BLW 547 Chapter 11

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

upstream subsidy

a subsidy bestowed on raw materials or component parts ("inputs") that are used in an exported product

export subsidy

a subsidy made available to domestic firms upon the export of their product or made contingent on export performance

specific subsidy

a subsidy that is 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

prohibited subsidy

a subsidy that is impermissible per se and banned under all conditions

adverse effects subsidy

a subsidy that is not automatically prohibited but may still be "actionable" under WTO rules because of its harmful effect; also called an "actionable subsidy"

like products

directly competitive products

actionable subsidy

a subsidy that is not automatically prohibited but may still be "actionable" under WTO rules because of its harmful effect; also called an "adverse effects" subsidy

market-oriented exporter

an exporting firm in an non-market economy (NME) country that is not under government control and that does business on competitive terms

market-oriented industry

an industry in which resources and labor costs are procured at free-market prices in an environment 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

material injury

an injury that is "not inconsequential, immaterial, or unimportant"

escape clause

a clause in GATT (1947) that permits a country to temporarily "escape" from its tariff concessions or from other trade agreement obligations under certain conditions.

import competition

a condition that exists when producers of domestic goods compete with producers of imported goods largely due to lower employee costs, fewer government restrictions, and/or greater production efficiencies of the foreign firms

trade compensation

a country imposing a safeguard compensates a supplying nation for the burden the safeguard measure has imposed on it

non-market economy (NME)

a country whose political and economic system relies heavily on government central control, rather than on free-market forces

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

import substitution subsidy

a government subsidy whose payment is contingent on its recipient using or purchasing domestically made goods over imported goods

safeguards against injury

a legal action taken by a country takes to protect a domestic industry by granting import relief or adjusting imports

antidumping laws

national laws that define dumping and that set out the administrative procedures and remedies available in dumping cases

trade adjustment assistance

the cash benefits, tax credits, or vouchers that are available to workers to cover the expenses of a job search, retraining and relocation, and health insurance coverage

market viability

the condition that exists if the exporting country's home market has sufficient sales to warrant using its normal price as a price comparison

dumping margin

the export price is less than the normal value of the product in the home market

market disruption

the increased importation of an article so that it causes material injury, or a threat of material injury, to a domestic industry

import relief

the measures taken by the government of the domestic country in order to protect its producers and to provide greater economic and social benefits than costs

normal value

the price at which a good is first sold for consumption in the exporting or producing country

export price

the price of the good when sold in or for export to another country

global safeguards

the safeguards applicable to WTO member countries

unfair trade

The use of exporting tactics for the purpose of increasing market share while driving out competition for its goods in the importing country

dumping

the unfair trade practice of selling products in a foreign country for less than the price charged for the same or comparable goods in the producer's home market

surrogate normal value

the value of the factors of production — including materials, labor, energy, capital costs and depreciation, packaging, and other general expenses — in a market economy country whose level of economic development is comparable to that of the non-market economy (NME) country and who is a significant producer of comparable merchandise