National Treatment: Principle that foreign goods, services, and persons (investors), once they have entered a country and satisfied any formalities that are required, are treated in exactly the same way as national goods, services or persons.
Necessity test: Procedure to determine whether a policy restricting trade is necessary to achieve the objective that the measure is intended to attain.
Negative list: In an international agreement, a list of those items, entities, products, etc. to which the agreement will not apply, the commitment being to apply the agreement to everything else.
Nominal rate of protection: The proportion by which the (tariff-inclusive) internal price of an import exceeds the border or world price.
Noneconomic objective: Describes situations where a policy objective is other than the efficient allocation of resources.
Nontariff barrier: A catch-all phrase describing barriers to international trade other than the tariffs.
Nontariff measure: Any government action with a potential effect on the value, volume, or direction of trade.
Normal Value: Price charged by an exporting firm in its home market.
Offset Requirement: Requirement, stipulated by the authorities of the importing country, that exporters to that country compensate for their exports by.
Origin Rule: Criterion for establishing the country of origin of a product.
Parallel imports: Trade that is made possible when a good that is protected under intellectual property provisions (patents, copyrights) is sold in different countries for different prices.
Para Tariff: Charges on imports that act as a tariff but are not included in country's tariff schedule.
Partial Equilibrium Analysis: The study of one market in isolation, assuming that anything that happens in it does not materially affect any other market.
Patent: A right granted to its owner to exclude all others from making, selling, importing or using the product or process described in the patent for a fixed period of time.
Positive List: In an international agreement, a list of those items, entities, products, etc. to which the agreement will apply, with no commitment to apply the agreement to anything else.
Predatory pricing: Action by a firm to lower prices so much that rival firms are driven out of business, after which the firm raises prices again to exploit the resulting monopoly power.
Preshipment inspection: Mechanism under which goods are inspected and certified in the country of origin by specialized inspection agencies or firms.
Price discrimination: The practice of charging different customers different prices for the same good in order to exploit their different degrees of enthusiasm for it.
Price undertaking: Commitment by an exporter to either raise prices or reduce sales in a market as a way of settling an antidumping suit brought by import-competing domestic firms.
Producer support estimate: A measure of the aggregate value of the gross transfers from consumers and taxpayers to farmers due to policy measures.
Protocol of Accession: Legal document recording the conditions and obligations under which a country accedes to an international agreement or organization.
Quota rent: The economic rent received by the holder of a right to import under a quota.
Real exchange rate: The nominal exchange rate adjusted for inflation.
Rent-Seeking: Refers to activities that use resources to obtain incomes through transfers but which do not increase national income.
Retaliation: Imposition of a trade barrier in response to another country increasing its level of trade restrictions.
Rollback: The phasing out of measures inconsistent with the provisions of an agreement.
Selectivity: Application of a rule, regulation, or trade action on a discriminatory basis to certain countries.
Shallow integration: Reduction or elimination of border barriers to trade.
Specific tariff: A specific duty (tariff, import tax) expressed in terms of a fixed amount per unit of the dutiable item.
Specificity: A policy measure that applies to one or a subset of enterprises or industries as opposed to all industries.
Standard: Rule, regulation or procedure specifying characteristics that must be met by a product (such as dimensions, quality, performance, or safety).
State Trading: Trade by a government agency or enterprise or by an enterprise to which the government has granted exclusive or special privileges in respect of international trade.
Standstill: A commitment not to take any new trade restrictive or distorting measure.
Strategic trade policy: The use of trade policies to alter the outcome of international competition in a country's favor, usually by allowing its firms to capture a larger share of industry profits.
Structural Adjustment: Process of reallocating resources and changing the structure of production and employment of a national economy to reflect changing economic policies or trading conditions.
Subsidy: Assistance granted by government to the production, manufacture or export of specific goods, and taking the form either of direct payments, such as grants or loans (also see Bounty), or of measures having equivalent effect, such as guarantees, operational or support services or facilities, and fiscal incentives.
Sunset clause: Provision in a legal instrument limiting the duration of validity of a particular measure or policy.
Tariff Equivalent: Measure of the protective effect of an NTB-the tariff that would have the exact same effect on imports as the NTB.
Tariff Escalation: Occurs if the tariff increases as a good becomes more processed.
Tariff Peaks: Tariffs that are particularly high, often defined as rates that exceed the average nominal tariff by a factor of more than three.
Technical Regulation: A mandatory requirement or standard specifying the characteristics that an imported product must meet.
Temporary Admission: Customs regime under which firms may import intermediates duty free if use in export production, and are required to document ex post that imports have been used for this purpose.
Terms of Trade: The price of a country's exports relative to the price of its imports.
Total factor productivity (TFP): A measure of the output of an industry or economy relative to its inputs. of this measure.
Trade capacity: The supply-side ability (capacity) of a country to benefit from the opportunities offered by the world market and MFN or preferential access to markets.
Trade creation: Occurs when liberalization results in imports displacing less efficient local production and/or expanding consumption that was previously thwarted by artificially high prices due to protection.
Trade diversion: Occurs when a trade reform discriminates between different trading partners and a less efficient (higher cost) source displaces a more efficient (lower cost) one.
Trade integration: Process of reducing barriers to trade and increasing participation in the international economy through trade.
Trademark: Distinctive mark or name to identify a product, service or company.
Transaction Value: Used for customs valuation purposes-the price of a good actually paid or payable.
Transparency: Clarity, openness, predictability and comprehensibility (used in regard to individual trade-related regulations and operation of institutions).
Value added: The value of output minus the value of all inputs used in production.
Variable Levy: Variable import charge that brings the import price of a good into line with or above a decreed internal price to protect domestic production from import competition.
Voluntary Export Restraint: Informal agreement between an exporter and an importer, whereby the former agrees to limit exports of a specified good to avoid dislocation of the industry in, and possible imposition of mandatory restrictions by, the importing country.
Waiver: Authorized deviation from a previously undertaken and legally binding obligation.