Chapter 10 Laws Governing Access to Foreign Markets

priority foreign country

Each year, the USTR must identify those foreign countries that deny adequate protection to American IPRs. An offending country can be designated either as a __(the worst offenders). If a country is designated as a ___, the USTR must conduct an investigation to decide whether to invoke sanctions.

watch list

Each year, the USTR must identify those foreign countries that deny adequate protection to American IPRs. An offending country can be placed on the __

Japan Industrial Standards Mark

The symbol of an approved product in Japan is the government-authorized. . Its appearance on a product, although voluntary, indicates that the manufacturer has submitted to on-site inspections by the appropriate Japanese ministry and has met accepted standards for quality control, production techniques, and research methods. Because of this mark's wide recognition, foreign products without it are often not competitive in the Japanese market.

consumption abroad

Under GATS, one way of providing an international service: consumers or firms making use of a service in another country (e.g., tourism), officially known as

trade balancing requirements

WTO Agreement on Trade-Related Investment Measures prohibits ___: laws that condition a company's right to import foreign goods on the basis of the volume of goods that company exports.

local content requirements

WTO Agreement on Trade-Related Investment Measures prohibits ___: regulations dictating that a foreign company or other producer must use a certain minimum percentage of locally made parts or components in the manufacture of a product.

Codex Alimentarius

Whenever possible, countries must rely on internationally accepted standards or recommendations for the protection of their plants, animals, and foodstuffs. The most notable are found in the

sanitary and phytosanitary measures

a government rule or regulation that protects or enhances food, animal, or plant safety or quality, including preventing the spread of pathogens and disease.

trade-related investment measure

a national rule or regulation on foreign investment that has a direct or indirect effect on trade in goods. The agreement does not set broad rules for local investing, such as rules affecting domestic stock exchanges. It does attempt to reduce restrictions on foreign investment that might restrict cross-border trade in goods and services.

The WTO Agreement on Government Procurement

requires that countries "free up" their procurement policies and practices by giving foreign firms equal access to bidding on government contracts and by providing transparent and easily obtained rules for submitting bids

procurement offsets

the AGP prohibits a procuring agency from awarding a contract to a foreign firm on the basis of certain conditions, called ___ . Might be a condition that the foreign firm awarded the contract must use local subcontractors, domestically made materials, or local labor; that the firm agree to license its technology to local firms; that the firm make local investments; or that the firm engage in countertrade

unilateralism (in trade relations)

the policy that a nation should retaliate unilaterally against another country that discriminates against its products or firms rather than relying on an established international or multilateral framework for resolving trade disputes

product standards

usually used when referring to a voluntary guideline for product characteristics established by a recognized private or industry organization or association

CE Mark

The EU has attempted to increase its standardization through the __, an internationally recognized symbol for quality and product safety for many different types of products, such as children's toys, gas appliances, machinery, and medical and electrical equipment.

commercial presence

A foreign company setting up subsidiaries or branches to provide services in another country (e.g., foreign banks setting up operations in a country), officially known as

priority watch list

An offending country can be placed on the __

prior certification

In other countries, regulated products need only undergo testing or inspection and certification. The testing lab's certification remains on file with the manufacturer or importer, and no regulatory approval is needed prior to import or domestic sale.

presence of natural persons

Individuals traveling from their own country to supply services in another (e.g., teachers or consultants), officially known as

prior approval

Most countries require some type of testing, inspection, or certification of regulated products. There are two major regulatory approaches: ___ and ___. In ___ countries, regulated products must undergo testing and inspection by an approved laboratory, receive a certification of compliance with technical standards, and then receive prior regulatory approval before sale.

conformity assessments

Nations are encouraged to enter into mutual recognition agreements, whereby they recognize the certifications, or ___, of foreign inspection firms and laboratories approved in the country where the article is manufactured. For example, if a manufacturer ships telephones to several different markets, it would be far cheaper if all countries accepted the certification of an inspection firm in the manufacturer's country that the device conforms to the telecommunications standards in the importing country. This avoids the expense of having to perform multiple tests.

China Compulsory Certification Mark

Products that meet the quality and safety requirements for certification may receive the __. China enforces its product quality standards through compulsory product testing, factory inspections and certifications, and by the accreditation of testing laboratories.

Section 301

Section 301 of the U.S. Trade Act of 1974 has been amended by Congress several times and is still in effect today. The law permits the United States Trade Representative (USTR) to take retaliatory trade action against other countries whose trade policies toward the United States are unreasonable or discriminatory. The purpose of the law is to discourage foreign countries from violating their trade agreements with the United States. If they do, or if they unreasonably restrict access of U.S. goods or services to their markets, they face losing access to the U.S. market.

technical barriers to trade

Technical regulations and standards that apply to imported foreign products, even if they also apply equally to domestic products, are called

General Agreement on Trade in Services (1995)

applies basic GATT principles to service industries for the first time since 1947. This agreement has already opened access to foreign markets in construction, engineering, health care, banking, insurance, securities, transportation, and the professions

design standard

characteristics that govern how a product should be designed

WTO Agreement on Sanitary and Phytosanitary Measures

countries cannot impose restrictions to protect animal and plant life from pests or contagious diseases unless those restrictions are applied fairly and equally to goods from all countries that present a risk of infection. Restrictions must be supported by scientific evidence and be as unrestrictive of trade as possible.

performance standard

describe how products should function; It is usually more cost-effective for a manufacturer to meet foreign __ standards than design standards.

domestic subsidies

distort markets by causing overproduction and suppressing prices while protecting the incomes of farmers. The WTO Agreement on Agriculture prohibits ___, except for research, disease control, environmental protection, and rural development. It also permits cash payments to farmers during emergencies.

WTO Agreement on Technical Barriers to Trade

does not set standards of its own for product performance, design, safety, or efficiency, but it guides nations in the application of their own regulations and standards through legal principles of nondiscrimination, transparency, and MFN trade

trade in services

includes areas such as professional services (law, accounting, architecture, engineering, and others); travel, recreation, and tourism; health care; transportation and distribution; finance, banking, and insurance; computer and data processing services; research and development; business services such as advertising, market research, and consulting; education; environmental engineering and waste management; and telecommunications.

technical regulations

is a law or regulation affecting a product's characteristics—such as its performance, design, construction, chemical composition, materials, packaging, or labeling—that must be met before a product can be imported or sold in a country

agricultural export subsidies

payments or other benefits given to farmers that directly encourage, or are conditional upon, the export of food or agricultural products. Government subsidized food exports that are part of a foreign aid program to needy countries are not considered illegal subsidies under the agreement.

trade-related aspects of intellectual property rights

refers to government rules or regulations on IPRs that have a direct or indirect effect on trade in goods; Because intellectual property rights (IPRs) are not "goods," they did not fall within the bounds of the 1947 GATT agreement/ Members are bringing their laws into compliance with

transparency

refers to the ability of the public, particularly foreign firms, to have open access to government rules or private standards that are published and made readily available to foreign firms. If a technical regulation is made known only to domestic firms, then it indirectly becomes a technical barrier to foreign firms who are unable to comply