Question

Q. Match the following:

List A	List B
1. Minimum Support Price	(a) Green box subsidy
2. Food aid to the poor people	(b) Blue box subsidy
3. Production Limiting Subsidy	(c) Amber box subsidy

Select the answer using the codes given below:

• A. 1-c, 2-b, 3-a
• B. 1-c, 2-a, 3-b
• C. 1-b, 2-a, 3-c
• D. 1-c, 2-c, 3-a

Answer 1

The correct option is B 1-c, 2-a, 3-b

Explanation:

• Green Box Subsidy: Green Box contains those types of subsidies that don’t distort trade or that cause only minimum distortion. Hence they are permitted subsidies and thus are non-reducible subsidies. The Green box subsidies are provided by governments through a variety of programs like the provision of income support to farmers during crop failure, incentives to farmers to protect the environment, subsidies for research and development, food aid to the poor people, etc.
• Blue Box Subsidy: Blue Box refers to a category of domestic support or subsidies under the WTO’s Agreement on Agriculture. The Blue box subsidies aim to limit production by imposing production quotas or requiring farmers to set aside part of their land. It covers payments directly linked to acreage or animal numbers (reduction).
• Amber Box Subsidy: As per the rules of the WTO, domestic support is categorized under two broad headings: trade distortion and non-trade distortion. Trade distorting support, which falls under the Amber Box subsidy. MSP comes under trade-distorting support, as per WTO provisions.