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Afrocenter Glossary of Business Terms | |
| FRAMEWORK AGREEMENT Context is: trade term. A bilateral agreement between the United States and a trading partner that establishes certain principles that apply to that trade and investment relationship and that also establishes a consultative mechanism that can be used to clarify respective trade policies, resolve specific disputes, or negotiate the reduction or removal of trade or investment barriers. The United States signed its first such agreement with Mexico in November 1987, with similar agreements subsequently signed with the Philippines and numerous countries in South America, Central America, and the Caribbean. With reference to the GATT and the WTO, framework agreement refers collectively to four separate decisions concluded during the Tokyo Round and intended to improve the working of some fundamental provisions of the GATT. The four decisions are: "Differential and More Favorable Treatment, Reciprocity, and Fuller Participation of Developing Countries." Expands on the concept of special and beneficial treatment for developing countries (LDCs) in the international trading system first established in Part IV of the GATT, reiterating the commitment that concessions should not be expected of LDCs that would be inconsistent with their economic development. The decision also provides guidelines for trade preferences among LDCs and for the generalized system of preferences granted by developed countries for LDC imports. Developing countries recognize that, as their economies grow stronger, it is expected that they will participate more fully in the framework of GATT rights and obligations. "Declaration on Trade Measures Taken for Balance of Payments Purposes." States principles and codifies practices and procedures regarding the use of trade measures and restrictions applied by governments under GATT Articles XII and XVIII to defend the balance of payments. "Safeguard Action for Development Purposes." Elaborates on provisions in Article XVIII, allowing for protection of LDC "infant industries," and gives LDCs more flexibility in applying trade measures to meet their essential development needs. "Understanding Regarding Notification, Consultation, Dispute Settlement, and Surveillance." Provides for improvements in the existing mechanisms concerning notification of trade measures, consultations, dispute settlement, and surveillance of developments in the international trading system. See also Balance of Payments; Bilateral; Bilateral Trade Agreement; Consultations; Dispute Settlement; Enabling Clause; General Agreement on Tariffs and Trade; Generalized System of Preferences; North-South Trade; Part IV of the GATT; Preferences; Quantitative Restrictions; Reciprocity; Safeguards; Special and Differential Treatment; Tokyo Declaration; Tokyo Round. | |
| NORTH AMERICAN FREE TRADE AGREEMENT (NAFTA) Context is: trade term. A comprehensive free trade agreement, based on the principle of national treatment, between the United States, Canada, and Mexico. The three countries met in June 1991 and initiated negotiations to: Eliminate, over a mutually agreed upon time period, all tariffs on trade between the three countries; Reduce impediments to trade in services; Remove most restrictions on foreign investment among the signatory countries; Ensure adequate intellectual property protection; Provide substantially increased access to government procurement opportunities not only in goods, but also in services, including construction services; Provide an effective dispute settlement mechanism for the settlement or determination of remedies regarding antidumping and countervailing duty disputes through international arbitration rather than through domestic courts. The negotiations were concluded in August 1992, and the draft text was structured along the lines of the U.S.-Canada Free Trade Agreement. The Clinton administration negotiated supplemental agreements on labor and environmental issues, and Congress approved the whole package of NAFTA agreements in November 1993. NAFTA went into effect January 1, 1994. It is being viewed as a testing ground for possible future agreements to be negotiated under the Enterprise for the Americas Initiative. As of 1999, negotiations were under way for Chilean accession to the NAFTA, and other South American countries had expressed interest in acceding to the NAFTA. See also Common External Tariff; Customs Area; Customs; Customs Union; European Community; European Free Trade Association; Free Trade Area Agreement; Free Trade Area of the Americas; General Agreement on Tariffs and Trade; Kyoto Convention; MERCOSUR; Tariff; Tariff Schedules; Trade Diversion; U.S.-Canada Free Trade Agreement. | |
| PACIFIC RIM Context is: trade term. An informal, flexible term that generally has been regarded as a reference to countries and economies bordering the Pacific Ocean. 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, it also sometimes includes Mexico, the countries of Central America, and the Pacific coast countries of South America. See also Asia-Pacific Economic Cooperation (APEC). | |
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