As of 5 November 2026, consider the following statements under the WTO Agreement on Agriculture.…
The assertion is false, while the reason is true. Qualifying Blue Box payments are linked to production-limiting programmes and are exempt from reduction commitments under…
Choose your answer
As of 5 November 2026, consider the following statements under the WTO Agreement on Agriculture.
Assertion (A) : Blue Box subsidies are often described as the "Amber Box with conditions" and are subject to strict reduction commitments under the WTO Agreement on Agriculture.
Reason (R) : Blue Box subsidies are payments linked to production-limiting programs, designed to reduce agricultural surplus while compensating farmers.
Select the most appropriate option :
Answer and explanation
Correct answer D
The assertion is false, while the reason is true. Qualifying Blue Box payments are linked to production-limiting programmes and are exempt from reduction commitments under the Agreement on Agriculture. Describing them as subject to strict reduction commitments is therefore incorrect.
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Himachal Pradesh SET (HP SET)