RELATED TO TRADE POLICY AND NEGOTIATIONS
by which countries join the General Agreement on Tariffs
and Trade, or GATT (see Section 111).1 The length of the accession process varies,
depending on the conformity of the applicant country's trade
practices with GATT norms.
GATT members and the applicant country also usually negotiate
a "price of admission " --tariff concessions or other
obligations including the reduction of quotas and other trade-distorting
policies --to compensate for benefits that have accrued over
the years through multilateral GATT negotiations in which the
applicant country did not participate. Accession to GATT does
not automatically mean that the new member is bound by the various
GATT Codes; members
join these arrangements separately. The basic requirement for
accession is that the applicant country's trade policies must
provide nondiscriminatory and predictable treatment for all
other GATT members; in return, the country becomes part of the
organization that makes world trade rules, and also enjoys by
right of international obligation the benefits of these rules
for its exports. An outline of the GATT accession process is
provided in Appendix B.
(African, Caribbean, and Pacific)
Refers to 69 countries --most of them former colonies of member
states of the European Community (Sec. III) --receiving
preferential tariff treatment as well as EC financial and technical
assistance under the Lome Convention. See
also entry under same heading in Section III.
In unfair trade cases,
a mechanism for parties to a case to appeal a ruling on subsidization,
dumping, or injury to an administrative authority in the importing
Refers to delegations' acceptance of the outcome of a negotiation
on a provisional basis, pending final approval by governmental
Valorem Equivalent (A VE).
A specific duty expressed
in terms of a percentage of the value of the product in question.
For example, a duty of $5 per ton on a product valued at $50
per ton has an A YE of 10 percent. When tariff negotiations
are conducted on a percentage-reduction basis, AVEs must be
calculated in order to permit proportional cuts in specific
on Implementation of Article VI of the GA TT . See Antidumping Code.
on Implementation of Article VU of the GA TT . See Customs Valuation Code.
on Technical Barriers to Trade.
See Standards Code.
on Interpretation and Application of Articles VI, XVI, and XXIII. See Subsidies Code.
In diplomatic parlance, refers to a written outline or summary
of the main points of a proposed agreement.
Trade Preferences Arrangement (ATPA).
A non-reciprocal preferential arrangement established by the Andean Trade Preference Act of 1991, under
which the United States grants duty-free treatment for a 10-year
period to certain imports from Bolivia, Colombia, Ecuador, and
Peru. The A TP A is intended to expand economic alternatives
available to Andean countries that are engaged in combating
drug production and trafficking. Eligible articles are the same
as those under the Caribbean Basin Initiative, except rum.
The second GATT Round of
multilateral trade negotiations, held in Annecy, France, from
April through October, 1949. The Round dealt with institutional
matters and the accession of new members, but did not make significant
progress in reducing trade barriers.
A term used by the European Community for penalty charges imposed
on the output of Japanese screwdriver assemblies (Sec. 11)
in Europe; subsequently found in violation of GATT rules by
a dispute settlement panel.
Formally known as the Agreement on Anti-Dumping Practices. A
code negotiated under the auspices of the GA n during the Kennedy
Round and subsequently renegotiated in the Tokyo Round. The code interprets the provisions of GA
n Article 6, specifying the procedures signatory countries must
follow to verify dumping allegations,
and providing the basis for the imposition, collection, and
duration of antidumping duties. Parties to the Agreement include
Argentina, Australia, Austria, Brazil, Canada, Czech Republic,
Egypt, the European Community, Finland, Hong Kong, Hungary,
India, Japan, Korea, Mexico, New Zealand, Norway, Pakistan,
Romania, Singapore, Slovakia, Spain, Sweden, Switzerland, and
the United States.
A penalty charge on imports to protect domestic industry against
disruptive pricing practices by foreign firms (see dumping).
duty is supposed to be set equal to the margin of dumping, defined
as the difference between fair value and the actual sales price. GATT Article 6 permits members
to levy antidumping duties, while the GATT Antidumping Code
attempts to standardize and discipline importing
governments' activities in this area. See also circumvention
and injury test.
(Also referred to as "geographic indications of origin.")
The name of a country, region, or locality designating a product's
origin --such as Champagne or Camembert --and having the same
function as a trademark or brand name. International negotiations
on protection of intellectual property rights seek to resolve differences among countries'
eligibility requirements (or lack thereof) for use of appellations
The tariff rate actually used to determine the amount of duty
owed on a particular import transaction. Applied rates may differ
from bound rates.
on Guidelines for Officially Supported Export Credits. See Export Credits Arrangement.
See Appendix A.
22 Consultations or Article 23 Consultations. See consultations.
Assimilation. A term referring to national treatment
protection of industrial property. See
Assists. Inputs to production -- including blueprints,
designs, tools and dies, and development engineering --provided
by an importer to a foreign manufacturer for use in " producing
merchandise for purchase by the importer. The value of assists
may be subject to import duties on grounds that they would have
been reflected in the sale price if they had been obtained commercial
by the foreign manufacturer.
See import to auctioning.
A term used primarily in Latin American countries to refer to
Automaticity. In GATT negotiations on dispute settlement procedures, refers to proposals to have
reports of dispute panels automatically adopted by the GATT
Council if no specific objections to adoption
are raised (i.e. without requiring an affirmative decision by
the disputing parties). Other proposals would give the country
winning a GATT dispute an automatic right to withdraw concessions
if, after a specified time, the defending party has neither
complied with a panel's recommendations nor agreed to an acceptable
timetable for compliance. GATT rules and procedures currently contain no
time limits for implementation f panel reports, and implementation
may be delayed indefinitely.
(Formally known as the Automotive Products Trade Agreement)
A bilateral agreement signed in 1965 between the United States
and Canada, providing duty-free treatment of most automotive
products. The Auto Pact was augmented in 1988 by the US-Canada
Free Trade Agreement, which required the phase out of remaining
auto duties by 1998.