LEGL4900 - Roessing - Exam 2 (Terminology)

Antidumping duties

Special import tariffs assessed in addition to normal tariffs imposed for the purpose of offsetting the unfairly low price of dumped goods

Technical barriers to trade

Standards that apply to imported foreign products, even if they also apply equally to domestic products

Performance standards

Standards that describe how products should function (typical in the US)

Prohibited subsidies

Subsidies that are impermissible and banned under all conditions

Actionable subsidies (also called adverse effects subsidies)

Subsidies that are not automatically prohibited, but may still be actionable because of their harmful effect

Trade remedies

Temporary tariffs or emergency measures to help disaffected US industries and workers adjust to the increased imports resulting from freer trade

Federal preemption

That idea that federal law generally prevails over state or local law

SDR

The International Monetary Fund's international "reserve asset" with a value pegged to the value of a "basket" of five major currencies

WTO-DSB

The WTO's binding dispute resolution body that rules if countries can not reach an agreement in trade consultation

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

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 consultation

The first way that countries go about solving a dispute of nulification or impairment

Bound rate

The maximum tariff rate a country may charge on an item

GSP (Generalized System of Preferences)

The most well-known trade preference in the US that allows imports for developing countries to enter the US at reduced rates of duty or duty-free

Unilateralism

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

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

Export price

The price at which a product is sold to an unaffiliated or unrelated buyer in the United States, exclusive of shipping and insurance charges

Constructed value

The price of a 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

Section 301 (of the Trade Act of 1974)

The primary statute that permits the USTR (United States Trade Representative), on the direction of the president, to take retaliatory trade action against other countries whose acts or trade policies toward the US (or its companies or products) are unreasonable or discriminatory, or in violation of a trade agreement

Privatization

The process by which a government sells or transfers government-owned industries or other assets to the private sector

Tariffication

The process of converting nontariff barriers to tariffs

Trade liberalization

The process of reducing tariffs and removing artificial barriers and restrictions on trade

Government procurement

The purchase of goods and services by government agencies at all levels

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

MFN

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

ANSI (American National Standards Institute)

US organization that maintains an online "standards portal" that gives firms access to English translations of standards and technical regulations in China, India, and Korea, as well as various US standards in English, Mandarin Chinese, and Korean

AGOA (Africa Growth and Opportunity Act)

US trade preferences act that aids in the economic growth and the establishment of political freedom in 48 poor countries in sub-Saharan Africa where the per capita annual income averages about $500 per year

Nulification (or impairment)

When a WTO country raises tariffs beyond the bound rate, other countries can file a complaint to the WTO claiming this happened to their rights

Commercial presence

When a foreign company sets up subsidiaries or branches to provide services in another country

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)

Consumption abroad

When consumers or firms make use of a service in another country

Presence of natural persons

When individuals travel from their own country to supply services in another

Equivalence

When nations agree to accept foreign standards that are functionally equivalent to their own

Harmonization

When nations attempt to bring their standards and technical regulations into harmony with internationally accepted standards

Mutual recognition

When nations recognize the certifications, or conformity assessments, of foreign inspection firms and laboratories approved in the country where the article is manufactured

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

Multiple taxation

When the same service or property is subjected to the same or similar tax by the governmental authorities of more than one nation

Codex Alimentarius

"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

Indirect nontariff barrer

A barrier that may look neutral and nondiscriminatory at face value, but discriminates against foreign-made products or firms

Direct nontariff barrier

A barrier that specifically limits imports of goods or services or denies access of foreign firms to local markets

Farm Bill

A bill establishing US agricultural and food policies, programs, and funding for that period (redone every 5 years)

Conformity assessments

A certification given by a foreign inspection firm in the country where an article is manufactured

Zero quota

A complete ban on the import of a product

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

NME (non-market economy country)

A country whose political and economic systems are rooted in the socialist principles of a state-controlled economy

Tariff schedules

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

Negative determination

A decision by the agency either to not initiate an investigation or that a material injury does not exist

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

Customs union

A free trade area with a common external tariff

Sanitary and phytosanitary measure

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

Technical regulation

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

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

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

ISO (International Organization for Standardization)

A nongovernmental organization comprising the national standards institutes of 163 countries

CBERA (Caribben Basis Economic Recovery Act)

A part of the CBI with several special programs allowing duty-free imports of textiles and other products from impoverished Haiti

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

Quota

A quantitative restriction on imports

Competitive need limitation

A quantity limit on the imports that beneficiary developing countries are allowed to send to the US

Global quota

A quota imposed by an importing nation on a particular product regardless of its country of origin

Allocated quota

A quota in which the total limit is spread out among several specific countries

Auctioned quota

A quota that is sold by a country through bidding

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

Countervailing duty (CVD 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

Presidential proclamation

A statement or declaration of the president usually addressed to the general public announcing a finding or commemorating an event

Upstream subsidy

A subsidy bestowed on raw materials or component parts ("inputs") for use in an exported product

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

Export subsidy

A subsidy made available to domestic firms upon the export of their products or made contingent on export performance (prohibited)

Import substitution subsidy

A subsidy whose payment is contingent on its recipient using or purchasing domestically made goods over imported goods (prohibited)

Flat (or specific) tariff

A tariff computed on the basis of physical units

Global tariff

A tariff imposed on a particular classification of goods without regard to the country of origin on the goods

Tariff-rate quota

A tariff rate that increases according to the quantity of goods imported

Tariff

A tax levied on goods by the country of importation

FTA (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

Product standard

A voluntary guideline for product characteristic established by a recognized private or industry organization or association

US Buy American Act

Act requiring federal agencies to purchase goods of US origin rather than foreign-made goods

Trade Expansion Act of 1962

Act that authorized the negotiation of across-the-board tariff reductions through multilateral trade negotiations instead of using the tedious product-by-product system set up in 1934

Reciprocal Trade Agreements Act of 1934

Act that gave the president the authority needed to lower tariffs

Smoot-Hawley Tariff Act of 1930 (Tariff Act of 193)

Act that raised tariffs on imported goods to historic highs at the start of the Great Depression

Tariff bindings

Agreed tariffs rates that solidified and capped at that rate

GATS (WTO General Agreement on Trade in Services)

Agreement establishing rules for international trade in services

AGP (WTO Agreement on Government Procurement)

Agreement governing most large-scale government procurement

TBT Agreement (WTO Agreements on Technical Barriers to Trade)

Agreement governing the use of technical regulations, product standards, testing, and certifications by WTO member countries; it is binding on all WTO member countries

Market access agreements

Agreements that provide exports of goods and services with market access to foreign countries

Import surcharge

An action that could theoretically be taken by the president in a balance-of-payments emergency to impose a temporary surcharge on imports up to 15% of the value of the goods or temporary quotas

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 a 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 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

Circumvention

Any attempt by an exporter or importer to unlawfully or deceptively evade import restrictions or duties, including AD/CVD duties

Nontariff barrier

Any barrier to trade, other than a tariff, that has the effect of prohibiting or discouraging imports

Trade barrier

Any impediment to trade in goods or services

Import trade barrier

Any impediment, direct or indirect, to the entrance or sale of imported goods or services existing in the country of importation

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

Design standards

Characteristics that govern how a product should be designed (typical in Japan)

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 governing some aspect of foreign commerce

Priority foreign countries

Countries that continue to deny adequate protection to American IPRs

Beneficiary developing countries

Developing countries that have tariffs waived under the GSP

Common Agricultural Policy

EU policy on agricultural products

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 product

TAA (Trade Adjustment Assistance)

Federal financial assistance for workers who become unemployed as a result of increased imports on foreign goods

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

Anti-circumvention

Laws and penalties intended to discourage circumvention

Trade balancing requirements

Laws that condition a company's right to import foreign goods on the basis of a volume of goods that company exports (prohibited under TRIMS)

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

Agricultural export subsidies

Payments or other benefits given to farmers that directly encourage, or are conditional upon, the export of food or agricultural products

Domestic subsidies

Payments to farmers that distort markets by causing overproduction and suppressing prices while protecting the incomes of farmers

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

Principle of least restrictive trade

Principle stating that 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

Nondiscrimination

Principle that every WTO member country must treat the goods and services of all other WTO member countries equally and without discrimination

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)

Equal dignity rule

Rule stating that statutes and treaties are both of equal importance in state and federal governments

Global safeguards

Safeguard measures place on imports of specific like products without discrimination as to their countries of origin

Provisional safeguards

Safeguards put into place under critical circumstances that could cause irreparable harm to a domestic industry

Trade Act of 1974

Set up a fast-track process for approving trade agreements, known today as the president's trade promotion authority; the statute gives the president limited and temporary authority to negotiate trade agreements pursuant to the objectives set out by Congress

CBI (Caribbean Basin Initiative)

Several laws that grant trade preferences to goods imported from the Caribbean