WBCS.LIVE practice question

In the context of the WTO, 'Amber Box' subsidies refer to what?

Solve this multiple-choice question and check the correct answer with its explanation below.

Answer options

  1. Subsidies for environmental protection.
  2. Subsidies linked directly to research and development.
  3. Trade-distorting domestic support.
  4. Subsidies provided strictly to developing nations.

Correct answer and explanation

Correct answer: Trade-distorting domestic support.

Explanation: āœ… Correct Answer: C) Trade-distorting domestic support. šŸ“š Explanation: Under the World Trade Organization's (WTO) Agreement on Agriculture, domestic agricultural support is heavily categorized into different "boxes." The 'Amber Box' contains all domestic support measures that are considered to distort trade and market prices, such as the Minimum Support Price (MSP) and fertilizer subsidies. Member countries are legally bound to strictly reduce these subsidies within specified limits.