Answer the question in maximum 15 to 20 words. This question carries 03 marks. [MPPSC 2019]
What is Green Box Subsidy?
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A Green Box Subsidy refers to government support for agricultural activities that do not distort trade. Under WTO rules, these subsidies are considered non-trade distorting because they aim to promote public welfare, such as environmental protection or rural development. Examples include subsidies for farm modernization or research and development. These subsidies are exempt from WTO reduction commitments.