Americas Business Forum (ABF)

Parallel event organized by the business community at the time of the meeting of Ministers Responsible for Trade in the Hemisphere participating in the negotiations of the Free Trade Area of the Americas (FTAA).

http://www.abfmiami2003.com  

Americas Trade and Sustainable Development Forum

Parallel event organized by civil society organizations at the time of the meeting of Ministers Responsible for Trade in the Hemisphere participating in the negotiations of the Free Trade Area of the Americas (FTAA).

http://www.miami.edu/nsc/pages/FTAA.html 

Andean Community (CAN)

Formerly known as the Andean Group (established in 1969) and the Andean Common Market, the Andean Community (CAN) is a sub-regional organization made up of Bolivia, Colombia, Ecuador, Peru and Venezuela and the bodies and institutions comprising the Andean Integration System (AIS). The key objectives of the Andean Community are: to promote the balanced and harmonious development of the member countries under equitable conditions; to stimulate growth through integration and economic and social cooperation; to enhance participation in the regional integration process with a view to the progressive formation of a Latin American common market; and to strive for a steady improvement in the standard of living of their inhabitants.

http://www.comunidadandina.org   

Asia-Pacific Economic Cooperation (APEC)

Established in November 1989, the Asia-Pacific Economic Cooperation (APEC) is the premier forum for facilitating economic growth, cooperation, trade and investment in the Asia-Pacific region. APEC members (21) are: Australia, Brunei Darussalam, Canada, Chile, People’s Republic of China, Hong Kong, China, Indonesia, Japan, Republic of Korea, Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, the Philippines, the Russian Federation, Singapore, Chinese Taipei, Thailand, United States, and Viet Nam.

http://www.apecsec.org.sg  

Business facilitation measures

In the context of the FTAA, set of measures approved by Ministers Responsible for Trade at their Toronto Meeting, held on November 4, 1999. These include eight customs-related measures and ten transparency-related measures, which can be found in Annexes II and III of the Toronto Ministerial Declaration.

http://www.ftaa-alca.org/ministerials/minis_e.asp  

Caribbean Community and Common Market (CARICOM)

CARICOM is a grouping of 15 member countries that was established by the Treaty of Chaguaramas in 1973 to promote economic integration through the free movement of goods and functional cooperation in areas such as education and health. The Treaty was revised in 2001 to elevate the common market into an economic union, the Caribbean Single Market and Economy (CSME), which envisions the free movement of goods, services, capital and labor, macroeconomic policy coordination and harmonization of laws and institutions. Member (15) countries are: Antigua and Barbuda, The Bahamas, Barbados, Belize, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Suriname, Trinidad and Tobago. The Bahamas is a member of the Community but not the Common Market. Associate members (3) include: Anguilla, British Virgin Islands, Turks and Caicos Islands.

http://www.caricom.org  

Central American Common Market (CACM)

The Central American Common Market (CACM) was established on 13 December 1960 when Guatemala, El Salvador, Honduras, and Nicaragua signed the General Treaty of Central American Economic Integration. Costa Rica acceded on 23 July 1962. In October 1993, the five CACM countries signed the Guatemala Protocol, which amended the 1960 General Treaty. The Protocol redefines the objectives, principles and stages of economic integration, and calls on members to establish a customs union. More specifically, the Guatemala Protocol calls on members to bring the free trade area of the CACM into full operation through the gradual elimination of tariff and non-tariff barriers, the granting of national treatment to intraregional trade, and the adoption of a regional legal framework covering rules of origin, safeguards, unfair trade practices, intellectual property, services, sanitary and phytosanitary measures, and standards and technical regulations.

http://www.sieca.org.gt  

Common Market of the South (MERCOSUR)

Established as the Common Market of the South (MERCOSUR) through the Treaty of Asuncion on 26 March 1991. Between 1991 and 1995, MERCOSUR members, Argentina, Brazil, Paraguay and Uruguay, engaged in a series of negotiations to establish a common external tariff, which took effect on 1 January 1995. The deadline for full implementation of the customs union by all members in all sectors is 2006. The re-launching of MERCOSUR’s integration process in 2000 called for closer macroeconomic coordination and other areas of prioritization such as institutional strengthening, the common external tariff, dispute settlement, trade remedies and competition policy, and investment incentives. Chile and Bolivia became associate members, respectively, in 1996 and 1997.

http://www.mercosul.org.uy  

European Union (EU)

The European Union (EU) groups fifteen member states through a set of common institutions where decisions on specific matters of joint interest are taken at the European level. It was founded as the European Community after the Second World War to enhance political, economic and social cooperation among its members. The ‘single market’, adopted in 1992 through the Treaty of Maastricht, is the core of the present European Union. It includes the freedoms of movement for goods, services, people and capital and is underpinned by a range of supporting policies. A common currency, the ‘Euro’, which replaced the old national currencies in 12 EU countries, along with a European Central Bank, came into existence on 1 January 2002. Member states (15) include: Austria; Belgium; Denmark; Finland; France; Germany; Greece; Ireland; Italy; Luxembourg; Netherlands; Portugal; Spain; Sweden; United Kingdom of Great Britain and Northern Ireland. Ten new member countries have been invited to join the EU on 1 May 2004, namely: Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia.

http://europa.eu.int  

Free Trade Area of the Americas (FTAA)

The Heads of State and Government of the 34 democracies in the hemisphere agreed to construct a Free Trade Area of the Americas (FTAA), in which barriers to trade and investment will be progressively eliminated. The negotiations were launched at the Summit of the Americas in Miami, U.S.A., in December 1994. They agreed to complete negotiations towards this agreement by January 2005. FTAA website The official public website for the negotiating process of the Free Trade Area of the Americas.

http://www.ftaa-alca.org  

General Agreement on Tariffs and Trade (GA TT)

The General Agreement on Tariffs and Trade (GATT), has been superseded as an international organization by the World Trade Organization. An updated General Agreement is now one of the WTO’s agreements. See “World Trade Organization”.

General Agreement on Trade in Services (GATS)

The General Agreement on Trade in Services (GATS) is the first multilateral, legally binding set of rules covering international trade in services. The GATS came into effect in January 1995 as an integral part of the WTO. The workings of the GATS are the responsibility of the Council for Trade in Services, made up of representatives from all WTO members.

Hemispheric Cooperation Program (HCP)

The Hemispheric Cooperation Program (HCP) aims to strengthen the capacities of those countries seeking assistance to participate in the FTAA negotiations, implement their trade commitments, and address the challenges and maximize the benefits of hemispheric integration, including productive capacity and competitiveness in the region. The Program includes a mechanism to assist these countries to develop national and/or sub-regional trade capacity building strategies that define, prioritize and articulate their needs and programs pursuant to those strategies, and to identify sources of financial and non-financial support for fulfilling these needs. The HCP was endorsed by the FTAA Ministers Responsible for Trade at their meeting in Quito, in November 2002.

http://www.ftaa-alca.org/ministerials/quito/minist_e.asp  

Inter-American Development Bank (IDB or IADB)

Established in 1959, the Inter-American Development Bank (IDB) supports economic and social development and regional integration in Latin America and the Caribbean. It does so mainly through lending to public institutions, but it also funds some private projects, typically in infrastructure and capital markets development. Members (46) include: Argentina, Austria, The Bahamas, Barbados, Belgium, Belize, Bolivia, Brazil, Canada, Chile, Colombia, Costa Rica, Croatia, Denmark, Dominican Republic, Ecuador, El Salvador, Finland, France, Germany, Guatemala, Guyana, Haiti, Honduras, Israel, Italy, Jamaica, Japan, Mexico, Netherlands, Nicaragua, Norway, Panama, Paraguay, Peru, Portugal, Slovenia, Spain, Suriname, Sweden, Switzerland, Trinidad and Tobago, United Kingdom, United States, Uruguay and Venezuela.

http://www.iadb.org  

Latin American Association for Integration (ALADI)

The Latin American Association for Integration (ALADI) was established by the Treaty of Montevideo in August 1980 and became operational in March 1981. The Association seeks to foster economic cooperation among its members, including through the conclusion of regional trading agreements and sectoral agreements. Members (12) include: Argentina, Bolivia, Brazil, Chile, Colombia, Cuba, Ecuador, Mexico, Paraguay, Peru, Uruguay, and Venezuela. ALADI replaced the Latin American Free Trade Association (LAFTA; Asociación Latinoamericana de Libre Comercio), which had been established in 1960 with the aim of developing a common market in Latin America.

http://www.aladi.org  

National Strategies to Strengthen Trade Capacities

In the context of the FTAA Hemispheric Cooperation Program, countries have developed national or regional strategies that define, prioritize, and articulate their needs related to strengthening their capacity for: preparing for negotiations; implementing trade commitments and adjusting to integration. In order to facilitate coordination and sharing of experiences, the strategies follow a common format that was developed by the Consultative Group on Smaller Economies, with the assistance of the Tripartite Committee.

Organization for Economic Cooperation and Development (OECD)

The Organization for Economic Cooperation and Development (OECD) groups 30 member countries in a unique forum to discuss, develop and refine economic and social policies. Established December 1960 and came into being in September 1961. Members (30) include: Australia, Austria, Belgium, Canada, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, South Korea, Luxembourg, Mexico, Netherlands, New Zealand, Norway, Poland, Portugal, Slovakia, Spain, Sweden, Switzerland, Turkey, United Kingdom and the United States.

http://www.oecd.org

North American Free Trade Agreement (NAFTA)

The North American Free Trade Agreement (NAFTA) is a comprehensive free trade agreement involving Canada, Mexico, and the U.S., implemented on 1 January 1994. Its objectives include: to eliminate barriers to trade in, and to facilitate the cross- border movement of goods and services; to promote conditions of fair competition; to increase investment opportunities; to provide adequate and effective protection and enforcement of intellectual property rights; to create effective procedures for the implementation and application of the Agreement, for its joint administration and for the resolution of disputes; and to establish a framework for further trilateral, regional and multilateral cooperation.

http://www.nafta-sec-alena.org

Organization of American States (OAS)

On 30 April 1948, the Charter of the Organization of American States (OAS) was adopted by 21 nations of the hemisphere. It affirmed their commitment to common goals and respect for each nation’s sovereignty. Since then, the OAS has expanded to include the nations of the Caribbean, as well as Canada. Through the Summit of the Americas process, the Heads of State and Government in the hemisphere have given the OAS important responsibilities and mandates, including: human rights; participation of civil society; improving cooperation to address the problem of illegal drugs; supporting the process to create a Free Trade Area of the Americas; education; justice and security. Members (35) include: Antigua and Barbuda, Argentina, the Bahamas, Barbados, Belize, Bolivia, Brazil, Canada, Chile, Colombia, Costa Rica, Cuba (excluded from formal participation since 1962), Dominica, Dominican Republic, Ecuador, El Salvador, Grenada, Guatemala, Guyana, Haiti, Honduras, Jamaica, Mexico, Nicaragua, Panama, Paraguay, Peru, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Suriname, Trinidad and Tobago, the United States, Uruguay and Venezuela.

http://www.oas.org  

Summit Implementation Review Group (SIRG)

The Summit Implementation Review Group (SIRG) was created in March 1995 with the purpose of coordinating and implementing the mandates of the Miami Plan of Action. The SIRG is comprised of the 34 democratically elected governments of the hemisphere, which are represented by their appointed National Coordinators. The SIRG is responsible for reporting annually on the progress achieved in the fulfillment of the Plan of Action to the Foreign Ministers. The Ministers review the information on the occasion of the Regular Session of the OAS General Assembly.

Summit of the Americas

The Summit of the Americas process, begun after the first Summit of the Americas in December 1994, brings together the Heads of State and Government of the Western Hemisphere to discuss common concerns, seek solutions and develop a shared vision for their future development of the region, be it economic, social or political in nature.

http://www.summit-americas.org  

Trade capacity building

Development and enhancement of trade-related capacities and core skills of countries through technical cooperation and other forms of assistance to optimize their participation in negotiations, implement their trade commitments, and address the challenges to maximize the benefits of hemispheric integration. See Hemispheric Cooperation Program.

Trade Negotiations Committee (TNC)

As part of the Free Trade Area of the Americas process, the Trade Negotiations Committee (TNC), made up of Vice Ministers of Trade, oversees and manages the FTAA negotiating process. The TNC has the responsibility of guiding the work of the FTAA negotiating groups and special committees, and of deciding on the overall architecture of the agreement and institutional issues.

Treatment of the differences in the level of development and size of the economies

Principle that grants countries of differing levels of size and development the possibility to obtain different treatment in the context of the FTAA negotiations. The guidelines for this treatment are set out in the FTAA Trade Negotiations Committee document entitled “Guidelines or Directives for the Treatment of the Differences in the Levels of Development and Size of Economies”.

http://www.ftaa-alca.org/TNC/tn18e.asp  

Tripartite Committee (TPC)

The Tripartite Committee (TPC) consists of the Inter-American Development Bank (IDB), the Organization of American States (OAS) and the United Nations Economic Commission for Latin America and the Caribbean (ECLAC). It provides analytical, technical and financial support to the FTAA process and maintains the official FTAA Website. The Tripartite institutions also provide technical assistance related to FTAA issues, particularly for the smaller economies of the Hemisphere.

U.N. Economic Commission for Latin America and the Caribbean (ECLAC)

The Economic Commission for Latin America and the Caribbean (ECLAC) is one of the five regional commissions of the United Nations. It was founded for the purposes of contributing to the economic development of Latin America, coordinating actions directed towards this end, and reinforcing economic relationships among the countries and with the other nations of the world. The promotion of the region's social development was later included among its primary objectives. Members (41) include: Antigua and Barbuda, Argentina, Bahamas, Barbados, Belize, Bolivia, Brazil, Canada, Chile, Colombia, Costa Rica, Cuba, Dominica, Dominican Republic, Ecuador, El Salvador, France, Grenada, Guatemala, Guyana, Haiti, Honduras, Italy, Jamaica, Mexico, Netherlands, Nicaragua, Panama, Paraguay, Peru, Portugal, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Spain, Suriname, Trinidad and Tobago, United Kingdom, United States, Uruguay and Venezuela. Associate members (7) include: Anguilla, Aruba, British Virgin Islands, Montserrat, Netherlands Antilles, Puerto Rico and United States Virgin Islands.

http://www.eclac.org

United Nations Commission on International Trade Law (UNCITRAL)

Established in December 1966, the United Nations Commission on International Trade Law (UNCITRAL) aims to further the progressive harmonization and unification of international trade law. Members (36) include: Argentina (alternating annually with Uruguay), Austria, Benin, Brazil, Burkina Faso, Cameroon, Canada, China, Colombia, Fiji, France, Germany, Honduras, Hungary, India, Iran, Italy, Japan, Kenya, Lithuania, Mexico, Morocco, Paraguay, Romania, Russian Federation, Rwanda, Sierra Leone, Singapore, Spain, Sudan, Sweden, Thailand, The former Yugoslav Republic of Macedonia, Uganda, United Kingdom and the United States.

http://www.uncitral.org

United Nations Conference on Trade and Development (UNCTAD)

Established in 1964, the United Nations Conference on Trade and Development (UNCTAD) aims to enhance the integration of developing countries into the world economy. UNCTAD is the focal point within the United Nations for the integrated treatment of trade and development and interrelated issues in the areas of finance, technology, investment and sustainable development. Members (192) include all members of the United Nations plus the Holy See.

http://www.unctad.org  

Uruguay Round of Multilateral Trade Negotiations

Launched in September 1986, in Punta del Este, Uruguay, the eighth round of multilateral trade negotiations encompassed a wide-ranging negotiating agenda that covered many new trade policy issues. The resulting agreement, concluded in December 1993 and signed in April 1994, extended the multilateral trading system into several new areas, notably trade in services and intellectual property rights, and brought the important sectors of agriculture and textiles under multilateral trading rules. The Uruguay Round resulted in the establishment of the World Trade Organization in January 1995.

http://www.wto.org/english/thewto_e/whatis_e/tif_e/fact5_e.htm  

World Customs Organization (WCO)

Established in 1952 as the Customs Co-operation Council, the Council adopted the working name World Customs Organization (WCO) in 1994, to more clearly reflect its transition to a truly global intergovernmental institution. The WCO is an independent intergovernmental body whose mission is to enhance the effectiveness and efficiency of customs administrations worldwide. With 159 member governments, it is the main intergovernmental organization with competence over customs matters.

http://www.wcoomd.org

World Intellectual Property Organization (WIPO)

Established in 1967, the World Intellectual Property Organization (WIPO) is an international organization dedicated to promoting the use and protection of literary, artistic and scientific works. WIPO is one of the 16 specialized agencies in the United Nations system. It administers 23 international treaties dealing with different aspects of intellectual property protection. The Organization counts 179 nations as members.

http://www.wipo.org

World Trade Organization (WTO)

The World Trade Organization (WTO) succeeded the General Agreement on Tariff and Trade (GATT) on 1 January 1995. It is the only multilateral organization that serves as a negotiating forum for the liberalization of trade, a body to oversee the implementation of multilaterally agreed and binding trade rules and a forum for the resolution of trade disputes. The objective of the WTO is to promote the liberalization and expansion of international trade in goods and services under conditions of legal certainty and predictability. The WTO has 146 members.

http://www.wto.org

Abuse of dominant position

Anticompetitive business practices in which a dominant firm may engage in order to maintain or increase its position in the market. These business practices by the firm, not without controversy, may be considered as “abusive or improper exploitation” of monopolistic control of a market aimed at restricting competition. Although they may include practices such as charging excess prices, price discrimination, predatory pricing, refusal to deal/sell, tied selling, etc., which of the different types of business practices are considered as being abusive will vary on a case by case basis and across countries.

Anticompetitive practices

A wide range of business practices in which a firm or group of firms may engage in order to restrict inter-firm competition to maintain or increase their relative market position and profits without necessarily providing goods and services at a lower cost or of higher quality. These practices include price fixing and other cartel arrangements, abuses of a dominant position or monopolization, mergers that limit competition and vertical agreements that foreclose markets to new competitors.

Barriers to entry

Factors which prevent or deter the entry of new firms into an industry even when the incumbent firms are earning excess profits. There are two broad classes of barriers: structural (economic or innocent) and strategic (behavioral). Structural barriers arise from basic industry characteristics such as technology, costs and demand. Strategic barriers arise from the behavior of incumbents.

Bid rigging (Collusive tendering)

A particular form of collusive price-fixing behavior by which firms coordinate their bids on procurement or project contracts. There are two common forms of bid rigging. In the first, firms agree to submit common bids, thus eliminating price competition. In the second, firms agree on which firm will be the lowest bidder and rotate in such a way that each firm wins an agreed upon number or value of contracts.

Cartel

A cartel is a formal agreement among firms in an oligopolistic industry. Cartel members may agree on such matters as prices, total industry output, market shares, allocation of customers, allocation of territories, bid-rigging, establishment of common sales agencies, and the division of profits or combination of these. Cartel in this broad sense is synonymous with “explicit” forms of collusion, which does not necessarily require a formal agreement, whether public or private, between members. Often the terms collusion and cartel are used somewhat interchangeably. Cartels are formed for the mutual benefit of member firms.

Competition laws

Also known as “antitrust” or “anti monopoly” laws. Antitrust refers to a field of economic policy and laws dealing with monopoly and monopolistic practices. The intellectual basis for antitrust economics or policy is the sub-field of industrial organization economics which addresses issues arising from the behavior of firms operating under different market structure conditions and the effect that this has on economic performance. Most antitrust or competition laws have provisions dealing with structure such as mergers, monopoly, dominant market position and concentration, as well as behavior, such as collusion, price fixing, and predatory pricing.

Competition policy

Include competition laws in additions to other measures aimed at promoting competition in the national economy, such as sectoral regulations and privatization policies. Also supervision over the government policies through competition advocacy.

Consumer welfare

The individual benefits derived from the consumption of goods and services. In theory, individual welfare is defined by an individual’s own assessment of his/her satisfaction, given prices and income. Exact measurement of consumer welfare therefore requires information about individual preferences. In practice, applied welfare economics uses the notion of consumer surplus to measure consumer welfare.

Cooperation

Cooperation on competition has two main elements: (i) provisions to facilitate “case- specific” cooperation on anti-competitive practices having an impact on international trade; and (ii) provisions relating to general exchanges of information and experiences and joint analysis of global trade-related competition issues (“institutional co- operation” in OECD terms).

Discriminatory provision

Includes treating: (i) a parent, a subsidiary or other enterprise with common ownership more favorably than an unaffiliated enterprise, or (ii) one class of enterprises more favorably than another, in like circumstances.

Efficiency

It relates to the most effective manner of utilizing scarce resources. Two types of efficiency are generally distinguished: technological (or technical) and economic (or allocative). A firm may be more technologically efficient than another if it produces the same level of output with one or fewer physical number of inputs. Economic efficiency occurs when inputs are utilized in a manner such that a given scale of output is produced at the lowest possible cost.

Flexibility and progressivity

In the multilateral context flexibility and progressivity are qualities for an international agreement. To get flexibility implies that the framework agreement recognizes that competition laws cannot and probably should not the same in all countries; they are differences in substance as well as in procedure. Progressivity refers to the commitment to competition –for example through transition periods– probably depends on the level of the economic development and size of the economies.

Market power

The ability of a firm (or group of firms) to raise and maintain prices above the level that would prevail under competition is referred to as market or monopoly power. The exercise of market power leads to reduced output and loss of economic welfare.

Market regulatory policies and measures

Any rule that affects the price or quantities traded in a relevant market, or investments in the sector of activity affected by such rules. Market Regulation: Broadly defined as the imposition of rules by government, backed by the use of penalties that are intended specifically to modify the economic behavior of individuals and firms in the private sector.

Mergers and acquisitions

Merger is an amalgamation or joining of two or more firms into an existing firm or to form a new firm. A variety of motives may exist for mergers: to increase economic efficiency, to acquire market power, to diversify, to expand into different geographic markets, to pursue financial and R&D synergies, etc. Mergers are classified into three types: Horizontal Merger, Vertical Merger, and Conglomerate Merger. Acquisitions: Refers to obtaining ownership and control by one firm, in whole or in part, of another firm or business entity. As distinct from a merger, an acquisition does not necessarily entail amalgamation or consolidation of the firms.

Monopoly

A situation where there is a single seller in the market. In conventional economic analysis, the monopoly case is taken as the polar opposite of perfect competition. By definition, the demand curve facing the monopolist is the industry demand curve which is downward sloping. Thus, the monopolist has significant power over the price it charges, i.e. is a price setter rather than a price taker.

Natural (or legal) persons

Person, may be a natural person (individual) or juridical person (legal entity, for example a corporation) under the law.

Non-discrimination

In the multilateral context there are two components to the principle of non- discrimination: national treatment and most-favored-nation treatment (See general definition). In the context of FTAA Chapter on Competition Policy that refers to each Party undertakes to ensure that the provisions of its competition statutes and regulations do not discriminate on the basis of the nationality of the natural or legal persons of the Parties. (See also “procedural fairness”).

Output restrictions

Are anti competitive agreement –including by quotas/ hard core cartels- by competitors to emulate monopoly in order to earn higher profits. It is for market sharing arrangements often applied in sectors where there is surplus capacity or where the objective is to raise prices.

Positive and negative comity

Under the concept of positive comity, cases involving anti-competitive practices originating in one country but affecting another can be referred to the competition agency of the country where such practices have originated for appropriate action. Principles of negative comity mean that countries (Parties) would take into account the important and clearly stated trade interests of other countries before action is taken in particular cases.

Procedural fairness/ Due process

In the multilateral context broad provisions on procedural fairness at the domestic level are based on three central concepts: (i) that governmental measures of general application be published and that this be done, as a general rule, before they are applied; (ii) that such measures be administered in a uniform, impartial and reasonable manner or in a fair and equitable way; and (iii) possibilities for appeal or review of decisions on the application of such measures. The different constituencies of competition law enforcement have somewhat different interests in procedural fairness.

Protection of confidentiality

Protection of confidential information from unwarranted disclosure is a fundamental part of procedural fairness. The most common way of protecting confidential information is by establishing direct obligation for countries (Parties) and authorities to protect confidential information, and prohibitions to disclose confidential information.

Relevant market

Means the geographic and product market for a good or service as used in antitrust analysis. It refers to the line of commerce in which competition has been restrained and to the geographic area involved, defined to include all reasonably substitutable products or services, and all nearby competitors, to which consumers could turn in the near term if the restraint or abuse raised prices by a not insignificant amount. See Subsidies, Antidumping and Countervailing Duties, where this text may have a slightly different meaning.

Transparency

In a broad sense are degrees to which trade policies and practices, and the process by which they are established, are open and predictable. Transparency is a basic requirement for enforcement of competition law; as such laws are often written in general framework form and are applied in a technical manner on a case-by-case basis. In the context of FTAA Chapter on Competition Policy refers to each Party undertakes to publish or otherwise make available any laws, regulations, procedural rules, implementing guidelines, final judicial or quasi judicial decisions or administrative rulings of general application respecting competition matters.

Code of conduct

The collection of rules applicable to customs officers regarding conduct, conflict of interest and possible sanctions and applicable disciplinary action.

Customs Administration

The Government Service responsible for the application and control of compliance with the set of measures in force to assure the fulfillment of the laws and regulations that Customs is obligated to apply.

Customs broker

Any third party whose business concerns arranging for the clearance of goods.

Customs clearance of goods

The accomplishment of the Customs formalities necessary to allow goods under a Customs procedure.

Customs duty

The duties laid down in the Customs tariff to which goods are liable on entering or leaving the Customs territory.

Customs infraction

Any breach, or attempted breach, of Customs law.   

Customs legislation

The statutory and regulatory provisions relating to the importation, exportation, movement or storage of goods, the administration and enforcement of which are specifically charged to the Customs, and any regulations made by the Customs under their statutory powers.

Custom operations

All the operations which must be carried out by the persons concerned and by the Customs in order to comply with the Customs law.

Customs transit

The Customs procedure under which goods are transported under Customs control from one Customs office to another.

Customs valuation

The customs value constitutes the basis for applying customs duties.

Electronic Data Interchange (EDI)

It consists of an exchange of electronic data between computer systems in a standard format.

Exportation of goods

The Customs procedure applicable to goods which, being in free circulation, leave the Customs territory and are intended to remain permanently outside the territory.

Importation of goods

The Customs procedure which provides that imported goods enter into free circulation in the Customs territory upon the payment of any import duties and taxes chargeable and the completion of all the necessary Customs formalities.

Manifest of load (Cargo declaration)

Information submitted prior to or on arrival or departure of a means of transport for commercial use providing the particulars required by the Customs relating to cargo brought to or removed from the Customs territory thereon.

Personal effects

All articles (new or used) which a traveler may reasonably require for his or her personal use during the journey, taking into account all the circumstances of the journey, but excluding any goods imported or exported for commercial purposes.

Re-import of goods

The Customs procedure under which goods which were exported may be taken into home use free of import duties and taxes under some conditions.

Security

Which ensures to the satisfaction of the Customs that an obligation to the Customs will be fulfilled. Security is described as “general” when it ensures that the obligations arising from several operations will be fulfilled.

Temporary admission/ importation of goods

The Customs procedure under which certain goods can be brought into a Customs territory conditionally relieved totally or partially from payment of import duties and taxes; such goods must be imported for a specific purpose and must be intended for re- exportation within a specified period and without having undergone any change except normal depreciation due to the use made of them.

Advisory Opinion

A non binding statement by a tribunal of its interpretation of the law or a matter submitted for that purpose.

Alternative dispute resolution (ADR).

A procedure for settling a dispute by means other than litigation, such as arbitration, mediation, or mini-trial.

Amicus curiae

(Latin “friend of the court”) A person who is not a party to a lawsuit but who petitions the court/tribunal or is requested by the court/tribunal to file a brief in the action because that person has a strong interest in the subject matter.

Appellate Body

An independent body, such as the WTO Appellate Body, that hears appeals by a party to the dispute on issues of law covered in a ruling by a tribunal of first instance, such as a panel.

Applicable law

Body of law that the court must consider in rendering a decision on a dispute or claim.

Arbitration

A method of dispute resolution involving one or more neutral third parties who are usually agreed to by the disputing parties and whose decision (“award”) is binding.

Cause of action

 A group of operative facts giving rise to one or more bases for bringing a claim.

Choice of forum

Choice of the jurisdiction or tribunal in which a claim might be heard.

Claim

The aggregate of operative facts giving rise to a right enforceable by a court/tribunal.

Code of conduct

A written set of rules governing the behavior of specified groups.

Complaint

The initial pleading that starts a civil action and states the basis for the court’s/tribunal’s jurisdiction, the basis for the plaintiff’s claim, and the demand for relief.

Conciliation

An alternative dispute resolution mechanism in which a neutral person meets with the parties to a dispute and explores how the dispute might be resolved.

Consultations

Mechanism by which parties consult or confer on a matter, which may be a prerequisite before seeking the establishment of a panel or tribunal to rule on the matter.

Cross-sector retaliation

Retaliation (suspension of benefits) exercised in a sector other than the sector specifically affected by the measure in dispute; e.g., retaliation in the services sector for a measure affecting goods.

Mediation

A method of non-binding dispute resolution involving a neutral third party who tries to help the disputing parties reach a mutually agreeable solution.

New York Convention

United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards, done at New York on June 10, 1958.

Nullification or impairment

Basis of a claim under the GATT/WTO dispute settlement system, namely that a benefit accruing to a WTO member directly or indirectly under the Agreement is being nullified or impaired as a result of the failure of another member to carry out its obligations under the Agreement. Non-violation nullification or impairment is a claim that a benefit is being nullified or impaired as a result of the application of a measure whether or not it conflicts with the provisions of the Agreement.

Panel

Body of independent experts established to examine and issue recommendations on a dispute.

Party to the dispute

Complaining Party or the Party complained against.

Panama Convention

Inter-American Convention on International Commercial Arbitration, done in Panama on 30 January, 1975.

Roster

List of individuals from which the members of panels may or shall be drawn

Rules of procedure

Rules that prescribe the procedures to be followed by the Panel

Suspension of benefits

Suspension by a Party of benefits or obligations enjoyed by another Party under an Agreement, such as in response to, or retaliation for, non-compliance with a ruling or recommendation by the latter Party. Under the WTO DSU, such suspension or withdrawal of concessions is subject to prior multilateral authorization.

Third party

A Party that has notified an interest in a dispute proceeding and is not a Party to the dispute.

WTO Understanding on Rules and Procedures Governing the Settlement of Disputes (DSU). WTO agreement resulting from the Uruguay Round that applies to consultations and the settlement of disputes between WTO member countries concerning their rights and obligations under the WTO Agreement.

WTO Understanding on Rules and Procedures Governing the Settlement of Disputes (DSU) 

WTO agreement resulting from the Uruguay Round that applies to consultations and the settlement of disputes between WTO member countries concerning their rights and obligations under the WTO Agreement.

Author

Natural person who creates a literary or artistic work.

Breeder’s rights

The essence of plant breeding is the discovery or creation of genetic variation in a plant species and the selection from within that variation of plants with desirable traits that can be inherited in a stable fashion. The plant breeders' final selections of superior plants will form the basis of one or more plant varieties. Plant breeders use all available technology both to create genetic variation and to select from within that variation.

Biological diversity

Means the variability among living organisms from all sources including, inter alia, terrestrial, marine and other aquatic ecosystems and the ecological complexes of which they are part; this includes diversity within species, between species and of ecosystems.

Biological resources.

Include genetic resources, organisms or parts thereof, populations, or any other biotic component of ecosystems with actual or potential use or value for humanity. A permission to use an intellectual property rights under defined conditions.

Compulsory license

The TRIPS Agreement allows Members to authorize use by third parties (compulsory licenses) or for public non-commercial purposes (government use) without the authorization of the patent owner. The TRIPS Agreement contains a number of conditions that have to be met in order to safeguard the legitimate interests of the patent owner. The main conditions are that, as a general rule, an effort must first have been made to obtain a voluntary license on reasonable commercial terms and conditions and that the remuneration paid to the right holder shall be adequate in the circumstances of each case, taking into account the economic value of the license.

Contractual license

A permission to use an intellectual property rights under defined conditions.

Copyright

Copyright is a legal term describing rights given to creators for their literary and artistic works. The original creators of works protected by copyright, and their heirs, have certain basic rights. They hold the exclusive right to use or authorize others to use the work on agreed terms. Copyright and its related rights are essential to human creativity, by giving creators incentives in the form of recognition and fair economic rewards. Under this system of rights, creators are assured that their works can be disseminated without fear of unauthorized copying or piracy. This in turn helps increase access to and enhances the enjoyment of culture, knowledge, and entertainment all over the world.

Counterfeit trademark goods

Means any goods, including packaging, bearing without authorization a trademark which is identical to the trademark validly registered in respect of such goods, or which cannot be distinguished in its essential aspects from such a trademark, and which thereby infringes the rights of the owner of the trademark in question under the law of the country of importation.

Domain name

Domain name is the address of a website that is intended to be easily identifiable and easy to remember, such as yahoo.com. These user-friendly addresses for websites help connect computers - and people - on the Internet. Because they are easy to remember and use, domain names have become business identifiers and, increasingly, even trademarks themselves, such as amazon.com. By using existing trademarks for domain names - sony.com, for example - businesses attract potential customers to their websites.

Economic rights

Many creative works protected by copyright require mass distribution, communication and financial investment for their dissemination (for example, publications, sound recordings and films); hence, creators often sell the rights to their works to individuals or companies best able to market the works in return for payment. These payments are often made dependent on the actual use of the work, and are then referred to as royalties. These economic rights have a time limit, according to the relevant WIPO treaties, of 50 years after the creator's death. National law may establish longer time- limits. This limit enables both creators and their heirs to benefit financially for a reasonable period of time.

Expressions of Folklore

Means productions consisting of characteristic elements of the traditional artistic heritage developed and maintained by a community or by individuals reflecting the traditional artistic expectations of such a community, in particular: (i) verbal expressions, such as folk tales, folk poetry and riddles; (ii) musical expressions, such as folk songs and instrumental music; (iii) expressions by actions, such as folk dances, plays and artistic forms or rituals; whether or not reduced to a material form; and (iv) tangible expressions, such as: (a) productions of folk art, in particular, drawings, paintings, carvings, sculptures, pottery, terracotta, mosaic, woodwork, metalware, jewelry, basket weaving, needlework, textiles, carpets, costumes; (b) musical instruments; (c) architectural forms.

Geographical indication

A geographical indication is a sign used on goods that have a specific geographical origin and possess qualities or a reputation that are due to that place of origin. Most commonly, a geographical indication consists of the name of the place of origin of the goods. Agricultural products typically have qualities that derive from their place of production and are influenced by specific local factors, such as climate and soil. Whether a sign functions as a geographical indication is a matter of national law and consumer perception (for example, “Champagne”, “Tequila” or “Roquefort”).

Genetic resources

Means genetic material of actual or potential value.

Genetic material

Means any material of plant, animal, microbial or other origin containing functional units of heredity.

Industrial designs

An industrial design is the ornamental or aesthetic aspect of an article. The design may consist of three-dimensional features, such as the shape or surface of an article, or of two-dimensional features, such as patterns, lines or color. Industrial designs are applied to a wide variety of products of industry and handicraft: from technical and medical instruments to watches, jewelry, and other luxury items; from housewares and electrical appliances to vehicles and architectural structures; from textile designs to leisure goods. To be protected under most national laws, an industrial design must appeal to the eye. This means that an industrial design is primarily of an aesthetic nature, and does not protect any technical features of the article to which it is applied.

Intellectual property rights

Intellectual property rights are the rights given to persons over the creations of their minds. They usually give the creator an exclusive right over the use of his/her creation for a certain period of time.

Layout-design/ topography of integrated circuits

The three-dimensional disposition of the elements and of some or all of the interconnections of an integrated circuit.

Literary and artistic works

The kinds of works covered by copyright include: literary works such as novels, poems, plays, reference works, newspapers and computer programs; databases; films, musical compositions, and choreography; artistic works such as paintings, drawings, photographs and sculpture; architecture; and advertisements, maps and technical drawings.

Moral rights

Copyright protection also includes moral rights, which involve the right to claim authorship of a work, and the right to oppose changes to it that could harm the creator's reputation.

Related Rights

The field of rights related to copyright has rapidly developed over the last 50 years. These related rights grew up around copyrighted works, and provide similar, although often more limited and of shorter duration, rights to: (i) performing artists (such as actors and musicians) in their performances; (ii) producers of sound recordings (for example, cassette recordings and compact discs) in their recordings; (iii) broadcasting organizations in their radio and television programs.

Patent

A patent is an exclusive right granted for an invention, which is a product or a process that provides a new way of doing something, or offers a new technical solution to a problem. Patent protection means that the invention cannot be commercially made, used, distributed or sold without the patent owner's consent. Patents provide incentives to individuals by offering them recognition for their creativity and material reward for their marketable inventions. All patent owners are obliged, in return for patent protection, to publicly disclose information on their invention in order to enrich the total body of technical knowledge in the world.

Performer

Actors, singers, musicians, dancers, and other persons who act, sing, deliver, declaim, play in, interpret, or otherwise perform literary or artistic works or expressions of folklore.

Pirated copyright goods

Means any goods which are copies made without the consent of the right holder or person duly authorized by the right holder in the country of production and which are made directly or indirectly from an article where the making of that copy would have constituted an infringement of a copyright or a related right under the law of the country of importation.

Priority

Any person who has duly filed an application for a patent, or for the registration of a utility model, or of an industrial design, or of a trademark, in one of the countries of the Paris Union has the right of priority to file in any of the other countries of the Union before the expiration of a period of twelve months for patents and utility models, and six months for industrial designs and trademarks. These periods start from the date of filing of the first application. Consequently, any subsequent filing in any of the other countries of the Union before the expiration of the periods referred to above shall not be invalidated by reason of any acts accomplished in the interval, in particular, another filing, the publication or exploitation of the invention, the putting on sale of copies of the design, or the use of the mark, and such acts cannot give rise to any third-party right or any right of personal possession.

Producer of phonograms

Means the person, or the legal entity, who or which takes the initiative and has the responsibility for the first fixation of the sounds of a performance or other sounds, or the representations of sounds; “phonogram” means the fixation of the sounds of a performance or of other sounds, or of a representation of sounds, other than in the form of a fixation incorporated in a cinematographic or other audiovisual work.

Trademark

A trademark is a distinctive sign which identifies certain goods or services as those produced or provided by a specific person or enterprise. Its origin dates back to ancient times, when craftsmen reproduced their signatures, or “marks” on their artistic or utilitarian products. Over the years these marks evolved into today's system of trademark registration and protection. The system helps consumers identify and purchase a product or service because its nature and quality, indicated by its unique trademark, meets their needs.

Traditional Knowledge

Refers to tradition-based literary, artistic or scientific works; performances; inventions; scientific discoveries; designs; marks, names and symbols; undisclosed information; and all other tradition-based innovations and creations resulting from intellectual activity in the industrial, scientific, literary or artistic fields. “Tradition- based” refers to knowledge systems, creations, innovations and cultural expressions which: have generally been transmitted from generation to generation; are generally regarded as pertaining to a particular people or its territory; and, are constantly evolving in response to a changing environment. Categories of traditional knowledge could include: agricultural knowledge; scientific knowledge; technical knowledge; ecological knowledge; medicinal knowledge, including related medicines and remedies; biodiversity-related knowledge.

Unfair competition

Any act contrary to honest commercial practices. Acts contrary to honest commercial practices mean at least practices such as breach of contract, breach of confidence and inducement to breach, and includes the acquisition of undisclosed information by third parties who knew, or were grossly negligent in failing to know, that such practices were involved in the acquisition.

Utility model

Patents or certificate granted in the mechanical field in many developing countries that differ from inventions because they require a lower threshold of technological progress (inventive step) and are granted for a shorter term of protection.

Well-known mark

Highly reputed mark that receives special protection due to its reputation that extends beyond a specific market, sector or country.

Bilateral investment treaty (BIT)

The first modern bilateral investment treaty was entered into in 1959 between Germany and Pakistan. Over the decades that followed an increasing number of European countries concluded such treaties with developing countries. Since the 1980s, several countries in the Americas have signed a BIT with another country of the region. Traditionally, BITs set standards for the promotion and legal protection of foreign investments and investors. Some recent agreements also include the free entry of investments and investors as a feature of the treaty.

Compensation for losses

Investment agreements do not, in principle, require a state to pay compensation in a situation where an investor of another member country suffers losses in the host country due to war or other armed conflict, civil disturbances, state of emergency or similar events. Most agreements, however, provide for national treatment and most- favored-nation treatment in respect to any measure a member country adopts or maintains related to those losses.

Denial of benefits

A Party to a trade or investment agreement may deny the benefits of the Agreement to an investor of another Party that is an enterprise of such other Party and to investments of that investor if investors of a non-Party own or control the enterprise and the denying Party does not maintain diplomatic relations with the non-Party; or adopts or maintains measures with respect to the non-Party or an investor of the non-Party that prohibit transactions with the enterprise or that would be violated or circumvented if the benefits of the Agreement were accorded to the enterprise or to its investments. See Services, where this text may have a slightly different meaning.

Expropriation

Investment agreements include a provision that prohibits a member country from directly or indirectly nationalizing or expropriating an investment of an investor of another member country except when done for a public purpose, on a non- discriminatory basis, in accordance with due process of law, and on payment of compensation. In an international context, a direct expropriation occurs when the host state takes property owned by a foreign investor located in the host state, when there is deprivation of wealth attributable to the state. There are very few cases of indirect expropriation at the international level because under customary international law, a state is not responsible for loss of property or other economic disadvantage resulting from bona fide general taxation, regulation, forfeiture from crime, or other action of the kind. The state has the power to take actions, in the public interest, without having to pay compensation, even if the interests of individual property owners may be adversely affected.

Foreign direct investment (FDI)

FDI is defined as a cross-border investment in which a resident in one economy (the direct investor) acquires a lasting interest in an enterprise in another economy. The lasting interest implies a long-term relationship between the direct investor and the enterprise and usually gives the direct investor an effective voice in the management of the enterprise. By convention, a direct investment is established when the direct investor has acquired 10 percent or more of the ordinary shares or voting power of an enterprise abroad.

General exceptions

Investment agreements usually include general exceptions, which apply to all Parties to the Agreement and exempt these Parties from the provisions of the Agreement. These exceptions usually refer to measures taken for national security, public order, and international peace and security.

International Centre for Settlement of Investment Disputes (ICSID)

The International Centre for Settlement of Investment Disputes was established in 1966 under the Convention on the Settlement of Investment Disputes between States and Nationals of Other States (ICSID Convention). ICSID provides facilities for the conciliation and arbitration of disputes between member countries and investors who qualify as nationals of other member countries. All Contracting States of ICSID are required to recognize and enforce ICSID arbitral awards.

ICSID Additional Facility Rules

Since 1978 the ICSID Secretariat has been administering certain types of proceedings between States and foreign nationals which fall outside the scope of the ICSID Convention. These include conciliation and arbitration proceedings where either the State party or the home State of the foreign national is not a member of ICSID.

Investor-State dispute settlement mechanism

Investment agreements generally include provisions for an investor-state dispute settlement mechanism whereby an investor of a Party is able to seek redress against another Party. In most investment agreements, the investor may choose between the local courts and international arbitration. In some agreements, this choice is final, in order to avoid simultaneous procedures and contradictory decisions. A disputing investor may submit a claim to arbitration under some specific rules of arbitration, for example the ICSID Convention, the Additional Facility Rules of ICSID, or the UNCITRAL Arbitration Rules. It is worth noting that the objective of an investor-state dispute settlement mechanism is to depoliticize investment disputes and put them into the sphere of international arbitration.

Key personnel

This term has generated many interpretations because it comprises two dimensions: freedom to hire and temporary entry. The freedom to hire refers to the right granted to the investor to employ, in senior management positions, personnel within the host country without regard to the nationality or citizenship of the person concerned. The temporary entry of key personnel refers to the right granted to the investor to enter the host country or to bring key personnel, essential to a specific operation of an investment. Personnel is subject to immigration laws and laws and regulations relating to the entry, stay, and work of natural persons.

Minimum standard of treatment

This concept is found in several investment agreements. It means that the host country will accord treatment to investments of foreign investors in accordance with the international norms encompassed by the customary international law minimum standard. In general, States would fail to meet the minimum standard of treatment if their acts amounted to an outrage, bad faith, or an insufficiency of governmental action so far short of international standards that every reasonable and impartial person would readily recognize its insufficiency.

Most favored nation treatment (MFN)

This principle contained in trade and investment agreements ensures that there is no discrimination among foreigners. It guarantees that foreign investors and their investments (those of another member country of the trade or investment agreement) are treated no worse than any other foreign investors and their investments. See Services, where this text may have a slightly different meaning.

National treatment

This principle contained in trade and investment agreements ensures that there is no discrimination between foreigners and nationals. It guarantees that foreign investors and their investments (those of another member country of the trade or investment agreement) are treated no worse than domestic investors and their investments. See Services and Tariffs and Non-tariff Measures, where this text may have a slightly different meaning.

Negative List

Under a negative list approach, all sectors and measures covering investment must be liberalized unless otherwise specified in annexes containing reservations or a list of non-conforming measures.

Non-conforming measures

A non-conforming measure is any law, regulation, procedure, requirement or practice, which violates certain articles of the investment agreement. For example, a law prohibiting an investor of another member country to own a factory does not conform with the article on national treatment.

Performance requirements

Are used by countries to influence the behavior of investors. Traditionally, two types of performance requirements have been identified: mandatory performance requirements and incentive-based performance requirements. Mandatory performance requirements are conditions or requirements that are imposed at the pre- and/or post- establishment phases, i.e. for the establishment and/or operation of an investment. Incentive-based performance requirements are conditions that an investor must meet to secure a government subsidy or incentive.

Portfolio investment

It refers to shares, stocks or other forms of equity participation in an enterprise.

Post-establishment

It refers to the operation of an investment. It guarantees that foreign investors and their investments (those of another member country of the trade or investment agreement), once established or admitted, are treated no worse than domestic investors and their investments (national treatment) or any other foreign investors and their investments (most-favored-nation treatment).

Pre-establishment

It refers to the entry of investments and investors of a Party (member country of a trade or investment agreement) into the territory of another Party. Each Party allows investors of other Parties to establish an investment in their territory on terms no less favorable than those that apply to domestic investors (national treatment) or investors from third countries (most-favored-nation treatment). In the case of the provision on performance requirements, pre-establishment refers to the prohibition of imposing certain performance requirements as a condition for the establishment of an investment. Pre-establishment is rarely granted without exceptions since every country has sensitive sectors where foreign investment is not permitted. In fact, members of a trade or investment agreement usually list a number of measures (for example, laws and regulations) or entire sectors where pre-establishment (free entry of investments and investors) does not apply.

Ratchet mechanism

Some trade and investment agreements include this mechanism under which any liberalization measures adopted by a member country cannot be replaced by new measures that are more restrictive.

Reservations

The define any limitations to the commitments of the member countries to the investment agreement. They are specific to each country to a trade or investment agreement, and are taken against a limited number of provisions.

Standstill

Under this principle, member countries in a trade or investment agreement commit themselves to the imposition of the status quo on existing measures and practices which do not conform to a number of obligations such as national treatment and most- favored-nation treatment. Member countries commit themselves not to introduce new legislation that would violate these obligations. Standstill do not apply, however, to any general exceptions (e.g. national security) or to any temporary derogations (e.g. balance-of-payments), or to any exceptions (reservations) for future measures taken by these countries.

Transfers

The provision on transfers set out in several investment agreements guarantees that all payments relating to an investment of an investor of another member country can be transferred in a freely convertible or usable currency at the market rate of exchange prevailing on the date of transfer. In some cases, these agreements allow for limitations or exceptions, such as for balance-of payments problems.

Ad-hoc Arbitration Rules of the United Nations Commission on International Trade Law (UNCITRAL).

Under the investor-state dispute settlement mechanism, an investor may submit a claim to arbitration under some specific rules of arbitration such as the ad-hoc arbitration rules of the United Nations Commission for International Trade and Law.

Accumulation

Provision that allows, when determining the origin of a good, for the consideration of imported inputs as originating provided that they come from another country that participates in the free trade zone. See Subsidies, Anti-Dumping and Countervailing Duties, where this text may have a slightly different meaning.

Change of Tariff Classification

Criteria used in the determination of origin that stipulates the change in the tariff nomenclature that an imported input must undergo when incorporated into a final good so that the final good may acquire originating status. The change in tariff classification can be at Chapter level (first two digits of the tariff nomenclature), Heading level (first four digits of the tariff nomenclature), or Sub-heading level (first six digits of the tariff nomenclature).

Containers and packing materials for shipment

Goods that are used to protect other goods during transport, different from packaging materials for retail sale.

Fungible goods

Goods that are interchangeable for trading purposes, whose properties are essentially identical and for which it is not practical to differentiate one from another by simple visual examination.

Indirect material.

A good used in the production, verification or inspection of a good, but not physically incorporated in the good; or a good that is used in the maintenance of buildings or in the operation of equipment related to the production of a good.

Non-originating good or non-originating material

A good or material that does not qualify as originating according to the established Origin Regime.

Origin certificate

A document issued especially to certify that a good is originating in a country participating in a free trade area.

Origin regime

The full set of criteria that defines the requirements that goods must fulfill in order to be considered originating, also including the processes agreed among the participating countries of a free trade area for the administration and verification of origin.

Originating good

A good that, by virtue of fulfilling the requirements of the Origin Regime is considered originating in the country in which its production process has been carried out, regardless of whether imported inputs were used in its production.

Regional value content

A specific type of value test. It is a share of the value of a good accounted for by national inputs and any other cost component that is derived from the country in which production of the good takes place.

Rule of origin

Specific requirements that must be fulfilled by a good produced in a free trade zone for it to be considered as originating and thereby benefit from the preferential tariff treatment.

Shipping and repacking cost

Costs incurred in the transport and repacking of a good outside the territory in which the producer or exporter of the good is located.

Tariff item

Maximum level of opening in the national tariff nomenclature; generally eight or ten digits.

Value test

Criteria used in the determination of origin of a good. It establishes the requirements to measure the national or imported contributions that a good contains for the purpose of determining whether the good, despite having imported inputs, complies with the requirements established in order to be considered originating.

Wholly obtained

A good that contains no imported inputs and that has been wholly produced or obtained within a country participating in a free trade area.

Adjustment plan

Measures adopted to generate conditions to overcome the lack of competitiveness of a particular industry before the presence of imports. These measures can include, for example, restructuring of a plant, training of employees, acquisition of new technologies, introduction of more efficient production processes, among others.

Article XIX

Article XIX means the article of the GATT Agreement that allows a GATT member to take “safeguard” action to protect a specific domestic industry from an unforeseen increase of imports of any product which is causing, or which is likely to cause, serious injury to the industry.

Causal link

Relationship that is established when a cause generates a given effect.

Compensation

Set of trade benefits (normally market access concessions) granted by the importing country imposing a safeguard measure to an affected exporting country. These benefits are given with a view to offsetting the commercial losses incurred by the exporting country. Normally the benefits granted should have a commercial value equivalent to the commercial losses.

Customs Union

An international association organized to eliminate customs restrictions on goods exchanged between member nations and to establish a uniform tariff policy toward non-member nations.

Directly competitive good

Directly competitive good means the good which, while not necessarily similar to the one that it is compared with, is essentially equivalent for purposes of trade being put to the same use and being interchangeable with the latter.

Findings of the investigation

In the investigation to determine whether increased imports have caused or are threatening to cause serious injury to a domestic industry, the competent authorities shall evaluate all relevant factors of an objective and quantifiable nature having a bearing on the situation of that industry, in particular, the rate and amount of the increase in imports of the product concerned in absolute and relative terms, the share of the domestic market taken by increased imports, changes in the level of sales, production, productivity, capacity utilization, profits and losses, and employment.

Global safeguard measure

A safeguard measure imposed under article XIX of GATT 1994 and the WTO Agreement on Safeguard Measures.

Interested parties

Individuals or organizations that may have an interest in the safeguard measure. These may include; for example: the petitioner; other domestic producers; commercial, trade or business associations in which the majority of the members are producers of the good under investigation; foreign producers; exporters; importers; governments of the exporting or producing parties; and consumers or associations representing them.

Like good

Includes an identical good and one that, although not the same in all aspects, has similar features and composition, which enables it to perform the same functions and to be commercially interchangeable with the good it is compared with.

Provisional safeguard measure

Is a provisional measure, normally a tariff, which is imposed on imports to prevent injury to the domestic industry while the issue is under investigation and before a final decision is reached.

Safeguard measure

Border measure, usually of a tariff nature, imposed on a temporary basis on imports of goods that cause or threaten to cause serious injury to a domestic industry that produces like or similar goods. Its objective is to provide time for the affected industry to undergo an adjustment process. It is normally imposed after an investigation in the importing country that seeks to determine whether the serious injury or threat thereof is caused to the industry as a result of sudden imports.

Serious injury

Is a significant overall impairment in the position of a domestic industry. Normally, the following factors are examined in order to determine whether the domestic industry has been seriously injured by imports: share of domestic market taken by increased imports, changes in the levels of sales, production, productivity, capacity utilization, profits and losses, and employment.

 Specific safeguard A specific safeguard mechanism is a safeguard mechanism which objective is to offer mechanism temporary protection to a specific sector of the domestic production; for example: textiles, agriculture, etc.

Specific safeguard mechanism

A specific safeguard mechanism is a safeguard mechanism which objective is to offer temporary protection to a specific sector of the domestic production: for example; textiles, agriculture, etc.

Substantial supplier

Supplier of a good that exports important quantities of a good on a regular basis. In trade agreements a country may be considered as a substantial supplier if for a specific period of time it has been the territory of origin of a given percentage (for instance 10%) of the total imports of the good subject to a safeguard measure in the importing country.

Accumulation

The cumulative assessment of the volume and price effects of imports of the subject merchandise from all countries with respect to which anti dumping or countervailing duty petitions were filed if such imports compete with each other and with domestic like products in the export market. See Origin Regime, page 37, where this text may have a slightly different meaning.

Administrative file

Complete record of administrative procedures.

Amount of subsidy

Amount of financial contribution; transfer of funds; or other from of income or price support paid for the manufacture, production, or export of an article.

Antidumping Agreement

Agreement Relating to the Implementation of Article VI of the General Agreement on Tariffs and Trade 1994, in Annex 1 A to the WTO Agreement – WTO agreement resulting from the Uruguay Round that implements Article VI of GATT 1994.

Antidumping duty

Duty applied to imports of a particular good from a specified country in order to eliminate the harm being caused by the dumping to the domestic industry of the importing country. Article VI of the GATT 1994 permits the imposition of antidumping duties against dumped goods, equal to the difference between their export price and their normal value, if dumping causes injury to producers of competing products in the importing country.

Business Proprietary Information

Information of commercial value, the disclosure of which is likely to have the effect of either impairing the investigator’s ability to obtain such information as is necessary to perform its functions, or causing substantial harm to the competitive position of the firm or other organization from which the information was obtained.

Causal link

Relationship or connection between a cause and an effect. A domestic industry petitioning for an antidumping investigation must provide evidence of a causal link between the dumped imports and the alleged injury. See Safeguards, page 38, where this text may have a slightly different meaning.

Circumvention

Measures taken by exporters to evade antidumping or countervailing duties.

Countervailing duty

A special duty levied for the purpose of offsetting any bounty or subsidy bestowed, directly, or indirectly, upon the manufacture, production or export of any merchandise. No WTO member may levy any countervailing duty on the importation of any product of the territory of another unless it determines that the effect of the subsidization is such as to cause or threaten material injury to an established domestic industry, or is such as to retard materially the establishment of a domestic industry.

Countervailing measures

Action taken by the importing country, usually in the form of increased duties to offset subsidies given to producers or exporters in the exporting country. Additional duties imposed by the importing country to offset government subsidies in the exporting country when the subsidized imports cause material injury to domestic industry in the importing country.

De minimis

(Latin meaning “of the least”). The margin of dumping is considered de minimis, or the volume of dumped imports, actual or potential, or the injury, is considered negligible, if this margin is less than 2 per cent, expressed as a percentage of the export price. The investigation is then terminated. Moreover, the volume of dumped imports shall normally be regarded as negligible if the volume of dumped imports from a particular country is found to account for less than 3 percent of imports of the like product in the importing Member, unless countries which individually account for less than 3 percent of the imports of the like product in the importing Member collectively account for more than 7 percent of imports of the like product in the importing Member.

Definitive duty

The final legal assessment or collection of a duty or tax where the facts as finally established show that there is dumping and injury caused thereby.

Domestic industry

Domestic producers as a whole of the like products or to those of them whose collective output of the products constitutes a major proportion of the total domestic production of those products.

Domestic subsidy

Any act, practice, or measure other than an export subsidy by which a government confers a benefit upon a product and/or enterprise.

Dumping

Introduction of a product into the commerce of another country at less than its normal value, if the export price of the product exported from one country to another is less than the comparable price, in the ordinary course of trade, for the like product when destined for consumption in the exporting country. Selling merchandise in another country at a price below the price at which the same merchandise is sold in the home market or selling such merchandise below the costs incurred in production and shipment Dumping occurs when goods are exported at a price less than their normal value, generally meaning they are exported for less than they are sold in the domestic market or third-country markets, or at less than production cost.

Duty deposit

This refers to antidumping duties which must be deposited upon entry of merchandise which is the subject of an antidumping duty order for each manufacturer, producer or exporter equal to the amount by which the foreign market value exceeds the price of the merchandise in the domestic market.

Essential facts

Crucial facts considered and used for the decision to apply, or not, an antidumping measure.

Export subsidy

A subsidy such as those described in the Illustrative List of Export Subsidies of the

WTO Agreement on Subsidies and Countervailing Measures.

Final determination

Final decision on an antidumping or subsidy investigation.

In situ investigation

On-site investigation.

Initiation of an investigation

Procedural action by which a WTO member formally commences an antidumping investigation to determine the existence, degree and effect of any alleged dumping.

Injury

Occurs when the effect of the dumping or subsidization, as the case may be, is such as to cause or threaten material injury to an established domestic industry, or is such as to retard materially the establishment of a domestic industry.

Investigating authority

Body in charge of carrying out an antidumping or subsidy investigation.

Investigation

 Procedure to determine the existence, degree, and effects of dumping or subsidies.

Lesser duty

A duty which is less than the margin of dumping but adequate to remove the injury to the domestic industry.

Like product

A product which is identical, i.e. alike in all respects to the product under consideration, or in the absence of such a product, another product which, although not alike in all respects, has characteristics closely resembling those of the product under consideration.

Margin of dumping

The difference between the comparable price of the like product when exported to an appropriate third country and the cost of production in the country of origin plus a reasonable amount for administrative, selling and general costs and for profits.

Normal course of trade

Sales made in the course of normal operations.

Normal value

The price at which merchandise is sold or offered for sale in the principal markets of the country from which it is exported.

Preliminary investigation

Initial procedure to determine the existence, degree, and effects of dumping or subsidization.

Price undertaking

Undertaking by an exporter to raise the export price of the product to avoid the possibility of an antidumping duty.

Prospective

Effective or operative in the future.

Provisional duty

Provisionally applied as opposed to definitive duty.

Public interest

The general welfare of the public that warrants recognition and protection.

Constructed/ Reconstructed value

A means of determining fair or foreign market value when sales of such or similar merchandise do not exist or, for various reasons, cannot be used for comparison purposes. The “constructed value” consists of the cost of materials and fabrication or other processing employed in producing the merchandise, general expenses of not less than 10 percent of material and fabrication costs, and profit of not less than 8 percent of the sum of the production costs and general expenses. To this amount is added the cost of packing for exportation to the export market.

Relevant market

The relevant market is determined on the basis of first establishing the relevant product market and geographic market. The relevant product market comprises all the products and/or services that the consumer and/or user consider to be interchangeable or substitutable by reason of their characteristics, price or intended use. The relevant geographic market comprises all areas in which competitors in the relevant product market compete with each other in the sale or purchase of products under equal competition conditions. Geographic areas in which the competition conditions are significantly different are not taken into account in determining the relevant geographic market.

Subsidies Agreement

Agreement on Subsidies and Countervailing Measures in Annex 1 a to the WTO Agreement (also known as SCM Agreement) - The Agreement on Subsidies and Countervailing Measures is intended to build on the Agreement on Interpretation and Application of Articles VI, XVI and XXIII which was negotiated in the Tokyo Round.

Sunset review

Procedure under which an antidumping or countervailing duty automatically terminates at the end of a fixed period unless it is formally renewed.

Verification schedule

A timetable for the verification of documents by the investigative authority.

Weighted average

The percentage determined by dividing the aggregate dumping margins determined for a specific exporter or producer by the aggregate export prices and constructed export prices of such exporter or producer.

Zeroing

In a comparison of the weighted average normal value with the weighted average of prices of comparable export transactions for the product under an antidumping investigation, the practice of assigning a zero margin to a negative dumping margin (when the export price is above the normal price) found for any export transaction.