Business Law environment essay

Ch11Glossary

Regulating Import Competition

1. actionable subsidy: a subsidy that is not automatically prohibited but may still be “actionable” under WTO rules because of its harmful effect; also called an “adverse effects” subsidy

2. adverse effects subsidy: a subsidy that is not automatically prohibited but may still be “actionable” under WTO rules because of its harmful effect; also called an “actionable subsidy”

3. antidumping laws: national laws that define dumping and that set out the administrative procedures and remedies available in dumping cases

4. countervailing duty: a special tariff, levied in addition to the normal tariff, imposed on imports of subsidized goods for the purpose of offsetting the subsidy

5. dumping: the unfair trade practice of selling products in a foreign country for less than the price charged for the same or comparable goods in the producer’s home market

6. dumping margin: the export price is less than the normal value of the product in the home market

7. escape clause: a clause in GATT (1947) that permits a country to temporarily “escape” from its tariff concessions or from other trade agreement obligations under certain conditions.

8. export price: the price of the good when sold in or for export to another country

9. export subsidy: a subsidy made available to domestic firms upon the export of their product or made contingent on export performance

10. global safeguards: the safeguards applicable to WTO member countries

11. import competition: a condition that exists when producers of domestic goods compete with producers of imported goods largely due to lower employee costs, fewer government restrictions, and/or greater production efficiencies of the foreign firms

12. import relief: the measures taken by the government of the domestic country in order to protect its producers and to provide greater economic and social benefits than costs

13. import substitution subsidy: a government subsidy whose payment is contingent on its recipient using or purchasing domestically made goods over imported goods

14. like products: directly competitive products

15. market disruption: the increased importation of an article so that it causes material injury, or a threat of material injury, to a domestic industry

16. market viability: the condition that exists if the exporting country’s home market has sufficient sales to warrant using its normal price as a price comparison

17. market-oriented exporter: an exporting firm in an non-market economy (NME) country that is not under government control and that does business on competitive terms

18. market-oriented industry: an industry in which resources and labor costs are procured at free-market prices in an environment where there is little government involvement in controlling production and capacity decisions, where prices are set by markets, and where the producers are mostly privately owned

19. material injury: an injury that is “not inconsequential, immaterial, or unimportant”

20. non-market economy (NME): a country whose political and economic system relies heavily on government central control, rather than on free-market forces

21. normal value: the price at which a good is first sold for consumption in the exporting or producing country

22. prohibited subsidy: a subsidy that is impermissible per se and banned under all conditions

23. safeguard against injury: a legal action taken by a country to protect a domestic industry by granting import relief or adjusting imports

24. specific subsidy: a subsidy that is given to a select company or limited number of companies, to a select industry or group of industries, or to firms in a select geographical region of a country

25. subsidy: a financial contribution — including any form of income or price support —made by a government that confers a benefit on a specific domestic enterprise or industry

26. surrogate normal value: the value of the factors of production — including materials, labor, energy, capital costs and depreciation, packaging, and other general expenses — in a market economy country whose level of economic development is comparable to that of the non-market economy (NME) country and who is a significant producer of comparable merchandise

27. trade adjustment assistance: the cash benefits, tax credits, or vouchers that are available to workers to cover the expenses of a job search, retraining and relocation, and health insurance coverage

28. trade compensation: a country imposing a safeguard compensates a supplying nation for the burden the safeguard measure has imposed on it

29. unfair trade: use of exporting tactics for the purpose of increasing market share while driving out competition for its goods in the importing country

30. upstream subsidy: a subsidy bestowed on raw materials or component parts (“inputs”) that are used in an exported product