LEGL4900 Exam 2 terms
Congressional-executive agreements
International agreements between the president, representing the United States, and a foreign country, negotiated and concluded by the president and voted into law by a simple majority vote of both the Senate and the House of Representatives
Equal dignity rule
Rule stating that statutes and treaties are both of equal importance in state and federal governments
Factors of production
Land, labor, and capital; the three groups of resources that are used to make all goods and services
Anti-circumvention
Laws and penalties intended to discourage circumvention
provisional safeguards
Safeguards put into place under critical circumstances that could cause irreparable harm to a domestic industry
Trade-Related Aspects of Intellectual Property Rights (TRIPS)
Sets new, comprehensive standards for the production of IPRs in all member countries of the WTO
Anti-dumping duty (AD)
Special import tariffs assessed in addition to normal tariffs imposed for the purpose of offsetting the unfairly low price of dumped goods
Trade Promotion Authority
Special procedures meant to speed up the regular process when Congress considers trade agreements. These special procedures limit debate and prohibit amendments.
performance standards
Standards that describe how products should function (typical in the US)
Prohibited subsidies
Subsidies that are impermissible and banned under all conditions
Treaty power
The authority of the United States to enter treaties pursuant to Article II of the Constitution
Dumping margin
The difference between the normal value and the export price
Transparency
The extent to which government regulations (including customs and import procedures, as well as technical regulations, product standards, and others) are made readily available to the public, including foreign firms
trade consultations
The first way that countries go about solving a dispute of nullification or impairment
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
Market Disruption
The result of increased imports of foreign goods might include decreased sales volume, price suppression, lower profitability, lower wages, and other economic consequences to domestic firms
Dumping
The selling of products in a foreign country for less than the price changed for like or comparable products in the exporter's or producer's home market; it is an unfair trade practice
Japan industry standards mark
The symbol of an approved product in Japan
normal trade relations
Trade status granted as part of an international trade policy that gives a nation the same favorable trade concessions and tariffs that the best trading partners receive.
most-favored nation (MFN) trading status
Trading status agreeing to accord items imported from that country the lowest tariff rates that it gives to like products imported from other countries with this status
Free Trade Area
Two or more countries that are party to a free trade agreement that reduces or eliminates tariffs on goods, removes trade barriers, and usually addresses other common concerns affecting trade between them
Trade-Related Investment Measures (TRIMs)
WTO agreement on trade measures governments can impose on foreign firms
Least restrictive trade
WTO member countries, in setting otherwise valid restrictions on trade, shall make them no more onerous than necessary to achieve the goals for which they were imposed
(BOP) balance of payments
When a nation's outflow of foreign exchange exceeds receipts
procurement offsets
When a procuring agency awards a contract to a foreign firm on the basis for certain conditions (prohibited under AGP)
Reciprocal trade
When one country agrees to lower its tariffs on a certain product if the other country agrees to do the same
Prior approval
When regulated products must undergo testing and inspection by an approved laboratory, receive a certification or compliance with technical standards, and then receive prior regulatory approval before sale
prior certification
When 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
Less than fair value
When the export price of a product sold in the United States is less than the normal value of a foreign like or similar product sold for consumption in the exporter's or producer's home country
Zero quota
a complete ban on the import of a product
Negative determination
a decision by the agency either to not initiate an investigation or that a material injury does not exist
commercial presence
a foreign company setting up subsidiaries or branches to provide services in another country
Customs union
a free trade area with a common external tariff
import substitution subsidy
a government subsidy whose payment is contingent on its recipient using or purchasing domestically made goods over imported goods
Trade Preference
a law that grants favorable trade and tariff treatment to products coming from developing countries, and is intended to aid in their economic development
Trade preference
a law that grants favorable trade and tariff treatment to products coming from developing countries, and is intended to aid in their economic development
Trade barrier
a means of preventing a foreign product or service from freely entering a nation's territory
Countervailing duty
a special tariff levied in addition to the normal tariff imposed on imports of subsidized goods for the purpose of offsetting the subsidy
Presidential memorandum
a statement less formal than an executive order that often states in its text that it does not create enforceable legal rights; it is often used to give guidance or delegate routine presidential functions to lower government officials
Upstream subsidy
a subsidy bestowed on raw materials or component parts ("inputs") for use in an exported product
Export subsidy
a subsidy made available to domestic firms upon the export of their products or made contingent on export performance (prohibited)
Ad Valorem Tariff
a tariff levied as a proportion of the value of an imported good
indirect non-tariff barriers
A barrier that may look neutral and nondiscriminatory at face value, but discriminates against foreign-made products or firms
Direct non-tariff barriers
A barrier that specifically limits imports of goods or services or denies access of foreign firms to local markets
conformity assessment
A certification given by a foreign inspection firm in the country where an article is manufactured
Codex Alimentarius
A collection of internationally recognized standards, codes of practice, guidelines, and other recommendations relating to foods, food production, and food safety. "Food code" for the protection of the world's food supply; if a country's national standards are in line with this code, then are are compliant with the SPS Agreement
surrogate market economy country
A country that is at a level of economic development comparable to that of the NME country and that is a significant producer of comparable merchandise
non-market economy country
A country whose political and economic systems are rooted in the socialist principles of a state-controlled economy
tariff schedule
A country's bound rates for product-by-product listings that are published by the WTO
Common market
A customs union that also removes restrictions on the free movement of money, labor, and factors of production
Adjustment to imports
A decision that can be made at the president's discretion if it will help the domestic industry make a positive adjustment to import competition and if it will provide greater economic and social benefits than costs
Subsidy
A financial contribution, including any form of income or price support, made by a government that confers a benefit on a specific domestic enterprise or industry
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
Quota
A limit placed on the quantities of a product that can be imported
Priority watch list
A list created by the USTR that helps US IPR negotiations and helps US companies identify countries where their IPRs might be in jeopardy
Watch list
A list of risks that have low priority but are still identified as potential risks
Special Drawing Right (SDR)
A world currency created by the International Monetary Fund (IMF) to replace gold as a world standard. Valued by a "basket" of national currencies, the SDR has been called "paper gold."
Market access agreements
Agreements that provide exports of goods and services with market access to foreign countries
Unconditional MFN (most-favored-nation) trade
Any new tariff that applies to an item imported from one MFN trading partner automatically applies to the same or like items imported from all other nations that are in MFN status with the importing country, without any concession being required from those nations in return
Conditional MFN (most-favored-nation) trade
Any trading advantage (such as a reduced tariff rate) applied to an item imported into a country will also be applied to the same or like items coming from any other country that has MFN status with the importing country, provided that country reciprocates and lowers its tariff rates in an equivalent amount in return
Domestic Subsidies
Government payments to domestic businesses (farmers) to help reduce production costs and improve competitiveness. It distorts markets by causing overproduction and suppressing prices while protecting the incomes of farmers
modify or withdraw a concession
If a country wants to raise its bound rate on an item. It must negotiate directly with the countries most affected (countries which are the major suppliers or that item) and by agreement reduce or offset tariffs on other items equal to an equivalent amount in trade
water's edge election
In 1986 California instituted this election allowing "multinational" corporate taxpayers the option of excluding the income of related entities that are incorporated in a foreign country or that earn a majority of their income in a foreign country
Foreign like product
Merchandise produced in the same country and by the same person as the allegedly dumped merchandise, or of the same component materials, or of the same general class or kind of merchandise as that dumped in the United States
negotiating rounds
Negotiating sessions under GATT organizations
consumption abroad
consumers or firms making use of a service in another country
beneficiary developing country
developing countries eligible for preferential treatment under US GSP legislation
tariff concession
each country's promise to reduce tariffs on imports of a given item in return for tariff concessions from other countries
Safeguards against injury
emergency remedies provided by law, usually tariffs, used to protect a domestic industry from injury resulting from increased imports of a like or competing products
Global quota
imposed by an importing nation on a particular product regardless of its country of origin
Global tariff
imposed on a particular classification of goods without regard to the country of origin of the goods
presence of natural persons
individuals traveling from their own country to supply services in another
material injury
injury that is not inconsequential, immaterial, or unimportant
Technical Regulation
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
Trade balancing requirements
laws that condition a company's right to import foreign goods on the basis of the volume of goods that company exports (prohibited under TRIMS)
Bound rate
maximum tariff rate a country may charge on an item, although tariff rates may be reduced below the bound rate
Allocated quota
one in which the total limit is "allocated" (spread out) among several specific countries
Escape clause
permits a country to temporarily escape or be relieved from its tariff concessions under certain conditions
Import relief
positive adjustment to import competition
Export price
price at which a product is sold to an unaffiliated or unrelated buyer in the importing country (US), exclusive of shipping and insurance charges
Auctioned quota
quota rights are sold to the highest bidder by a country
Local content requirements
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 (prohibited under TRIMS)
Global safeguards
safeguard measures placed on imports of specific products without discrimination as to their countries of origin
Actionable subsidies (also called adverse effects subsidies)
subsidies that are not automatically prohibited, but may still be actionable because of their harmful effect
technical barriers to trade
technical regulations and standards that apply to imported foreign products, even if they also apply equally to domestic products
trade compensation
the act of lowering import duties on certain products coming from a foreign country for the purpose of offsetting increased duties imposed on other products from that country
Normal value
the price at which a foreign like product is sold for consumption in the producing or exporting country in usual commercial quantities and in the ordinary course of business and at the same level of trade as the dumped product
Tariffication
the process by which a country agrees to "convert" its quotas, import licenses, and other non-tariff barriers on specific items to tariffs
Privatization
the process by which a government sells or transfers government-owned industries or other assets to the private sector
trade liberalization
the process of reducing tariffs and removing artificial barriers and restrictions to trade
Trade in services
the providing of services to a customer or the operation of service companies in a foreign country
government procurement
the purchase of goods and services by government agencies at all levels
multiple taxation
the same service or property is subjected to the same or a similar tax by the governmental authorities of more than one nation.
Sole executive international agreement
A presidential agreement negotiated and put into effect without congressional approval
Domestic like product
A product which is like or most similar in characteristics and uses with, the article subject to an investigation
Competitive need limitation
A quantity limit on the imports that beneficiary developing countries are allowed to send to the US
Absolute quota
A quota that strictly prohibits imports of items above a predetermined limit, based either on the value or quantity of specific goods, or as a percentage of the domestic market for that item
schedule of concessions
A record of a country's tariff bindings at the WTO
Presidential proclamation
A statement or declaration issued by the president usually addressed to the general public announcing a finding or commemorating event
Specific Subsidy
A subsidy given to a select company or limited number of companies, to a select industry or group of industries, or to firms in a select geographical region of a country
Flat (or specific) tariff
A tariff computed on the basis of physical units
Tariff-rate quota
A tariff rate that increases according to the quantity of goods imported
Tariff
A tax on imported goods by the country of importation
Multilateral trade agreement
A trade agreement to lower trade barriers between many countries.
Free Trade Agreement
A trade agreement with broader coverage that establishes a "free trade area" in which special tariff and customs provisions govern the flow of trade between the participating countries
Products standard
A voluntary guideline for product characteristic established by a recognized private or industry organization or association
market-oriented industry
An industry in which resources and labor costs are procured at fee-market prices, where there is little government involvement in controlling production and capacity decisions, where prices are set by markets, and where the producers are mostly privately owned
Executive order
An official, legally binding regulation or written directive issued by the president, usually addressed to government officials, departments, or agencies, and used to set policy and direct government operations
Import trade barrier
Any impediment, direct or indirect, to the entrance or sale of imported goods or services existing in the country of importation
CE Mark (Quality Symbol) Communauté Européenne
CE Marking is now mandatory for most products on sale in the EU awarded by the NSAI
Commerce Clause
Constitutional clause giving the federal government exclusive control over foreign commerce
Import-Export Clause
Constitutional clause prohibiting states from taxing both imports and exports
Supremacy Clause
Constitutional clause under which a state statute may be rendered invalid when there is an existing federal law
priority foreign country
Countries that continue to deny adequate protection to American IPRs
Agricultural export subsidies
Payments or other benefits given to farmers that directly encourage, or are conditional upon, the export of food or agricultural products
Inherent powers
Powers that are expressly granted to the president in Article II of the Constitution
emergency powers
Presidential powers that can be exercised during international emergencies, typically those that threaten American national security
Constructed value
Price of the dumped product compared to the cost of producing the product in the exporting country plus a reasonable amount for selling, packaging, administration, and other costs and for a reasonable profit
Nondiscrimination
Principle that goods produced by all member states should receive equal treatment, as embodied in the ideas of most favored nation (MFN) and national treatment.
China Compulsory Certification Mark
Products that meet the quality and safety requirements for certification may receive it; China will not accept imports of covered products without the mark
Federal Preemption
That idea that federal law generally prevails over state or local law
Tariff binding
agreed tariff rates that solidified and capped at that rate
trade agreement
agreement by a group of countries to promote trade among them
unitary business
an affiliated or related group of companies under common control
Tariff concession
an agreement to reduce a tariff to a specified level
market-oriented exporter
an exporting firm in an NME country that is not under government control and that does business on competitive terms
Circumvention
any attempt by an exporter or importer to unlawfully or deceptively evade import restrictions or duties, including AD/CVD duties
non-tariff barrier
any barrier to trade, other than a tariff, that has the effect of prohibiting or discouraging imports
Trade Adjustment Assistance
cash benefits or retraining programs for workers displaced by trade
Design Standards
characteristics that govern how a product should be designed (typically in Japan)
unfair trade practices
trading practices that derive a gain at the expense of competition
nullification or impairment
when one WTO member nation acts contrary to its commitments in a GATT/WTO agreement, such as raising a tariff above the bound rate or imposing an unjustified quota on imports. Other countries can file a complaint to the WTO claiming this happened to their rights
