Chapter 7

National treatment

once goods are legally imported, they must be treated the same way as domestic goods (no additional requirements).

Generalised System of preferences (GSP)

A GATT scheme that allow a developing state to obtain tariff concessions from a developed state on a nonreciprocal basis.

South-South Preferences

A GATT scheme that allows developing states to grant tariff preferences to each other without having to grant them to developed states.

Countervailing measures

A duty specifically levied to offset a subsidy

Subsidy

A financial contribution made by a government or other public body that confers a benefit on an enterprise , a group of enterprises, or an industry.

Customs union

A group of states that have reduced or eliminated tariffs among themselves and have also established a common external tariff.

Free trade area

A group of states the have reduced or eliminated tariffs among themselves but that maintain their own individual tariffs in dealing with other states.

Round

A meeting of the contracting parties of GATT to participate in MTNs.

Non actionable subsidy

A subsidy that is permissible and non challengeable, such as government funding to underwrite research activities, to aid disadvantaged regions, or help existing facilities adapt to new environmental requirements.

Prohibited subsidy

A subsidy that is presumed to be trade distorting because it requires export performance or is contingent upon the use of domestic instead of imported goods.

Actionable subsidy

A subsidy that may be challenged as trade distorting in if injures the domestic industry of another WTO member state, nullifies impairs the benefits due another member state or causes or threatens to cause serious prejudice to the interest of another member state.

Harmonised System

A system of classifying goods for customs purposes established by the Convention on Nomenclature for the Classification of Goods in Customs Tariffs.

Agreement of Reshipment Inspection

Allows WTO developing member states to use reshipment inspections, subject to certain criteria, to prevent over and under invoicing and fraud.

Agreement on Implementation of Article VI of GATT 1994 (Anti-dumping code)

Allows WTO member states to counter dumping through the application of anti-dumping duties.

Escape clause

Allows a WTO member state to escape temporarily from its GATT obligations when there is a surge in the number of imports coming form other member states.

Safeguard

An emergency action that a WTO member state may take in order to protect its domestic industry from serious injury due to a sudden increase in the quantity of an imported product.

General Agreement on Tariffs and Trade (1994)

Annex to the Agreement Establishing the world Trade Organisation that sets out the rules under which the member states of that organisation are committed to negotiate reductions in customs tariffs and other impediments to international trade in goods.

Conformity assessment procedures

Any procedure used, directly or indirectly to determine that relevant requirements in technical regulations or standards are fulfilled.

computed value

Customs value of goods that is based on their price calculated from the cost of manufacture overhead, and handling.

Derived value

Customs value of goods that is determined by using whichever of the other methods best fit and adjusting it to the particular circumstances.

Deductive value

Customs value of imported goods that is based on the price actually paid for similar goods by unrelated persons in the importing country at about the same time.

Transaction value

Customs value of imported goods that is based on the price actually paid or payable for goods at the time they were sold for export.

Agreement on the application of Sanitary Measures (SPS Agreement)

Defines the measures that WTO member states may take to protect the life and health of humans, animals, and plants.

Safeguards

Emergency tarde measures imposed to protect domestic industry from a surge of imports.

Agreement on Textiles and Clothing

Establishes a process for the phasing-out of existing special arrangements governing international tardier textiles and clothing and the integration of those products into the GATT system.

Agreement on Rules of Origin

Establishes a three year program aimed at bringing about an international system of harmonised rules of origin.

Agreement on Agriculture

Establishes guidelines for initiating a process to progressively integrate international trade in agricultural products into the GATT system.

Agreements of Safeguards

Establishes multilateral controls over the use of safeguards by WTO member states.

Agreement on Technical Barriers to Trade (TBT Agreement)

Establishes rules governing the way WTO member states draft, adopt and apply technical regulations and standards.

Nuclear Suppliers Group (NSG)

Group of nuclear supplier states concerned with limiting the proliferation of nuclear weapons.

Missile Technology Control Regime

Group of states concerned with limiting the proliferation of missiles capable of delivering nuclear warheads.

Agreement on Implementation of Article VII of GATT 1994 (Customs Valuation Code)

Harmonies the methods used by WTO member states for determining the value of goods for customs purposes.

General Agreement on Tariffs and Trade (GATT) 1947

Multilateral agreement that set out the rules under which the contracting states and parties were committed to negotiate reductions in customs tariffs and other impediments to international trade in goods.

Australia Group

Multilateral group of states concerned with curbing that proliferation of chemical and biological weapons.

National Treatment Rule

Once imported good are itching the territory of a state, that state must treat those goods no less favourably than it treats its own domestic goods.

Transparency

Principle that governments must make their rules, regulations, and practices open and accessible to the public and other governments.

Primary commodities

Products obtained by extraction or harvest that require minimal processing before being used.

Integrated Program for Commodities (IPC)

Proposal of developing countries that would establish a Common Fund to underwrite the costs of maintaining a buffer stock of primary commodities as a way to stabilise supplies.

Agreement on Import Licensing Procedures

Requires that the import licensing procedures of WTO member states be neutral in their application and that they be administered in a fair and equitable manner.

Dumping

Selling exported goods at prices below their normal value.

General Exception

Situations that excuse a WTO member state from complying with its GATT obligations in order for the state to protect certain essential public policy objectives.

Security exceptions

Situations that excuse a WTO member state from complying with its GATT obligations when those ar in conflict with its essential security interest to its duties dune the United Nations Charter.

bound tariffs rates

The highest tariff rates a WTO member state many set on imports from another member state.

Direct effect

The principle whereby a treaty may be invoked by a private person to challenge the actions of a state that is apart to the treaty.

Waiver

The relinquishment of an obligation owed by another.

Transparent

Trade regulations of GATT members must be published and available to all other GATT nations and their nationals.

Agreement on Subsidies and Countervailing Measures (SCM Agreement)

Classifies subsidies as prohibited, actionable, and non actionable; forbids the the first class and allows affected WTO member states to request consultation, to obtain a remedy from the WTO, or to impose countervailing duties independently.

Tariffs

Governmental charges imposed on goods at the time they are imported into a state.

Zangger Committee

Exporting states parties to the Treaty on non-proliferation of Nuclear weapons that seeks to harmonise their interpretations of the treaty's export -control provision.

Agreement of Trade-related Investment Measures (TRIMs Agreement)

Forbids provisions commonly found in foreign investment laws that distort or reduce international trade, including provisions that discriminate against foreigners and that impose quantitative restrictions on the use of foreign products by foreign-owned local enterprises.

Kennedy Round

GATT MTNs held from 1964 to 1967 that established the practice of setting an agenda for and defining the techniques to be used during GATT negotiations.

Tokyo Round

GATT MTNs held from 1973 to 1979 that produced six non tariff codes.

Uruguay Round

GATT MTNs held from 1986 to 1994 that resulted in the establishment of the World Trade Organisation.

Commodity arrangements

Intergovernmental agreements regulating the production and supply of primary commodities.

Wassenaar Arrangement

Intergovernmental arrangement and organisation to coordinate national policies so that transfers or conventional arms and dual-use goods and technologies do not contribute to the development or enhancement of military capabilities that undermine international and regional security and ar not diverted to support such capabilities.

World Trade Organisation (WTO)

Intergovernmental organisation responsible for (1) implementing administering, and carrying out the WTO agreement and its annexes; (2) acting as a forum for ongoing MTNs; (3) serving as a tribunal for resolving disputes; and (4) reviewing the trade policies and practices of WTO member states.

Rules of Origin

Laws, regulations and administrative procedures used by states for determining the country of origin of goods.

Technical regulations

Mandatory laws and provisions that specify the characteristics of products; the process and production methods for creating products; and the terminology, symbols, packaging, marking or labeling requirements for products, processes. or production methods.

Standards

Voluntary guidelines that specify the same things that technical regulations mandatorily specify.

Most-Favoured-nation status

When a GATT member nation sets a favourable tariff rate on a particular type of goods imported from one GATT member, that member nation may not asses a higher tariff on the particular type of goods being imported from any GATT nation.