Chapter 14 and 15
qualified majority voting
required 55% of member states representing at least 65% of the total EU population to approve a proposal
certificate of origin (CO)
required for all shipments moving among the United States, Canada, and Mexico; certifies that the goods quality as having originated in North America for purposes of preferential tariff treatment under NAFTA
substantial transformation test
used to determine the country of origin of goods imported into the US when the goods are produced or assembled in more than one country
tariff shift rule
The Annex 401 rules of origin may be based on a change in tariff classification, a regional value-content requirement, or both, depending on the requirements for that particular product
NAFTA arbitral panel
consists of 5 members who are experts in trade or law
four freedoms
free movement of goods, services, capital , and people in the common market
customs union
free trade in all goods that come through any of the union members, even imports from outside the group
EU regulation
general application and is binding in its entirety and directly applicable in all member states; these take effect immediately in the states and circumvent the need to pass legislation on the national level
European Union
international organization of European countries formed by the Maastricht Agreement/ Treaty on European Union
Generalized System of Preferences (GSP)
preferential treatment and low/ no tariffs given to selected products imported from any qualified developing country
maquiladora
production-sharing plants (also known as border plants or offshore assembly plants) along the Mexico-US border
acquis communautaire
that which has been agreed upon by the community
Common agricultural policy (CAP)
EU policy; its goals are stated in article 39 of the treat of Rome and are: to inc agricultural productivity, ensure a fair standard of living for the agricultural community, stabilize markets, guarantee regular supplies, and ensure reasonable prices to consumers
national treatment principle
NAFTA principle that states that once goods arrive from another NAFTA country, they must be treated without discrimination and no differently than domestically made goods
common market
also called an economic community; seeks to further facilitate free competition within a group of nations by protecting rights of all enterprises and person within the area to do business, invest capital, and sell their services anywhere in this area without discrimination on the basis of national origin
NAFTA binational panels
appeals from administrative orders in NAFTA cases go here; apply the same standard of review as a court of law; decision process is controversial because private businesses will be bound by the decision of the panel with no recourse to judicial review
EU directive
binding as to the result to be achieved on each member state to which it is addressed but leaves to national authorities the choice of form and method; require members to bring laws into harmony with the standard stated within a given time period that is most often 3 years
decision
binding in its entirety on the member state or individual to whom it is addressed; commonly used with respect to proposed merges and agriculture matters
European Central Bank
created to integrate the free flow of capital; central mission is to "promote price stability" and to "define and implement the monetary policy of the euro zone, conduct foreign exchange operations, issue notes, and promote the smooth operation of payment systems"
Free Trade Area (FTA)
develops when two or more countries agree to eliminate or phase out customs duties and other barriers to trade among member countries; free trade only in goods produced within the group
customs user fees
fees imposed on importers to help fund the cost of customs enforcement and port services
production sharing
the process of spreading manufacturing and assembly operations across international borders
regional value content
value can be calculated either by transaction value or net cost method