A) WTO affairs
B) SAARC affairs
C) UNFCCC affairs
D) India-EU negotiations on FTA
Correct Answer: A
Solution :
Exp. [a] In WTO terminology, subsidies in general are identified by 'Boxes' which are given the colours of traffic lights: green (permitted), amber (slow down - i.e. be reduced), red (forbidden). In agriculture, things are, as usual, more complicated. The Agriculture Agreement has no Red Box, although domestic support exceeding the reduction commitment levels in the Amber Box is prohibited; and there is a Blue Box for subsidies that are tied to programmes that limit production. There are also exemptions for developing countries (sometimes called an 'S&D Box'). The Green Box contains fixed payments to producers for environmental programmes, so long as the payments are 'decoupled' from current production levels. All domestic support measures considered to distort production and trade (with some exceptions) fall into the Amber box. The provision excepts5% of agricultural production for developed countries, 10% for developing countries. The Amber box subsidies with conditions designed to reduce distortion are placed in Blue box. They include the direct payment to the farmers to reduce production. Blue box contains subsidies which can be increased without limit, so long as payments are linked to production-limiting programmes.
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