Amber box

Amber Box is a term used in the context of international trade, specifically in relation to the World Trade Organization (WTO). It refers to domestic support measures considered to distort trade and therefore subject to reduction commitments. The term is derived from the color-coding system used in the Uruguay Round of WTO negotiations.

Overview

The Amber Box is one of three "boxes" of domestic support in agriculture defined by the WTO's Agreement on Agriculture. The other two are the Green Box and the Blue Box. The Amber Box includes all domestic supports that are considered to distort production and trade. These supports are subject to reduction commitments by WTO members.

Reduction Commitments

Under the Agreement on Agriculture, WTO members agreed to reduce their Amber Box supports. Developed countries committed to reduce these supports by 20% over six years starting in 1995. Developing countries agreed to a reduction of 13% over 10 years. Least-developed countries are not required to make any reductions.

Measurement

The level of Amber Box support is measured in terms of the Aggregate Measurement of Support (AMS). The AMS includes all supports that have the effect of providing a price incentive to producers, or that directly support production quantities.

Criticism and Controversy

Critics argue that Amber Box supports lead to overproduction and dumping, harming farmers in developing countries. There is ongoing debate within the WTO and among its members about the future of these supports.

See Also

• Green Box
• Blue Box
• World Trade Organization
• Agreement on Agriculture
• Uruguay Round