Subsidy Boxes of WTO

• The World Trade Organization (WTO) compares the “boxes” it uses for classifying trade subsidies to traffic lights when it comes to agricultural trade and commodity subsidies.

Different Box Subsidies

Green Box Subsidies

• Green Box Subsidies don’t distort free trade or distort the free trade at a very minimal or negligible level.
• Example of these Subsidies are publicly funded government programmes including expenditure on agriculture research and development, agricultural training, subsidies under environmental programmes etc.
• Green box subsidies are non–price supportive thus are exempted from the calculation of Aggregate Market Support (AMS).

Blue Box Subsidies

• Blue box subsidies are direct ....