UPSC Prelims 2016 GS Paper I · Q11 of 100 Economy easy

In the context of which of the following do you sometimes find the terms 'amber box, blue box and green box' in the news?

  1. (a) WTO affairs ✓ UPSC's answer
  2. (b) SAARC affairs
  3. (c) UNFCCC affairs
  4. (d) India-EU negotiations on FTA

Why the answer is (a)

• The WTO Agreement on Agriculture classifies domestic farm subsidies into 'boxes': amber box (trade-distorting support like MSP and input subsidies, capped at 10% of production value for developing countries), blue box (production-limiting payments) and green box (minimally distorting support such as research, infrastructure and public stockholding for food security) — option (a).

• India's public procurement at MSP is the subject of the 'peace clause' debate at the WTO.

• The terms have no role in SAARC (b), UNFCCC (c) or India–EU FTA talks (d).

• Hence option (a).

Why the other options are wrong

(b) SAARC affairs
SAARC does not use box classifications.
(c) UNFCCC affairs
UNFCCC concerns climate, not farm subsidies.
(d) India-EU negotiations on FTA
The boxes are WTO terms, not India–EU FTA terms.

Asked in the GS Paper I of the UPSC Civil Services Preliminary Examination 2016, held on 7 August 2016. Question and answer key: Union Public Service Commission. Explanation: UPSC Answer Check.

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