TERMS RELATED TO TRADE POLICY AND NEGOTIATIONS
See unfair trade practices.
International usage tends to mirror terminology in US legislation,
which applies the term to export-related practices that may
be subject to countervailing duties (i.e.,
export subsidies by foreign governments) and antidumping
duties (i.e., dumping by foreign firm), as well
as certain anticompetitive practices such as discriminatory
shipping arrangements. The term is not normally applied to the
range of import-related non-tariff barriers, even
though discriminatory elements may be involved. Determination
of "unfairness" is left to administrative proceedings
in the ~ importing country, subject to procedural requirements
of the relevant GATT Codes. See competitive policies and practices
Copyright Convention (UCC).
An international agreement on intellectual property rights
negotiated under United Nations auspices
in 1952, and revised in 1971. UCC member states agree to provide
"adequate and effective" copyright protection and
to accord national treatment to the works of nationals of other UCC signatories.
See also Berne Convention.
An "indirect export subsidy," whereby a producer benefiting
from a government subsidy sells a subsidized product to an unrelated
company, which in turn performs further processing and then
exports the product.
eighth GAIT Round, launched
in 1986 with 105 countries participating, and extended in December
1990 after failure to reach agreement by the original target
completion date. In the Uruguay Round, efforts have focused
on expanding GA TT disciplines to new areas, such as agriculture,
intellectual property rights, investment, and services, as well
as reducing barriers and strengthening international rules affecting
market access, dispute settlement, safeguards, and enforcement measures under the GA TT .The Round derives
its name from Punta del Este, Uruguay --the site of the Ministerial
Meeting at which it was launched --but negotiations take place
at GATT headquarters in Geneva.
fee for a service --such as the provision of customs operations
by the government of the importing country --assessed on imported
goods. GATT Article 8 requires user fees to be assessed on the
basis of the estimated or computed cost of the service.
Valuation. See customs valuation.
An import duty that is subject to alteration as world market
prices change, designed to ensure that the imported product's
price after payment of the duty will be no less that a predetermined
minimum import price. As applied to imported farm products under
the European Community's Common Agricultural Policy, the variable levy amounts to the difference
between the EC target price for domestic producers and the lowest
available prices on world markets. For imports of cattle, beef,
and veal, the variable levy is applied in addition to normal
customs duties. The amount of EC variable levies are adjusted
for changes in world market conditions on a daily basis for
sugar and grains; weekly for dairy products, beef, live cattle,
veal, and rice; monthly for olive oil; and quarterly for pork,
poultry , and eggs. See also supplementary levy .
Export Restraints (VERs).
A restraint agreement between governments negotiated within
the context of the Multifiber Arrangement. See
Restraint Agreement (VRA). An
arrangement by which an exporting country takes steps --usually
by means of export quotas --to restrain exports that could cause
economic dislocation in a key trading partner. VRAs are generally
undertaken to forestall action by the importing country against
imports that may injure or threaten the position of domestic
firms. A VRA is less contractual in nature than an orderly
marketing agreement, but
with similar economic effects. Under a VRA the importing country
does not apply restrictions to enforce the agreement (as under
an OMA), nor is compensation involved as may be the case if
the importer unilaterally raises tariffs. VRAs are not covered
by GA n rules (see grey-area measures).
exception in GA n whereby a contracting party --with the approval
of other GATT members --may maintain a specific practice that
would otherwise violate the MFN principle or other GATT obligation.
An ad hoc subgroup established by the GATT Council to address
a specific trade policy issue, such as a country's application
for accession to GA n or a dispute between two members.
Unlike a GATT panel, members
of a working party function as representatives of their governments.
A term associated with the lapse of intellectual property
protection --or the granting of compulsory
a patented invention, trademarked good, or copyrighted work
is not produced or sold within a specified period of time.
Economic Conference of 1927.
The first attempt to negotiate a cooperative multilateral approach
to problems facing the world trading system. Along with its
subsidiary Conference on Import and Export Prohibitions and
Restrictions, the Conference sought to counter the trend toward
increased protectionism that had begun in Europe in the l870s
and that by the 1920s was intensifying in all major countries.
A code negotiated at the Conference regulating use of quantitative
restrictions and other trade barriers fell short of necessary
ratification by one country , while a tariff truce agreed at
the Conference was effectively ended upon adoption of the Smoot-Hawley
Act (Sec.IV) by
the United States in 1930. Although unsuccessful, the Conference
served ultimately as a progenitor of the GATT .
Economic Conference of 1933.
The second multilateral effort to deal with the global economic
crisis of the interwar period, the Conference focused on European
efforts to secure an international currency stabilization plan.
Following collapse of the Conference, nations engaged in a period
of competitive currency devaluations (Sec./) through
the mid-1930s, further exacerbating trade tensions. The experience
of both Conferences weighed heavily on the minds of the architects
of the Bretton Woods System a
See Lome Convention.
Zero-For-Zero. A term used in the market access negotiations
in the Uruguay Round to
denote a sectoral free-trade initiative that would essentially
eliminate tariffs on an entire category of goods. Meeting in
Tokyo in July 1993, the Quad trade ministers announced plans to negotiate zero-for-zero
agreements in eight industrial areas including pharmaceuticals,
medical equipment, steel, construction equipment, farm equipment,
furniture, beer, and distilled spirits.