Ad valorem: An ad valorem duty (tariff, charge, and so on) is based on the value of the dutiable item and expressed in percentage terms.
Aggregate Measure of Support: Measure of the total support given to an activity as a result of policies such as production subsidies and market price support policies.
Anti dumping: Trade policy used by importing governments to counteract dumping, for example by imposing duties or negotiating price increases.
Capacity-building: In trade context, activities supported by the donor community aimed at strengthening the ability of stakeholders in developing countries to develop national trade policy.
Cartel: Arrangement between firms to control a market - for example, to fix prices or limit competition between members of the cartel.
Ceiling binding: Often used to describe a situation where there is a large difference between the tariff that is actually applied and the level at which the tariff is bound. .
Compensatory Adjustment: Measure taken, after withdrawing of a (tariff or other) concession, to compensate for such withdrawal.
Competition policy: Legislation and regulations designed to protect and stimulate competition in markets by outlawing anticompetitive business practices such as cartels, market sharing or price fixing.
Contestability: A market is contestable if new suppliers can enter it easily.
Contingent Protection: Trade barriers that are imposed if certain circumstances (contingencies) are met.
Copyright: Instrument to protect the right of authors of original works (print, audio, video, film, software) from unauthorized copying and use.
Counter trade: Form of barter committing the exporter to offset the value of his exports, in whole or in part, by imports from his trading partner.
Countervailing Duty: Duty levied on imports of goods that have benefited from production or export subsidies.
Customs Duty: Charge levied on imports and listed in importing country's tariff schedules.
Customs Valuation: Establishment, according to defined criteria, of the value of goods for the purpose of levying ad valorem customs duties on their importation.
Decoupling: Action to ensure that subsidies to producers (usually farmers) are unrelated to production so as to provide no incentive to increase production.
Deep integration: Inter-governmental cooperation in designing and applying domestic policies such as taxes, health and safety regulations, and environmental standards.
Deficiency Payment: Direct monetary payment by government to producers to compensate for the difference between the market price of a good and a higher guaranteed price for that good.
Degressivity: Mechanism to ensure that the application of a measure gradually becomes less severe over time.
Dumping: A form of price discrimination by which the export price of the product exported from one country to another is less than the comparable price.
Economic needs test: Measure requiring a demonstration that an import (of goods, but more usually, natural service providers) cannot be satisfied by local producers or service providers.
Effective Rate of Protection: A measure of the protection afforded by an import restriction calculated as a percentage of the value added in the product concerned.
Escape Clause: Clause in a legal text allowing temporary derogation from its provisions under certain specified emergency conditions.
Exchange Control: Restrictions imposed by a government or central bank over the holding, sale, or purchase of foreign exchange.
Exhaustion: Policy stance of a country regarding parallel imports of goods protected under intellectual property rights.
Export Processing Zone: A designated area or region in which firms can import duty-free as long as the imports are used as inputs into the production of exports.
Export promotion: A strategy for economic development that emphasizes support for exports through removal of anti-export biases created by policy.
Externality: Occurs when the action of one agent (person, firm, government) affects directly other agents, making them better or worse off.
Fast track. A procedure under which the U. S. Congress agrees to consider implementing legislation for international trade agreements on an 'up or down" basis, that is, gives up its right to propose amendments.
Foreign trade zone: An area within a country where imported goods can be stored or processed without being subject to import duty.
Formula Approach: Method of negotiating down tariffs or other barriers to trade by applying a general rule (formula).
Free on board (f. o. b): The price of a traded good including its value and the costs associated with loading it on a ship or aircraft.
Free-Trade Area: A group of countries in which the tariffs and other barriers are eliminated on substantially all trade between them.
Geographical indication: Measure aimed to protect the reputation for quality of goods originating in a particular geographic location by limiting the use of distinctive place names or regional appellations to goods actually produced in those locations.
Government Procurement: Purchasing, leasing, rental, or hire purchasing by government entities or agencies.
Graduation: Concept linking the rights and obligations of a developing country to its level of development.
Grandfather Clause: A clause exempting signatories from certain treaty obligations for legislation or regulations that were adopted before accession to the treaty and that are inconsistent with the treaty.
Impairment: Damage to, or weakening of, benefits accruing under contractual rights and obligations.
Import Substitution: Theory of and approach to development that focuses on providing domestic substitutes for all imported manufactures via trade protection and various types of industrial policies.
Infant Industry: Infant industry arguments suggest that new (non-traditional) industries must be protected from import competition while they are establishing themselves.
Intra-industry trade: Trade in which a country both exports and imports goods that are classified to be in the same industry.
Labeling: Requirement, either mandatory or voluntary, to specify whether a product satisfies certain conditions relating to the process by which it was produced.
Licensing (of imports or exports): Practice requiring approval to be granted by the relevant government authority, or by a body designated by such authority, as a prior condition to importing or exporting.
Linking Scheme: An import licensing requirement that forces an importer to purchase specified amounts of the same type of product from domestic producers before they can apply for import licenses.
Market Access: Refers to the conditions under which imports compete with domestically produced substitutes.
Matching grant: Subsidy that is conditional on a co-payment or contribution by an industry or enterprise.
Markup: A measure of the difference between unit price of a good and its marginal cost of production.
Mutual Recognition. The acceptance by one country of another country's certification that a product has satisfied a product standard.