Consider the following pairs Type of subsidy under WTO Stated purpose 1 Green Box Production limitin...........

Economic Affairs World Trade Organsiation (WTO)

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Consider the following pairs: Type of subsidy under WTO Stated purpose

1. Green Box : Production limiting subsidies

2. Amber Box : Trade distorting subsidies and need to be curbed

3. Blue Box : Not specific subsidies and are non-actionable

Which of the above is/are correctly matched?

1 and 3 only

2 only

2 and 3 only

1 and 2 only

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Explanation:

Agreement on Subsidies and Countervailing Measures under WTO classifies subsidies as follows:
(a) Green: Subsidies which are no or least market distorting includes measures decoupled from output
such as income-support payments, etc.
(b) Amber: Those subsidies which are trade distorting and need to be curbed and actionable by trading
partners.
(c) Blue Box: Only "Production limiting Subsidies" under this are allowed. They cover payments based on
acreage, yield, or number of livestock in a base year.