Consider the following statements regarding WTO Subsidies Boxes 1 Blue box is also known as producti...........

Economic Affairs World Trade Organsiation (WTO)

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Consider the following statements regarding WTO Subsidies Boxes:

1.Blue box is also known as production-neutral box.

2.Green box subsidies cover payment directly linked to acreage or animal numbers.

Which of the statements given above is/are correct?

1 only

2 only

Both 1 and 2

Neither 1 nor 2

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Explanation:

Neither 1 nor 2

"Blue box is also known as a production-neutral box." - This statement is incorrect. The Blue Box in the context of World Trade Organization (WTO) subsidies is not known as a production-neutral box. The Blue Box includes subsidies that are subject to production limits but are considered less trade-distorting than Amber Box subsidies.

"Green box subsidies cover payment directly linked to acreage or animal numbers." - This statement is incorrect. Green box subsidies are not linked to production levels. They are considered non-trade-distorting and include measures such as environmental protection programs and direct income support that do not require production.

Therefore, the correct option is 4, "Neither 1 nor 2."

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