UPSC Prelims 2016 Question:

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

Explanation :

• In the World Trade Organisation (WTO), subsidies in general are identified by “Boxes” which are given the colours of traffic lights: green (permitted), amber (slow down — i.e. be reduced) and red (forbidden). In agriculture, due to its complicated nature, the Agriculture Agreement has Amber Box instead of Red Box.
  
  • Green box: It includes supports considered not to distort trade and therefore permitted with no limits. 
  • Blue box: It includes permitted supports linked to production, but subject to production limits, and therefore minimally trade-distorting. 
  • Amber box: It includes supports considered to distort trade and therefore subject to reduction commitments.
    
    

Therefore, option (1) is the correct answer.

Subject: Economics | Economic Organisations and Conventions