Policy & Negotiation: | AB | CD | EF | GHIJ | KLMN | OPQR | ST | UVWXYZ |
Economic & Commercial Concepts: | ABCD | EFGH | IJKLMNOP | QRSTUVXYZ |
Trade Related Organizatons: | ABCDE | FGHIJK | LMNOPQ | RSTUVWXYZ |
US Trade Legislation: | A-Z |


ACP (African, Caribbean, and Pacific) Countries. A group of developing countries with preferential trade and financial ties to the European Community; see entry under same heading in Section I. Includes Angola, Antigua and Barbuda, The Bahamas, Barbados, Belize, Benin, Botswana, Burkina, Burundi, Cameroon, Cape Verde, Central African Republic, Chad, Comoros, Congo, Cote d'Ivoire, Djibouti, Dominica, Dominican Republic, Equatorial Guinea, Ethiopia, Fiji, Gabon, The Gambia, Ghana, Grenada, Guinea, Guinea-Bissau, Guyana, Haiti, Jamaica, Kenya, Kiribati, Lesotho, Liberia, Madagascar, Malawi, Mali, Mauritania, Mauritius, Mozambique, Namibia, Niger, Nigeria, Papua New Guinea, Rwanda, St Kitts and Nevis, St Lucia, St Vincent and the Grenadines, Sao Tome and Principe, Senegal, Seychelles, Sierra Leone, Solomon Islands, Somalia, Sudan, Suriname, Swaziland, Tanzania, Togo, Tonga, Trinidad and Tobago, Tuvalu, Uganda, Vanuatu, Western Samoa, Zaire, Zambia, and Zimbabwe.

Advisory Committee on Trade Policy and Negotiations (ACTPN). The highest-level group in the private sector advisory system established by Congress to ensure that US trade policy and negotiating objectives reflect US commercial and economic interests. The 45 ACTPN members, appointed by the President to two-year terms, are responsible for considering trade policy issues in the context of the overall national interest.

Agency of Industrial Science and Technology (AIST). An agency of Japan's Ministry of International Trade and Industry (MITI}, responsible for promoting a range of technologies that are under the jurisdiction of the trade ministry .AIST currently operates 15 research institutes, conducts in-house research, and sponsors research programs to encourage private-sector technology development.

Agriculture Policy Advisory Committee (APAC). A policy-level committee that forms part of the private sector advisory system established by Congress to ensure that US trade policy and negotiating objectives reflect US commercial and economic interests. The AP AC and the individual agriculture technical advisory committees (ATACs) provide policy advice and technical expertise on bilateral and multilateral agriculture negotiations. Members are appointed by the USTR in conjunction with the Secretary of Agriculture. The counterpart committee in the industrial sector is the IP AC . See also ACTPN.

Agriculture Technical Advisory Committee (AT AC). One of more than 30 technical, sectoral, and functional committees forming part of the private sector advisory system established by Congress to ensure that US trade policy and negotiating objectives reflect US commercial and economic interests. ATACs are subordinate to the APAC and represent individual farm commodity groups, providing specific, often highly technical advice concerning the likely effects of trade policy decisions or negotiating concessions on the sector. ATAC members are appointed jointly by the USTR and the Secretary. Included in this Section are existing and prospective regional arrangements including common markets, customs unions, free trade areas, preferential arrangements, and regional cooperation organizations. For distinguishing characteristics of these various forms, see discussion under the respective headings in Section I.

Agriculture. Counterpart committees in the industrial sector are known as ISACs. See alsoIFACs.

American Enterprise Institute for Public Policy Research. A research and educational organization, based in Washington, DC, specializing in monetary , tax, trade, and regulatory policy issues.

Andean Pact (Andean Sub regional Integration Agreement). A regional cooperation organization including Bolivia, Colombia, Ecuador, Peru, and Venezuela. Chile was a founding member, but withdrew in 1976. Members began serious efforts to reduce intra-regional trade barriers only in 1991. Colombia and Venezuela liberalized bilateral trade and adopted a common external tariff in January 1992, creating the Colombia- Venezuela Customs Union. Agreement was signed in March 1993 among all members except Peru to establish a customs union by January 1994, with special treatment for Bolivia and Ecuador in implementing a common external tariff.

Arab Common Market (ACM). A moribund common market including Egypt, Iraq, Jordan, Libya, Mauritania, Syria, and Yemen, founded in 1964. The ACM trade provisions have been largely unimplemented.

Arab Mahgreb Union (AMU). A moribund common market including Algeria, Libya, Mauritania, Morocco, and Tunisia. founded in 1989. Negligible progress toward AMU trade integration in has been achieved.

Asia Pacific Economic Cooperation (APEC). A regional cooperation organization including Australia, Brunei. Canada. China, Hong Kong. Indonesia, Japan. Malaysia, New Zealand, Philippines, Singapore, South Korea, Taiwan, Thailand, and the United States. Objectives include consultation and cooperation on a broad range of economic and trade-related policies, and promotion of trade liberalization among members in a GATT -consistent manner. APEC ministerial meetings have been held since November 1989; 10 working groups and two informal groups are currently in operation. The September 1992 Bangkok Declaration established APEC's institutional structure. APEC became legally established January 1993, with its permanent secretariat based in Singapore.

Association Francaise de Normalisation (AFNOR). France's industrial standards authority.

Association of Coffee Producing Countries (ACPC) or Asociacion Mundial de Paises Productores de Cafe (AMPC). A prospective international commodity organization (Sec. I). Following collapse of the export quota system of the International Coffee Organization and faltering efforts to negotiate a new International Coffee Agreement with consuming countries, the major coffee producing countries in Latin America, Africa, and Asia --representing about 80 percent of world production --agreed in September 1993 to form the ACPC, a producer cartel that would withhold 20 percent of production from the world market in order to buoy prices.

Association of Natural Rubber Producing Countries. An international commodity organization (Sec. I) established in 1970 to coordinate production and marketing of natural rubber. The International Natural Rubber Agreement on Price Stabilization was signed in 1976 by five member countries. Current members are India, Indonesia, Malaysia, Papua New Guinea, Singapore, Sri Lanka, and Thailand, which together account for about 90 percent of world supply. The organization is based in Kuala Lumpur, Malaysia. See also International Natural Rubber Organization.

Association of South East Asian Nations (ASEAN). A regional cooperation organization and prospective free trade area including Brunei, Indonesia, Malaysia, Philippines, Singapore, and Thailand. It was founded in 1967. Objectives include regional economic integration and policy coordination, and industrial cooperation and promotion. Negotiations were launched in 1992 on liberalizing trade among members within 15 years under rubric of the ASEAN Free Trade Area (AFTA); ASEAN Ministers in October 1992 established a seven- to 10-year timetable for cutting tariffs on 15 product groups, with initial cuts to go into effect during 1993. Previous ASEAN free trade agreements were repeatedly postponed; tariff preferences currently play only a minimal role in intra-regional trade. Negligible progress has been made in achieving industrial cooperation. ASEAN has been more successful in achieving coordinated positions in discussions and negotiations with non-member countries on economic and security issues.

Atlantic Council. A private, nonprofit organization that conducts studies and makes recommendations on international economic issues in the Atlantic and Pacific communities. The Council is based in Washington, DC.

Auswartiges Amt. Germany's foreign ministry .

Balance of Payments Committee. See Committee on Balance-of-Payments Restrictions.

Baltic Free Trade Area. A prospective free trade area linking Estonia, Latvia, and Lithuania. Objectives include elimination of customs duties and quotas on intra-regional trade; a moratorium on introduction of new export restrictions; and cessation of state aid or other actions that distort competition among enterprises in the Baltic republics. The agreement to establish the Ff A was signed by prime ministers in September 1993; ratification is pending.

Berne Union. Formal name is the Union d' Assureurs des Credits Internationaux, or International Union of Credit and Investment Insurers. An association of public and I private financial institutions established in 1934 to establish uniform criteria and standards for export credit insurance. See export credits and Export Credits Arrangement (Sec. I).

Black Sea Economic Cooperation (BSEC). A regional cooperation organization including Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Turkey, and Ukraine. Objectives include expansion of mutual trade through gradual removal of trade barriers; sectoral cooperation in several areas including agriculture, transportation, and product standardization and certification; and eventual creation of a foreign trade and investment bank. The BSEC Declaration was signed by heads of state in June 1992; implementation details are currently being negotiated.

BOP Committee. See Committee on Balance-of-Payments Restrictions.

Brookings Institution. An independent research organization, founded in 1927, specializing in economics, government, foreign policy, and the social sciences. It is based in Washington, DC.

Bundesamt fur Wirtschaft (BAW). German agency responsible for supervising exports of dual-use goods (Sec. II).

Bundesverband der Deutschen Industrie (BDI). German employers' council, roughly equivalent to the US National Association of Manufacturers. Along with the Deutscher Industrie- und Handelstag (DIHT), BDI leaders confer with German officials on trade policy issues, and the associations' staffs conduct economic and business research.

Bundesministerium fur Finanzen (BMF). Germany's finance ministry .Sometimes referred to as Bundestinanzministerium (BFM)

Bundesministerium fur Wirtschaft (BMWi). Germany's economics ministry.

The Business Roundtable. An association of chief executives of leading US corporations, headquartered in New York City. The Business Roundtable sponsors conferences and reports on issues of concern to business, including taxation, antitrust, international trade, employment policy, and the federal budget.


Cairns Group. A negotiating group of agricultural exporting countries formed to support agricultural trade reform in GATT. The group advocates the systematic reduction of farm subsidies and import barriers. Informally led by Australia, members include Argentina, Brazil, Canada, Chile, Colombia, Fiji, Hungary , Indonesia, Malaysia, New Zealand, Philippines, Thailand, and Uruguay. The group takes its name from the site of early meetings in the Australian resort town of Cairns.

Caribbean Community and Common Market (CARICOM). A customs union including Antigua and Barbuda, Barbados, Belize, Dominica, Grenada, Guyana, Jamaica, Montserrat, St. Kins and Nevis, St. Lucia, St Vincent and the Grenadines, and Trinidad and Tobago; the Bahamas is part of the Caribbean Community but not of the Common Market. CARICOM was founded in 1973, superseding the Caribbean Free Trade Agreement. or CARIFTA. The CARICOM Summit in November 1992 set a common external tariff at 45 percent on most manufactured products, to be lowered to 20 percent by 1998; Antigua-Barbuda, Belize, Montserrat, St. Kitts-Nevis, and St. Lucia were authorized delayed implementation schedules.

Carpathian Euro region. A regional cooperation organization established in February 1993 among Hungary , Poland, Slovakia, and Ukraine to facilitate trade and promote infrastructure development in the Carpathian region.

Center for Strategic and International Studies (CSIS). A nonprofit research organization founded in 1962 to conduct analyses of international issues on an interdisciplinary basis. CSIS was originally affiliated with Georgetown University and is based in Washington, DC.

Center for the Study of Public Choice. A nonprofit organization to promote research in public choice, an interdisciplinary approach to the study of the relationship between economic and political institutions. Its interests include trade protection and regulation, in addition to public finance, constitutional economics, federalism and local government, .and econometrics. The Center is affiliated with George Mason University and is located in Fairfax, Virginia.

Central African Customs and Economic Union or Union Douaniere et Economique de I' Afrique Centrale (UDEAC). A customs union including Cameroon, Central African Republic, Chad, Congo, Equatorial Guinea, and Gabon. It was founded in 1963, superseding the Equatorial Customs Union. Objectives include intra-regional trade liberalization; adoption of a common external tariff; creation of a common investment code; and economic policy harmonization and factor mobility cooperation. Liberalization objectives have largely not been met; members continue to apply varying external tariff rates despite official adoption of a common external tariff.

Central American Common Market (CACM) or Mercado Comun Centroamericana (MCCA). A customs union including Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua; Belize and Panama participate in CACM summits, but do not participate fully in regional trade integration. CACM was founded 1960 and revised June 1991; a common external tariff established in 1986 but is not effective in all members.

Central European Free Trade Agreement (CEFTA). A regional cooperation organization and prospective free trade area including the Czech Republic, Hungary , Poland, and Slovakia. Objectives include regional coordination and cooperation following the collapse of CEMA, to help offset members' current difficulties competing in Western markets and to help pave the way for eventual EC accession. Elimination of barriers to trade among participants in industrial products is to be phased over an eight- year transition period. The CEFTA agreement signed in December 1992 covered 25 percent of intra-group trade initially, to be increased to 85 percent within four years. Under the rubric of the Visegrad Group or Trojkat, the group functioned principally as a mechanism for cooperation on security and other non-trade issues and for promoting integration into Western political and economic structures.

Central European Initiative (CEI). A regional cooperation organization including Austria, Bosnia-Herzegovina, Croatia, Czech Republic, Hungary, Italy, Macedonia, Poland, Slovakia, and Slovenia; the German states of Bavaria and Baden- Wtintemberg participate in transport working groups; Ukraine, Belarus, Romania, and Bulgaria have applied for membership. Formerly known as the Pentagonal Group when five members (Austria, Czechoslovakia, Hungary, Italy, and the former Yugoslavia) belonged, and subsequently as the Hexagonal Group after Poland joined.

Centre d'Etudes Prospectives et d'lnformations Internationales (CEPII). France's center for forecasting and international information, a government-staffed research organization affiliated with the Planning Commission. CEPII conducts studies on global economic and financial issues and publishes data on industrial structures.

Centre for Economic Performance (CEP). A British research institute funded by the government as well as by private-sector contributions. CEP prepares economic studies for the general business community as well as government ministries.

Centre for Economic Policy Research (CEPR). A British research institute specializing in international trade and macroeconomics.

Centre Francais du Commerce Exterieur (CFCE). France's Board of Foreign Trade.

Chaebols. South Korea's industrial conglomerates. The four largest chaebols are Hyundai, Samsung, Lucky-Goldstar, and Daewoo.

Chancellery. The office of Germany's Chancellor (prime minister). CIS. See Commonwealth of Independent States.

CIS Economic Union. A prospective customs union among most members of the Commonwealth of Independent States, intended to restore economic ties that were broken following the demise of the Soviet Union in 1991. Armenia, Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, and Uzbekistan signed a framework accord in September 1993, pledging to establish a customs union and to coordinate monetary and credit policies. Turkmenistan and Ukraine, which did not sign the accord, declared their intention to become "associated members" of the union. Uniform regulations on cross-border shipment of private goods are under negotiation.

COCOM (Coordinating Committee for Multilateral Export Controls). A working group of 16 nations established to monitor exports of strategic goods --especially high- technology products --to potentially hostile countries. The members are Belgium, Canada, Denmark, France, Germany, Greece, Italy, Japan, Luxembourg, Netherlands, Norway, Portugal, Spain, Turkey, the United Kingdom, and the United States. See COCOM List (Sec. I).

Codex Alimentarius Commission. An organization established in 1963 by the Food and Agriculture Organization in conjunction with the World Health Organization to establish international standards for raw and processed food products. See Codex ~ Alimentarius and sanitary and phytosanitary standards (Sec. I).

Colombia-Venezuela Customs Union. See Andean Pact.

Commission on International Commodity Trade. A UN specialized agency established in 1954 to monitor activities in primary commodity markets.

Committee on Balance-of-Payments Restrictions (BOP Committee). A GATT standing committee responsible for authorizing and monitoring temporary import restrictions imposed by GA TT members to deal with balance-of-payments problems.

Committee on Foreign Investment in the United States (CFIUS). A US government inter-agency committee established in 1975 to monitor the impact of foreign investment in the United States. With the passage of the Exon-Florio Amendment (Sec. Ill) in 1988, CFIUS was given authority to review and recommend action against mergers, acquisitions, and takeovers that place US assets under foreign control. CFIUS is chaired by the Treasury Department and is represented at the Assistant Secretary level by the Departments of Commerce, State, Defense, and Justice, and by the Office of the Management and Budget, the Council of Economic Advisers, the Office of the US Trade Representative, the Office of Science and Technology Policy, the National Security Advisor, and the Assistant to the President for Economic Policy.

Committee of Permanent Representatives. See COREPER.

Committee on Tariff Concessions. A GATT standing committee that reviews the results of tariff negotiations and oversees implementation of the agreements.

Committee on Trade and Development (CTD). A GATT standing committee responsible for monitoring and discussing the ways in which trade measures affect the economic and social advancement of LDC members.

Commodity Credit Corporation (CCC). A federally chartered corporation administered as pan of the US Department of Agriculture. CCC is responsible for programs to stabilize, support, and protect farm income and prices; to assist in the maintenance of adequate supplies of foodstuffs, feeds, and fibers; and to facilitate orderly distribution of agricultural commodities. CCC also administers three foreign sales promotion programs.

Commonwealth of Independent States (CIS). An organization of II countries -- including all former Soviet republics except Georgia and the Baltic states --established by the Alma-Ata Declaration of December 1991 to coordinate intercommonwealth relations and to provide a mechanism for the orderly dissolution of the USSR. The agreement pledged cooperation in forming and developing a united economic area and a common customs policy, and established the city of Minsk as the official location of the CIS coordinating bodies. Members include Armenia, Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan. Georgia, which became an "associated member" of the CIS in September 1993, declared its intention to become a full member of the Commonwealth. See also CIS Economic Union.

Compagnie Francaise d' Assurance pour le Commerce (COFACE). France's export credit guarantee agency.

The Conference Board. An organization of senior executives from various industries worldwide that sponsors conferences and reports on national and international economic issues and business management. It is based in New York City.

Conseil National du Patronat Francais (CNPF). See Patronat.

Confederation of British Industry (CBI). British employers' council, roughly equivalent to the US National Association of Manufacturers.

Coordinating Committee for Multilateral Export Controls. See COCOM .

COREPER (Committee of Permanent Representatives). A key group in the decision making process of the European Community, comprising member-state ambassadors accredited to the EC. COREPER is responsible for preparatory work for meetings of the EC Council of Ministers; works to resolve policy differences between the

Council and the EC Commission; and serves as liaison between member-state governments and EC institutions. The committee operates at two levels (both of which meet weekly except during August): COREPER 1 consists of deputies to ambassadors; COREPER 2 comprises ambassadors, and usually handles more sensitive political questions.

Council of Baltic Sea States (CBSS). A regional cooperation organization including Denmark, the EC Commission, Estonia, Finland, Germany, Latvia, Lithuania, Norway, Poland, Russia, and Sweden; Belarus and Ukraine are observers. Objectives include economic assistance and cooperation; assistance to new democratic institutions; environmental protection; energy cooperation; humanitarian matters and health; and cooperation on transport and communication, culture, education, tourism, and information. The CBSS Declaration was signed by members' foreign ministers in March 1992.

Council of Europe. An association of 21 European countries formed in 1949 to identify areas of common interest and provide a forum for the articulation of European unity. The Council's headquarters is Strasbourg, France.

Council on Foreign Relations. A nonprofit, privately funded organization devoted to promoting improved understanding of international affairs through research, conferences, and publications. The Council is based in New York City.

Council on Mutual Economic Assistance (CEMA, CMEA or COMECON). Formed in 1949, CEMA was a Soviet-Ied economic community of Communist nations. Members included the Soviet Union, Poland, East Germany, Czechoslovakia, Hungary, Romania, Bulgaria, Mongolia, Vietnam, and Cuba. CEMA trade patterns were based on long-term state agreements --primarily involving barter exchanges of East European industrial and consumer products for Soviet energy and raw materials --that fixed prices far in advance and recorded payments in nonconvertible transferable rubles. CEMA members decided in March 1991 to disband the organization.

Court of International Trade. A US Federal Court (formerly the Court of Tariff Appeals) that hears appeals from proceedings under US trade laws

Customs Cooperation Council (CCC). A multilateral organization headquartered in Brussels, in which customs officials from participating countries meet to simplify and standardize customs procedures and techniques of member countries. The organization is concerned with the mechanics of customs administration and is not involved in matters relating to tariff levels or questions of trade policy. The CCC provides a technical committee to GA 1T to ensure uniformity in the application of GATT Article 7 and other rules concerning customs valuation (Sec. I). The Harmonized System (Sec. I) was negotiated in the CCC. See also Kyoto Convention (Sec. I).

Czech-Slovak Customs Union. A customs union linking the Czech Republic and Slovakia, intended to preserve trade relations between the two states following the dissolution of Czechoslovakia. In addition to traditional trade-policy topics, coverage extends to services and intellectual property protection. The agreement on formation of the customs union was approved by the republic parliaments in November 1992, and took .effect in January 1993.


Defense Policy Advisory Committee on Trade (DPACT). A policy-level committee that funds part of the private sector advisory system established by Congress to ensure that US trade policy and negotiating objectives reflect US commercial and economic interests. The DP ACT provides advice on defense trade issues --including defense export policies and the defense industrial base --related to bilateral and multilateral trade negotiations. DPACT members are appointed by the USTR in conjunction with the Secretary of Defense.

Deutscher Industrie-und nandelstag (DInT). Germany's industry and trade council, an umbrella organization for local chambers of commerce. Along with the Bundesverband der Deutschen Industrie, DIHT leaders confer with German officials on trade policy issues; the associations' staffs conduct economic and business research.

Direction des Relations Economiques Exterieures (DREE). France's foreign economic relations directorate. Formally subordinate to the Ministry of Industry and Foreign Trade, the DREE has traditionally had the lead in developing French trade policy. It is also responsible for export promotion..

Directorates-General (DGs). Functional bureaus of the EC Commission staff. The 23 DGs are designated by roman numerals; among the more important for economic and trade policy are:

DG I --External relations and commercial policy

DG II --Macroeconomics, monetary affairs

DG IV --Competition, cartels, state aids

DG VI --Agriculture

DG XI --Environment, consumer protection, nuclear safety

DG XIII --Telecommunications, information technology

DG XV --Financial services, company law

DO XXI --Customs unions, indirect taxation

Directorate-General des Strategies Industrielles (DGSI). France's directorate of industrial strategies, part of the Ministry of Industry and International Trade.

Downing Street (No.10). The office of Britain's Prime Minister.

East Asia Economic Caucus (EAEC). A Malaysian-proposed consultative group, including the ASEAN members, China, Hong Kong, Japan, South Korea, Taiwan, and Vietnam, intended to serve as a forum for coordinating positions in trade relations and negotiations with countries outside the region. Apart from Malaysia, the interest of other East Asian countries in EAEC is unclear; ASEAN foreign ministers decided in July 1993 that the caucus could be a sub-group within APEC, but stopped short of formally endorsing EAEC.

Economic Community of Central African States or Communaute Economique des Etats de I' Afrique Centrale (CEEAC). A customs union including Burundi, Cameroon, Central African Republic, Chad, Congo, Equatorial Guinea, Gabon, Rwanda, Sao Tome and Principe, and Zaire, founded in 1983. Objectives include expansion of intra-regional trade; adoption of a common external tariff; and establishment of a regional common market by 2000. Only limited progress has been achieved, as trade among members is hindered by poorly developed trade financing and by the existence of five separate, mostly non-convertible currencies within the region.

Economic Community of Great Lakes Countries or Communaute Economique des Pays des Grands Lacs (CEPGL). A free trade area including Burundi, Rwanda, and Zaire, founded in 1976. Objectives include promotion of economic cooperation and development; reduction of tariffs on intra-group trade; free factor mobility; and joint industrial projects. An accord on customs and preferential tariffs was signed but not implemented. Some progress in cooperation on power generation has been achieved.

Economic Community of West African States (ECOWAS) or Communaute Economique des Etats de l' Afrique de l'Ouest (CEDEAO). A customs union including Benin, Burkina Paso, Cape Verde, Equatorial Guinea, Ivory Coast, Gambia, Ghana, Guinea, Guinea-Bissau, Liberia, Mali, Mauritania, Niger, Nigeria, Senegal, Sierra Leone, and Togo, founded in 1975. Objectives include phased elimination of tariffs and non-tariff restrictions on intra-regional trade in manufactured goods; liberalization of intra-regional trade in agriculture; establishment of a common external tariff; removal of restrictions on the movement of capital, services, and labor; harmonization of agricultural and industrial policies; and creation of a monetary union. Inconsistency of members' commercial policies --due in part to membership ~n other preferential trading arrangements --has contributed to negligible progress in the reduction of intra-regional trade barriers. The common external tariff was not implemented in 1990 as scheduled. Some progress in telecommunications and transport cooperation has been achieved.

Economic Cooperation Organization (ECO). A regional cooperation organization including Afghanistan, Azerbaijan, Iran, Kazakhstan, Kyrgyzstan, Pakistan, Tajikistan, Turkey, Turkmenistan, and Uzbekistan. Objectives include bilateral trade promotion and cooperation in industrial planning; the February 1992 ECO Summit referred to the goal of eventual creation of an Islamic Common Market. It was founded in 1964 as the Regional Cooperation for Development (RCD) linking Iran, Pakistan, and Turkey; it came to a standstill after the Iranian revolution in 1979 but was not formally dissolved. Following Iranian initiatives in 1984, some cooperative projects were discussed under the heading of the ECO. Five Central Asian CIS republics joined the ECO at the Tehran Summit in February 1992; Kazakhstan and Afghanistan joined in November 1992.

Economic Strategy Institute. A private organization based in Washington, DC, that conducts studies and makes policy recommendations on domestic and international economic issues, industrial and technological developments, and global security issues.

Elysee. The office of the French Presidency. .

European Community (EC). (Previously known as the European Economic Community, or EEC; the term "European Communities" referred to the collectivity of the EEC, the European Coal and Steel Community, and Euratom.) A common market established in 1958 by the Treaty of Rome ( Sec. I) , which linked France, West Germany, Italy, Belgium, the Netherlands, and Luxembourg. Subsequently the United Kingdom, .Ireland, Denmark, Greece, Spain, and Portugal became member states, bringing the current membership to 12. Some of the purposes of the EC are the elimination of tariffs and other restrictions on trade between member states; maintenance of a common external tariff toward other countries; free movement of labor and capital among member states; and establishment of a common agricultural policy (Sec. I). In accordance with Article 113 of the~ Treaty of Rome, the EC acts for the member states on matters of trade policy and represents them in GA TT discussions and negotiations.

EC Commission. The "executive branch" of the European Community, which is responsible for carrying out policies approved by the EC Council of Ministers, conducting trade negotiations with non-EC countries, enforcing antitrust rules, and reducing state subsidies that distort trade among member states. It is the sole initiator of EC policy proposals. The Commission, based in Brussels, is headed by 17 commissioners, all nominated to four-year terms by their respective governments; France, Germany, Italy, Spain, and the United Kingdom each nominate two commissioners, while the other seven member states are allotted one commissioner each. From among the 17 members, the Commission president is chosen by the heads of government of t4e EC member states; the Commission president then assigns each commissioner a portfolio of issues. The commissioners direct the work of 16,000 civil servants (often referred to as "Eurocrats") who staff 23 functional units called Directorates-General (DGs).

EC Council of Ministers. The primary decision-making body of the European Community in which member states are directly represented. Although the Council is a single legal entity ' it takes different forms comprising different individuals as members:

* The General Affairs Council is made up of member-state foreign ministers. It meets at least once a month and deals with foreign affairs and the most important Community business.

* The General Affairs Council oversees the Specialized Councils. Member-state ministers for economics, finance, and agriculture meet monthly --the latter referred to as the Agriculture Council, for example --while ministers responsible for transport, environment, social affairs, and other issues meet less frequently.


The Council of Ministers is empowered to use a form of weighted voting2 on most issues, although decisions by consensus are strongly preferred. Except in areas of intergovernmental cooperation not covered by the Treaty of Rome, the Council must wait 2 Known as "qua1ifying majority voting," the system allows 10 votes each to Germany, France, Italy, and the United Kingdom; 8 votes to Spain; 5 votes each to Belgium, Greece. Netherlands, and POrttlga1; 3 votes each to Denmark and Ireland; and 2 votes to Luxembourg. A qualified majority consists of 54 of the total 76 votes; thus. 23 votes are needed for a "blocking minority ." for a proposal from the EC Commission before it can take action. The office of Council President rotates on a modified alphabetic basis among the member states for terms of six months, and is commonly referred to as the I'EC Presidency. II The Council of Ministers - -and its supporting General Secretariat staff of about 2,000 --are based in Brussels, but during April, June, and October its meetings are held in Luxembourg. Several standing committees support or report directly to the Council, including the Committee of .Permanent Representatives (COREPER), the One-Thirteen Committee, the Special Committee on Agriculture, and the Monetary Committee.


European Council. The semiannual summit meeting of EC leaders, which functions as the supreme level of decision making in the Community .As such, it is distinct from the EC Council of Ministers, which prepares its agenda. Each member state is represented by its prime minister except for France, which is represented by its president. European Council meetings last two or three days, and are hosted by the country currently holding the presidency of the Council of Ministers.


European Court of Justice. As the" judicial branch" of the European Community , the Court is responsible for interpreting the scope of Community jurisdiction. Precedent has established that Community law as interpreted by the Court takes precedence over national law of the member states. The Court exercises jurisdiction primarily over requests made by national courts for interpretations of EC treaties; cases brought against member states for failing to apply EC law; and cases initiated against decisions made by Community institutions. The Court, which sits in Luxembourg, is made up of 13 judges and six advocates-general, appointed for six-year renewable terms by mutual consent of the EC member states.


European Economic Area (EEA). A prospective free trade area including Austria, Belgium, Denmark, Finland, France, Germany, Greece, Iceland, Ireland, Italy, Liechtenstein, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden, and the United Kingdom Objectives include establishment of a homogeneous economic area with free movement of goods, services, capital, and labor under equal competitive conditions; extension of the provisions of the EC Single Market program (EC-92) to EFTA members; and harmonization of technical standards. The EEA agreement was signed in May 1992 and is currently undergoing ratification by participants; ratification by Switzerland was rejected in a December 1992 plebiscite.


European Free Trade Association (EFTA). A free trade area including Austria, Finland, Iceland, Liechtenstein, Norway, Sweden, and Switzerland. EFTA was established by the Stockholm Convention of 1960 to liberalize trade in industrial products without the political implications of a customs union; free trade in most industrial products has existed among EFTA members since 1977. All EFTA members signed individual free trade agreements with the European Community in 1972-73.


European Parliament. The deliberative body of the European Community, having authority to review policy proposals of the EC Commission and the EC Council of Ministers. While the Parliament shares budgetary authority with the Council of Ministers, it does not have full budgetary oversight powers, nor does it have the right to initiate legislation. The 518 members of the European Parliament (MEPS)3 are organized into cross-national political groups, and the leaders of these groups are also included in planning parliamentary sessions. The Parliament's 19 standing committees examine proposals for legislation put forward by the Council of Ministers. A Secretary-General and a Secretariat of about 3,000 staff the Parliament's administrative headquarters in Luxembourg; it holds plenary sessions one week each month in Strasbourg, but committee meetings normally take place in Brussels.


Export-Import Bank of the United States (Exurban). A public corporation created by executive order of the President in 1934 and given a statutory basis in 1945. Eximbank makes guarantees and insures loans to help finance US exports, particularly for equipment to be used in capital improvement projects. Eximbank also provides short- term insurance against both commercial and political risk, either directly or in conjunction with US commercial banks.




© ITCD, 2004. All rights reserved. Reproduction of this document, in whole or in part, is strictly prohibited without written authorization of the authors. No part of this document may be reproduced, stored, or transmitted in any form (electronic, mechanical, photocopy, etc.) without written consent of the authors