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Question

Difficulty: EasyAgriculture Sector Economics, Land Reforms, Subsidies, and Public Distribution System

Match the WTO agricultural subsidy categories in List-I with their corresponding economic features in List-II.

  • Green Box SubsidiesMinimal or non-trade distorting measures exempt from reduction commitments (e.g., research, pest control).
  • Amber Box SubsidiesTrade-distorting domestic support subject to reduction targets above de minimis limits (e.g., MSP, input subsidies).
  • Blue Box SubsidiesDirect payments made under production-limiting programs exempt from reduction commitments.

Answer

Green Box Subsidies match with minimal or non-trade distorting measures exempt from limits; Amber Box Subsidies match with trade-distorting support subject to reduction targets; Blue Box Subsidies match with direct payments tied to production-limiting programs.
Green Box subsidies cause minimal or no trade distortion and are exempt from limits. Amber Box subsidies are trade-distorting measures like MSP and input subsidies subject to limits. Blue Box subsidies are payments tied to production-limiting plans.

Step-by-Step Solution

1
Identify the definition of Green Box subsidies under WTO framework.
Green Box covers government assistance like agricultural research and disease control that does not distort trade.
This establishes the pair between Green Box Subsidies and non-trade-distorting policies.
2
Identify the definition of Amber Box subsidies.
Amber Box includes direct support such as procurement price guarantees and subsidized inputs that directly influence market prices and production.
This establishes the pair between Amber Box Subsidies and trade-distorting measures.
3
Identify the definition of Blue Box subsidies.
Blue Box represents direct payments made to farmers conditional on limiting agricultural production.
This completes the matching logic for all three subsidy categories.

Key Concept

WTO Domestic Support Categories (Green, Amber, and Blue Boxes)
Estimated Time:45s
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Topics

Agriculture Sector Economics, Land Reforms, Subsidies, and Public Distribution System