What is it called when the value of a countrys exports are less than the value of their imports?
This page contains a glossary with all international trade and tariff related terms contained in the World Integrated Trade Solution (WITS) database. Show
A ACCESSION A government joining the WTO. As part of the accession to the WTO pursuant to Article XII, the acceding government negotiates concessions and commitments relating to Market Access for Goods and Services with WTO Members. ACPs Countries in Africa, the Caribbean and the Pacific which benefit from a preferential tariff treatment in the E.C., under the Lomé Convention. Administered Protection See Contingent Protection.Ad Valorem An ad valorem duty (tariff, charge, and so on) is based on the value of the dutiable item and expressed in percentage terms for example, a duty of 20 percent on the value of automobiles. Ad Valorem Equivalent (AVE) An ad valorem equivalent is the equivalent in percentage of a specific duty, mixed, compound or other duty containing a specific element. An ad valorem equivalent is calculated for each customs duty that is not ad valorem. The AVE is calculated from the actual duty collection or from the unit value of imports. For example, the AVE of a specific duty of $1.00 per KG levied on a product with a unit value of $10.00 per KG is equal to 10% ($1.00/$10.00). AggregateSee Product Aggregate AGOA (African Growth and Opportunities Act)U.S. legislation providing duty-free access for a large number of products for 35 African economies.All Partners Shortcut used in WITS to select all trade partners. When All Partners is selected, WITS returns one row of information for each and every partner. Armington Preferences Goods are differentiated (imperfect substitutes) by exporting country. This assumption is used in the SMART model included in WITS in order to avoid a big bang solution.Autonomous Duty See Statutory DutyAverage (Tariff) A tariff average measures the average level of nominal tariff protection. There are two types of tariff averages: a simple average and a trade weighted average. The example below illustrates how those two types of tariff averages are calculated.
Trade profiles show a distribution of imports according to duty ranges in a similar manner. Division Second level sub-category (2-digit) used in the SITC nomenclature. Doha RoundCurrent (9th) round of WTO negotiations. Domestic ContentSee Content. DumpingA form of price discrimination by which the export price of the product exported from one country to another is less than the comparable price, in the ordinary course of trade”that is, including transport and related costs”for the like product when destined for consumption in the exporting country (GATT Art. VI). Also defined as sales below the estimated cost of production. The margin of dumping is the difference between the two prices. Duty-drawback Scheme A duty drawback scheme (often administratively demanding) is a form of Border Tax Adjustment whereby the duties or taxes levied on imported goods are refunded, in whole or in part, when the goods are re-exported. The idea is to reduce the burden on exporters while maintaining tariffs for revenue or protective purposes. EEBA See Everything But Arms Effective Rate of ProtectionA measure of the protection afforded by an import restriction calculated as a percentage of the value added in the product concerned. Takes into account the protection on output and the cost raising effects of protection on inputs. Effectively Applied Duty A customs duty which is lower than the statutory duty. The effectively applied duty can be for an undetermined period of time or for a limited period of time (temporary duty). Effectively applied duties are sometimes passed by Parliament or decided on and put into effect by a government for economic reasons. Emergency Action See Safeguard Action. Enabling Clause 1971 GATT Decision on "Differential and More Favorable Treatment, Reciprocity and Fuller Participation of Developing Countries". One of the so-called Framework agreements, it enables WTO members, notwithstanding the nondiscrimination requirements, to "accord differential and more favorable treatment to developing countries, without according such treatment to other contracting parties." See also Generalized System of Preferences. Escalation (Tariff) See Tariff Escalation. Escape Clause Clause in a legal text allowing temporary derogation from its provisions under certain specified emergency conditions. See also Safeguard Action (GATT Art. XIX.) Everything But Arms A 2001 EU initiative to grant least developed countries duty- and quota-free access for their exports. Excise Duty Also known as fiscal tax or revenue duty. See Fiscal Tax. Export Processing Zone (EPZ) A designated area or region in which firms can import duty-free as long as the imports are used as inputs into the production of exports. Traditional EPZs are fenced-in industrial estates specializing in manufacturing for exports. Modern ones have flexible rules that may permit domestic sales upon payment of duties when leaving the zone. EPZs generally also provide a liberal regulatory environment for the firms involved as well as infrastructure services. F Final Bound The value of the Bound tariff at the end of the implementation period. Concessions offered in GATT negotiations are sometimes staged over a period of several years before the concession is fully implemented. Until then, there may be a current bound (used as ceiling for the current MFN Applied tariff) higher than the final Bound (final commitment). Finished Products The third stage of processing in the measurement of tariff escalation. Finished products are processed products which can be sold to consumers without further processing. Fiscal Tax A tax which is levied on imported products as well as on domestically produced goods to generate revenue. A fiscal tax is therefore not equivalent to a customs tariff duty since it has no protective effects. Fiscal taxes are sometimes included in the customs tariff duties. In such cases, the fiscal element of the duty is deducted from the tariff duty. Only the protective part of the duty is recorded in the IDB tariff files. FOB See Free On Board Foreign Trade Zone An area within a country where imported goods can be stored or processed without being subject to import duty. Also called a "free zone," "free port," or "bonded warehouse." See also Export Processing Zone. Formula Approach Method of negotiating down tariffs or other barriers to trade by applying a general rule (formula). For example, a rule specifying that all tariffs are to be cut to a certain fraction of their initial level, or that an agreement should cover a certain proportion of economic activity (sectors). Free on board (FOB) The price of a traded good including its value and the costs associated with loading it on a ship or aircraft, but excluding international transportation (freight) costs, insurance and payments for other services involved in moving the good to the point of final consumption. Free-Trade Area A group of countries in which the tariffs and other barriers are eliminated on substantially all trade between them. Each member maintains its own external trade policy against nonmembers. Also called free trade agreement or free trade arrangement. Contrasts with Custom Union. G G-20 International forum of finance ministers and central bank governors representing 19 countries plus the EU. Created in 1999 by the G-7 with the aim to promote discussion, study and review of policy issues among industrialized and emerging market countries to promote international financial stability. The Managing Director of the IMF, the President of the World Bank, and the Chairpersons of the International Monetary and Financial Committee and Development Committee of the IMF and World Bank participate in G-20 deliberations. G-21 A block of developing countries led by Brazil, China and India that emerged just before the Cancun meeting. It represents half the world's population and two-thirds of its farmers. G-24 Established in 1971, an inter-governmental group of 24 developing countries that has the objective to concert the position of the developing countries on monetary and development finance issues. The only formal developing country grouping within the IMF and World Bank. Meets twice a year, preceding the Spring and Fall meetings of the two institutions. G-7 A group of seven major industrialized countries whose heads of state have met annually since 1976 in summit meetings to discuss economic and political issues. The seven are United States, Canada, Japan, Britain, France, Germany, and Italy. G-77 A coalition of developing countries within the United Nations, established in 1964 at the end of the first session of UNCTAD, intended to articulate and promote the collective economic interests of its members and enhance their negotiating capacity. Originally with 77 members, it now (in 2002) has 133 G-8 The G7 plus Russia, which have met as a full economic and political summit since 1998. GATT General Agreement on Tariffs and Trade. General Tariff General tariffs are the customs duties which apply in some countries to partners which are not members of the WTO. The general duties are generally higher than the MFN duties. Generalized System of Preferences (GSP) The GSP is a system through which industrialized high-income countries grant preferential access to their markets to developing countries. Also called Generalized System of Trade Preferences. Global Simulation Extension of the SMART model to simulate the partial equilibrium impact of tariff reductions in a multi-market framework. Graduation Concept linking the rights and obligations of a developing country to its level of development. Referred to in WTO Trade Policy Review Mechanism. Generally used in the context of GSP and similar types of preferential treatment of low income countries as a mechanism or set of criteria to determine when countries cease to be eligible for preferences. Group Third level sub-category (3-digit) used in the SITC nomenclature. GSP See Generalized System of Preferences. GTAP The Global Trade Analysis Project, based at PurdueUniversity in the United States. It provides data and models for computable general equilibrium modeling. See Computable general equilibrium GSIM See Global Simulation H Harmonized System (HS) "Harmonized Commodity Description and Coding System". Nomenclature developed by the World Customs Organization for customs tariffs and international trade statistics to organize products through hierarchical categories. Heading Second level sub-category (4-digit) used in the Harmonized System (HS) nomenclature. Heterogeneous Goods Goods are imperfect substitutes (Assumption used in SMART). Homogenous Goods Goods are perfect substitutes. HS See Harmonized System. I IDB See WTO Integrated Database Implementation Period See Stages Of Reduction Import Licensing A procedure which must be followed by importers before they can import goods. Intra-industry trade Trade in which a country both exports and imports goods that are classified to be in the same industry. ISO International Organization for Standardization. Item In WITS, refers to a product selection mode in which product categories may be individually selected. L Labeling Requirement, either mandatory or voluntary, to specify whether a product satisfies certain conditions relating to the process by which it was produced. LDC See Least Developed Country. Least Developed Country (LDC) A country that satisfies a number of criteria established by the United Nations that together imply a very low level of economic development. As of 2002 the UN had classified 49 countries in the LDC group. Used in WTO Subsidies Agreement, where LDCs are granted differential treatment. Least developed countries are accorded on some countries' markets a preferential treatment more favorable than GSP (in general duty-free treatment with no limitations). Licensing (of imports or exports) Practice requiring approval to be granted by the relevant government authority, or by a body designated by such authority, as a prior condition to importing or exporting.
What is it called when the value of exports is less than the value of imports?A negative trade balance (deficit) is when exports are less than imports. Use the balance of trade to compare a country's economy to its trading partners.
What happens when exports are less than imports?When exports are less than imports, the net exports figure is negative. This indicates that the nation has a trade deficit. A trade surplus contributes to economic growth in a country.
What is it called when imports are greater than exports?A trade deficit occurs when a country's imports exceed its exports during a given time period. It is also referred to as a negative balance of trade (BOT).
What is it called when there is a difference between the value of a country's exports and imports during a specific time?balance of trade, the difference in value over a period of time between a country's imports and exports of goods and services, usually expressed in the unit of currency of a particular country or economic union (e.g., dollars for the United States, pounds sterling for the United Kingdom, or euros for the European Union ...
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