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- M -
Maastricht Treaty - The Maastricht Treaty (named for the Dutch town in which
the treaty was signed) is also known as the Treaty of European Union. The treaty
creates a European Union by: (a) committing the 12 member states of the European
Economic Community to both European Monetary Union (EMU) and political union;
(b) introducing a single currency (European Currency Unit, ECU); (c)
establishing a European System of Central Banks (ESCB); (d) creating a European
Central Bank (ECB); and (e) broadening EEC integration by including both a
common foreign and security policy (CFSP) and cooperation in justice and home
affairs (CJHA). The treaty, negotiated in 1991 and signed in February 1992,
entered into force on November 1, 1993. The
Maastricht Treaty envisioned EMU being achieved in three stages: - A first stage
(encompassing treaty negotiations and lasting through January 1, 1994) concludes
with ratification of treaty amendments needed to establish EMU, including
participation by all 12 EEC member states in the Exchange Rate Mechanism; - A
second stage (January 1, 1994 through no later than January 1, 1999) involves
establishment of the European Monetary Institute (EMI) to support development of
a single currency (the ecu) and development of the ECB; A third stage
(starting no later than January 1, 1999) involves irrevocable fixing of exchange
rates and the debut of the ECB with transfer of powers necessary for
administering economic and monetary union. See: European Central Bank,
European Currency Unit, European Monetary Institute, European System of Central
Banks, Exchange Rate Mechanism.
Maghreb States - The Maghreb states include the three nations of Algeria,
Morocco, and Tunisia. The European Community concluded a trade and aid agreement
in 1976 with these states. The term Maghreb states sometimes also includes Libya
and Mauritania. The five Maghreb states created the Arab Maghreb Union.
See: Arab Maghreb Union, Comit Permanent Consultatif du Maghreb.
Manifest - See Ship's manifest.
Mano River Union - The MRU advances common
policies and cooperation on tariffs and customs regulations, on development
projects, and in other economic areas. The Union instituted a common external
tariff in 1977. The MRU was established in 1973; headquarters are in
Freetown, Sierra Leone.
Manufactured Imports Promotion Organization - MIPRO is a non-profit
organization, established in 1978 by the joint efforts of the Japanese
Government and the private sector to promote imports of foreign manufactured
products by hosting exhibitions and providing a wide range of market
information. MIPRO's activities are broadly classified into three categories:
(a) holding imported product trade exhibitions for buyers and the general
public; (b) disseminating information regarding imported products and the
Japanese market; and (c) promoting sales of foreign products to Japanese
consumers to promote recognition of the quality of imported goods.
Maquiladora - The maquiladora (or "in-bond" industry) program
allows foreign manufacturers to ship components into Mexico duty-free for
assembly and subsequent reexport. Industry established under the maquiladora
program is Mexico's second largest source of foreign revenue (following oil
exports). The maquiladora programs was established in 1965; in December
1989, the Mexican government liberalized the maquiladora program to make this a
more attractive and dynamic sector of the economy. As a result, maquiladora
operations may import, duty and import license free, products not directly
involved in production, but that support production, including computers and
other administrative materials and transportation equipment.
Marine Cargo Insurance - Broadly, insurance covering loss of, or damage to,
goods at sea. Marine insurance typically compensates the owner of merchandise
for losses in excess of those which can be legally recovered from the carrier
that are sustained from fire, shipwreck, piracy, and various other causes. Three
of the most common types of marine insurance coverage are "free of
particular average" (f.p.a.), "with average" (w.a.), and
"All Risks Coverage."
Market Access - Market access refers to the openness of a national market to
foreign products. Market access reflects a government's willingness to permit
imports to compete relatively unimpeded with similar domestically produced
goods.
Market Disruption - Market disruption refers to the situation which is
created when a surge of imports in a given product line causes sales of
domestically produced goods in a particular country to decline to an extent that
the domestic producers and their employees suffer major economic hardship.
Market-Oriented Cooperation Plan - The MOCP, established in 1990, is aimed at
improving long-term business relations between Japan's automotive manufacturers
and U.S. auto parts suppliers.
Market-Oriented Sector-Selective - The MOSS talks were begun in January 1985
as bilateral trade discussions between the U.S. and Japan in an effort to remove
many trade barriers at once in a given sector. MOSS talks have focused on five
sectors: (a) telecommunications, (b) medical equipment and pharmaceuticals, (c)
electronics, (d) forest products, and (e) auto parts. Overall, the talks focus
high-level attention on reducing certain market obstacles opening communication
channels to resolve follow-up disputes.
Market Promotion Program - The Market Promotion Program (MPP) was authorized
by the Food, Agriculture, Conservation, and Trade Act of 1990 and is
administered by the U.S. Department of Agriculture's Foreign Agricultural
Service. Under the MPP, surplus stocks
or funds from the Commodity Credit Corporation are used to partially reimburse
agricultural organizations conducting specific foreign market development
projects for eligible products in specified countries. Proposals for MPP
programs are developed by trade organizations and private firms. Activities
financed by the programs vary from commodity to commodity, and include
activities such as market research, construction of a three-story wood
demonstration building, construction of a model feed mill, and consumer
promotion activities. (MPP is broader in scope than the Targeted Export
Assistance [TEA] program, repealed by the 1990 Farm Bill, whose purpose was to
assist exports of commodities hurt by unfair foreign trade practices.)
Marking (or marks) - Letters, numbers, and other symbols placed on cargo packages to facilitate identification.
Marks of Origin - The physical markings on a product that indicate the
country of origin where the article was produced. Customs rules require marks of
origin of most countries.
Matchmaker Events - Matchmaker trade delegations are organized and led by the
International Trade Administration to help new-to-export and new-to-market firms
meet prescreened prospects who are interested in their products or services in
overseas markets. Matchmaker delegations usually target two major country
markets and limit trips to a week or less. This approach is designed to permit
U.S. firms to interview a maximum number of prospective overseas business
partners with a minimum of time away from their home office. The program
includes U.S. embassy support, briefings on market requirements and business
practices, and interpreter services. Matchmaker events, based on specific
product themes and end-users, are scheduled for a limited number of countries
each year.
Memoranda of Understanding - See: International Agreements.
Mercado Com£n Centroamericano -See: Central American Common Market.
Merchandise Trade Balance - See: Balance of Payments.
Mercosur - Mercosur (Spanish; Mercosul in Portuguese; or Southern Common
Market) is comprised of Argentina, Brazil, Paraguay, and Uruguay. Mercosur is
scheduled to enter into force in December 1994 for Argentina and Brazil and to
enter into force in December 1995 for Paraguay and Uruguay. Mercosur, modeled
similarly to the European Community's Treaty of Rome, will establish a common
external tariff and eliminate barriers to trade in services. While in the
Southern Cone, Chile has not sought entry to Mercosur, but does have an
agreement with Argentina which will provide for some similar benefits.
Metric - the worldwide measurement standard. US
Exporters are cautioned to make sure that measurements, weights and distances
are expressed in metric terms.
Military Critical Technologies List - The MTCL is a document listing
technologies that the U.S. Defense Department considers to have current or
future utility in military systems. The MCTL describes arrays of design
and manufacturing know-how; keystone manufacturing, inspection, and test
equipment; and goods accompanied by sophisticated operation, application, and
maintenance know-how. Military justification for each entry is included in a
classified version of the list.
Military Assistance Program - See: Conventional Arms Transfer.
Ministry of Foreign Economic Relations and Trade - The People's Republic of
China (PRC) Ministry of Foreign Economic Relations and Trade, MOFERT, was
established in March 1982 by combining former separate ministries. MOFERT
implements national trade policies through administrative
actions, drafting laws and issuing foreign trade regulations. MOFERT does not
engage in foreign trade transactions but facilitates the foreign trading
corporations (FTCs) which do.
Ministry of Health and Welfare - Under the
Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating
medical products. The Ministry also is charged with determining Japanese
healthcare expenditures.
Ministry of International Trade and Industry - MITI occupies a central
position in Japan's "economic bureaucracy" and is regarded as one of
the three most powerful and prestigious ministries of the central government
(along with the Ministry of Finance and the Ministry of Foreign Affairs). In
formulating and implementing Japan's trade and industrial policies, MITI is
responsible for funding most of Japan's export promotion programs (although
operation of these programs is left to JETRO). The
Ministry also supervises the export financing programs of Japan's Export-Import
Bank, operates several types of export insurance programs, supports research
organizations, and facilitates various types of overseas technical and
cooperation training programs. Lately, MITI has assumed a role in encouraging
imports of foreign products into Japan.
Ministry of Posts and Telecommunications - MPT is Japan's telecommunications
regulatory agency. The Ministry is authorized to adjust supply and demand among
service providers to ensure that there is not excessive competition in a given
market. To do so, MPT issues "administrative guidance" to the industry
and recommends "unification" when there appears to be excessive
competition in a given market.
Missile Technology Control Regime - The purpose of the MTCR is to limit the
proliferation of missiles "capable of delivering nuclear weapons," to
increase regional stability, and to convey publicly the firm resolve of the
partners to address this issue. In
April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to
establish the MTCR. The regime expanded to include 23 countries, with the
addition of Australia, Austria, Belgium, Denmark, Finland, Greece, Iceland,
Ireland, Italy, Luxembourg, the Netherlands, New Zealand, Norway, Portugal,
Spain, Sweden, and Swizterland. The MTCR does not have permanent organizations
but convenes regular meetings to exchange information and coordinate member
country stands. Under the MTCR, each member administers missile-related export
controls independently. After the MTCR agrees that certain goods and
technologies should be controlled for missile proliferation reasons, each member
must implement the controls in its own domestic legislation. There is no
international entity that oversees the implementation and enforcement of MTCR
controls. Items and technology agreed by the MTCR partners to be
controlled are listed in the MTCR Annex. The Annex is divided into two groups:
Category I (consisting of complete rocket and unmanned air vehicle systems and
subsystems) and Category II (encompassing components, equipment, technology,
materials used in missile design, development, production or use).
Mixed Credit - Mixed credit refers to the practice of combining concessional
and market-rate export credit as an export promotion mechanism.
Most Favored Nation Treatment - A commitment that
a country will extend to another country the lowest tariff rates it applies to
any other country. All contracting parties undertake to apply such treatment to
one another under Article I of GATT. When
a country agrees to cut tariffs on a particular product imported from one
country, the tariff reduction automatically applies to imports of this product
from any other country eligible for most-favored nation treatment. This
principle of nondiscriminatory treatment of imports appeared in numerous
bilateral trade agreements prior to establishment of GATT. A country is under no
obligation to extend MFN treatment to another country unless both are bilateral
contracting parties of the General Agreement on Tariffs and Trade or MFN
treatment is specified in a bilateral agreement.
Multi-Fiber Arrangement - The MFA is an
international umbrella compact, authorized by the General Agreement on Tariffs
and Trade (GATT), that allows contracting parties to negotiate bilaterally
quantitative restrictions on textile imports (which normally would be considered
contrary to GATT provisions) to the extent the importing country considers them
necessary to prevent market disruption. The Uruguay Round Agreement on
Textiles and Clothing contains an agreed schedule for the gradual phase-out of
quotas established pursuant to the MFA over a ten-year transition period, after
which textile and clothing trade will be fully integrated into the GATT and
subject to the same disciplines as other sectors. See: Committee for the
Implementation of Textile Agreements.
Multilateral Agreement - An international compact in which three or more
parties participate.
Multilateral Development Banks - There are five MDBs. See: African
Development Bank, Asian Development Bank, European Bank for Reconstruction and
Development, Inter-American Development Bank, World Bank.
Multilateral Investment Fund - The MIF provides program and project grants to
advance investment reform and technical assistance for privatization movements
in Latin America and the Caribbean and to encourage domestic and foreign
investment in the area. The Fund, an
outgrowth of the Enterprise for the Americas Initiative, is administered by the
Inter-American Development Bank. MIF was established in January 1993. See:
Enterprise for the Americas Initiative.
Multilateral Investment Guarantee Agency - MIGA was established in April 1988
as a part of the World Bank Group. MIGA encourages equity investment and other
direct investment flows to developing countries through the mitigation of
noncommercial investment barriers. The agency offers investors guarantees
against non-commercial risks; advises developing member governments on the
design and implementation of policies, programs, and procedures related to
foreign investments; and sponsors a dialogue between the international business
community and host governments on investment issues. MIGA provides coverage for
equity interests, other forms of direct investment, industrial cooperation such
as management and service contracts, licensing and franchising agreements,
turnkey contracts, and arrangements concerning transfer of technology and
know-how in which the investor assumes a stake in the performance of the
venture. See: World Bank.
Multilateral Steel Agreement - Attainment of an MSA was an achievement
intended as part of the Steel Trade Liberalization Program and resulting the
Bilateral Consensus Agreements. The MSA
would have addressed the underlying causes of unfair trade in steel by
eliminating tariffs, nontariff measures such as quotas, and most subsidies in
the steel sector, and established a dispute-settlement mechanism. The United
States and 34 other countries participated in negotiations for an MSA under the
general auspices of the General Agreement on Tariffs and Trade. MSA negotiations
were suspended in March 1992, coincident with the expiration of the steel
voluntary restraint agreements.
Multilateral Trade Negotiations - A term
describing the eight multilateral rounds of negotiations held under the auspices
of the General Agreement on Tariffs and Trade since 1947. See: Rounds.
Multinational Corporation - A multinational corporation is a business which
owns or controls product or service facilities outside the country in which it
is based.
Mutual Recognition Agreements - MRAs are negotiated on a sectoral basis (such
as: telecommunciations, medicial devices, pharmaceuticals, chemicals, processed
foods) and allow countries to accept each other's final test results, although
quality assurances may be required. Under MRAs, the entire testing and
certification process may occur outside the importing country. Under MRA's with
the European Community, a U.S. firm would obtain product certification on an
EC-wide basis, enabling the firms to market its products throughout the
Community. Based on private-law contractual negotiations, subcontracting permits
a notified body of the EC to delegate some of its testing responsibilities to a
third-country testing lab or quality assessment body. However, the notified body
retains ultimate responsibility for final decisions relating to EC
certification. Formal discussions between representatives of the U.S. Government
and the European Economic Community on entering MRSs began in October 1992.
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- N -
Nacional Financiera - NAFIN promotes growth in Mexico's priority development
areas. NAFIN provides financial assistance to small and medium-sized Mexican
businesses, encourages foreign investment in Mexico, and supports technological
development in Mexico. NAFIN headquarters are in Mexico City, Mexico.
NAICS - the North American Industrial Classification System has replaced
the Standard Industrial Classification System. For more information,
please see our companion guide: North American Industry Classification System
(NAICS).
NAFTA Certificate of Origin - Required on most Mexican and Canadian
shipments. For further information, please see our companion
guide: NAFTA Certicficate of Origin.
National Advisory Council on International Monetary and Financial Policies -
The NAC is responsible for coordinating U.S. participation in the international
financial institutions and the policies and practices of agencies of the U.S.
government that make, or participate in making, foreign loans or that engage in
foreign financial, exchange, or monetary transactions. With regard to
international financial institutions, the Council seeks to ensure that their
operations are conducted in a manner consistent with U.S. policies and
objectives and with lending and other foreign financial activities of U.S.
government agencies. The Council formulates and reviews policies and programs
for use by the U.S. representatives to these institutions and advises the
Secretary of the Treasury on:
- Policies and selected proposed transactions of the institutions;
- Proposed actions by these institutions requiring U.S. approval on such
subjects as the flotation of securities, increases in quotas and
subscriptions, and changes in their articles of agreement; and
- Problems relating to the administration and management of the
international financial institutions.
NAC membership includes: the Departments of the Treasury (as chair), State,
and Commerce, the U.S. Trade Representative, the Federal Reserve System, the
Export-Import Bank, and the International Development Cooperation Agency.
National Agricultural Library - In its international role, the NAL cooperates
in database production, compilation of world lists of journals, publication
exchange, cooperative indexing, and intern training. The NAL serves as the U.S.
center for the international agricultural information system. The NAL's AGRICOLA
database covers all aspects of agriculture via bibliographic records to
documents, including international agricultural trade topics such as policy,
research, flows of commodities, environmental, taxation, and sociological
impacts. AGRICOLA is produced solely by the NAL. The NAL's Agricultural
Trade and Marketing Information Center (ATMIC) disseminates information on
agribusiness, countertrade (barter), exports, and trade development. The NAL is
located in Beltsville, Maryland. See: Agriculture Information System.
National Association of State Departments of Agriculture - NASDA is a
nonprofit, nonpartisan organization of the 50 state departments of agriculture
and those from the trust territories of Puerto Rico, Guam, American Samoa, and
the Virgin Islands. Headquarters are in Washington, D.C.
National Association of State Development Agencies - The National Association
of State Development Agencies, NASDA, was formed in 1946 to provide a forum for
directors of state economic development agencies to exchange information,
compare programs, and deal with issues of mutual interest. NASDA's organization
includes International Trade and Foreign Investment components. Trade activities
include maintenance of a State Export Program Database.
National Defense Executive Reserve - The NDER Program, which is operated by
the Commerce Department's Bureau of Industrial Security, recruits and trains
experienced business executives and other qualified civilians to serve in key
government positions during periods of emergency. These reservists would augment
Department of Commerce staff as required to respond to national security
emergencies.
National Intelligence Council - The NIC is comprised of the U.S. National
Intelligence Officers and concentrates on problems of particular geographic
regions and functional areas such as economics and chemical/biological warfare.
National Security Controls - National security controls restrict exports of
U.S. goods and technology which would make a significant contribution to the
military potential of another country and thus be detrimental to Western
countries' national security.
National Security Council - The NSC was established by the National Security
Act of 1947 to advise the President with respect to the integration of domestic,
foreign, and military policies relating to national security.
National Security Directives - NSDs provide policy or procedural guidance and
are signed by the President. In 1989, the President reorganized the
national security council committee process (separate from the EARB). As
reorganized, under the NSC, there are committees for CoCom, terrorism,
nonproliferation, etc. NSDs were known as National Security Decision Directives,
NSDDs, before President Bush's reorganization. NSD-1 reorganized the process;
NSD-10 established the committees. The scope of coverage and the players are
about the same under the NSD and NSDD processes.
National Security Directive #53 - The Export Administration Act (EAA)
requires that all dual-use export license applications referred by the Commerce
Department to outside agencies for review be completed within 60 days after
receipt. The EAA directs that an export license application should be completed
within 120 days maximum. In order to clarify those time guidelines, the National
Security Council and the President issued NSD #53 in December 1990. NSD-53
defines specific time guidelines for outside agency review of export license
applications and established a series of escalation levels to ensure that
disagreements among the agencies are resolved within the time requirements of
the EAA.
National Security Override - In some cases, despite a finding of foreign
availability of a controlled commodity, control is maintained over exporting the
commodity because it is deemed a national security sensitive item. The term
national security override is used to describe this circumstance. The term
has also been used in other contexts. For example, under a November 16, 1990
directive, the President tasked the interagency control groups to move as many
dual use items from the State Department's International Munitions List to the
Commerce Department's Commerce Control List. In some circumstances, a national
security override is applied to prevent transfer of a particular item.
National Tourism Policy Act - Legislation, passed in 1981, that created the
U.S. Travel and Tourism Administration and required the establishment of the
Tourism Policy Council and the Travel and Tourism Advisory Board.
National Trade Data Bank - The NTDB contains international economic and
export promotion information supplied by 19 U.S. agencies. Data are updated
monthly and are presented in one of three standard formats: text, time series,
or matrix. The NTDB contains data from the Departments of Agriculture (Foreign
Agricultural Service), Commerce (Bureau of the Census, Bureau of Economic
Analysis, International Trade Administration, and National Institute for
Standards and Technology), Energy, Labor (Bureau of Labor Statistics), the
Central Intelligence Agency, Eximbank, Federal Reserve System, U.S.
International Trade Commission, Overseas Private Investment Corporation, Small
Business Administration, the U.S. Trade Representative, and the University of
Massachusetts (MISER data on state origins of exports).
National Trade Estimates Report - An annual report by USTR that identifies
significant foreign barriers to and distortions of trade.
National Treatment - National treatment affords individuals and firms of
foreign countries the same competitive opportunities, including market access,
as are available to domestic parties.
Natural Resource Based Products - This GATT Negotiating Group was formed as a
direct result of pressure from resource-rich LDCs to have an additional forum to
deal with their special concerns, including the removal of barriers to trade in
natural resource-based products. There are different interpretations among
participants as to whether this group includes only three traditional product
areas examined during the early 1980s GATT Work Program on NRBPs: non-ferrous
metals and minerals; fish and fish products; and wood and wood products, or
whether the Group may also discuss barriers in non-traditional product areas
such as energy-based products.
Net Foreign Investment - Net foreign investment is the sum of U.S. exports of
goods and services, receipts of factor income, and capital grants received by
the United States (net), less the sum of imports of goods and services by the
United States, payments of factor income, and transfer payments to foreigners
(net). It may also be viewed as the acquisition of foreign assets by U.S.
residents, less the acquisition of U.S. assets by foreign residents. It includes
the BPA statistical discrepancy.
Newly Independent States - The NIS is a collective reference to 12 republics
of the former Soviet Union: Russia, Ukraine, Belarus (formerly Byelorussia),
Moldova (formerly Moldavia), Armenia, Azerbaijan, Uzbekistan, Turkmenistan,
Tajikistan, Kazakhstan, and Kirgizstan (formerly Kirghiziya) and Georgia.
Following dissolution of the Soviet Union, the distinction between the NIS and
the Commonwealth of Independent States (CIS) was that Georgia was not a member
of the CIS. That distinction dissolved when Georgia joined the CIS in November
1993.
Newly Industrializing Countries - The
term, originated by the Organization for Economic Cooperation and Development (OECD),
describes nations of the Third World that have enjoyed rapid economic growth and
can be described as "middle-income" countries (such as Singapore and
the Republic of Korea).
Newly Industrializing Economies - NIE's is a term generally applied to the
more advanced developing countries in East Asia. The reference includes Hong
Kong, Korea, Singapore, and Taiwan; occasionally its use encompasses other
countries as well, such as Indonesia and Thailand.
New-To-Export - As defined by the International Trade Administration, a
new-to-export action is one that results from documented assistance to a company
that assists the client's first verifiable export sale. Either the company has
not exported to any destination during the past 24 months or prior exports have
resulted from unsolicited orders or were received through a U.S.-based
intermediary.
Niger Basin Authority - The NBA (French: Autorit du Bassin du Neiger) fosters
coordinated development of the Niger Basin area. The Authority regulates
navigation, publishes statistics and hydrological forecasts, promotes
environmental control and agricultural and infrastructure development. NBA's
predecessor organization was established in 1964; headquarters are in Niamey,
Niger. NBA members include: Benin, Burkina Faso, the Cameroon, Chad, Cte
d'Ivoire, Guinea, Mali, Niger, and Nigeria.
Nigeria Trust Fund - The NTF grants loans on preferential terms to finance
projects in Nigeria in cooperation with other lending institutions. The Fund,
which is administered by the African Development Bank, was established in
February 1976.
Nippon Telegraph and Telephone Corporation - NTT is Japan's largest
telecommunications enterprise and was converted from a public corporation to a
private enterprise in April 1985. Although competition has been allowed, the
Japanese Government still owns the majority of NTT stock and postponement of a
decision in NTT divestiture is an issue of considerable importance to market
access by foreign companies. NTT was established in 1952.
Non-Aligned Movement - The NAM is an alliance of third world states which
aims to promote the political and economic interests of developing countries.
The name originated in a declaration of neutrality issued at the Conference of
Non-Aligned Countries in Belgrade, Yugoslavia in September 1961. NAM interests
have included ending colonialism/neo-colonialism, supporting the integrity of
independent countries and seeking a new international economic order.
Non-Governmental Organization - The term "NGO" is generally applied
to private sector nonprofit organizations that contribute to development in
developing countries through such activities as development cooperation
projects, financial aid, material aid, the dispatch of personnel, the acceptance
of trainees, and development education. In this context, NGOs are accredited by
the United Nations or its specialized agencies and can lobby and do business
with them.
Non-Tariff Barriers - NTBs are market access barriers that result from
prohibitions, restrictions, conditions or specific requirements and make
exporting products difficult and/or costly. The term covers any restriction or
quota, charge, or policy, other than traditional customs duties, domestic
support programs, discriminatory labeling and health standards, and exclusive
business practices which limit the access of imported goods. NTBs may
result from government or private sector actions.
Non-Tariff Measures - While there is no specific definition of an NTM, some
of the most commonly-used NTMs include import quotas or other quantitative
restrictions, non-automatic import licensing, customs surcharges or other fees
and charges, customs procedures, export subsidies, unreasonable standards or
standards-setting procedures, government procurement restrictions, inadequate
intellectual property protection, and investment restrictions.
Participants in the Tokyo Round attempted to address these barriers through the
negotiations of a number of GATT codes, open for signature to all GATT members.
Seven codes were negotiated during the Tokyo Round, covering customs valuations,
import licensing, subsidies and countervailing duties, antidumping duties,
standards, government procurement, and trade in civil aircraft. Although
the Tokyo Round codes had alleviated some of the problems caused by non-tariff
measures, overall use of NTMs has increased since conclusion of the Tokyo Round.
NonVessel Owning Carrier - An NVOC is a firm which consolidates and disperses
international containers that originate at, or are bound for, inland
ports.
Nordic Council - The Nordic Council, established
in 1952, is directed toward supporting cooperation among Nordic countries in
communications, cultural, economics, environmental,, fiscal, legal, and social
areas. Members include: Denmark, Finland, Iceland, Norway, and Sweden.
Council headquarters are in Stockholm, Sweden.
Nordic Investment Bank - The NIB, which began operating in December 1975,
promotes economic cooperation and development by providing resources and
guarantees for exports and for capital investment projects. Bank members
include: Denmark, Finland, Iceland, Norway, and Sweden. Bank headquarters are in
Helsinki, Finland.
North American Development Bank - The NADBank, to be capitalized and governed
by the United States and Mexico, is intended to provide financing related to the
North American Free Trade Agreement. The NADBank will finance projects certified
by the Border Environment Cooperation Commission and support for community
adjustment and investment. Up to 10 percent of NADBank resources may be made
available for community adjustment and investment which need not be in the
border region. See: Border Environment Cooperation Commission.
North American Free Trade Agreement - NAFTA, which entered into force in
January 1994, is a free trade agreement comprising Canada, the United States and
Mexico. NAFTA exceeds 360 million consumers and a combined output of $6 trillion
--approximately 20 percent larger than the European Community. NAFTA's consumer
population is slightly smaller than the European Economic Area which has over
380 million consumers. The Agreement:
- Progressively eliminates almost all U.S.-Mexico tariffs over a 10-year
period, with a small number of tariffs for trade-sensitive industries phased
out over a 15-year period. Mexico-Canada tariffs are also phased out over a
10-year period. Tariff reduction schedules between the United States and
Canada negotiated in the Canadian Free Trade Agreement are retained.
- Eliminates other barriers to trade such as import licensing requirements
and Customs user fees.
- Establishes the principle of national treatment, for ensuring that NAFTA-origin
products trade between NAFTA countries will receive treatment equal to
similar domestic products.
- Guarantees service providers of the three countries equal treatment in the
NAFTA area, including the right to invest and the right to sell services
across borders.
- Establishes five basic principles to protect foreign investors and their
investment in the free trade area: (a) nondiscriminatory treatment, (b)
freedom from performance requirements, (c) free transference of funds
related to an investment, (d) expropriation only in conformity with
international law, and (e) the right to seek international arbitration f or
a violation of the agreement's protections.
The Agreement contains special provisions for sensitive economic sectors,
including agriculture, automotive products, energy, and textiles and apparel.
The Agreement also created a Border Environment Cooperation Commission and a
North American Development Bank. See: Border Environment Cooperation Commission,
North American Development Bank, Performance Requirements.
North Atlantic Treaty Organization - NATO members include Belgium, Canada,
Denmark, France (which has only partial membership), Greece, Iceland, Italy,
Luxembourg, Netherlands, Norway, Portugal, Spain, Turkey, United Kingdom, United
States, and Germany. With the end of the "cold war," NATO's role,
originally defense-oriented is being redefined.
Norwegian Agency for Development Cooperation - NORAD provides financing of
project exports from Norway to developing countries for development undertakings
which contribute to development and which can be sustained without future
external assistance. About 50 percent of Norwegian assistance is bilateral aid;
the balance is channeled as multialteral aid through UN specialized agencies and
financial institutions, including regional development banks. NORAD bilateral
aid includes provisions for Norwegian private industrial sector participation as
suppliers of capital equipment and services and technology. A portion of
assistance may involve concessional financing for Norwegian project exports,
including mixed credits, export credit guarantees, support for training in
connection with project exports, and tied co-financing on grant basis with the
World Bank, the African Development Bank, and the Asian Development Bank. NORAD
assistance is subject the OECD's Development Assistance Committee guidelines for
development assistance and associated financing. NORAD was established in 1968;
headquarters are in Oslo, Norway.
Nuclear Energy Agency - The NEA, with headquarters in Paris, is a companion
organization to the IEA and an element of OECD. NEA promotes the safe and
effective use of nuclear energy through the exchange of information among
technical experts, the sharing of analytical studies, and undertaking joint
research and development projects by member countries.
Nuclear Non-Proliferation Act - Among other actions, this Act (passed in
1974) made the U.S. Energy Department responsible for approving arrangements for
nuclear exports and transfers. Each arrangement requires State Department
concurrence, as well as consultations with the Arms Control and Disarmament
Agency, the NRC, and the Departments of Defense and Commerce.
Nuclear Non-Proliferation Treaty - The NPT became effective in 1970 and was
intended to limit the number of states with nuclear weapons to five: the U.S.,
the Soviet Union, Britain, France, and China. In doing so, the NPT attempts to:
(a) prevent nuclear weapons sales by not assisting other nations with nuclear
weapons development; (b) halt the nuclear weapons development programs of
non-nuclear weapons states; and (c) promote nuclear disarmament and the peaceful
use of nuclear technologies and materials. Over 140 states have pledged not to
acquire nuclear weapons and to accept the safeguards of the International Atomic
Energy Agency over all their nuclear materials. The treaty, however, is
not of indefinite duration. One of the provisions of the treaty was to convene a
conference 25 years after entry into force to decide whether the treaty would
continue indefinitely or be extended for a specified time.
Nuclear Regulatory Commission - The NRC regulates the transfer of nuclear
facilities, materials and parts with uniquely nuclear applications (such as
items associated with nuclear reactors). Energy regulates the transfer of
information relating to nuclear technology. The State Department controls
defense articles and services, such as nuclear weapons design and test
equipment. Commerce controls a range of dual-use items with potential nuclear
application. License applications for
the export of NRL items are reviewed by Energy and may be referred to an
interagency working group known as the "Subgroup on Nuclear Export
Coordination" (SNEC). The SNEC comprises representatives from State,
Defense, Commerce, the Arms Control and Disarmament Agency (ACDA), and the
NRC. See: International Atomic Energy Agency, Nuclear Suppliers Group,
Zangger Committee.
Nuclear Suppliers Group - The NSG is an organization of nuclear supplier
nations, which coordinates exports of nuclear materials and equipment with the
International Atomic Energy Agency (IAEA) inspectorate regime. The reason for
creating the NSG was to allow member states some flexibility (which they do not
enjoy in the Zangger Committee) in controlling items to non-nuclear weapons
states. The NSG's independence from the NPT enables NSG to enlist the
cooperation of supplier states that are not signatories to the NPT and thus not
involved in the nuclear export control activities of the Zangger
Committee. The NSG's control list is
more comprehensive than the Zangger Committee's "trigger list"; it
requires the imposition of safeguards on exports of nuclear technology in
addition to nuclear materials and equipment. The NSG developed a multilateral
list for national adoption of export controls on dual-use commodities with a
nuclear application.
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Ocean Bill of Lading - A receipt for the cargo and a contract for
transportation between a shipper and the ocean carrier. It may also be used as
an instrument of ownership which can be bought, sold, or traded while the goods
are in transit. To be used in this manner, it must be a negotiable
"Order" Bill-of-Lading.
- A Clean Bill-of-Lading is issued when the shipment is received in good
order. If damaged or a shortage is noted, a clean bill-of-lading will not be
issued.
- An On Board Bill-of-Lading certifies that the cargo has been placed aboard
the named vessel and is signed by the master of the vessel or his
representative. On letter of credit transactions, an On Board Bill-of-Lading
is usually necessary for the shipper to obtain payment from the bank. When
all Bills-of-Lading are processed a ship's manifest is prepared by the
steamship line. This summarizes all cargo aboard the vessel by port of
loading and discharge.
- An Inland Bill-of-Lading (a waybill on rail or the "pro forma"
bill-of-lading in trucking) is used to document the transportation of the
goods between the port and the point of origin or destination. It
should contain information such as marks, numbers, steamship line, and
similar information to match with a dock receipt.
Ocean Freight Differential - OFD is the amount by which the cost of the ocean
freight bill for the portion of commodities required to be carried on U.S. flag
vessels exceeds the cost of carrying the same amount on foreign flag vessels.
When applied to agricultural commodities shipped under Food for Peace, OFD is
the amount paid by the Commodity Credit Corporation.
Ocean Freight Forwarder - See: Freight Forwarder. Please see our
companion guides: Questions for Your Forwarder
and How to Select a Forwarder for Exhibits.
Each transaction
must be: administered with the promotion of the economic development and welfare
of developing countries as its main objective; and concessional in character and
contain a grant element of at least 25 percent.
Offsets - The term offsets is an umbrella label for a broad range of
industrial and commercial compensation practices required as a condition of
purchase in commercial or government-to-government sales of either military or
high-cost civilian hardware. Whether commercial or military, offsets involve
overseas production that results in the creation or expansion of industrial
capacity in the importer's country. The compensatory forms of offset include
coproduction, licensed production, subcontractor production, overseas
investment, and technology transfer. Coproduction permits a foreign
government or producer to acquire the technical information to manufacture all
or part of a U.S.-origin article. Licensed
production of a U.S.-origin article involves transfer of technical information
under direct commercial arrangements between a U.S. manufacturer and a foreign
government or producer. Subcontractor production of a U.S.-origin article
usually involves a direct commercial arrangement between the U.S. manufacturer
and a foreign producer but does not necessarily involve license of technical
information. Overseas investment arising from an offset agreement involves
capital contribution toward the establishment or expansion of a subsidiary or
joint venture in a foreign country. Technology transfer arises from
agreement to conduct research and development abroad, to provide technical
assistance to a subsidiary or joint venture of overseas investment, or to
perform other activities under direct commercial arrangement between a U.S.
manufacturer and a foreign entity. Countries require offsets for a variety
of reasons: to ease (or "offset") the burden of large defense
purchases on their economies, to increase domestic employment, to obtain desired
technology, or to promote targeted industrial sectors. Governments sometimes
impose offset requirements on foreign exporters, as a condition for approval of
major sales agreements in an effort to either reduce the adverse trade impact of
a major sale or to gain specified industrial benefits for the importing country.
In these circumstances, offset requirements may be direct or indirect, depending
on whether the goods and services are integral parts of the product. In a direct
offset, a U.S. manufacturer selling a product uses a component that is made in
the purchasing country. In an indirect offset, the exporter would buy products
that are peripheral to the manufacture of its product. See: Countertrade.
Offshore Banking Center - See: Offshore Banking Unit.
Offshore Banking Unit - An OBU is normally a foreign bank which conducts
domestic moneymarket, Eurocurrency, and foreign exchange settlements. OBUs
cannot accept domestic depostis but their activities are unrestricted by
domestic authorities. OBUs are located in major financial centers (known as
offshore banking centers) with liberal reserve, tax, and capital market
requirements.
Offshore Dollars - See: Eurodollars.
Offshore Manufacturing - Offshore manufacturing is the foreign manufacture of
goods by a domestic firm primarily for import into its home country.
Open account - A trade arrangement in which goods are shipped to a foreign buyer without guarantee of payment. The obvious risk this method poses to the supplier makes it essential that the buyer's integrity be unquestionable.
Open insurance policy - A marine insurance policy that applies to all shipments made by an exporter over a period of time rather than to one shipment only.
Operating Committee - The Operating Committee
(chaired by the Commerce Department) is the first step in resolving
interagency disputes over the disposition of license applications for
dual-use items not reviewed by one of the other interagency working groups.
The other working groups include: (a) the Subgroup on Nuclear Export
Coordination (SNEC), chaired by State for applications involving nuclear
concerns; (b) the Missile Technology Export Control Group (MTEC), chaired by
State for applications involving missile technology concerns; and (c) the
"Shield," chaired by State for applications involving chemical or
biological warfare concerns. These committees review applications and
participate in the dispute resolution. Prior to any escalation to the
Advisory Committee on Export Policy (ACEP), all applications must be reviewed
by one of these working groups. See: Advisory Committee on Export
Policy.
Operating Differential Subsidy - ODS is a payment which the U.S.
government makes to vessels carrying the American flag to offset the
difference in operating costs between U.S. and foreign carriers.
Operation Exodus - Operation Exodus is a U.S. Customs Service export
enforcement program that was developed in 1981 to help stem the flow of the
illegal export of U.S.-sourced arms and technology to the Soviet bloc and
other prohibited destinations.
Order bill of lading - A negotiable bill of lading made out to the order of the shipper.
Orderly Marketing Agreement - A bilateral agreement between governments by
which one government limits exports to the other. Similar to a voluntary
export restriction agreement or a voluntary restraint agreement. Used
to address injury to a domestic industry. Contracts negotiated between
two or more governments, in which the exporting nation undertakes to ensure
that international trade in specified "sensitive" products will not
disrupt, threaten, or impair competitive industries or workers in importing
countries.
Organizacion de los Estados Americanos - See: Organization of American
States.
Organisation Mondiale de la Proprit Intellectuelle - See: World
Intellectual Property Organization.
Organisation pour la Mise en Valeur du Fleuve Gambie - See: Gambia River
Basin Development Organization.
Organisation pour la Mise en Valeur du Fleuve Sngal -See: Organization for
the Development of the Senegal River.
Organization for Economic Cooperation and Development - OECD provides a
forum for discussion of common economic and social issues facing the United
States, Canada, Western Europe, Japan, Australia, and New Zealand. OECD was
founded in September 1960 as successor to the Organization for European
Economic Cooperation (OEEC) which had administered European participation in
the Marshall Plan. OECD seeks "to achieve the highest sustainable
economic growth and employment and a rising standard of living in member
countries while maintaining financial stability and thus contribute to the
world economy." Members include: Australia, Austria, Belgium, Canada,
Denmark, Finland, France, Germany, Greece, Iceland, Ireland, Italy,
Luxembourg, Japan, the Netherlands, New Zealand, Norway, Portugal, Spain,
Sweden, Switzerland, Turkey, the United Kingdom, and the United States. OECD
headquarters are in Paris, France. See: Arrangement on Guidelines for
Officially Supported Export Credits.
Organization of African Trade Union Unity - OATUU is recognized as the
sole representative of African organized labor by the Organization of African
Unity (OAU) and the International Labor Organization (ILO). OATUU is formally
non-aligned and independent of all international trade union organizations,
but maintains relations with trade unions worldwide. OATUU headquarters are
in Accra, Ghana.
Organization of African Unity - The OAU, founded in May 1963 with 32
African countries, has since grown beyond 5 members. The Organization aims to
further African unity and solidarity, to coordinate political, economic,
cultural, scientific, and defense policies; and to eliminate colonialism in
Africa. Members include: Algeria, Angola, Benin, Botswana, Burkina Faso,
Burundi, Cameroon, Cape Verde, Central Africa Republic, Chad, Comoros, Congo,
Cote d'Ivoire, Egypt, Equatorial Guinea, Ethiopia, Gabon, the Gambia, Ghana,
Guinea, Guinea-Bissau, Kenya, Lesotho, Liberia, Libya, Madagascar, Malawi,
Mali, Mauritania, Mauritius, Morocco, Mozambique, Namibia, Niger, Nigeria,
Rwanda, Sao Tome and Principe, Senegal, Seychelles, Sierra Leone, Somalia,
Sudan, Swaziland, Tanzania, Togo, Tunisia, Uganda, Zaire, Zambia,
Zimbabwe. OAU headquarters are in
Addis Ababa, Ethiopia.
Organization of American States - The OAS (Spanish: Organizacion de los
Estados Americanos, OEA), or the Pan American Union, is a regional
organization created in Bogota, Colombia in April 1948 (entered into force in
December 1951) which promotes Latin American economic and social development.
Members include the United States, Mexico, and most Central American, South
American, and Caribbean nations. Members include: Antigua and Barbuda,
Argentina, the Bahamas, Barbados, Belize, Bolivia, Brazil, Canada, Chile,
Colombia, Costa Rica, Cuba (participation suspended), Dominica, Dominican
Republic, Ecuador, El Salvador, Grenada, Guatemala, Guyana, Haiti, Honduras,
Jamaica, Mexico, Nicaragua, Panama, Paraguay, Peru, St. Christopher-Nevis,
St. Lucia, St. Vincent and the Grenadines, Suriname, Trinidad and Tobago, the
United States, Uruguay, and Venezuela. The U.S. accredits an Ambassador to
the OAS. The OAS secretariat is located in Washington, D.C. See:
Sistema de Informacion al Comercio Exterior.
Organization of Arab Petroleum Exporting Countries - OAPEC
was created in 1968; members include: Algeria, Bahrain, Egypt, Iraq, Kuwait,
Libya, Qatar, Saudi Arabia, Syria, and the United Arab Emirates. Headquarters are in Cairo, Egypt. See:
Organization of Petroleum Exporting Countries.
Organization for the Development of the Senegal River - The
Organization (French: Organisation pour la Mise en Valeur du Fleuve Sngal,
OMVS) promotes hydroelectric, irrigation and navigation use of the Senegal
river. The organization was established in March 1972; headquarters
are in Dakar, Senegal. Members include: Guinea-Bissau, Mali, Mauritania, and
Senegal.
Organization of Eastern Caribbean States - OECS was intended to promote
territorial integrity; changing focus includes the recent founding of an
export development agency. The Organization was established in 1981;
headquarters are in St. Lucia. Members include: Antigua and Barbuda,
Dominica, Grenada, Montserrat, Saint Christopher and Nevis, Saint Lucia,
Saint Vincent, and the Grenadines.
Organization of the Islamic Conference - The OIC, established in May 1971,
promotes cooperation in cultural, economics, scientific and social areas
among Islamic nations. Headquarters are located in Jeddah, Saudi Arabia.
About half the ICO members are also members of the Organization of African
Unity. OIC members include: Afghanistan, Algeria, Bahrain, Bangladesh, Benin,
Brunei, Burkina Faso, Cameroon, Chad, Comoros, Cyprus, Djibouti, Egypt,
Gabon, the Gambia, Guinea, Guinea-Bissau, Indonesia, Iran, Iraq, Jordan,
Kuwait, Lebanon, Libya, Malaysia, Maldives, Mali, Mauritania, Morocco, Niger,
Nigeria, Oman, Pakistan, Qatar, Saudi Arabia, Senegal, Sierra Leone, Somalia,
Sudan, Syria, Tunisia, Turkey, Uganda, the United Arab Emirates, and Yemen.
Organization of Petroleum Exporting Countries - OPEC, An association of
the world's oil-producing countries, formed in 1960, with headquarters in
Vienna, Austria. The chief purpose of OPEC is to coordinate the petroleum
policies of its members: Algeria, Ecuador, Gabon, Indonesia, Iran, Iraq,
Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and
Venezuela. See: Organization of Arab Petroleum Exporting Countries.
Orientation Visits - See: Trade and Development Agency.
Overseas Business Reports - These are marketing studies of America's major
trading partners which provide updated export and economic outlooks,
industrial trends, trade regulations, distribution and sales channels,
transportation, and credit situation in individual countries.
Overseas Economic Cooperation Fund - The OECF, a Japanese government
development financial institution, provides developing countries and areas
with grants and long-term, low-interest loans. As a result of difficulty in
distinguishing between the Fund and the Export-Import Bank of Japan, a 1975
reorganization put OECF in charge of all direct loans to be made as official
development assistance (ODA) with the grant element of 25 percent of more.
The Fund was created in 1961; headquarters are in Tokyo, Japan. See:
Export-Import Bank of Japan, Japan International Cooperation Agency.
Overseas Private Investment Corporation - OPIC is a government corporation
which assists U.S. private investments in less developed nations by providing
direct loans and loan guarantees, insuring against a broad range of political
risks, and providing a variety of investor services. The overseas investments
may include distributorships owned by U.S. manufacturers which are consistent
with the economic interests of both the United States and the developing
country involved. OPIC was formed as a part of the Agency for International
Development in 1961 and became an independent agency 10 years later.
Telephone: 800-424-6742.
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Pacific Basin Economic Council - The PBEC is a private sector group organized
in 1967 to promote regional trade and investment. PBEC currently includes about
1,000 corporations and 14 national membership committees.
Pacific Economic Cooperation Council - The PECC is a nongovernmental
organization founded in 1980 and aimed at promoting cooperation in the
Asia-Pacific region. Members are drawn from 20 countries and territories:
Australia, Brunei, Canada, Chile, China, Hong Kong, Indonesia, Japan, Korea,
Malaysia, Mexico, New Zealand, the Pacific Islands, Peru, the Philippines,
Russia, Singapore, Taiwan, Thailand, and the United States.
Pacific Rim - The Pacific Rim, referring to countries and economies bordering
the Pacific ocean, is an informal, flexible term which generally has been
regarded as a reference to East Asia, Canada, and the United States. At a
minimum, the Pacific Rim includes Canada, Japan, the People's Republic of China,
Taiwan, and the United States. It may also include Australia, Brunei, Cambodia,
Hong Kong/Macau, Indonesia, Laos, North Korea, South Korea, Malaysia, New
Zealand, the Pacific Islands, the Philippines, Russia (or the Commonwealth of
Independent States), Singapore, Thailand, and Vietnam. As an evolutionary term,
usage sometimes includes Mexico, the countries of Central America, and the
Pacific coast countries of South America.
Packing list - A list showing the number and kinds of items being shipped, as well as other information needed for transportation purposes.
Pan American Standards Commission - See: Comision
Panaamericana de Normas Tecnicas.
Pan American Union - See: Organization of American States.
Paris Club - The Paris Club has become a popular designation for meetings
between representatives of a developing country that wishes to renegotiate its
"official" debt (normally excluding debts owed by and to the private
sector without official guarantees) and representatives of the relevant creditor
governments and international institutions. These meetings usually occur at the
request of a debtor country that wishes to consolidate all or part of its debt
service payments falling due over a specified period. Meetings are traditionally
chaired by a senior official of the French Treasury Department. Comparable
meetings occasionally take place in London and in New York for countries that
wish to renegotiate repayment terms for their debts to private banks. These
meetings are sometimes called "creditor clubs." See: London
Club.
Paris Convention - The Paris Convention for the Protection of Industrial
Property, first adopted in 1883, is the major international agreement providing
basic rights for protecting industrial property. It covers patents, industrial
designs, service marks, trade names, indications of source, and unfair
competition. The U.S. ratified this treaty in May of 1887. The treaty provides
two fundamental rights: The principle of national treatment provides that
nationals of any signatory nation shall enjoy in all other countries of the
union the advantages that each nation's laws grant to its own nationals and; The
right of priority enables any resident or national of a member country to,
first, file a patent application in any member country and, thereafter, to file
a patent application for the same invention in any of the other member countries
within 12 months of the original filing and receive benefit of the original
filing date. The resident or national of a member country also can claim the
filing date of a trademark application or industrial design filed in another
member country within six months of the filing date in his or her own country or
country of residence.
Parcel post receipt - The postal authorities' signed acknowledgment of delivery to receiver of a shipment made by parcel post.
Pass-Through - Pass-through operations (also called
transshipments) involve a foreign country's use of one country in a trade bloc
as a means of gaining preferential treatment from other countries in the
bloc. See: Transshipment.
Patent Cooperation Treaty - The Patent Cooperation Treaty, PCT, is a
worldwide convention, open to any Paris Convention country. The PCT entered into
force in 1978. Unlike the Paris Convention, which addresses substantive
intellectual property rights, the PCT addresses procedural requirements, aiming
to simplify the filing, searching, and publication of international patent
applications.
PEFCO - Private Export Funding Corporation. A corporation that lends to foreign buyers to finance
exports from the United States.
Performance Requirements - "Performance
requirements" refers to government-mandated or approved activities that
investors must undertake, usually as a condition of establishment or operation
in a particular country.
Perils of the sea - A marine insurance term used to designate heavy weather,
stranding, lightning, collision, and sea water damage.
Period of Investigation - The period, usually 6 months, beginning at least
150 days before and continuing 30 days after the first day of the month when an
antidumping petition is filed, during which an exporter's home market (or third
country) and United States prices and other appropriate facts are investigated
to determine whether sales to the United States have been at less than fair
value. See: Tariff Act of 1930.
Permanent Interstate Committee for Drought Control in the Sahel - The
Committee (French: Comit Permanente Intertats de Lutte contre la Scheresse dans
le Sahel, CILSS) provides drought protection assistance to the eight countries
of the Sahel region (Burkina Faso, Cape Verde, Chad, the Gambia, Guinea-Bissau,
Mali, Mauritania, Niger, and Senegal) through such forms as food silo
construction, agricultural development, improving roads, and preventing
desertification. The Committee, founded in 1976, works in cooperation with the
United Nations, the World Bank, the European Economic Community, and the
Organization for Economic Cooperation and Development.
Person - See: Foreign Person.
Persona Grata - A diplomatic representative who is acceptable to the
government of the country where he or she is assigned.
Persona Non Grata - A diplomatic representative who is no longer acceptable
to the government of the country where he or she is assigned.
Petrodollars - This term refers to oil earnings of petroleum-exporting
countries in excess of their domestic needs and deposited in dollars in Western
banks. However, a large part of the
revenues that OPEC countries were unable to spend has been recycled to
oil-importing countries in an attempt to balance international accounts.
Phytosanitary inspection certificate - A certificate, issued by the U.S. Department of Agriculture to satisfy import regulations for foreign countries, indicating that a U.S. shipment has been inspected and is free from harmful pests and plant diseases.
Pipeline Protection - Pipeline protection broadly
refers to the protection accorded by a country for inventions, usually for
pharmaceutical and agrichemical products, which already exist prior to that
country's making patent protection available for such inventions.
Plata Basin Financial Development Fund - See: Fondo Financiero Para el
Desarrollo de la Cuenca del Plata.
Plaza Accord - In a September 1985 meeting at the Plaza Hotel in New York,
G-5 officials ratified an initiative to use exchange rates and other macropolicy
adjustments as the preferred and necessary means to bring about an orderly
decline in the value of the dollar. The agreement, intended to curb increasing
U.S. trade imbalances and protectionist action, supported orderly appreciation
of the main non-dollar currencies against the dollar. See: Louvre Accord.
Policy Framework Paper - The PFP lays out the steps a country will take while
receiving structural adjustment assistance from the International Monetary Fund
(IMF). It describes the origins of the country's difficulties, corresponding
improvement efforts, and requisite financing as well as probable impacts on
environment and society. The paper,
updated annually, is developed by the recipient government in collaboration with
IMF and the World Bank. By design, it also serves as a vehicle for attracting
orderly assistance from other donors. See: Enhanced Structural Adjustment
Facility.
Political risk - In export financing, the risk of loss due to such causes as currency inconvertibility, government action preventing entry of goods, expropriation or confiscation, and war.
Portfolio Investment - In general, any foreign
investment that is not direct investment is considered portfolio investment.
Foreign portfolio investment includes the purchase of voting securities (stocks)
at less than a 10 percent level, bonds, trade finance, and government lending or
borrowing, excluding transactions in official reserves.
Port Shopping - Port shopping is the practice of
exporters and importers choosing a particular port on the basis of their
assessment of Customs' treatment, rather than on the quality of physical
facilities and efficiency.
Post-Initiated Promotion - This is a scheduled low budget trade promotion
totally within resources at post, such as BIO, BFC, or BSP.
Post-Shipment Verifications - PSVs are conducted to determine that a
commodity is being used for the purposes for which its export was licensed.
Firms or individuals representing the end user, intermediate consignees, or the
purchaser may be subject to inquiries pertaining to the post-shipment
verification. As part of the PSV process, BXA forwards a cable to the U.S.
embassy or consulate in the respective geographical location to conduct an
on-site inspection to ensure that the commodity is physically present and used
as stated in the application. Post-shipment verifications are usually conducted
six-to-eight months subsequent to export of the commodity. PSVs are also
conducted by BXA agents.
POW WOW - The POW WOW is a trade show (held annually in the United States and
annually in Europe) which brings together U.S. sellers and foreign buyers of
travel-related services pertaining to travel to the United States.
Pow Wow Selection Committee - A committee of private industry representatives
in foreign countries which is responsible for selecting invitees to the
International POW WOW.
Preferential Trade Area for Eastern and Southern African States - PTA,
established in 1981, supports economic development and cooperation (agriculture,
communications, customs, industry, monetary affairs, natural resources, and
trade). Membership includes: Burundia, Comoros, Djibouti, Ethiopia, Kenya,
Lesotho, Malawi, Mauritius, Rwanda, Somalia, Swaziland, Tanzania, Uganda,
Zambia, and Zimbabwe. PTA's headquarters are in Lusaka, Zambia.
Pre-License Checks - PLCs are conducted to determine that dual-use items on
an export license application are destined for a legitimate end-use by a
reliable end-user. Firms or individuals
representing the licensee (the applicant), the consignee, the purchaser, the
intermediate consignee, or the end user may be subject to inquiries pertaining
to the pre-license check. As part of the process, BXA forwards a cable to the
U.S. embassy or consulate in the respective geographical location to conduct an
inspection or meet with company representatives to conduct inquiries on BXA's
behalf.
Preliminary Determination - The dumping
determination by the International Trade Administration announcing the results
of the investigation conducted within 160 days (or, in extraordinarily
complicated cases, 210 days) after a petition is filed or an investigation is
self-initiated by the International Trade Administration. If the International
Trade Administration determines that there is a reasonable basis to believe or
suspect that the merchandise under consideration is being sold or is likely to
be sold at less than fair value, liquidation
of all affected entries is suspended, and the matter is referred to the
International Trade Commission. "Preliminary determination" also
refers to the decision by the ITC where there is a reasonable indication that an
industry in the United States is materially injured, or threatened with material
injury, or the establishment of an industry in the United States is materially
retarded by reason of the imports of the
merchandise which is the subject of the petition. The ITC must make its decision
within 45 days after the date on which the petition is filed or an investigation
is self-initiated by the International Trade Administration. If this
determination is negative, the investigation is terminated. See: Tariff
Act of 1930.
President's Export Council - The President's Export Council (PEC) advises the
President on government policies and programs that affect U.S. trade
performance; promote export expansion; and provide a forum for discussing and
resolving trade-related problems among the business, industrial, agricultural,
labor, and government sectors. The Council was established by Executive
Order of the President in 1973 and was originally composed only of business
executives. The Council was reconstituted in 1979 to include leaders of the
labor and agricultural communities, Congress, and the Executive branch. Twenty-eight private sector members serve "at
the pleasure of the President" with no set term of office. Other members
include five U.S. Senators and five Members of the House, the Secretaries of
Agriculture, Commerce, Labor, State, and Treasury, the Chairman of the
Export-Import Bank, and the U.S. Trade Representative. The Council reports to
the President through the Secretary of Commerce. The
President's Export Council, Subcommittee on Export Administration (PECSEA),
formed in June 1976, advises the PEC, the White House, and Commerce on all
export control matters, including those which affect Commerce, State, Defense
and Energy. The PECSEA membership comprises 25 industry representatives,
selected by the Secretary of Commerce.
President's Export Council, Subcommittee on
Export Administration - See: President's
Export Council.
Principal Officer - See: Title and Rank.
Private Export Funding Corporation - PEFCO is a private company, accessed
through its member banks and a few exporters, that works with Eximbank in using
private capital to finance U.S. exports. The corporation acts as a supplemental
lender to traditional commercial banking sources by making loans to public and
private borrowers located outside of the United States who require medium and/or
longer-term financing of their purchases of U.S. goods and services.
Private Voluntary Organizations - PVOs are non-profit, tax-exempt and
nongovernmental organizations governed by a group of private /citizens whose
purpose is to engage in voluntary, charitable and development operations
overseas. The U.S. Agency for International Development has registered over 150
PVOs which are eligible to receive USAID funding.
Product Groups - Commodity groupings used for export control purposes.
See: Export Control Classification Number.
Profit - For the purposes of constructed value in an antidumping duty
investigation or review, the profit used is the profit normally earned by a
producer, from the country of export, of the same or similar product as that
under investigation. By statute, the amount of profit shall not be less
than 8 percent of the sum of general expenses and cost.
Pro forma invoice - An invoice provided by a supplier prior to the shipment of
merchandise, informing the buyer of the kinds and quantities of goods to be sent, their value, and important specifications (weight, size, etc.).
Project License - The Bureau of Industrial Security uses the project license to authorize large-scale exports of a
wide variety of commodities and technical data for specified activities. Those
activities are restricted to capital expansion, maintenance, repair or operating
supplies, or the supply of materials to be used in the production of other
commodities for sale. Items intended
for resale in the form received are not permitted and must be effected under a
Distribution License.
Protective Order - With regard to antidumping
cases, a term for the order under which most business proprietary information is
made available to an attorney or other representative of a party to the
proceeding. See: Tariff Act of 1930.
Protest System - The Protest System, a part of Customs' Automated Commercial
System, tracks protests from the date they are received through final action. A
protest is the legal means by which an importer, consignee, or other designated
part may challenge decisions made by a District Director of Customs.
Protocol - See: International Agreements, Title and Rank.
Protocol of Provisional Application - legal device that enabled the original
contracting parties to accept general GATT obligations and benefits, despite the
fact that some of their existing domestic legislation at that time discriminated
against imports in a manner that was inconsistent with certain GATT provisions.
Although meant to be "temporary," the Protocol has remained in effect;
and countries that signed the PPA in 1947 continue to invoke it to defend
certain practices that are otherwise inconsistent with their GATT
obligations. Countries that acceded to the GATT after 1947 have also done
so under the terms of the Protocol.
Public Limited Company - See: Limited (Liability).
Purchase Price - A statutory term used in dumping investigations to refer to
the United States sales price of merchandise which is sold or likely to be sold
prior to the date of importation, by the producer or reseller of the merchandise
for exportation to the United States. Certain statutory adjustments (e.g.,
import duties, commissions, freight) are made, if appropriate, to permit a
meaningful comparison with the foreign market value of such or similar
merchandise. See: Tariff Act of 1930.
Purchaser - Within the context of export controls, the purchaser is that
person abroad who has entered into the export transaction with the applicant to
purchase the commodities or technical data for delivery to the ultimate
consignee.
Purchasing agent - An agent who purchases goods in his or her own country on behalf of foreign importers such as government agencies and large private concerns.
Purchasing Power Parity - Purchasing power parity is a theory which states
that exchange rates between currencies are in equilibrium when their purchasing
power is the same in each of the two countries.
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Date
Updated:
October 02, 2008
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