UPSC IAS - 2016

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

Year Asked: 2016

A
WTO affairs
B
SAARC affairs
C
UNFCCC affairs
D
India-EU negotiations of FTA

Correct Answer

A. WTO affairs

Detailed Explanation

The correct answer is A) WTO affairs. The amber, blue and green boxes are classifications of domestic agricultural subsidies under the WTO Agreement on Agriculture (1995), which sorts support measures by how much they distort trade.

  • Amber box: trade-distorting support such as market price support and input subsidies, counted in the Aggregate Measurement of Support (AMS) and subject to reduction commitments.
  • Blue box: payments tied to production-limiting programmes, exempt from reduction.
  • Green box: minimally trade-distorting support such as decoupled income support, environmental and research programmes, exempt from reduction.

The wrong options fail on their own terms. SAARC works through SAFTA and has no such classification. UNFCCC deals with climate commitments and funds, not trade boxes. India-EU FTA talks concern tariffs, market access and services, not these categories.

Mains connection: India's public stockholding for food security and the MSP-linked procurement have been contested under the AMS calculation, and the 2013 Bali 'peace clause' protects such programmes from challenge. The permanent solution is still under negotiation.

Trap: the word 'green' tempts aspirants towards climate or UNFCCC. Remember the colours are WTO subsidy categories.

This question appeared in UPSC Prelims 2016 GS Paper-1.

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