2nd Midterm int. business

re-export

The term _____________ has similar breadth, but it refers to the shipment or transfer of American-controlled items or technology from one foreign country to another foreign country.

the General Court

________________ It also has original jurisdiction in cases brought by EU institutions to compel members stated to comply with their treaty obligations or by member states again EU institutions alleged to have overstepped their powers under the treaties.

certificate of origin or CO

A NAFTA ________________ is required for all shipments moving among the U.S., Canada and Mexico, are required for all commercial shipment entering the U.S. where the total line item value for a good (not the total shipment value) is more than $2500.

extraordinary Challenge Committee

Appeals of a binational panel decision may be taken only to a NAFTA ________________, and not to courts if law..

Could not

In the "Skippy" Peanut butter case, the court held that the company could/could not put "made in U.S.A" on its label.

Arbitral Panels

under NAFTA, consists of 5 members who are experts in trade law.

commercial and "dual-use" items.

Controlled items include both (1)______________ and (2)___________ items. _________________ : are intended primarily for civilian use. _________________ : are commercial items that may also have military "proliferation" used (relating to the proliferation of nuclear, chemical or biological weapons)

civil law

The EU courts follow the ________________ tradition because all but the British and Irish judges come from this tradition.

Canada, Mexico and U.S

The North American Free Trade Agreement (NAFTA) created a free trade area between ________________,________________ and ________________.

General agreement on trade in services (1994) or GATS

The WTO ____________________________, establishes rules for international trade in services.

antidumping duties

The usual remedy for dumping is for the importing country to place ________________ on the dumped products.

Export subsidy

_________________ is made available to domestic firms upon the export of their products or made contingent on export performance. (grant or tax cover, tax credit for energy consumption)

Antiboycott

_________________ laws are legal responses by governments that make it unlawful for their citizens or companies to participate in a boycott.

Trade compensation:

__________________ : is 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.

unfair trade practice

Dumping is an __________________ in the form of export price discrimination.

socialists, Christian democrats, European democrat alliance, greens and other groups.

The Parliament comprises members of various political factions that create alliances across national boundaries, including the ____________, ________________, ________________, ________________.

export

The term ____________ means the act of shipping controlled items out of the U.S. or the transfer of controlled items or technology

adjustment to import

The president may make an adjustment to imports, in the presidents discretion, it will help the domestic industry make a positive __________________ competition and if it will provide greater economic and social benefits than costs.

Commerce Clause

Under the ________________ (article 1, section 8, clause 3) the states gave the federal congress the exclusive power to manage trade among the states and with foreign nations.

Technical regulation

_________________ is a law or regulation affecting a products characteristics such as its performance, design construction, chemical composition, materials, packaging or labeling, that must met before a product can be imported or sold in a country.

Upstream subsidy

_________________ is a subsidy bestowed on raw materials or component parts ("inputs") for use in an exported product.

The Export Administration Regulations (EAR or "regulations")

_________________ were originally promulgated under the authority of the Export Administration Act of 1979 by the Bureau of Industry and Security.

Safeguards against injury

__________________ are emergency remedies provided, usually tariffs, use to protect a domestic industry from injury resulting from increased imports of a like or competing products.

Cannot

Under NAFTA, a foreign product can/cannot be channeled though one North America country for sale in another North American country and avoid payment duties.

(1) to protect national security, (2) to promote U.S. foreign policy or (3) to prevent the short supply of essential domestic materials.

Under the Export Administration Regulations, there are three broad reasons for controlling exports. (1),(2),(3).

Transparency

______________ refers to ability of the public, particularly foreign firms, to have open access to government rules or private standards that are published and made readily available to foreign firms.

Dumping

______________: is the selling of goods in a foreign country for less than the price charged for "like" or comparable products in the exporters or producers home market.

Canada and the U.S.

________________ and the ________________ are each others largest trading partners.

70%

. Services presently account for approximately ________ of all economic activity and employment in the EU.

(1)European Community EC (formerly known as European Economic Community) created a set of market-wide institutions empowered to develop common policies. (2) European Coal and Steel Community ECSC was established in 1952 under the treaty of Paris, which specially defined the outlines of an agreed common policy, covering combined price and output controls, investment subsidies, tariff protection and competition rules. (3) European Atomic Energy Community EURATOM established on the same day as the EC by a second, separate Treaty of Rome, focused primarily on creating a market for and distributing atomic energy throughout the European stated.

Although the EU is a single unit, it actually started as three "communities" each created and operating under a separate treaty. (1), (2), (3)

dissenting opinions.

Another distinguishing feature is that decisions are issued without any ________________.

True

Dumping does not require that the foreign products be sold for less than the cost to produce them. True or False?

International Trade Administration (ITA) International Trade Commission (ITC)

In the U.S. antidumping investigations involve two different federal agencies: the U.S. ________________, which determines whether dumping procured and the extent of it. Another is the _________________, which determines whether the dumping has caused or threatens to cause, a material injury to U.S. producers or like products.

Corollary Health, welfare and safety

Is that national laws ad regulations passed for purely internal purposes, such as the protection of the general ___________, ____________ and ____________, must also pose the fewest barriers to trade as possible.

Design standards Performance standards

Japanese ________________: characteristics that govern how a product should be designed. U.S. standards by contrast are usually based on _____________ that describes how products should function.

mutual recognition agreements

Many professional organizations from NAFTA countries are negotiating ________________. Once ratified by state and federal governments, they will permit recognition of professional licenses in all three countries.

Prior approval and prior certification.

Most countries require some type of testing, inspection, or certification of regulated products. There are two major regulatory approaches: ___________ and ____________.

North America.

NAFTA applies to goods wholly produced or obtained in ________________.

Global safeguards

Safeguards applicable o WTO member countries must be in the form of __________________ , safeguard measures placed on imports of specific products without discrimination as to their countries of origin.

trade adjustment assistance (TAA).

Workers who become unemployed as a result of increase imports of foreign goods may be entitled to federal financial assistance, known as __________________.

Advisory opinion

The ECJ may be asked by a national court to issue preliminary ruling on a point of EU law.

Trade in service

______________________ includes areas such as professional services. (Law, accounting, travel, insurance, data processing)

stabilization and association

A state wishing to join must first reach a ________________ and ________________ agreement with the EU whereby the potential candidate state is offered free trade incentives in return for commitments to political and economic reform.

First, the rise of international terrorism and the "war on terror" created a get-tough political environment. Second, renewed concerns and tensions arose over nuclear proliferation, especially in North Korea and Iran. The third major change is that China has become a global economic powerhouse and is no longer satisfied to just be the source of cheap labor for the world.

After 2001, three forces quickly reshaped U.S. export control policy. (1)(2)(3)

Special 301 An offending country can be designated ether as a priority foreign country (the worst offenders) or be placed on the watch list or the priority watch list.

An offending country can be designated ether as a ________________________ (the worst offenders) or be placed on the _______________ or the _______________.

II

Article ____ of U.S. constitution gives treaty, making power to the resident, with senate consent.

supremacy doctrine

As a result of the ________________ the EU has achieved considerable integration in a wide variety of areas.

TRUE

As an American citizen, you do not have a constitutional right to internal travel in the absence of your governments approval True or False

(1) the volume of the dumped imports, (2) the effect of the imports on prices in the domestic market for like products, (3) the impact on domestic industry including data on sales, profits, market share, productivity, wages...

In determining material injury the ITC must consider all relevant economic factors, including (1), (2), (3)

Farm bill - Cutting domestic subsidies and other direct payment to farmers. . - Cutting programs that subsidies exports of farm products. - Assuring greater market access for imported farm products by converting quotas and other non-tariff barriers into tariffs.

In the U.S. federal legislation ________ is enacted every 5 years. It establishes U.S. agricultural and food policies, programs and funding for that period. The WTO Agreement on Agriculture Began the process of removing government programs that distort normal and market conditions - - -

Items controlled by the EAR include the following: (1) All U.S. origin goods and technology, wherever located, whether inside the U.S. or in a foreign country (2) Certain foreign-made items containing (usually more than 25%) U.S.-origin controlled content or technology; (3) certain items made in a foreign country with U.S. technology and (4) items made at a plant located outside the U.S. if that plant was designed and built with U.S. technology.

Items controlled by the EAR include the following: (1),(2),(3),(4)

it liberalizes trade in goods and services protecting intellectual property rights

NAFTA does more than eliminate duties. ________________, contains specific provisions for ________________, eliminate duties between Canada, Mexico and U.S.

TRUE

NAFTA permits certain action to safeguard a domestic industry. The emergency safeguards under NAFTA are more limited than safe guards under GATT/WTO. True or False

national treatment

NAFTA's ________________, It states that one goods arrive from another NAFTA country, they must be treated without discrimination and no differently than domestically made goods.

US patriot Act

One of the major U.S. legal responses to the terrorist attacks of September 11,200

Section 301

One of the most important legal weapons in the U.S., against foreign trade barriers & unfair trade practices is common known to business people and lawyers as: __________________.

harmonize

One of the principal goals of the EU is to ________________ national laws and create a common legal environment for business.

The WTO agreement on technical barriers to trade (TBT agreements) Harmonization Equivalence Mutual recognition agreements

Prohibit countries from using their regulations or standards to discriminate against the import of foreign goods. It sets out 3 methods of achieving this goal. (1)________, (2)________, (3)_________

Technical barriers to trade.

Technical regulations and standards that apply to foreign products, even if they also apply equally to domestic products, are called ___________________.

Article XIX permits a country to take temporary corrective action (also called emergency action) to safeguard its domestic industry where (1) as a result of unforeseen developments, (2) and due to the effect of a tariff concession or obligation under a trade agreement, (3) increased quantities if an imported product, (4) are causing or threaten to cause serious injury to domestic producers of like or directly competitive products.

Article XIX permits a country to take temporary corrective action (also called emergency action) to safeguard its domestic industry where (1)....., (2)....., (3)....., (4).....

foreign availability.

Controls shall not be imposed for foreign policy or national security purposes on the export of goods or technology if there is: _________________

Codex alimentarius

Countries must rely on internationally accepted standards or recommendations for the protection of their plants, animals and foodstuffs.

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. This is known as the ________________.

CE Mark.

The E.U. has attempted to increase its standardization though the _________.

Aagreement on safeguards

The WTO __________________ (1994) provides details lacking in the 1947 GATT article XIX escape clause and sets our the procedural steps for countries imposing a safeguard.

Procurement offsets.

The agreement prohibits a procuring agency from awarding a contract to a foreign firm on the basis of certain conditions, called _____________________.

Trading with the Enemy Act International Emergency Economic Powers Act.

The concept of national emergency has gradually expanded to include a broad range of situations affecting foreign affairs and international trade during peace or war. The two most important are the _________________ and the _____________________________.

(1) the goods must be wholly produced or obtained in Canada, Mexico or U.S. (2) the goods may contain non-originating inputs (components or raw materials), but must meet the regional value content requirements

The most important general rules are: (1),(2).

direct effects doctrine. supremacy doctrine.

There are two concepts of primary importance in any discussion of EU law. The first concept is the (1)________________. The (1)________________ provides that provisions within EU treaties are this these businesses and individuals are empowered to seek enforcement without necessity of state intervention of participation. The second concept is the ________________. In a manner similar to the relationship between U.S. federal and state law. EU law is superior to the laws of the member states in areas in which integration has been occurred.

The WTO agreement on government procurement

The WTO _______________________, requires fair, open and nondiscriminatory procurement procedures to protect suppliers from different countries.

necessity of protecting the public restrictions on free trade.

The WTO appellate body has stated that this is a balancing test: nation must weigh the ____________________ against _________________.

4 freedoms The free Movement of Goods The Free Movement of Services The Free Movement of Capita The Free Movement of People

The ________________ refer to a body of EU law originating with the Treaty of Rome in which the EU committed itself to achieving the free movement of: (1)________________, (2)________________, (3)________________, (4)________________.

The European Commission

The ________________ serves as the EU's executive body carrying out the decisions of the Council of Ministers. It also is the only body that can make legislative proposals for the Council of Ministers and European Parliament to consider.

substantial transformation test

The ________________________ is used to determine the country of origin of goods imported into the U.S. when the goods are produced or assembled in more than one country.

The European Parliament (the parliament) Members of the European Parliament or MEP's

The ____________________________ is the only EU institution whose members are elected by European citizens. Each member state elects a different number, based on population who are known as ________________________________.

(1) tariff increases, (2) tariff-rate quotas, (3) absolute quotas, (4) auctioned quotas or (5) grant trade adjustment (financial) assistance to workers or to the domestic industry.

The president's options for adjusting imports include (1), (2), (3), (4), (5)

Least restrictive trade

The principle states that WTO member countries, in setting otherwise valid restrictions on trade, shall make them no more onerous that necessary to achieve the goals for which they were imposed.

- Export subsidy - Import substitution subsidy

Two types of prohibited subsidies

IEEPA

_________________ allows the president wide discretion in controlling international financial transactions, including the transfer of monies, goods and securities to and from the U.S.

controlled technology

_________________ as the specific information and know-how necessary for the development, production or use of a product, including the results of proprietary research done by corporations, universities or research labs.

Material Injury

_________________ is injury that is "not inconsequential, immaterial or unimportant".

Specific subsidy

_________________ is one 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.

Market-oriented industry

_________________ is one in which resources (materials, energy etc) and labor costs are procured at free-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.

Diversion

_________________ is the unlawful transfer, transshipment, rerouting, or re-exporting of controlled goods or technology from one destination, to which the goods or technology could legally be shipped, to another destination that has not been lawfully authorized to receive the items.

Market disruption

__________________ from increased imports of foreign goods might include decreased sales volume, price suppression, lower profitability, lower wages, and other economic consequences to domestic firms.

Scape clause

__________________ permits a country to temporarily "scape" or be that permits or be relieved from its tariff concessions under certain conditions.

The international Organization for Standardization (ISO)

____________________ based in Geneva, is a non-governmental organization comprising the national standards institutes of 163 countries.

Sanitary and Phytosanitary measure

____________________________ is a government rule or regulation that protects or enhances food animal, or plant safety or quality, including venting the spread of pathogens and disease.

The Court of Justice of the European Union (ECJ)

________________________________ In Luxemburg functions as the final arbiter of EU law.

(1) Entity list: a list originally set up to bar exports or diversions to organizations engaged in activities related to the proliferation of weapons of mass destruction. (2 )Specially designated nationals and blocked persons lists: a list maintained by the Department of Treasury, Office of foreign Assets Control, comprising individuals and organizations deemed to represent restricted countries or known to be involved in terrorist and narcotics trafficking. (3) Unverified list: firms for which a end use check could not be done in prior transactions. (red flag indicators): (4) Denied Persons List: a list of persons whose export privileges have been denied or revoked. (5) Debarred List: a list of parties barred from exporting defense articles, administered by the U.S. State Department.

article, technology and country of destination, but also on the individual person or entity receiving it, known as the end user. It is unlawful to release any controlled item to anyone on the following lists. (1) (2) (3) (4) (5)

American National Standards Institute (ANSI)

The ______________________________ 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 U.S. standards in english, Mandarin, chinese and Korean.

Subsidy

___________ is a defined in the Subsidies and countervailing measures SCM Agreement as 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

Rules of Origin

____________ are critical issue to importers and exporters. They offer the sole way to determine the rate of duty or even quotas that mighty apply to the product being brought or sold.

The European Council

________________ It is composed of the heads of state or government of the EU's member states along with the president of the European Commission. The Council has jurisdiction over a wide range of areas, including the composition of the Parliament and Commission and law enforcement, foreign policy and constitutional matters.

Common market also called an economic community, goes further than a customs union. While a customs union ensures the free movement of goods within the union, a common market seeks to further facilitate free competition within a group of nations.

________________ also called an economic community, seeks to further facilitate free competition within a group of nations, by protecting the right of all enterprises and persons within the area to do business, invest capital, and sell their services anywhere within the area without discrimination on the basis of national origin.

Binational panels

________________ apply the same standards of review as would a court of law

A free trade area (FTA)

________________ develops when two or more countries agree to eliminate or phase out customs duties and other barriers to trade among the member countries.

Consolidated screening list

_________________ : an online compilation of prohibited end users, the individual lists shown above are the official sources on end users and are updated regularly in the federal register.

Foreign national

_________________ : is an individual who is neither a U.S. citizen nor a permanent legal resident of the U.S.

Boycott

_________________ : is an organized refusal of one or more nations, often backed by economic sanctions, to trade with one or more other nations.

Deemed export

_________________ : is the communication or other transfer by an American Citizen of technology, technical data, software and source code, encryption technology or any other controlled information to a foreign national.

The Council of Ministers of the European Union (the council of ministers)

________________ sits in Brussels, Belgium, the effective "capital" of the EU.

The treaty of Rome

________________ stated the original objectives of the EU.

Custom union

________________ there is free trade only in goods produced within the FTA, in all goods that come though any of the customs union, even imports from outside the country.

accession treaty

________________, granting new membership must be ratified by all existing members

European Economic Community

________________, now known as the European Union (EU) that consists of 28 states.

Generalized System of Preferences (GSP),

________________: encourage trade with developing countries to aid in their economic growth.

NAFTA Fair Trade Commission

________________: supervises the implementation of the agreement and attempts to resolve disputes that may arise regarding its interpretation or application.

democratic values.

________________: these values include stable institutions guaranteeing democracy and respect for the rule of law and human rights, a functioning market economy, and acceptance of EU laws and practices.

Financial sanction

_________________ (or economic) is a regulation that restricts or prohibits relationships with "targeted" foreign countries, foreign entities or named foreign individuals because of their support for international terrorism, the proliferation of weapons of mass destruction, for internal drug and narcotics trafficking, or other threats to national security.