III. TRADE-RELATED ORGANIZATIONS
(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.
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.
of Industrial Science and Technology (AIST). An agency of Japan's Ministry of International Trade and Industry
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.
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.
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.
committees in the industrial sector are known as ISACs. See alsoIFACs.
Enterprise Institute for Public Policy Research. A research and educational organization,
based in Washington, DC, specializing in monetary , tax, trade,
and regulatory policy issues.
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.
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.
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.
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.
Francaise de Normalisation (AFNOR).
France's industrial standards authority.
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.
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.
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.
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,
Germany's foreign ministry .
of Payments Committee.
See Committee on Balance-of-Payments Restrictions.
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.
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).
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.
Committee on Balance-of-Payments Restrictions.
independent research organization, founded in 1927, specializing
in economics, government, foreign policy, and the social sciences.
It is based in Washington, DC.
fur Wirtschaft (BAW).
German agency responsible for supervising exports of dual-use
goods (Sec. II).
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.
fur Finanzen (BMF).
Germany's finance ministry .Sometimes referred to as Bundestinanzministerium
fur Wirtschaft (BMWi).
Germany's economics ministry.
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.
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.
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.
A regional cooperation organization established in February
1993 among Hungary , Poland, Slovakia, and Ukraine to facilitate
trade and promote infrastructure development in the Carpathian
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.
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.
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.
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.
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.
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.
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
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.
for Economic Policy Research (CEPR).
A British research institute specializing in international trade
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,
of Germany's Chancellor (prime minister). CIS. See Commonwealth
of Independent States.
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.
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).
An organization established in 1963 by the Food and Agriculture
conjunction with the World Health Organization to establish
international standards for raw and processed food products.
See Codex ~ Alimentarius and sanitary and phytosanitary standards
Customs Union. See
on International Commodity Trade. A
UN specialized agency established in 1954 to monitor activities
in primary commodity markets.
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.
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.
of Permanent Representatives.
on Tariff Concessions.
A GATT standing committee that reviews the results of tariff
negotiations and oversees implementation of the agreements.
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.
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
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.
Francaise d' Assurance pour le Commerce (COFACE). France's export credit guarantee agency.
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.
National du Patronat Francais (CNPF).
of British Industry (CBI).
British employers' council, roughly equivalent to the US National
Association of Manufacturers.
Committee for Multilateral Export Controls. See COCOM .
(Committee of Permanent Representatives). A key group in the decision making process of the European
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
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
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.
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,
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
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.
of International Trade.
A US Federal Court (formerly the Court of Tariff Appeals) that
hears appeals from proceedings under US trade laws
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).
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.
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.
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.
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..
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:
I --External relations and commercial policy
II --Macroeconomics, monetary affairs
IV --Competition, cartels, state aids
XI --Environment, consumer protection, nuclear safety
XIII --Telecommunications, information technology
XV --Financial services, company law
XXI --Customs unions, indirect taxation
des Strategies Industrielles (DGSI).
France's directorate of industrial strategies, part of the Ministry
of Industry and International Trade.
The office of Britain's Prime Minister.
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.
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.
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.
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.
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.
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. .
(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
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.
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).
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
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
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
European Parliament. The deliberative body of the European
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
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