 381
Presence: 4/5
“1. Green Box | 2. Other exempted measures | 3. Amber Box Any support which • allowed under WTO: R&D support, infra support like irrigation, electricity, expenses related to accumulation &; allowed under WTO: Development Measures: Investment related subsidies, agriculture input subsidies to low-income farmers.; restricted under WTO: does not fall in the 1st or 2nd category is subject to reduction of • allowed under WTO: holding of public stocks for food security, domestic food aid to the section of population in; allowed under WTO: Blue Box: payments made on fixed areas or number. of livestock. Production is required to receive the payment but actual payment; restricted under WTO: commitments.”
Why this source?
  • 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.
Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 18: International Economic Institutions > Agreement on Agriculture (AoA) > p. 540
Presence: 4/5
“• Executed in 1995, the objective of AoA is to make policies which are feasible to the market and to reform and liberalise trade in this sector along with removing barriers to trade. • AoA is based on three pillars: • Only up to Reasonable Level of Domestic Support: • Domestic support means subsidies that Government provides to the farmers in food, fertilisers, power, etc. Three types of subsidies are discussed under it: • Green Box It includes those subsidies which do not distort trade and i”
Why this source?
  • 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.
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Statement analysis

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Statement analysis

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