Vocab Flashcards
(19 cards)
What does WTO stand for?
World Trade Organization
A global organization that sets trade rules and resolves disputes, with 164 member countries following agreements like GATT and GATS.
What is GATT?
General Agreement on Tariffs and Trade
Rules for trade in goods focusing on tariffs and non-discrimination, updated in 1994 to ban unfair treatment of imports.
What is a Binding Overhang?
When a country’s actual tariffs are lower than its WTO maximum rate
Example: A bound tariff of 40% with only 10% charged.
What does Article I of the WTO agreements state?
Most-Favored Nation (MFN)
Requires treating all WTO members equally, with exceptions for Free Trade Agreements (FTAs).
What does Article III of the WTO agreements require?
National Treatment
Imported and domestic goods must be treated equally after entering the country, with no extra taxes on foreign products.
What is Anti-Dumping?
Extra duties on imports sold below fair value
Requires proof of harm to local industry.
What does Article XI of the WTO agreements ban?
Quantitative Restrictions
Bans import quotas or outright bans, allowing only tariffs.
Define Behind-the-Border Measures.
Domestic rules that indirectly affect trade
Examples include safety standards.
What are At-the-Border Measures?
Direct trade barriers like tariffs or customs checks
These measures directly impact importation.
What does TBT stand for?
Technical Barriers to Trade
Regulations on labels, testing, or safety standards that must be fair and not overly restrictive.
What are PPMs?
Processes and Production Methods
Rules about how a product is made, such as eco-friendly methods.
What is Conformity Assessment?
Checks if products meet local rules
Example: Lab tests to ensure compliance.
What does SPS stand for?
Sanitary and Phytosanitary Measures
Health and safety rules for food, animals, or plants, requiring a scientific basis.
What is the Necessity Test?
Checks if a trade rule is the least restrictive way to meet a goal
Evaluates the appropriateness of trade measures.
What does Article XX of the WTO agreements allow?
General Exceptions
Allows trade bans for health, environment, or morals, provided they do not discriminate unfairly.
What is the Chapeau of Article XX?
Ensures exceptions aren’t misused
Prevents arbitrary discrimination in the application of exceptions.
Define De Jure Discrimination.
Laws that directly treat imports worse
This type of discrimination is explicit in trade policies.
Define De Facto Discrimination.
Laws that seem neutral but hurt imports in practice
This type of discrimination is often more subtle.
What is the Appellate Body?
WTO’s top court for appeals in trade disputes
Its status has been frozen since 2019 due to ongoing reforms.
