Question

The ____box subsidy is linked to cap on production

• A. Green box
• B. Blue box

Answer 1

The correct option is B Blue box

Blue Box: This is the “amber box with conditions”. Such conditions are designed to reduce distortion. Any support that would normally be in the amber box is placed in the blue box if the support also requires farmers to limit production. Blue box subsidy is linked to cap on production. At present, there are no limits on spending on blue box subsidies.