As a part of WTO guidelines the Agreement on Agriculture (AOA) doesn’t consider:

CA Foundation · Business Economics · MTP · May 2026
As a part of WTO guidelines the Agreement on Agriculture (AOA) doesn’t consider:
(A) A. Direct payments to farmers are permitted.
(B) B. Indirect assistance and support to farmers including R & D support by govt. are not permitted.
(C) C. Domestic policies which directly affect production and trade must be cut back.
(D) D. Least developed countries do not need to make any cuts.

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. Indirect assistance and support to farmers including R & D support by govt. are not permitted.

Topics: International Trade

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