Development Box
Also called: Special and differential treatment box, S&D Box · Topic: International Trade Policy, WTO and Intellectual Property · NCERT: Beyond NCERT
Meaning
The Development Box is an exemption in Article 6.2 of the WTO Agreement on Agriculture (AoA). Developing countries can give investment subsidies, and input subsidies to low-income or resource-poor farmers, without counting them against their farm-support limits. It protects the policy space of poor farm economies.
Example
Much of India's support for fertiliser, power and irrigation is sheltered in the Development Box. Over 99% of Indian farmers count as low-income or resource-poor, so this support is exempt.
Don't confuse with
- Green Box: this covers support that distorts trade very little or not at all, such as research or decoupled income support, and it is open to all countries. The Development Box covers support that could distort trade, but it is exempt only for developing countries.
- Amber Box: this covers support that distorts trade and is subject to limits (de minimis of 10% of production value for developing countries).
Related concepts
- Amber Box
- Aggregate measurement of support
- De minimis
- Blue Box
- Green Box
- Public stockholding for food security
- External reference price
- Peace clause
- Special safeguard mechanism