WTO Subsidy Classification: Amber Box Explained
The World Trade Organization (WTO) classifies domestic support measures that potentially distort production and trade into different categories, known as "boxes".
According to Article 6 of the Agriculture Agreement, domestic support measures that are considered to distort production and trade fall into the Amber Box.
- These are subsidies that directly impact price or quantity produced, leading to trade distortion.
- Members are required to reduce trade-distorting domestic support within specific limits.
The term "Amber Box" is used in WTO terminology to identify these specific types of subsidies. Other options like "Jumbo Box" or "Greenfield Box" are not standard WTO classifications for subsidies. "Black Box" generally refers to something opaque or unknown, not a specific subsidy category.
Therefore, domestic support measures considered to distort production and trade, as defined in Article 6 of the Agriculture Agreement, fall into the Amber Box.
Important Questions from World Trade Organization
- Arrange chronologically the following negotiations of GATT between 1947 to 1994 which led to the formation of WTO?
A. Annecy
B. Kennedy Round
C. Tokyo
D. Torquay
Choose the correct answer from the options given below: - Which of the following modes of the General Agreement on Trade in Services (GATS) mandates 'Commercial presence'?
- Which of the following statements are correct in reference to the WTO?
A. Agreement on Agriculture has provisions for the domestic support commitment
B. Doha Development Round commenced in 1995
C. Issue of patenting is covered under Trade - Related Investment Measures (TRIMs)
D. G-20 emerged in response to the Cancun agenda in 2003
Choose the most appropriate answer from the options given below : - Arrange the following rounds for multilateral trade negotiations under GATT/WTO in a chronological order.
A. Kennedy
B. Doha
C. Annecy
D. Torquay
E. Tokyo
Chose the correct answer from the option given below: - Consider the following statements :
(a) India's Trade Policy Review (TPR) is carried out every four years.
(b) WTO has a mechanism for regular review of the trade policies of member countries.
Which of the statement/s given above is/are correct ?
