2016 GS Paper I, all questions

UPSC Prelims 2016 · GS Paper I

Question 11: Economy and Social Development

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

aWTO affairs
bSAARC affairs
cUNFCCC affairs
dIndia-EU negotiations on FTA

AnswerUPSC’s answer is (a).

In the WTO's Agreement on Agriculture, domestic farm subsidies are sorted by colour. Amber box subsidies distort trade and are subject to reduction commitments; blue box subsidies are tied to production-limiting programmes; green box subsidies, such as research, extension and environmental payments, cause little or no distortion and are exempt. The colour boxes belong to WTO subsidy rules, not SAARC, UNFCCC or India-EU FTA talks.

Why each option is right or wrong
  • (a) Right: amber, blue and green boxes classify farm subsidies at the WTO.
  • (b) SAARC has no such subsidy classification.
  • (c) UNFCCC deals with climate, not subsidy boxes.
  • (d) India-EU FTA talks do not use these terms.

Answer: UPSC’s key. Explanation: written by UPSC Grade, not by UPSC.

Source: UPSC, Civil Services (Preliminary) Examination 2016, General Studies Paper I, Series A. The paper on upsc.gov.in.