Chapter 6 – Trade

Trade as a Collaboration Problem

The concept that states should work together collaboratively for mutual benefits in trade.

Compensation Perspective

A viewpoint suggesting that when a country violates international law, it must compensate the affected party for damages.

Violations of International Law

When states choose to disregard established rules, they must compensate those negatively impacted.

Dumping

The practice of selling exports at prices significantly below market value.

GATT

General Agreement on Tariffs and Trade, a multilateral treaty established in 1947 to promote trade liberalization.

WTO

World Trade Organization, the successor to GATT, which oversees international trade agreements and dispute resolution.

Dispute Settlement Process in the WTO

A procedure for resolving trade disputes between member states involving consultations, panel investigations, and possible retaliation.

Preferential Trade Agreements (PTA)

International trade agreements that apply to a limited number of parties, distinct from broader agreements like GATT/WTO.

Tariffs

Taxes imposed on imports or exports to restrict trade.

Non-Tariff Barriers

Measures other than tariffs that restrict trade, including quantitative restrictions and technical barriers.

Quantitative Restrictions

Limitations on the amount of specific goods that can be imported, including bans and quotas.

Technical Barriers to Trade

Government regulations and standards that impede trade.

Most-Favored Nation

A principle requiring countries to extend the same favorable trading conditions to all other WTO members.

National Treatment

The requirement to treat foreign goods and services the same as domestic ones once they have entered the market.

Subsidies

Financial support provided by a government to support domestic industries.

Unexpected Import Shocks

Emergencies that prompt countries to raise tariffs on imports.

National Security Exceptions

Provisions allowing countries to violate trade obligations to protect national security.