INTERNATIONAL TRADE TERMS

GLOSSARY
ANTI-DUMPING
 (AD) Anti-Dumping
Anti-dumping suits, along with ‘safeguards’ and
‘countervailing measures’, are tools for protecting
domestic industries from surges of cheap foreign
imports.

Although the WTO strives to eliminate all trade

barriers, it recognizes that nations require flexibility
to adjust to economic shocks as multilateral
agreements increasingly liberalize trade.
• Thus, these measures allow nations to
temporarily protect their economies against
fluctuations in trading patterns.
 ATC
AGREEMENT ON TEXTILE AND
CLOTHING
(ATC) Agreement on Textile and Clothing
• The World Trade Organization (WTO) Agreement on
Textiles and Clothing (the Agreement) provided for
the phased liberalization and elimination over the
transition period of quotas on textiles and apparel
imported from WTO member countries. The
Agreement was approved as part of the Uruguay
Round Agreements Act and went into effect on
January 1, 1995. The Agreement terminated in
2005. (ATPA) Andean Trade Preference
BALANCE OF TRADE
• Balance of Trade: The difference between a
country’s total imports and exports. If exports
exceed imports, a favourable balance of trade
exists; if not, a trade deficit exists.
COUNTERVAILING
MEASURES
 Countervailing measures
Additional measures imposed by the importing
country to offset government subsidies in the
exporting country when the subsidized
imports cause material injury to the domestic
industry in the importing country.
 (CV) Countervailing Duty
A duty imposed to counter unfairly subsidized
products.
DUMPING
 Dumping
Contrary to the lay man’s perception that
dumping means getting rid of overproduction
or oversupply at whatever price is obtainable,
dumping in international trade law means
introduction of a product into the commerce
of another country at less than the normal
value.
Normal value: the home market price
DUTY
 DUTY
• A tax imposed on imports by the customs
authority of a country. Duties are generally
based on the value of the goods (ad valorem
duties), some other factor such as weight or
quantity (specific duties), or a combination of
value and other factors (compound duties).
 (MFA) Multi-Fibre Agreements
The objective of these agreements, which
expired on January 1, 2005, was to reconcile
the interests of textile-exporting and textile-
importing countries by permitting an orderly
expansion of trade while avoiding market
disruption.
The MFA allowed an importing signatory
country to apply quantitative restrictions on
textile imports when it considered such
restrictions necessary to prevent market
disruption.
MFA rules provided that quantitative restrictions
should not reduce imports to levels below
those attained during the preceding year, and
should, if continued, permit trade to expand
by specified percentages.
NTBs
 (NTBs) Non-Tariff Barriers

Additional taxes, customs valuations, border

delays, or certifications.
 Tariff (the rate of duty)
A schedule or system of duties imposed by a
government on goods imported.
• Here, technical barriers to trade refer to measures
such as labelling requirements, standards on technical
specifications and quality standards, and other
measures protecting the environment. Chapter B also
includes all conformity-assessment measures related
to technical requirements, such as certification,
testing and inspection.[1] Other examples of TBTs are
rules for product weight, size, or packaging;
ingredient or identity standards; shelf-life restrictions;
and import testing and certification procedures.