Exam 3 Chapter 10

CE Mark

EU's attempt to increase its standardization. an internationally recognized symbol for quality and product safety for many different types of products, such as children's toys, gas appliances, machinery, and medical and electrical equipment.

what is Trade Sanctions and US section 301:

The threat of retaliation

technical regulations

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 product can be imported or sold in a country.

Trade-related investment measure (TRIMS)

a national rule or regulation on foreign investment that has a direct or indirect effect on trade in goods.

International Organization for Standardization (ISO)

a non-governmental organization comprising the national standards institutes of 163 countries.

An offending country can be designated either as

a priority foreign country or be placed on the watch list or the priority watch list.

Trade in services

includes areas such as professional services (law, accounting, architecture, engineering, and others)

In prior approval countries

regulated products must undergo testing and inspection by an approved laboratory, receive a certification of compliance with technical standards, and then receive prior regulatory approval before sale.

TRIMS also prohibits local content requirements, what are 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.

the WTO agreement on agriculture began the process of

removing government intervention in the farming sector and ending government programs that distort normal market conditions.

least restrictive trade

states 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.

technical barriers to trade

technical regulations and standards that apply to imported foreign products even if they also apply equally to domestic products

in china products that meet the quality and safety requirements for certification may receive

the China Compulsory Certification mark (CCC)

Codex Alimentarius

the most notable that countries rely on internationally accepted standards or recommendations for the protection of their plants, animals, and foodstuffs.

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.

Government procurement

the purchase of goods and services by government agencies at all levels.

WTO Agreement on Technical Barriers to Trade (TBT Agreement) governs

the use of technical regulations, product standards, testing, and certifications by WTO member countries.

European Committee for standardization

this intergovernmental agency works with manufacturers, including some European subsidiaries of US firms, and with scientists to develop workable product standards.

Trade-related aspects of intellectual property rights refers

to government rules or regulations on IPRs that have a direct or indirect effect on trade in goods.

what is the primary goal of the TBT agreement

to minimize technical barriers to trade

product standard: (AKA Standard)

usually used when referring to a voluntary guideline for product characteristics established by a recognized private or industry organization or association.

ISO standards are

voluntary and not legally binding and the organization has no legal authority to enforce them.

Japanese Standards Association

works to develop and disseminate standards in many areas

GATS is part of the WTO system and is oversee by the

Council for Trade in Services

most countries require some type of testing inspection or certification of regulated products. there are two major regulatory approaches what are these approaches:

1) prior approval 2) prior certification

the WTO Agreement on Agriculture has three main objectives, what are they?

1. Cutting domestic subsidies and other direct payments to farmers. Domestic subsidies distort markets by causing overproduction and suppressing prices while protecting the incomes of farmers. The agreement prohibits domestic subsidies, except for research, disease control, environmental protection, and rural development. It also permits cash payments to farmers during emergencies. 2. Cutting programs that subsidize exports of farm products. Agricultural export subsidies are payments or other benifits given to farmers that directly encourage, or are conditional upon the export of food or agriculturla products. Government subsidized food exports that are part of a foreign aid program to needy countries are not considered illegal subsidies under the agreement. 3. Assuring greater market access for imported farm products by converting quotas and other nontariff barriers into tariffs.

TBT agreement to minimize technical barriers to trade sets out three methods of achieving this goal, these three methods are...

1. Harmonization 2. equivalence 3. mutual recognition

GATS defines four different ways of providing an international service:

1. Services supplied from one country to another officially known as cross-border supply. 2. Consumers or firms making use of a service in another country, officially known as consumption abroad. 3. A foreign company setting up subsidiaries or branches to provide services in another country, officially known as commercial presence. 4. Individuals traveling from their own country to supply services in another, officially known as presence of natural persons.

What are the two other agreements that will have an effect on world trade are

1. The WTO Agreement on Trade-Related Investment Measures and 2. the WTO Agreement on Trade Related Aspects of Intellectual Property Rights.

china has a complex regulatory system goberning product quality, safety, and other standards and technical regulations. As a socialist country, the enormous bureaucracy dwarfs any similar agencies in Western countries. The laws are administered by

China's General Administration of Quality Supervision, Inspections and Quarantine (AQSIQ)

Japanese agencies that enforce technical regulations include

Japanese Ministry of Economy, Trade, and Industry.

Mutual recognition

Nations are encouraged to enter into mutual recognition agreements, whereby they recognize the certifications or conformity assessments of foreign inspection firms and laboratories approved in the country where the article is manufactured.

market access agreements

agreements that provide exporters of goods and services with market access to foreign countries in the following areas: (1) technical barriers to trade, including product standards (2) government procurement of goods and services. (3) trade in services including consulting, engineering, banking and financial services, insurance, telecommunications and the professions (4) trade in agricultural products (5) trade-related investment measures and (6) trade-related aspects of intellectual properthy rights.

The AGP reverses the general WTO rules that

allow government agencies to favor domestic products.

design standards

characteristics that govern how a product should be designed.

performance standards

describe how products should function. usually more cost effective for a manufacturer to meet foreign performance standards than design standards.

product standards in Japan have generally taken the form of

design standards

the WTO General Agreement on Trade in Services (1994) or GATS, establishes rules for

international trade in services.

Sanitary and phyosanitary measure

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

Japan industrial Standards Mark (JIS Mark)

its appearance on a product, although voluntary, indicates that the manufacturer has submitted to on-site inspections by the appropriate Japanese ministry and has met accepted standards for quality control, production techniques and research methods.

TRIMS prohibits trade balancing requirements, What are Trade balancing requirements?

laws that condition a company's right to import foreign goods on the basis of the volume of of goods that company exports.

the American National Standards Institute (ANSI)

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.

Japan External Trade Organization (JETRO)

maintains an online database of standards and technical regulations in the area of food and plant safety, electronic products and electrical appliances, household goods, consumer and industrial products, chemicals, food imports and others

equivalence

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

Harmonization

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

US standards by contrast are usually based on

performance standards

TBT agreement

prohibit countries from using their regulations or standards to discriminate against the import of foreign goods.

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.