Q. With reference to the World Trade Organization, consider the following:
Select the correct answer using the codes given below:
Q. With reference to the World Trade Organization, consider the following:
Select the correct answer using the codes given below:
The correct option is D 1, 2 and 3
Explanation:
Statement 1 is correct: In WTO terminology, subsidies, in general, are identified by “boxes” which are given the colors of traffic lights: green (permitted), amber (slow down — i.e. need to be reduced), red (forbidden).
Statement 2 is correct: Nearly all domestic support measures considered to distort production and trade (with some exceptions) fall into the amber box. These include measures to support prices, or subsidies directly related to production quantities.MSP is an example of an Amber box subsidy.
Statement 3 is correct: The Agriculture Agreement allows developing countries additional flexibility in providing domestic support. The type of support that fits into the developmental category or development subsidy is measures of assistance, whether direct or indirect, designed to encourage agricultural and rural development and that are an integral part of the development programs of developing countries. They include investment subsidies which are generally available to agriculture in developing country members, agricultural input subsidies generally available to low-income or resource-poor producers in developing country members, and domestic support to producers in developing country members to encourage diversification from growing illicit narcotic crops.
Explanation:
Statement 1 is correct: In WTO terminology, subsidies, in general, are identified by “boxes” which are given the colors of traffic lights: green (permitted), amber (slow down — i.e. need to be reduced), red (forbidden).
Statement 2 is correct: Nearly all domestic support measures considered to distort production and trade (with some exceptions) fall into the amber box. These include measures to support prices, or subsidies directly related to production quantities.MSP is an example of an Amber box subsidy.
Statement 3 is correct: The Agriculture Agreement allows developing countries additional flexibility in providing domestic support. The type of support that fits into the developmental category or development subsidy is measures of assistance, whether direct or indirect, designed to encourage agricultural and rural development and that are an integral part of the development programs of developing countries. They include investment subsidies which are generally available to agriculture in developing country members, agricultural input subsidies generally available to low-income or resource-poor producers in developing country members, and domestic support to producers in developing country members to encourage diversification from growing illicit narcotic crops.
