economics medium True/False

Under the WTO's Agreement on Agriculture (AoA), 'Amber Box' subsidies are considered minimally trade-distorting and are therefore permitted without any quantitative limits.

  1. True
  2. False

Answer: False

The WTO categorizes agricultural subsidies into colored boxes. 'Amber Box' subsidies (like Minimum Support Price linked to production) are considered highly trade-distorting and are subject to strict reduction commitments and limits (the 'de minimis' ceiling). It is the 'Green Box' subsidies (like general research or decoupled income support) that are permitted without limits.

Topic International Economics - WTO
Exam Relevance UPSC Prelims, SSC CGL
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