Question

Consider the following about the different aspects of domestic support

Which of the above is/are correct?

• A. 1 only
• B. 2 only
• C. Both 1 and 2
• D. None of the above

Answer 1

The correct option is C Both 1 and 2

Green Box: Subsidies that do not distort trade, or at most cause minimal distortion. They are government-funded and must not involve price support. They also include environmental protection and regional development programmes. Investment in agricultural research comes under Green box subsidy.“Green box” subsidies are therefore allowed without limits, provided they comply with the policy-specific criteria. Investment in agricultural research comes under Green box subsidy
Amber Box: All domestic support measures considered to distort production and trade (with some exceptions) fall into the amber box as all domestic supports except those in the blue and green boxes. These include measures to support prices, or subsidies directly related to production quantities. Seed marketing subsidies come under this box.