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Glossary
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A
B C D E
F G H
I J K L
M N O
P Q R S
T U V
W X Y Z
Acknowledgement: Definitions
contained on the WTO web site www.wto.org have been used as a source for some
of the terms in this glossary. Other sources include UNCTAD and the web sites of
organisations referred to in this glossary.
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ABI formula
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A formula proposed in the context of the current Doha Development Agenda multilateral trade negotiations. So called after the 3 countries that put it forward: Argentina, Brazil and India. The formula is a harmonising non-linear formula, similar to the Swiss simple formula, in that it reduces higher tariffs by more than it reduces lower tariffs. In this sense it is able to address issues such as tariff peaks, high tariffs and tariff escalation. However the ABI formula has a key difference to the Swiss simple formula: it contains another coefficient, which can affect the extent of the tariff reduction. In general, the higher this coefficient the less the tariff cut. One proposal is that the coefficient be based on a country's average level of bound tariffs. In this aspect it enables countries to be treated differently: countries with a high average bound tariff are able to cut their tariffs by less than countries with a low average bound tariff, other things being equal.
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ACP
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African, Caribbean and Pacific Group containing 79 member states (Cuba is the 79 member). ACP has had an important trade and aid relationship with the European Union since 1975, first through the various Lomé Agreements. The Lomé IV Convention expired on 29 February 2000 and a new partnership agreement was signed in Cotonou, Benin, on 23 June 2000. It entered into force on 1 April 2003. Under the Cotonou Agreement, new trade agreements compatible with the WTO rules will be negotiated (negotiations for the new regional economic partnership agreement began in October 2003 with the Economic and Monetary Committee of Central Africa and the Economic Community of West African States). Trade between the ACP and EU will be liberalised, and will end the system of non-reciprocal trade preferences. The transition period for liberalisation will extend up until 2008 at the latest. The ACP member states are: Angola; Antigua and Barbuda; Bahamas; Barbados; Belize; Benin; Botswana; Burkina Faso; Burundi; Cape Verde; Cameroon; Central African Republic; Chad; Comoros; Congo; Congo, Democratic Republic of the; Cook Islands; Côte d’Ivoire; (Cuba); Djibouti; Dominica; Dominican Republic; East Timor; Equatorial Guinea; Eritrea; Ethiopia; Fiji; Gabon; Gambia; Ghana; Grenada; Guinea; Guinea-Bissau; Guyana; Haiti; Jamaica; Kenya; Kiribati; Lesotho; Liberia; Madagascar; Malawi; Mali; Marshall Islands; Mauritania; Mauritius; Micronesia, Federated States of; Mozambique; Namibia; Nauru; Niger; Nigeria; Niue; Palau; Papua New Guinea; Rwanda; Saint Kitts and Nevis; Samoa; Sao Tome and Principe; Senegal; Seychelles; Sierra Leone; Solomon Islands; Somalia; Saint Lucia; Saint Vincent and the Grenadines; (South Africa - not fully); Sudan; Suriname; Swaziland; Tanzania; Togo; Tonga; Trinidad and Tobago; Tuvalu; Uganda; Vanuatu; Zambia; and Zimbabwe. See web site for list www.acpsec.org
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Ad valorem equivalent (AVE)
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An ad valorem equivalent (AVE) tariff is a tariff presented as a percentage of the value of goods cleared through customs. It is the equivalent of a corresponding specific tariff measure based on unit quantities such as weight, number or volume. There are several methodologies for calculating AVEs. The method chosen depends on the intended application of the data. Most important to the process of calculating an AVE is the way the Unit Value of the product is calculated. The Unit Value is the value of each unit quantity imported of a product. It’s based on the total value of imports of that product. In calculating it, one may use either bilateral trade flows, world imports or a country's imports of that product from a reference group of countries. In addition to being sensitive to the choice of methodology, the ad valorem equivalent will also vary when the price of a product varies.
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Ad valorem equivalent (AVE) calculated in Market Access Map
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The Market Access Map database calculates ad valorem tariff equivalents for every specific duty in the database. About 81 countries apply specific tariffs. AVEs are calculated by dividing the specific tariff per unit by the value of the product per unit. In Market Access Map, unit values and AVE’s are calculated on a bilateral basis (where possible). This is in order to show the equivalent level of protection actually applied by one country to another when a “specific” tariff is concerned. This is important, because the value of a product can vary considerably depending on the supplying country. That is, even if two exporting countries face an identical specific tariff on the same product exported to the same market, the country exporting the less expensive product will face a higher equivalent level of protection. AVE’s are calculated in Market Access Map where possible at the most detailed level - the national tariff line.
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Ad valorem tariff
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A tariff calculated as a percentage of the value of goods cleared through customs. For example, 15 percent ad valorem tariff means 15 percent of the value of the entered merchandise.
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Additional charges
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Additional charges, are those levied on imported goods in addition to customs duties and surcharges. Examples include the tax on foreign exchange transactions, stamp tax, import licence fee, consular invoice fee, statistical tax, tax on transport facilities and charges for sensitive product categories. Article VIII of the General Agreement on Tariffs and Trade states that all fees and charges other than customs duties and internal taxes “be limited in amount to the approximate cost of services rendered and shall not represent an indirect protection to domestic products or a taxation of imports or exports for fiscal purposes”.
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Additional duties
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Duties levied in addition to ad valorem and specific duties. For example, recently the WTO found that the USA's tax treatment of foreign sales corporations constitutes a prohibited export subsidy under the WTO agreement. As a result, the EU imposes additional duties on imports of certain products originating in the USA.
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Administration regime
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The method used to implement a tariff quota. Some examples of administration regimes include: order of presentation of requests - until the quota is reached the first imports are taxed at the inside quota tariff rate, the others by the outside quota tariff rate; licenses on request - after examination; licenses are delivered or not, according to the quantities asked at the inside quota tariff rate; traditional importers - import licenses are shared among the previous period suppliers and the tax paid is the inside quota tariff rate.
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Administrative price fixing
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See also “price control measures”. By administrative price fixing, the authorities of the importing country take into account the domestic prices of the producer or consumer; establish floor and ceiling price limits; or revert to determined international market values. Various terms are used, depending on the country or sector, to denominate the different administrative price fixing methods, such as official prices, minimum import prices or basic import prices.
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Advance import deposits
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See also “finance measures”. Obligation to deposit a percentage of the value of the import transaction for a given time period in advance of the imports, with no allowance for interest to be accrued on the deposit.
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Advance payment of customs duties
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See also “finance measures”. Advance payment of the totality or a part of customs duties, with no allowance for interest to be accrued.
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Advance payment requirements
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See also “finance measures”. Advance payment of the value of the import transaction and/or related import taxes, which is required at the moment of the application for, or the issuance of, the import licence.
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AFTA
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ASEAN Free Trade Area comprising: Brunei Darussalam; Cambodia; Indonesia; Lao PDR; Malaysia; Myanmar; Philippines; Singapore; Thailand; and Viet Nam.
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AGOA
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African Growth and Opportunity Act. AGOA passed as part of The Trade and Development Act of 2000 provides beneficiary countries in Sub-Saharan Africa with liberal access to the U.S. market for a list of products. 37 countries have been designated as AGOA eligible. They are Angola; Benin; Botswana; Cameroon; Cape Verde; Chad; Republic of Congo; Côte d'Ivoire; Democratic Republic of the Congo; Djibouti; Ethiopia; Gabon; Gambia; Ghana; Guinea; Guinea-Bissau; Kenya; Lesotho; Madagascar; Malawi; Mali; Mauritania; Mauritius; Mozambique; Namibia; Niger; Nigeria; Rwanda; Sao Tome and Principe; Senegal; Seychelles; Sierra Leone; South Africa; Swaziland; Tanzania; Uganda and Zambia. See www.agoa.gov
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ALADI
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The ALADI (Asociacion Latinoamericana de integracion) is the largest Latin-American group of integration. It has twelve member countries: Argentina, Bolivia, Brazil, Chile, Colombia, Cuba, Ecuador, Mexico, Paraguay, Peru, Uruguay and Venezuela. The 1980 Montevideo Treaty (TM80) is the global legal framework that constitutes and rules the ALADI and was signed on August 12th 1980. It establishes the following general principles: pluralism, convergence, flexibility, differential treatment and multiplicity. The ALADI promotes the creation of an area of economic preferences in the region, aiming at a Latin-American common market. See www.aladi.org
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AMAD
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Agricultural Market Access Database is a collaborative effort of Agriculture and AgriFood Canada; EU Commission - Agriculture Directorate-General; Food and Agriculture Organisation of the United Nations; Organisation for Economic Co-operation and Development; The World Bank; United Nations Conference on Trade and Development and the United States Department of Agriculture - Economic Research Service. See www.amad.org
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Andean Pact
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An arrangement between Bolivia; Colombia; Ecuador; Peru; and Venezuela for the coordination of economic policies; including the formation of a free trade zone in the Andean region. See www.comunidadandina.org
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Anti-dumping Agreement
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A WTO Agreement that disciplines anti-dumping actions. Article VI of the GATT 1994 permits the imposition of anti-dumping duties against dumped goods; equal to the difference between their export price and their value (considered as normal); if dumping is proved to cause injury to producers of competing products in the importing country.
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Anti-dumping duty
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A duty imposed by an importing nation in respect of a product to limit the damage caused by dumping to the domestic industry. The amount of the anti-dumping duty must not exceed the margin of dumping as established under Article 2 of the WTO Agreement on the implementation of Article V1 of the General Agreement on Tariffs and Trade. Anti-dumping duties are often considered as hidden protection.
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Anti-dumping measure
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A measure taken to limit dumping; such as the imposition of an anti-dumping duty.
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APEC
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Asia-Pacific Economic Cooperation, www.apec.org. APEC is the premier forum for facilitating economic growth; cooperation; trade and investment in the Asia-Pacific region. It has 21 members and works to reduce tariffs and other trade barriers across the Asia-Pacific region. The members of APEC are Australia; Brunei Darussalam; Canada; Chile; China; Taiwan Province of China; Hong Kong (China); Indonesia; Japan; Republic of Korea; Malaysia; Mexico; New Zealand; Papua New Guinea; Peru; Philippines; Russia; Singapore; Thailand; Viet Nam and the United States of America.
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Applied tariff rates
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Considered to be the tariff rates applied by a customs administration on imported goods. They are the rates published by national customs authorities for duty administration purposes. These rates are often considerably lower than the bound rate arrived at as a result of trade negotiations or the rate listed in the national tariff schedules. They can also be lower than the MFN rate. Applied tariff rates also include the preferences that a country may apply to certain trading partners as a result of a bilateral or regional trade agreement. See also "bindings" and "nominal tariff rate".
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ASEAN
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Association of Southeast Asian Nations. A regional trade agreement comprising: Brunei Darussalam; Cambodia; Indonesia; Lao PDR; Malaysia; Myanmar; Philippines; Singapore; Thailand; and Viet Nam. See www.aseansec.org
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Bangkok Agreement
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A regional trade agreement between Bangladesh, China, India, Republic of Korea, Lao PDR and Sri Lanka.
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Bilateral quotas
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Quotas of imports reserved for a specific country.
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Bilateral trade agreement
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An agreement between two countries setting out the conditions under which trade between them will be conducted. If both parties are already WTO members enjoying the attendant non-discrimination; market access and other benefits; the main additional reason for a bilateral agreement may be a programme of bilateral trade facilitation and trade promotion activities. If one party is not a member of the WTO; the agreement will normally provide for most favoured nation treatment and national treatment; protection of intellectual property rights; consultation and dispute settlement; and other principles and mechanisms necessary for ensuring smooth trade flows and the speedy resolution of problems. See also "multilateral".
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Bindings
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A legal obligation not to raise tariffs on particular products above the specified rate agreed in WTO negotiations and incorporate in a country's schedule of concessions. Bindings are enforceable through the WTO. Their purpose is to provide greater commercial certainty through a ceiling on tariffs which cannot be breached without an offer of compensation to affected trading partners. These ceilings are often higher than the MNF rates as well as the applied (preferential) rates. In their schedules of tariff bindings, most WTO members specify their commitments in ad valorem terms, as a simple percentage of the value of the imported product. However, some countries specify some or all bound tariffs in specific or other non-ad valorem terms. Specific tariffs define the tariff as a monetary amount per unit of the import e.g. $3 per kg. Countries can also have a bound tariff that is a combination of ad valorem and non-ad valorem rates, such as 14 percent plus $3 per kg.
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Bound tariff rate
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A tariff rate resulting from GATT negotiations that are incorporated in a country's schedule of concessions and are thus enforceable as a integral element of the WTO regime. If a WTO member raises a tariff to a higher level than its bound rate; the major beneficiaries of the earlier binding have a right to receive compensation; usually in the form of reduced tariffs on other products they export to the country.
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CACM
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Central American Common Market. A preferential trade arrangement between Guatemala; El Salvador; Honduras; Nicaragua and Costa Rica.
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CAEMC / CEMAC
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Central African Economic and Monetary Community (Communauté économique et monétaire de l'Afrique Centrale). A regional trade agreement comprising: Cameroon; Central African Republic; Chad; Congo; Equatorial; Guinea and Gabon. See http://www.izf.net/izf/FicheIdentite/CEMAC.htm (in French only).
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CAIRNS Group
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A group of agricultural exporting nations; comprising Australia; Argentina; Bolivia; Brazil; Canada; Chile; Colombia; Costa Rica; Guatemala; Indonesia; Malaysia; New Zealand; Paraguay; Philippines; South Africa; Thailand; and Uruguay - established to develop a common negotiating position for the Uruguay round. It aims to achieve fair trade in agricultural exports. See www.cairnsgroup.org
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CAN
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Andean Community. Comprises Bolivia, Colombia, Ecuador, Peru and Venezuela. See "Andean Pact". See www.comunidadandina.org
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CARICOM
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Consists of all the members of Caribbean Common Market (CCM) except the Bahamas. See www.caricom.org
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Cash margin requirement
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See also “finance measures”. Obligation to deposit the total amount corresponding to the transaction value, or a specified part of it, in a commercial bank, before the opening of a letter of credit; payment may be required in foreign currency.
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CBI
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The Caribbean Basin Initiative (CBI) provides for tariff exemptions or reductions for most products from 24 participating countries in Central America and the Caribbean region. The CBI trade preferences are not subject to annual reviews. Countries can lose their CBI benefits under certain conditions. This program was enacted by the United States as the Caribbean Basin Economic Recovery Act. This Act became effective on January 1, 1984. For more information see www.itds.treas.gov/cbi.html
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CBTPA
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The Caribbean Basin Trade Partnership Act (CBTPA) is a U.S. law, which came into force in October 2000, outlining enhanced trade preferences and eligibility requirements for the 24 beneficiary countries of the Caribbean Basin region.
The CBTPA significantly expands preferential treatment for apparel made in the Caribbean Basin region. Duty- and quota-free treatment is provided for apparel made in the CBI from U.S. fabrics formed from U.S. yarns. Duty/quota-free treatment is also available for certain knit apparel made in CBTPA beneficiary countries from fabrics formed in the Caribbean Basin region, provided that U.S. yarns are used in forming the fabric. This "regional fabric" benefit for knit apparel is subject to an overall yearly limit, with a separate limit provided for T-shirts.
New duty/quota free treatment will also be available for apparel made in the CBI from fabrics determined to be in "short supply" in the United States, and for designated "hand-loomed, handmade, or folklore" articles.
In addition to these apparel preferences, the CBTPA provides NAFTA-equivalent tariff treatment for certain items previously excluded from duty-free treatment under the CBI program (e.g., footwear, canned tuna, petroleum products, watches and watch parts). Source - wikipedia.org
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CCM
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Caribbean Common Market. Founded in 1973 as the replacement for the Caribbean Free Trade Association (CARIFTA). It currently is a customs union with a common external tariff. It consists of Antigua and Barbuda; the Bahamas; Barbados; Belize; Dominica; Grenada; Guyana; Jamaica; Montserrat; St Christopher and Nevis; St Lucia; St Vincent and the Grenadines; Suriname; and Trinidad and Tobago. The British Virgin Islands and the Turks and Caicos Islands have associate membership. See www.caricom.org
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CEPII
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Centre d'Études Prospectives et d'Informations Internationales. France's leading institute for research on the international economy.
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CER
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CER is the Closer Economic Relations Agreement between Australia and New Zealand.
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CIF
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A trade term (Incoterm) meaning Cost, Insurance and Freight. See www.iccwbo.org for more Incoterms.
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CIS
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Commonwealth of Independent States. Formed in late 1991 with many of the Republics that had made up the Soviet Union. Its members are: Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, the Republic of Moldova, Russia, Tajikistan, Turkmenistan, Ukraine and Uzbekistan. In 1993 its members agreed on the creation of an economic union allowing the free movement of goods, services, labour and capital. See www.cis.minsk.by.
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COMESA
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Common Market for Eastern & Southern Africa. Consists of countries in Eastern and Southern Africa including: Angola; Burundi; Comoros; Democratic Republic of Congo; Djibouti; Egypt; Eritrea; Ethiopia; Kenya; Madagascar; Malawi; Mauritius; Namibia; Rwanda; Seychelles; Sudan; Swaziland; Uganda; Zambia; and Zimbabwe. In trade liberation and customs cooperation members undertake; amongst other undertakings; to: establish a customs union; abolish all non-tariff barriers to trade among themselves; establish a common external tariff; and cooperate in customs procedures. South Africa and Botswana have been invited to join COMESA. Lesotho and Mozambique have withdrawn their membership of COMESA. See www.comesa.int
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Common external tariff
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A tariff rate that is applied uniformly by a common market or customs union to imports from countries outside the union. The European Common market for example is a free internal trade area with a common external tariff applied to products imported from non-member countries. A common external tariff is not necessarily a feature of "free trade areas" and is seldom a feature of free trade agreements.
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Compound tariff
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A rate of duty on a product which consists of two components. The first may be an ad valorem rate; expressed as a percentage of the value of the product. The second component may be a specific rate; expressed as a monetary value per article regardless of the value of the product. A hypothetical example would be one where a compact disc incurs a specific tariff of one dollar plus an ad valorem tariff set at 10%. Also called a mixed tariff.
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COMTRADE database
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A database of trade statistics managed by the United Nations Statistics Division (UNSD). It is the world's largest trade database covering about 90% of world trade.
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Cotonou Agreement
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Also called the ACP-EC partnership agreement. A partnership agreement between the members of the African; Caribbean and Pacific group of states of the one part; and the European Community and its members states; of the other part; signed in Cotonou; Benin on 23 June 2000. The agreement covers many aspects including trade cooperation. Its trade aspects will be renegotiated after eight years to make them fully compatible with WTO obligations. During this time (called the preparatory period) the European Community will give non-reciprocal preferential access free of duty and charges to products from ACP states. Special provisions apply to some agricultural products; especially sugar. See also "ACP".
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Country Map
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Country Map or The Country Market Analysis Profiles (www.intracen.org/countries) consists of profiles of 184 countries and territories delivered online by the International Trade Centre (ITC-UNCTAD/WTO). Country Map provides a wide range of analytical tools; including the Trade Performance Index on export competitiveness; National Export Performance and Import Profile; the econometric trade simulation model TradeSim on bilateral trade potential and an assessment of the reliability and characteristics of national trade statistics. Country Map also includes links to Trade Information Sources; Trade Support Institutions and current ITC projects for the country concerned. Other tools include TradeMap; Product Map and Market Access Map.
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Currency Information
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A useful site for looking up the name of the currency used by any country and for obtaining exchange rates. The site has over 180 currencies in over 250 geographical locations. See http://www.xe.com/ucc/full.shtml
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Customs duty
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Charges levied at the border on goods entering or; much less often; leaving the country. These charges are specified in the national tariff schedule. They are usually based on the value of the goods; known as ad valorem tariffs and sometimes as a cost per unit in the form of a specific tariff.
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Customs surcharge
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A para-tariff measure, also called a surtax or additional duty.
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Customs union
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An area consisting of two or more individual economies or customs territories which remove all tariffs and sometimes broader trade impediments between them. The members making up the area then apply a common external tariff.
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Decreed customs valuation
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See also “para-tariff measures”. Customs duties and other charges on selected imports can be levied on the basis of a decreed value of goods (the so-called “valeur mecuriale” in French). This practice is presented as a means to avoid fraud or to protect domestic industry. The decreed value de facto transforms an ad valorem duty into a specific duty.
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Developed economy
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A term usually applied to the more industrialized nations, including most of the OECD member countries. Developed economies include: Australia; Austria; Belgium; Canada; Denmark; Finland; France; Germany; Greece; Iceland; Ireland; Israel; Italy; Japan; Liechtenstein; Luxembourg; Malta; Monaco; the Netherlands; New Zealand; Norway; Portugal; San Marino; Spain; Sweden; Switzerland; United Kingdom; and the United States of America. Note the IMF uses a term advanced economies and in its list includes: Hong Kong (China); Republic of Korea; Singapore; and Taiwan Province of China..
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Developing country
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An imprecise term based as much on economic and social foundations as on political perceptions and aspirations. It is applied to a country that does not consider itself, or is not considered by others, in some or many respects as matching the characteristics of a developed country. Developing country status remains largely self declared. For the purposes of Market Access Map, developing countries (excluding those classified as Least Developed Countries - LDC) are: Albania; Algeria; Anguilla; Antigua and Barbuda; Argentina; Armenia; Aruba; Azerbaijan; Bahamas; Bahrain; Barbados; Belarus; Belize; Bermuda; Bolivia; Bosnia and Herzegovina; Brazil; British Indian Ocean Territory; Brunei Darussalam; Bulgaria; Cayman Islands; Chile; China; Christmas Island; Cocos (Keeling) Islands; Colombia; Cook Islands; Costa Rica; Côte d'Ivoire; Croatia; Cuba; Cyprus; Czech Republic; Dominica; Dominican Republic; East Timor; Ecuador; Egypt; El Salvador; Estonia; Falkland Islands (Malvinas); Fiji; French Guiana; French Polynesia; French Southern and Antarctic Territories; Gabon; Georgia; Ghana; Greenland; Grenada; Guadeloupe; Guatemala; Guyana; Honduras; Hong Kong Special Administrative Region of China; Hungary; India; Indonesia; Iran, Islamic Republic of; Iraq; Jamaica; Jordan; Kazakhstan; Kenya; Korea, Democratic People's Republic of; Korea, Republic of; Kuwait; Kyrgyzstan; Latvia; Lebanon; Libyan Arab Jamahiriya; Lithuania; Macau; Macedonia, the Former Yugoslav Republic of; Malaysia; Marshall Islands; Martinique; Mauritius; Mexico; Micronesia (Federated States of); Moldova, Republic of; Mongolia; Montserrat; Morocco; Nauru; Netherlands Antilles; New Caledonia; Nicaragua; Nigeria; Niue; Norfolk Island; Northern Mariana Islands; Oman; Pacific Islands (Trust Territory); Pakistan; Palau; Palestine; Panama; Papua New Guinea; Paraguay; Peru, Philippines, Pitcairn, Poland, Qatar, Reunion, Romania, Russian Federation, Saint Helena, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Saudi Arabia, Seychelles, Singapore, Slovakia, Slovenia, Sri Lanka, Saint Pierre and Miquelon, Suriname, Syrian Arab Republic, Taiwan, Tajikistan, Thailand, Tokelau, Tonga, Trinidad and Tobago, Tunisia, Turkey, Turkmenistan, Turks and Caicos Islands, Ukraine; United Arab Emirates; Uruguay; Uzbekistan; Venezuela; Viet Nam; British Virgin Islands; U.S. Virgin Islands; Wallis and Futuna Islands; Western Sahara; Yugoslavia; and Zimbabwe.
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Dumping
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Dumping occurs when goods are exported at a price less than their normal value or production cost.
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EAC
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East African Cooperation. A mechanism within the Common Market for Eastern and Southern Africa (COMESA). A regional trade agreement between: Kenya; Tanzania; and Uganda.
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EAEC
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Eurasian Economic Community. A regional trade agreement between: Belarus; Kazakhstan; Kyrgyzstan; Russia; and Tajikistan.
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EC
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European Communities. The 25 European Communities are: Austria; Belgium; Czech Republic; Cyprus; Denmark; Estonia; Finland; France; Germany; Greece; Hungary; Ireland; Italy; Latvia; Lithuania; Luxembourg; Malta; the Netherlands; Poland; Portugal; Slovakia; Slovenia; Spain; Sweden; and the United Kingdom. See also "EU".
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ECO
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Economic Cooperation Organization. Established in 1985 to promote the economic development of its members. It comprises Afghanistan; Azerbaijan; Iran; Kazakhstan; Kyrgyzstan; Pakistan; Tajikistan; Turkey; Turkmenistan and Uzbekistan. Trade and customs; transport and communications and money and finance form major parts of its work programme.
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ECOWAS
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The Economic Community Of West African States (ECOWAS) is a regional group of fifteen countries; founded in 1975. Its mission is to promote economic integration in all fields of economic activity; particularly industry; transport; telecommunications; energy; agriculture; natural resources; commerce; monetary and financial matters; social and cultural issues. Members include: Benin; Burkina Faso; Cape Verde; Côte d’Ivoire; Gambia; Ghana; Guinea; Guinea Bissau; Liberia; Mali; Niger; Nigeria; Senegal; Sierra Leone; and Togo. See www.ecowas.int
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EEA
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European Economic Area comprises the 25 member states of the European Union and three of the four members of EFTA (Iceland, Liechtenstein and Norway) in a single market.
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Effective level of protection
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The level of protection of the value added of an industry. The concept is that the "effective" protection on a good is the sum of the protection for the component parts of the final manufactured unit. The implication is that the nominal tariff rate of the finished good understates the protection for the value added in the production process. This relates to the concept of tariff escalation.
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EFTA
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European Free Trade Association. Comprises Iceland, Liechtenstein, Norway and Switzerland.
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Endogeneity bias
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In theory, tariffs should be aggregated on the basis of imports occurring under a hypothetical situation of free trade. As this structure is unknown, an endogeneity bias appears when one aggregates different tariffs to measure the global level of protection of a sector or an economy. In aggregating tariffs, using the national imports as weights, causes an endogeneity bias since these imports depend on the tariff. That is, a high tariff generates limited imports and therefore the tariff's contribution to the overall protection level of the country is reduced. A low tariff produces the reverse effect. So, using national imports as weights leads to an under-valuation of the protection level of a country. Market Access Map manages this endogeneity bias by weighting the imports of a country by those of a reference group to which the country belongs. This is in order to get a fair idea of what the trade pattern of a particular country could be without the endogeneity bias. The 8 reference groups used in Market Access Map are defined on the basis of a hierarchical clustering analysis based on GDP per capita (in terms of purchasing power parity - PPP), exports per capita and imports per capita.
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European Union (EU)
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Created by the treaty of Maastricht signed in 2002. The European Union consists of three parts: (i) the European Community, (ii) a common foreign and security policy, and (iii) cooperation in the fields of justice and home affairs. Only the European Community has a legal personality and can sign international agreements. The 25 members of the EU are: Austria; Belgium; Czech Republic; Cyprus; Denmark; Estonia; Finland; France; Germany; Greece; Hungary; Ireland; Italy; Latvia; Lithuania; Luxembourg; Malta; the Netherlands; Poland; Portugal; Slovakia; Slovenia; Spain; Sweden; and the United Kingdom. Member states have eliminated tariffs among themselves and established a common external tariff against non-members.
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Everything But Arms (EBA)
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A European Union initiative for duty-free and quota-free access to all products except arms originating in least developed countries. It took effect on 5 March 2001 for all products except sugar, rice and bananas. These will receive free access in stages by 2009.
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Export restraint arrangements
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By virtue of an export restraint arrangement between an importer and an exporter, the latter agrees to limit exports in order to avoid imposition of mandatory restrictions by the importing country. The arrangement may be concluded at either government or industry level. These arrangements are known as voluntary export restraint arrangements (VERs), orderly marketing arrangements, etc.
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Finance measures
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Measures that regulate the access to and cost of foreign exchange for imports and define the terms of payment. They may increase the import cost in a fashion similar to tariff measures.
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FOB
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An Incoterm (trade term) meaning Free on Board. See www.iccwbo.org for more Incoterms.
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Free trade area
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A group of two or more countries or economies, customs territories in technical language, that have eliminated tariff and all or most non-tariff measures affecting trade among themselves. Participating countries usually continue to apply their existing tariffs on external goods. Free trade areas are called reciprocal when all partners eliminate their tariffs and other barriers towards each other. There are cases where developing countries are exempt from making equivalent reductions, as is the case with SPARTECA and the ACP-EU Partnership Agreement, even though they get free access to developed-country markets. These are called non-reciprocal free trade areas.
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GCC
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Gulf Cooperation Council or formal name Cooperation Council of the Arab States of the Gulf. Established in 1981. It consists of: Bahrain; Kuwait; Oman; Qatar; Saudi Arabia; and the United Arab Emirates. These members have established a free trade area covering industrial and agricultural products; but not petroleum products. A customs union was established in 2003.
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Global quotas
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Quotas of imports of specific products set as a total quantity or value. The quotas can be either unallocated, i.e. goods may be imported from all origins; or allocated by individual exporting countries. The global quotas may either be distributed among individual importers on a first-come, first-served basis or be allocated in advance to determined importers, often in proportion to their former performance.
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Group of 77
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G77. A loosely organized group of developing countries, originally numbering 77, which was formed at the first meeting of UNCTAD in 1964. It now has over 130 members. Existing members use broad economic and political criteria to decide whether a country should be admitted to membership. As the largest Third World coalition in the United Nations, the G77 provides the means for the developing world to articulate and promote its collective economic interests and enhance its joint negotiating capacity on all major international economic issues in the United Nations system, and promote economic and technical cooperation among developing countries. Members are: Afghanistan; Algeria; Angola; Antigua and Barbuda; Argentina; Bahamas; Bahrain; Bangladesh; Barbados; Belize; Benin; Bhutan; Bolivia; Bosnia and Herzegovina; Botswana; Brazil; Brunei Darussalam; Burkina Faso; Burundi; Cambodia; Cameroon; Cape Verde; Central African Republic; Chad; Chile; China; Colombia; Comoros; Congo, Democratic Republic of; Costa Rica; Côte d'Ivoire; Cuba; Cyprus; Korea, Democratic People's Republic of; Djibouti; Dominica; Dominican Republic; Ecuador; Egypt; El Salvador; Equatorial Guinea; Eritrea; Ethiopia; Fiji; Gabon; The Gambia, Ghana, Grenada, Guatemala, Guinea, Guinea-Bissau, Guyana, Haiti, Honduras, India, Indonesia, Iran - Islamic Republic of; Iraq; Jamaica; Jordan; Kenya; Kuwait; Lao People's Democratic Republic; Lebanon; Liberia; Libyan Arab Jamahiriya; Madagascar; Malawi; Maldives; Mali; Malta; Marshall Islands; Mauritania; Mauritius; Micronesia (Federated States of); Mongolia; Morocco; Mozambique; Myanmar; Namibia; Nepal; Nicaragua; Niger; Nigeria; Oman; Pakistan; Palau; Palestine; Panama; Papua New Guinea; Paraguay; Peru; Philippines; Qatar; Romania; Rwanda; Saint Kitts and Nevis; Saint Lucia; Saint Vincent and the Grenadines; Samoa; Sao Tome and Principe; Saudi Arabia; Senegal; Seychelles; Sierra Leone; Singapore; Solomon Islands; Somalia; South Africa; Sri Lanka; Sudan; Suriname; Swaziland; Syrian Arab Republic; Tanzania, United Republic of; Thailand; Timor-Leste; Togo; Tonga; Trinidad and Tobago; Tunisia; Turkmenistan; Uganda; United Arab Emirates; Uruguay; Vanuatu; Venezuela; Viet Nam; Yemen; Zambia; and Zimbabwe.
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GSP
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Generalized System of Preferences. First proposed at UNCTAD 11 in 1968 and in force since 1971, the GSP gives developing countries a margin of preference in the tariff rates their goods face in the markets of developed countries and in this way increases their competitiveness. To meet its GSP commitment, each developed country determined its own system of preferences, specifying the goods, the margins of preference, and in some cases, the value or volume of goods that would benefit from preferential treatment. Twenty-seven developed countries have GSP programs. The tariff reductions since 1971 as a result of multilateral trade negotiations and unilateral actions, as well as changes in productivity, have reduced the importance of the GSP to many developing country exporters, but it remains important in the trade policies of many developing countries. UNCTAD is the main forum for a discussion of GSP issues.
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GSTP
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Global System of Trade Preferences among Developing Countries. It came into force in 1989 as an objective of the Group of 77 within the UNCTAD ECDC (Economic Cooperation Among Developing Countries) programme. Its aim is to promote the development of economic cooperation among developing countries through the exchange of tariff preferences and the reduction of non-tariff barriers. Least Developed Countries do not offer reciprocal concessions. The GSTP includes: Algeria; Argentina; Bangladesh; Benin; Bolivia; Brazil; Cameroon; Chile; Colombia; Cuba; Ecuador; Egypt; Ghana; Guinea; Guyana; India; Indonesia; Iran, Islamic Republic of; Iraq; Korea, Democratic People's Republic of; Korea, Republic of; Libya; Malaysia; Mexico; Morocco; Mozambique; Myanmar; Nicaragua; Nigeria; Pakistan; Peru; Philippines; Romania; Singapore; Sri Lanka; Sudan; Tanzania, United Republic of; Thailand; Trinidad and Tobago; Tunisia; Venezuela; Viet Nam; Yugoslavia; and Zimbabwe.
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GTAP
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The Global Trade Analysis Project Consortium. Established in 1993, GTAP's goal is to improve the quality of quantitative analysis of global economic issues within an economy-wide framework. Consortium members include: Agricultural Economics Research Institute (LEI) The Hague; Australian Bureau of Agricultural and Resource Economics (ABARE); Centre d'Etudes Prospectives et d'Information Internationales (CEPII) Paris, France; Danish Research Institute of Food Economics (SJFI), Productivity Commission Belconnen, Australia; Economic and Social Research Institute, Cabinet Office (ESRI) Tokyo, Japan; Economic Research Service of the United States Department of Agriculture (ERS) Washington D.C., USA; Federal Agricultural Research Centre (FAL) Braunschweig, Germany; Food and Agriculture Organization of the United Nations (FAO), Rome, Italy; Inter-American Development Bank (IDB) Washington D.C., USA; International Bank for Reconstruction and Development (The World Bank) Washington D.C., USA; MIT Joint Program on the Science and Policy of Global Change Cambridge, MA, USA; Netherlands Bureau of Economic Policy Analysis (CPB); OECD, Environment Directorate Paris, France; Research Institute of Economy, Trade and Industry (RIETI) Tokyo, Japan; United Nations Conference on Trade and Development (UNCTAD) Geneva, Switzerland; US Environmental Protection Agency, Economy and Environment Division (US-EPA) Washington D.C., USA; US International Trade Commission (US-ITC) Washington D.C., USA; World Trade Organization (WTO) Geneva, Switzerland.
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Harmonised System (HS)
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An international nomenclature for the classification of products. It allows participating countries to classify traded goods on a common basis for customs purposes. At the international level, the Harmonised System (HS) for classifying goods is a six-digit code system. The HS comprises approximately 5000 article/product descriptions that appear as headings and subheadings, arranged in 97 chapters, grouped in 21 sections. The six digits can be broken down into three parts. The first two digits (HS-2) identify the chapter the goods are classified in, e.g. 09 = Coffee, Tea, Maté and Spices. The next two digits (HS-4) identify groupings within that chapter, e.g. 09.02 = Tea, whether or not flavoured. The next two digits (HS-6) are even more specific, e.g. 09.02.10 Green tea (not fermented) in immediate packings of a content not exceeding 3 kg. Up to the HS-6 digit level, different countries classification codes are identical. Beyond this, countries are free to introduce national distinctions for tariffs by adding more digits to make the HS classification of products even more specific. This greater level of specificity is referred as the national tariff line level. For example the United States of America adds another four digits to its exports and imports to classify them in greater depth. The Harmonised System was formally known as the Harmonised Commodity Description and Coding System. It was developed by the World Customs Organization and has been adopted by most trading nations.
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IMF
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International Monetary Fund. The IMF is an international organization of 184 member countries. It was established to promote international monetary cooperation, exchange stability, and orderly exchange arrangements; to foster economic growth and high levels of employment; and to provide temporary financial assistance to countries to help ease balance of payments adjustment.
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Import monitoring
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Monitoring of the import trends of specified products, sometimes through inscription in a register. It may be applied with the purpose of signalling concern over import surges and to persuade trading partners to reduce export growth. It may also be applied for environmental purposes. Sometimes it is a precursor to import restraints.
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INR
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Initial Negotiation Right. The right of a WTO member to ask for tariff concessions by another member in a WTO negotiating round even though it is not the principal supplier. INRs are valuable negotiating tools for countries with important trade interests in a product or commodity, though these rights no longer hold the importance they once had in trade negotiations. The question of who has initial negotiation rights does not arise in the case of a formula approach (for example linear tariff cuts) because all participants agree to cut tariffs on specified product categories by a given percentage rate, regardless of their importance to any given trading partner. It may however come up in subsequent bilateral negotiations. WTO members have therefore agreed to create so-called floating initial negotiating rights. These are initial negotiating rights that would be enjoyed by members having principal supplier rights at the time of the renegotiation of a tariff item that had earlier been subject to linear cuts.
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Inside-quota tariff rate (IQTR)
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The tariff rate applicable to a product imported within the limits of a tariff quota.
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Internal taxes and charges levied on imports
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GATT Article III permits the application of internal taxes and charges on imports so long as they are treated in the same way as domestic production.
The general sales tax levied on imports is the equivalent of those internal taxes that are applied to all or most products. There are three types of internal taxes:
sales tax, which is an ad valorem tax based on the gross receipt of sales of goods;
turnover tax, which is a tax imposed at more than one level of production and distribution and is based on grow receipts, resulting in a cumulation of taxes;
value added tax, which is a modified turnover tax based on the net value added instead of on the gross receipts, avoiding the cumulation of taxes and not affecting the price structure and the allocation of resources.
The excise tax levied on imports is the equivalent of the excise tax on domestic products, which is an internal tax imposed on selected products, usually of a luxurious or non-essential nature, such as alcoholic beverages and tobacco. This tax is levied separate from, and in addition to, the general sales taxes. Sumptuary taxes, luxury taxes, commodity or consumption taxes all have the same nature as the excise tax.
In some countries the consumption tax is similar to a sales tax, being applicable to all products, while in other countries, generally applied taxes are sometimes called excise taxes.
Charges for sensitive product categories include emission charges, product taxes and administrative charges. These latter charges are meant to recover the costs of administrative control systems. These various charges normally have an internal equivalent.
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ITC
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International Trade Centre UNCTAD/WTO (www.intracen.org) The International Trade Centre (ITC) is the technical cooperation agency of the United Nations Conference on Trade and Development (UNCTAD) and the World Trade Organization (WTO) for operational, enterprise-oriented aspects of trade development. ITC supports developing and transition economies, and particularly their business sector, in their efforts to realize their full potential for developing exports and improving import operations. ITC works in six areas: Product and market development; Development of trade support services; Trade information; Human resource development; International purchasing and supply management; and Needs assessment, programme design for trade promotion.
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LAIA / ALADI
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Latin American Integration Association or Asociación Latinoamericana de Integración. Formed in 1980 by Argentina, Bolivia, Brazil, Chile, Colombia, Cuba, Ecuador, Mexico, Paraguay, Peru, Uruguay and Venezuela following the collapse of LAFTA (Latin American Free Trade Association). The objective of ALADI, as set out in the treaty of Montevideo, is to pursue the gradual and progressive establishment of a Latin American common market. Mercosur is seen as a step towards achieving this objective.
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Least developed countries (LDC)
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A group of 50 developing countries so designated by ECOSOC on the basis of the following indicators: per capita GNP, life expectancy at birth, per capita calorie supplies, combined primary and secondary education enrolment ratio, adult literacy rate, share of manufacturing in GDP, share of employment in industry, per capita electricity consumption, and their export concentration ratio. The list currently includes: Afghanistan, Angola, Bangladesh, Benin, Bhutan, Burkina Faso, Burma, Burundi, Cambodia, Cape Verde, Central African Republic; Chad; Comoros; Congo, Democratic Republic of; Djibouti; Equatorial Guinea; Eritrea; Ethiopia; Gambia; Guinea; Guinea-Bissau; Haiti; Kiribati; Lao People's Democratic Republic; Lesotho; Liberia; Madagascar; Malawi; Maldives; Mali; Mauritania; Mozambique; Nepal; Niger; Rwanda; Samoa; Sao Tome and Principe; Senegal; Sierra Leone; Solomon Islands; Somalia; Sudan; Timor-Leste; Togo; Tuvalu; Uganda; Tanzania, United Republic of; Vanuatu; Yemen; and Zambia. The list of least developed countries varies. See www.un.org/special-rep/ohrlls/ldc/list.htm.
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Licence combined with or replaced by special import authorization
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See also “quantity control measures”. In addition to or instead of an import licence issued by the main licensing body (usually the ministry of trade) according to the above specified criteria, a special import authorization or an inscription in a register is required by a specialized authority which is coordinating a sector of the domestic economy (ministry of industry, ministry of agriculture, etc).
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Licence for selected purchasers
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See also “quantity control measures”. Licence issued on certain goods only to specific categories of importers, e.g. manufacturers, service industry, governmental departments, etc. The purpose is to limit imports by restraining direct consumption, while providing the local processing industry with the necessary inputs.
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Licence for specific use
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See also “quantity control measures”. Licence limited to operations generating anticipated benefit in important domains of the economy, such as export production, investment projects, etc.
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Licence linked with local production
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See also “quantity control measures”. Compulsory linkage of imports with local market outputs.
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Licence linked with non-official foreign exchange
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See also “quantity control measures”. An import licence granted if official foreign exchange is not required. This case includes imports under technical assistance projects and other sources of external foreign exchange, as well as imports paid from the importer's own foreign exchange holdings.
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Licence with no specific ex-ante criteria
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See also “quantity control measures”. An import licence depending on the judgement of the issuing authority, sometimes also referred to as a discretionary licence.
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Linear reduction formula
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A formula for achieving linear tariff cuts. The formula is: Z=initial tariff(1-reduction rate). Z is the resulting lower tariff.
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Linear tariff cut
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A cut/reduction, usually by a given percentage, of equal magnitude, across whole classes of products, with or without exceptions for products deemed to be "sensitive". Sometimes referred to as "horizontal reduction of tariffs", "across-the-board reduction of tariffs" or "equal percentage reduction of tariffs". The linear reduction formula is one of the possible formula approaches. They were introduced formally in multilateral trade negotiations during the Kennedy Round (1963-67). A feature of linear tariff cut is if they are applied to all countries in the same proportion, the relative market access conditions of countries does not change.
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Local content requirement
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An import licence granted under the condition that a certain product will include a specific percentage of local inputs.
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Marking requirements
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Measures defining the information for transport and customs that the packaging of goods should carry e.g. country of origin, weight, special symbols for dangerous substances, etc.
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MERCOSUR
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Mercado Común del Sur (South American Common Market). A customs union covering trade in goods except sugar and automobiles. Members are Argentina, Brazil, Paraguay, and Uruguay. Chile and Bolivia signed association agreements with the Mercosur countries in 1996 and 1997 respectively. MERCOSUR objectives include the free transit of all goods, services and the factors of production, and the lifting of non-tariff restrictions.
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MFN tariff
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A Most Favoured Nation (MFN) tariff is the tariff applied by WTO members to goods from other WTO members. In the case of WTO non members, the application of these rates may be a requirement of a bilateral trade agreement. Article 1 of the General Agreement on Tariffs and Trade (GATT) lays down the principle of Most Favoured Nation treatment (MFN). The MFN clause states that a member of the GATT must treat all GATT members equally. The WTO is the successor of the GATT and the WTO’s rules derive from the outcome of the 1986-94 Uruguay Round negotiations which included a major revision of the original General Agreement on Tariffs and Trade (GATT). So the application of the MFN principle is required of WTO members. Every time a WTO member improves the benefits that it gives to one trading partner, it has to give the same "best" treatment to all other WTO members, so that they remain equal. Countries are to grant equal treatment - not more favourable or discriminatory - to goods and services from all WTO members. The MFN principle applies to all tariffs --whether or not they have been subject to negotiations between GATT members --as well as to all policy measures affecting imports or exports.
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MFN treatment
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This is the rule, usually established through a trade agreement, that a country gives each of the trading partners with which it has concluded relevant trade agreements the best treatment it gives to any of them in a given product. MFN is not in itself an obligation to extend any favourable treatment to another party, nor is it an obligation to negotiate for better treatment. The fundamental point of MFN therefore is equality of treatment of other countries, and in some older treatises it is called "foreign parity".
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Mixed tariff
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A rate of duty on a product which consists of two components. The first may be an ad valorem rate, expressed as a percentage of the value of the product. The second component may be a specific rate, expressed as a monetary value per article regardless of the value of the product. A hypothetical example would be one where a compact disc incurs a specific tariff of one dollar plus an ad valorem tariff set at 10%. Also called a "compound tariff".
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MSG
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Melanesian Spearhead Group Trade Agreement. A preferential trade arrangement concluded in 1999. Members include Fiji, Papua New Guinea, Solomon Islands and Vanuatu.
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Multi-column tariff
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A tariff schedule that discriminates between the various trading partners. Tariff rates in the first column might be reserved for countries not receiving most-favoured-nation treatment (MFN) and the second column for countries accorded MFN. The third and additional columns would contain the rates applicable to various preferential trade arrangements, such as free-trade area partners or those given to developing countries under the Generalized System of Preferences.
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Multilateral trade agreements
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Intergovernmental agreements aimed at expanding and liberalising international trade under non-discriminatory, predictable and transparent conditions set out in an array of rights and obligations. The motivation for taking on these obligations is that all members will increase their welfare by adhering to a common standard of conduct in the management of their trade relations. Typically, such agreements have numerous members representing small, medium-sized and large trading nations. Before the GATT entered into force in 1948, trade agreements were mostly bilateral, or they were preferential. In the WTO, the term "Multilateral Trade Agreement" refers to the arrangements and associated legal instruments contained in Annexes 1, 2 and 3 to the Marrakech Agreement Establishing the World Trade Organization (WTO).
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Multilateral trading system
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The non discriminatory arrangement for international trade which came into existence with the GATT in 1947 and which is now represented by the WTO system.
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Multiple exchange rates
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See also “finance measures”. Varying exchange rates for imports, depending on the product category. Usually, the official rate is reserved for essential commodities while the other goods must be paid at commercial rates or occasionally by buying foreign exchange through auctions.
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NAFTA
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North American Free Trade Agreement. Established in 1994, its members are Canada, Mexico and the United States of America. NAFTA's objectives include the elimination of barriers to trade in goods and services and the phasing out of tariffs over 10 years. See www.nafta-sec-alena.org
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National tariff line
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Refers to the classification codes, applied to merchandise goods by individual countries, that are longer than the HS six digit level. Countries are free to introduce national distinctions for tariffs and many other purposes. The national tariff line codes are based on the HS system but are longer than six digits. For example, the six digit HS code 010120 refers to Asses, mules and hinnies, live, where as the US National Tariff line code 010120.10 refers to live purebred breeding asses, 010120.20 refers to live asses other than purebred breeding asses and 010120.30 refers to mules and hinnies imported for immediate slaughter.
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Nominal tariff rate
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The tariff rate appearing in a country's tariff schedule for a given product. It may differ from the applied tariff rate (the tariff rate actually levied by the customs administration when the product is imported). See also "binding", "bound tariff" and "effective level of protection".
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Non-automatic licensing
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The practice to require, as a prior condition to importation, an import licence, which is not granted automatically. The licence may either be issued on a discretionary basis or may depend on specific criteria.
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Nuisance tariff
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A tariff that is too low to protect an import market but that introduces transaction costs.
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OCT
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Overseas Countries and Territories. They include: Greenland; New Caledonia; French Polynesia; French Southern and Antarctic Territories; Wallis and Futuna Islands; Mayotte; Saint Pierre and Miquelon; Aruba; Netherlands Antilles; Anguilla; Cayman Islands; Falkland Islands; South Georgia and the South Sandwich Islands; Montserrat; Pitcairn Islands; Saint Helena; Ascension Island; Tristan da Cunha; Turks and Caicos Islands; British Antarctic Territory; British Indian Ocean Territory; and British Virgin Islands.
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OECD
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Organisation for Economic Co-operation and Development. Established in 1961 as the successor to the Organisation for European Economic Cooperation (OEEC). It's members account for more than 70% of global output. The OECD has 30 member countries consisting of: Australia; Austria; Belgium; Canada; Czech Republic; Denmark; European Communities; Finland; France; Germany; Greece; Hungary; Iceland; Ireland; Italy; Japan; Korea; Luxembourg; Mexico; the Netherlands; New Zealand; Norway; Poland; Portugal; Slovak Republic; Spain; Sweden; Switzerland; Turkey; United Kingdom; and the United States of America. See www.oecd.org
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Outside quota tariff rate (OQTR)
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The tariff rate applicable to products imported in excess of a tariff quota. This rate is meant to discourage imports above the quota limit. It is usually much higher than the one applied to imports within the quota. See also "in-quota tariff".
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Pacific Islands Forum
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The Pacific Island Forum represents Heads of Government of all the independent and self-governing Pacific Island countries, Australia and New Zealand. Since 1971 it has provided member nations with the opportunity to express their joint political views and to cooperate in areas of political and economic concern. The 16 member countries of the Pacific Island Forum are: Australia; Cook Islands; Federated States of Micronesia; Fiji; Kiribati; Nauru; New Zealand; Niue; Palau; Papua New Guinea; Republic of the Marshall Islands; Samoa; Solomon Islands; Tonga; Tuvalu; and Vanuatu. See www.forumsec.org.fj
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Para-tariff measures
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Other measures that increase the cost of imports in a manner similar to tariff measures, i.e. by a fixed percentage of value or by a fixed amount per quantity unit, are known as para-tariff measures. There are four types:
customs surcharges;
additional taxes and charges (tax on foreign exchange transactions, stamp tax, import licence fee, consular invoice fee, statistical tax, tax on transport facilities, taxes and charges for sensitive product categories, additional charges nes);
internal taxes and charges levied on imports (general sales taxes, excise taxes, taxes and charges for sensitive product categories, internal taxes and charges levied on imports nes); and
decreed customs valuation
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Preferences
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Favours extended to some trading partners, usually in the form of lower tariffs or non-application of some non-tariff measures.
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Preferential trade arrangement
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Trade arrangements under which a party agrees, either unilaterally or as a result of negotiations, to accord one or more other parties preferential treatment in trade in goods or services. The scope for establishing such arrangements is subject to reasonably precise WTO rules, though developing countries have more flexibility. They may give each other preferences in the form of reduced tariffs, their complete elimination or, in the case of services, partial liberalization. Developed countries must establish either a free trade area, a customs union or, in the case of services, an economic integration agreement. That is, they must remove substantially all barriers to trade among those receiving preferences. If for example, they wanted to give each other a preference in some product lines only, they would have to offer the same access conditions to all of their trading partners under the rule of most favoured nation treatment.
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Pre-shipment inspection
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Compulsory quality, quantity and price control of goods prior to shipment from the exporting country, effected by an inspecting agency mandated by the authorities of the importing country. Price control is intended to avoid under-invoicing and over-invoicing, so that customs duties are not evaded or foreign exchange is not being drained.
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Price control measures
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Measures intended to control the prices of imported articles for the following reasons:
to sustain domestic prices when the import price is lower;
to establish the domestic price because of price fluctuation in the domestic or foreign market; and
to counteract the damage caused by unfair practices of foreign trade.
Most of these measures affect the cost of imports in a variable amount calculated on the basis of the existing difference between two prices of the same product. The measures initially adopted can be administrative fixing of prices and voluntary restriction of the minimum price level of exports or investigation of prices, to subsequently arrive at one of the following adjustment mechanisms: suspension of import licences; application of variable charges, antidumping measures or countervailing duties.
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Prior authorization for sensitive product categories
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See also “quantity control measures”. Prior authorization subject to registered inscription, provision of information or other admission procedures required as a condition for undertaking imports of goods subject to health and safety regulations, provisions of international treaties on environmental and wildlife protection, etc.
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Product Map
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Product Map (www.p-maps.org) is a market analysis, research and international business development service provided by the International Trade Centre (ITC). Presents business information and intelligence in a product context for 72 product clusters. The product clusters range from agricultural machinery to wood products. Product Map includes market studies, price indicators in certain sectors, links to product information, trade data and links to over 20,000 companies and organisations. Companies can also create their own basic web site, which is hosted on the portal. Access is available upon subscription. Other market analysis, research and international business development service provided by the International Trade Centre (ITC) include TradeMap, Country Map and Market Access Map.
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Prohibitions
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A non-tariff measure used to control imports. Prohibitions typically apply to products such as: arms, munitions and military equipment (unless imported by the armed forces); drugs (except where imported by health authorities or for scientific purposes); pornographic materials; and certain plants or animals (including endangered species, under international conventions).
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Protection
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The extent to which domestic producers and their products are shielded from the competition of the international market. Their incidence or cost of protection can be measured or estimated with a high degree of accuracy. Tariffs are the starting point in the case of goods, but the matter becomes more complicated where tariffs are accompanied by non-tariff measures, or if protection consists entirely of non-tariff measures, or government regulation in the case of services.
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PTN
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Protocol relating to Trade Negotiations among Developing Countries. A preferential arrangement involving Bangladesh, Brazil, Chile, Egypt, Israel, Mexico, Pakistan, Paraguay, Peru, Philippines, Republic of Korea, Romania, Tunisia, Turkey, Uruguay and Yugoslavia.
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Purchase of local goods
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See also “quantity control measures”. An import licence granted under the condition of the purchase of a share of locally produced goods which are similar to the imported goods.
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Quantity control measures
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Measures intended to restrain the quantity of imports of any particular good, from all sources or from specified sources of supply, either through restrictive licensing, fixing of a predetermined quota or through prohibitions.
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Quota
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Explicit limits on the quantity of a good that can be imported or exported during a specified time period. Such limits are usually measured by physical quantity but sometimes by value. A quota may be applied on a selective basis, with varying limits set according to the country of origin or destination or bilaterally (to a single trading partner), or on a global basis (to all countries) that specifies only the total limit and thus tends to benefit more efficient suppliers. Quotas are frequently administered through a system of licensing. Non-automatic licensing usually the means for administering a quota.
GATT Article XI prohibits the use of quantitative restrictions, subject to specific exceptions. For example Article XIX permits quotas to safeguard certain industries from damage by rapidly rising imports. The following sites are useful resources for import quota information: www.customs.gov/xp/cgov/import/textiles_and_quotas Customs USA Customs and Border Protection Agency); http://sigl.cec.eu.int/ (information on quota levels for imports of clothing and steel products applied in the European Community)
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Quotas linked with export performance
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Quotas of imports defined as a percentage of the value of exported goods.
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Quotas linked with the purchase of local goods
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Quotas defined as a percentage of the value of locally purchased goods similar to the imported articles.
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Refundable deposits for sensitive product categories
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See also “finance measures”. The deposit refunds are charges that are refunded when the used products or its containers are returned to a collection system.
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Regional trade agreement (RTA)
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A free trade agreement, customs union or common market consisting of two or more countries. In the case of developed countries, duties and other restrictive measures of commerce have to be eliminated on substantially all the trade between the parties. More than 200 regional trade arrangements have been notified to the GATT under Article XXIV between 1947 and 2003.
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Regulations concerning terms of payment for imports
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See also “finance measures”. Special regulations regarding the terms of payment of imports and the obtaining and use of credit (foreign or domestic) to finance imports.
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Restrictive official foreign exchange allocation
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See also “finance measures”. Restrictive allocation of foreign exchange intended to control import flows, usually executed by the central bank in the form of permits, visas, authorizations, etc. Sometimes takes the form of prohibition of foreign exchange allocation.
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Rules of Origin
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“Rules of origin” are the criteria used to define where a product was made. They are an essential part of trade rules because a number of policies discriminate between exporting countries: quotas, preferential tariffs, anti-dumping actions, countervailing duty (charged to counter export subsidies), and more. Rules of origin are also used to compile trade statistics, and for “made in ...” labels that are attached to products. This is complicated by globalization and the way a product can be processed in several countries before it is ready for the market.
The Rules of Origin Agreement requires WTO members to ensure that their rules of origin are transparent; that they do not have restricting, distorting or disruptive effects on international trade; that they are administered in a consistent, uniform, impartial and reasonable manner; and that they are based on a positive standard (in other words, they should state what does confer origin rather than what does not).
For the longer term, the agreement aims for common (“harmonized”) rules of origin among all WTO members, except in some kinds of preferential trade — for example, countries setting up a free trade area are allowed to use different rules of origin for products traded under their free trade agreement. For more information on the Rules of Origin Agreement for WTO members see www.wto.org
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SACU
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Southern African Customs Union. It consists of Botswana, Lesotho, Namibia, South Africa and Swaziland. It covers the free flow of goods between the partners. A common external tariff is applied against non-members.
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SADC
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Southern African Development Community. An association of 14 southern African states (Angola, Botswana, Democratic Republic of Congo, Lesotho, Malawi, Mauritius, Mozambique, Namibia, Seychelles, South Africa, Swaziland, Tanzania, Zambia and Zimbabwe. They signed a protocol in 1996 to establish a free-trade area by 2008.
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Safeguard measures
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A WTO member may take a “safeguard” action (i.e., restrict imports of a product temporarily) to protect a specific domestic industry from an increase in imports of any product which is causing, or which is threatening to cause, serious injury to the industry.
Safeguard measures were always available under the GATT (Article XIX). However, they were infrequently used, and some governments preferred to protect their industries through “grey area” measures (“voluntary” export restraint arrangements on products such as cars, steel and semiconductors). The WTO Safeguards Agreement prohibited “grey area” measures and set time limits (“sunset clause”) on all safeguard actions.
When imposed, a safeguard measure should be applied only to the extent necessary to prevent or remedy serious injury and to help the industry concerned to adjust. Where quantitative restrictions (quotas) are imposed, they normally should not reduce the quantities of imports below the annual average for the last three representative years for which statistics are available, unless clear justification is given that a different level is necessary to prevent or remedy serious injury.
In principle, safeguard measures cannot be targeted at imports from a particular country. However, the agreement does describe how quotas can be allocated among supplying countries, including in the exceptional circumstance where imports from certain countries have increased disproportionately quickly. A safeguard measure should not last more than four years, although this can be extended up to eight years. Measures imposed for more than a year must be progressively liberalized.
When a country restricts imports in order to safeguard its domestic producers, the exporting country (or exporting countries) can seek compensation through consultations. If no agreement is reached the exporting country can retaliate by taking equivalent action — for instance, it can raise tariffs on exports from the country that is enforcing the safeguard measure.
For more information see “safeguards” in the WTO web site www.wto.org
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Sanitary and Phytosanitary measures
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Standards countries have in place to ensure food safety and animal and plant health. Governments may require that imports also conform to these standards. The World Trade Organization states that in addition to Article 20 of the GATT, "there two specific WTO agreements dealing with food safety and animal and plant health and safety, and with product standards. These are: The Sanitary and Phytosanitary Measures Agreement or SPS and The Technical Barriers to Trade Agreement or TBT.
The SPS allows countries to set their own standards. But it also says regulations must be based on science. Member countries are encouraged to use international standards, guidelines and recommendations where they exist. The agreement still allows countries to use different standards and different methods of inspecting products. If an exporting country can demonstrate that the measures it applies to its exports achieve the same level of health protection as in the importing country, then the importing country is expected to accept the exporting country’s standards and methods
The TBT tries to ensure that regulations, standards, testing and certification procedures do not create unnecessary obstacles to trade. Manufacturers and exporters need to know what the latest standards are in their prospective markets. To help ensure that this information is made available conveniently, all WTO member governments are required to establish national enquiry points."
For more information on the SPS or TBT see the World Trade Organization at www.wto.org
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SAPTA
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South Asian Preferential Trade Arrangement made between the members of the South Asian Association for Regional Cooperation (SAARC). SAPTA consists of Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka. SAARC was launched in 1993, as a first step towards a regional free trade area with a programme of tariff reductions on specified goods and commodities. The target date for regional free trade is 2005.
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Schedule of concessions
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A list of bound tariff rates negotiated under WTO auspices. It sets out the terms, conditions and qualifications under which goods may be imported. No additional duties or charges may be imposed at the border other than internal taxes also levied on similar domestic products, anti-dumping measures or countervailing duties or a fee-for-service charge.
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SCM
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Southern Common Market. Also called MERCOSUR. Comprises Argentina, Brazil, Paraguay and Uruguay. See "MERCOSUR".
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Seasonal duties
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Seasonal duties are those that apply according to the time of the year, usually to agricultural products.
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Seasonal quotas
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Quotas of imports for a given period of the year, usually set for certain agricultural goods.
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Sector
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Often refers to one of the 21 sectors within the Harmonised System (HS). Sections of the Harmonised System group together articles from branches of industry and commerce. The 21 sectors are: 1. Live animals; 2. Vegetable products; 3.Animal or vegetable fats and oils and their cleavage products, prepared edible fats; animal or vegetable waxes; 4. Prepared foodstuffs; beverages, spirits and vinegar; tobacco and manufactured tobacco substitutes; 5. Mineral products; 6. Products of the chemical or allied industries; 7. Plastics and articles thereof; rubber and articles there of; 8: Raw hides and skins, leather, furskins and articles thereof; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silkworm gut); 9: Wood and articles of wood; wood charcoal; cork and articles of cork; manufactures of straw, of esparto or of other plaiting materials; basketware and wickerwork; 10. Pulp of wood or of other fibrous cellulosic material; recovered (waste and scrap) paper or paperboard; paper and paperboard and articles thereof; 11. Textiles and textile articles; 12. Footwear, headgear, umbrellas, sun umbrellas, walking-sticks, seat-sticks, whips, riding-crops and parts thereof; prepared feathers and articles made therewith; artificial flowers; articles of human hair; 13. Articles of stone, plaster, cement, asbestos, mica or similar materials; ceramic products; glass and glassware; 14. Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin; 15. Base metals and articles of base metal; 16: Machinery and mechanical appliances; electrical equipment; parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles; 17. Vehicles, aircraft, vessels and associated transport equipment; 18. Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; clocks and watches; musical instruments; parts and accessories thereof; 19. Arms and ammunition; parts and accessories thereof; 20. Miscellaneous manufactured articles; and 21. Works of art, collectors' pieces and antiques.
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Single-column tariff
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A tariff schedule under which all trading partners are treated in the same way. The schedule does not allow preferences, and it permits importers to seek the best possible suppliers. A single-column tariff represents the ideal state of the multilateral trading system. See also "multi-column tariff".
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SITC
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Standard International Trade Classification. One of the product classifications maintained by the United Nations Statistics Division. The purpose of this classification is for compiling international trade statistics on all merchandise entering international trade, and to promote international comparability of international trade statistics. The commodity groupings of SITC reflect (a) the materials used in production, (b) the processing stage, (c) market practices and uses of the products, (d) the importance of the commodities in terms of world trade, and (e) technological changes. It is based on the Harmonized Commodity Description and Coding System (HS), and provides correspondences with SITC, Rev.2, CPC (Central Product Classification), and BEC (Classification by Broad Economic Categories). SITC has a 5 level structure consisting of "Sections" (10), "Divisions" (67), "Groups" (261), "Subgroups" (1,033) and "Items" (3,121). See http://unstats.un.org/unsd/cr/registry/regcst.asp?Cl=14&Lg=1
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SPARTECA
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South Pacific Regional Trade and Economic Cooperation Agreement. This Agreement, which entered into force on 1 January 1981, gives countries located in the South Pacific preferential non-reciprocal access to Australia and New Zealand. Access for sugar to the Australian market is excluded. Members include Australia, New Zealand, Cook Islands, Fiji, Kiribati, Marshall Islands, Micronesia, Nauru, Niue, Papua New Guinea, Solomon Islands, Tonga, Tuvalu, Vanuatu and Western Samoa. See http://www.forumsec.org.fj/docs/SPARTECA/foreword.htm
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Specific tariff
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A tariff expressed as a specific charge on the particular item to be imported. A hypothetical example of a specific tariff would be a rate of two dollars per pair of shoes regardless of their value. See also "ad valorem tariff".
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Subsidies and countervailing measures
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The WTO Agreements allow importing countries to respond in certain circumstances to export or domestic subsidies used by other countries, through the use of countervailing duties. The WTO Agreement on Subsidies and Countervailing Measures provides definitions of subsidies (e.g. prohibited and actionable) and what action can be taken in response to them.
A country can complain to the WTO that another country has a prohibited subsidy (e.g. an export subsidy or a subsidy that requires the use of domestic and not imported goods) and seek the elimination of the subsidy
Alternatively a country can complain to the WTO that another country’s subsidies are causing material injury to its domestic producers. If the case is proven, the complaining country may apply a countervailing duty to the imports from the offending country to offset the injury. Normally the countervailing duty is imposed for a period no longer than five years.
Countervailing duties, like anti-dumping duties break with the GATT principles of tariff bindings and MFN, however both agreements require that the importing country prove that the domestic industry is hurt before a duty may be imposed. The key lies in the fact that anti-investigations consider the activities of private companies whereas countervailing duty investigations examine the activities of the governments who provide the subsidies.
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Swiss formula
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A formula for achieving tariff cuts proposed by Switzerland during the Tokyo Round. It was intended to reduce higher tariffs by a greater proportion than lower tariffs. The formula is: Z=T*a/(T+a) where T represents the initial tariff, and "a" is a reduction coefficient to be agreed on. Z is the resulting lower tariff. The Swiss formula when applied to a number of countries is able to change the relative market access conditions of the countries, unlike the linear formula, where relative positions remain unchanged. It is commonly used for the elimination of tariff peaks.
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Tariff
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A customs duty or tax levied on imports of merchandise goods. A tariff can be an ad valorem tariff (percentage of value) or a specific tariff (e.g. $100 per ton). Less often, a compound tariff made up of both of these elements applies. Tariffs are mostly levied on imports, but there are cases of tariffs on exports. Tariffs raise revenue for the government and increase the price of imported products, thus giving domestically produced products a price advantage.
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Tariff binding
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A tariff is bound if there is a commitment not to increase the rate of duty beyond its bound level. If the rate is raised beyond this bound level, the affected parties must be compensated.
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Tariff escalation
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The case where tariffs of finished products are higher than on semi processed products, which in turn are higher than on raw materials. This can discourage processing in the countries where the raw materials originate. It results in a higher rate of effective protection.
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Tariff measures
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Tariff measures include: statutory customs duties; MFN duties; bound tariffs; tariff quota duties or rates; seasonal duties: temporary reduced duties; temporary increased duties; and preferential duties under trade agreements.
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Tariff peak
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A tariff that is high relative to other tariffs. For industrialised nations, usually tariffs of 15% or more are considered to be tariff peaks for manufactured products. Tariff peaks are often on sensitive products. There is also a "national" definition for tariff peaks which is defined as twice the average tariff imposed by the country.
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Tariff quota
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The application of a reduced tariff rate for a specific quantity of imported goods. Imports above this specified quantity face a higher tariff rate. So a tariff quota has two parts, the Inside Quota Tariff Rate and the Outside Quota Tariff Rate. Some claim that tariff quotas liberalize trade since, in contrast to import quotas, there is no ceiling on imports under this system. This assumption can be quite erroneous. The difference between the Inside Quota Tariff Rate and the Outside Quota Tariff Rate is often so large as to preclude any trade at the higher rate.
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Tariff schedule
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The document setting out the tariff rates a country applies to imports and, sometimes, to exports. See also "applied tariff rates", "bound tariff rates", "multi-column tariff", "schedule of concessions" and "single column tariff".
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Tariff wall
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A term used for an tariff that is sufficiently high that it makes importing difficult or even prevents it.
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Tariff wedge
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Under conditions of tariff escalation, a tariff wedge is the difference between the tariff of the more processed product and the tariff on the less processed products that are transformed into the more processed product.
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Technical barriers to trade
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The World Trade Organization states that "The Technical Barriers to Trade Agreement (TBT) is an agreement amongst WTO members that tries to ensure that regulations, standards, testing and certification procedures do not create unnecessary obstacles. The agreement recognizes countries’ rights to adopt the standards they consider appropriate — for example, for human, animal or plant life or health, for the protection of the environment or to meet other consumer interests. Moreover, members are not prevented from taking measures necessary to ensure their standards are met. In order to prevent too much diversity, the agreement encourages countries to use international standards where these are appropriate, but it does not require them to change their levels of protection as a result.
Manufacturers and exporters need to know what the latest standards are in their prospective markets. To help ensure that this information is made available conveniently, all WTO member governments are required to establish national enquiry points. See also "sanitary and phytosanitary measures". For more information on the TBT see the World Trade Organization at www.wto.org
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Testing, inspection and quarantine requirements
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Compulsory testing of product samples by a designated laboratory in the importing country, inspection of goods by health authorities prior to release from customs or a quarantine requirement in respect of live animals and plants.
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TPO
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Trade Promotion Organization
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TradeMap
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TradeMap (www.trademap.org) is a market analysis, research and international business development service provided by the International Trade Centre (ITC) www.intracen.org. TradeMap is an online database of global trade flows and market access barriers for international business development and trade promotion, providing detailed export and import profiles and trends for over 5,300 products in 200 countries and territories. Based on the world’s largest database COMTRADE, TradeMap presents import/export values and quantities, growth rates, market shares and market access information. It allows users to analyse markets, select priority countries for export diversification, review the performance of competing countries and assess opportunities for product diversification by identifying existing and potential trade between countries. Other market analysis, research and international business development service provided by the International Trade Centre (ITC) include Product Map, Country Map and Market Access Map.
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TRAINS database
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TRAINS – The Trade Analysis and Information System, is a database of trade control measures maintained by UNCTAD. TRAINS holds information on tariff measures from the year 1988 to the present. Tariffs are presented at the national tariff line level for 155 countries and included also are preferential rates arising out of bilateral, regional and multilateral trade agreements. The primary data from TRAINS is sourced from UNTARMAC - the UN Tariff and Market Access Database - a collaboration of UNCTAD and the International Trade Centre (ITC). TRAINS contains information on non-tariff measures, which are classified according to UNCTAD’s Coding System of Trade Control Measures. TRAINS also contains import statistics. Imports at the HS-6 digit level can be presented in terms of those that are subject to duty, those that are duty free and those that are subject to non ad valorem duties. Mirror imports are constructed where necessary. TRAINS data can be accessed and analysed using WITS - The World Integrated Trade Solution - a software interface of the World Bank and UNCTAD. Using WITS, TRAINS data can be aggregated according to various product classifications including HS, SITC and ISIC. Users can also create their own country groups. The interface also enables the simulation of: tariff changes; trade creation and diversion effects; tariff revenue effects; and welfare effects. The simulation module assumes products are independent and that the same products from different suppliers are imperfect substitutes. Users may make assumptions about elasticities of demand, supply and substitution between suppliers. Governments and international and regional organizations can freely access TRAINS. Companies and other organisations may access TRAINS by making a contribution to the TRAINS Trust Fund. For more information contact wits@unctad-trains.org
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Transfer delays, queuing
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See also “finance measures”. Minimum permitted delays between the date of delivery of goods and that of final settlement of the import transaction (usually 90, 180 or 360 days for consumer goods and industrial inputs and two to five years for capital goods). Queuing takes place when the prescribed delays cannot be observed because of foreign exchange shortage, and transactions are settled successively after a longer waiting period.
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Tripartite Agreement
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A preferential arrangement between Egypt, India and Yugoslavia.
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Truncated Swiss formula
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This formula combines the Linear Formula and the Simple Swiss Formula. It consists of applying the linear formula up to a certain rate (chosen by the user), and the latter beyond this rate.
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TSI
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Trade Support Institution
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UNCTAD
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United Nations Conference on Trade and Development. Established in 1964 as a permanent intergovernmental body, UNCTAD is the focal point within the United Nations for the integrated treatment of trade and development and the interrelated issues in the areas of finance, technology, investment and sustainable development. See www.unctad.org
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Unit value
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The Unit Value is the value of one unit quantity imported of a product. It’s based on the total value of imports of that product. There are various ways to calculate a unit value. For example, one may use either bilateral trade flows; world imports or a country's imports of that product from a reference group of countries. Market Access Map calculates the Unit Value based on bilateral trade at the HS-6 level.
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UNSD
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United Nations Statistics Division provides a global centre for data on international trade, national accounts, energy, industry, environment, transport and demographic and social statistics gathered from many national and international sources. See www.unsd.org
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Variable charges
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See also “price control measures”. Variable charges bring the market prices of imported agricultural and food products close to those of corresponding domestic products, in advance, for a given period of time, and for a pre-established price. These prices are known as reference prices, threshold prices or trigger prices. Primary commodities may be charged per total weight, while charges on processed foodstuffs can be levied in proportion to the primary product contents in the final product.
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Voluntary export price restraint
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See also “price control measures”. A restraint arrangement in which the exporter undertakes, accepted by the authorities in the importing country, to keep the price of his goods above a certain level, for a certain period of time. They are usually organised on an industry-to-industry basis.
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WAEMU / UEMOA
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West African Economic and Monetary Union (Union économique et monétaire ouest-africaine). Established in 1994 with the aim of achieving full economic integration with a common external tariff, a common trade policy and harmonized economic policies. Its members are Benin, Burkina Faso, Côte d'Ivoire, Guinea Bissau, Mali, Niger, Senegal and Togo. See www.uemoa.int
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Water in the tariff
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The part of a tariff which is beyond the prohibitive level. For example if a tariff of 80% is prohibitive, then a tariff of 120% would have 40% water.
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World Bank
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The World Bank Group’s mission is to fight poverty and improve the living standards of people in the developing world. It is a development Bank which provides loans, policy advice, technical assistance and knowledge sharing services to low and middle income countries to reduce poverty. See www.worldbank.org
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WTO
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World Trade Organization. Established in 1995, the WTO is the only global international organization dealing with the rules of trade between nations. At its heart are the WTO agreements, negotiated and signed by the bulk of the world’s trading nations and ratified in their parliaments. The goal is to help producers of goods and services, exporters, and importers conduct their business. The WTO is the successor of the General Agreement on Tariffs and Trade (GATT) established in 1948. As of 13th October 2004, the WTO had 148 members. See www.wto.org
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