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    Question

    Amber, Blue and Green boxes is related to which sector

    as per WTO terminology ?
    A Services Correct Answer Incorrect Answer
    B Industries Correct Answer Incorrect Answer
    C Intellectual Property Rights Correct Answer Incorrect Answer
    D Agriculture Correct Answer Incorrect Answer

    Solution

    WTO terminology, subsidies in general are identified by “boxes” which are given the colours of traffic lights: green (permitted), amber (slow down — i.e. need to be reduced), red (forbidden). In agriculture, things are, as usual, more complicated. The Agriculture Agreement has no red box, although domestic support exceeding the reduction commitment levels in the amber box is prohibited; and there is a blue box for subsidies that are tied to programmes that limit production. There are also exemptions for developing countries (sometimes called an “S&D box” or "development box", including provisions in Article 6.2 of the Agreement).

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