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Glossary of terms relating to agricultural trade
(including regional groupings involved in the agricultural negotiations)

The following glossary of agricultural trade related terms does not pretend to be exhaustive. It is mainly based on terms and acronyms found in the Agritrade materials. The list will be updated twice a year. If you would like to help us in extending the list, please feel free to send your materials to: fautrel@cta.int.

Revised June 2008

Other trade related glossaries and terminology databases

World Bank
http://www.worldbank.org/research/trade/glossary.htm

WTO
glossary: http://www.wto.org/english/thewto_e/minist_e/min99_e/english/about_e/23g...
terminology database: http://www.wto.org/english/thewto_e/minist_e/min99_e/english/about_e/23g...

ITDS (International Trade Data Systems)
http://www.itds.treas.gov/glossaryfrm.html

EU-LDC network: http://www.eu-ldc.org/src/glossary.php

A: sugar produced for domestic needs, carrying a production  levy of 2%
B: sugar produced for export with subsidy, carrying a  production levy of 37.5%
C: sugar is sugar exported without a direct export subsidy
http://agritrade.cta.int/sugar/executive_brief.htm

the rendering as a percentage, of an import tariff based on some other value, i.e. weight. For example if a tariff on an import is set at $n per product or unit of product, the AVE formula allows it to be expressed as a percentage of the value of the good

African, Caribbean and Pacific countries

The body of principles, policies, legislation, practices, obligations and objectives that are included in the various EU treaties.

African Growth and Opportunity Act (USA)
  http://www.agoa.gov/
  http://www.agoa.info/

all support measures that support prices or production of agricultural products, thereby distorting trade; examples include US counter-cyclical payments to farmers; to be reduced or eliminated under the AoA
http://www.wto.org/english/tratop_e/agric_e/agboxes_e.htm

 

aggregate market support: the measure of agricultural support for any individual WTO member for which they are asked to propose reductions as part of the Doha Round. It is found by adding Blue box and Amber box payments. It excludes de minimis payments

Agreement on Agriculture: the Uruguay Round agreement
http://agritrade.cta.int/wto/executive_brief.htm

committee that advises and makes proposals to the EC on  the negotiation of international trade agreements.
http://www.eu2004.ie/templates/meeting.asp?sNavlocator=5,418,13&list...

the Article of GATT (1994, adopted by the WTO) relating to frontier traffic in free-trade areas and customs unions.
http://www.wto.org/english/docs_e/legal_e/10- 24.pdf

Agreement on subsidies and countervailing measures (WTO agreement)

Botswana, Lesotho, Namibia and Swaziland; along with South Africa the members of SACU.

subsidies or direct payments to agricultural producers that  are part of programmes aimed at limiting agricultural  production; these payments do not need to be reduced or  eliminated.
http://www.wto.org/english/tratop_e/agric_e/agboxes_e.htm

a grouping of 17 countries that promotes liberalisation in  trade in agricultural products; it includes: Argentina,  Australia, Bolivia, Canada, Chile, Colombia, Costa Rica,  Fiji, Guatemala, Indonesia, Malaysia, New Zealand,  Paraguay, Philippines, South Africa, Thailand, and Uruguay.
http://www.cairnsgroup.org/

5th WTO Ministerial conference in Cancun, September 2003

Common Agricultural Policy (EU)
http://agritrade.cta.int/capreform/executive_brief.htm

Caribbean Community and Common Market
http://www.caricom.org/

Caribbean Forum of States

Communaute Economique des Etats de l'Afrique de l'Ouest (see ECOWAS)

Central African Economic and Monetary Community
http://193.251.137.10/

common external tariff

Common Fisheries Policy (EU)
http://agricta1.cta.int/en/fisheries/eu_common_fisheries_policy/executiv...

common organisation of the market (for commodities in the EU)

Joint FAO/WHO Food Standards Programme
http://www.codexalimentarius.net/web/index_en.jsp

Comité de Liaison Europe- Afrique- Caraïbes- Pacifique (Europe-Africa-Caribbean-Pacific Liaison Committee)

http://www.coleacp.org/

Common Market for Eastern and Southern Africa (Angola,  Burundi, Comoros, DR Congo, Djibouti, Egypt, Eritrea,  Ethiopia, Kenya, Madagascar, Malawi, Mauritius, Namibia,  Rwanda, Seychelles, Sudan, Swaziland, Uganda, Zambia,  Zimbabwe)
http://www.comesa.int/index_html/view

the WTO committee that oversees the implementation of the AoA (cf.supra)

policy response to the erosion of the value of trade preferences

Committee of Permanent Representatives, the structure of consultations with national governments at the level of officials which prepares all ministerial decisions within the EU

Council for Trade and Economic Development (CARICOM)

a form of agricultural subsidy used by the USA that compensates a farmer if the price of an agricultural commodity drops below a level deemed to be desirable

to make the single farm payments conditional on environmental, food safety, animal welfare, health and occupational safety standards.
http://agritrade.cta.int/capreform/executive_brief.htm

Doha Development Agenda

Rules permitting exemption from notification for state aid to farmers, fishermen, and processing and marketing companies, below a certain threshold (currently €3,000 over a three-year period); the total must make up no more than 5% of agricultural production for developed countries and 10% for developing countries

of farm support from production through direct payments

payment paid by governments to producers of certain commodities and based on the difference between a target price and the domestic market price or loan rate, whichever is the less.

mechanism to ensure that the application of a measure gradually becomes less severe over time

the act of withdrawing from or restricting the application of a rule; under the Cotonou Agreement the derogation provisions of the rules of origin allow exceptions to the general rules of origin. This allows non-originating products to be used to a greater degree than the normal rules of origin would allow, without losing the benefits of the trade preferences extended

When prices and production are higher or lower than levels that would usually exist in a competitive market.

European Agricultural Guidance and Guarantee Fund

'Everything but Arms' initiative
http://agritrade.cta.int/market/executive_brief.htm

European Commission
http://europa.eu.int/comm/index_en.htm

European Centre for Development Policy Management
http://www.ecdpm.org/

Economic Community of West African States (CEDEAO) (Benin, Burkina Faso, Cabo Verde, Côte d'Ivoire, Gambia, Ghana, Guinea, Guinea Bissau, Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone, Togo)
http://www.ecowas.int/

European Development Fund

European Economic and Social Committee

Exclusive economic zone

Economic Partnership Agreements
http://agritrade.cta.int/postcotonou/executive_brief.htm

equivalence of sanitary measures associated with food inspection and certification systems

the grouping of eastern and southern African countries negotiating an EPA with the EU (Burundi, Comoros, DR Congo, Djibouti, Eritrea, Ethiopia, Kenya, Madagascar, Malawi, Mauritius, Rwanda, Seychelles, Sudan, Uganda, Zambia, Zimbabwe)

European Union
http://europa.eu.int/

the 15-member EU up to end 2003

the 25-member EU from 1 May 2004

the 27-member EU from 1 January 2007

financing arrangement allowing a foreign buyer of exported  goods and/or services to defer payment over a period of  time, often used also for an insurance or guarantee  arrangement.

government payments to induce exportation by domestic producers.

financial instrument for fisheries guidance

Fisheries Partnership Agreements
http://agritrade.cta.int/fisheries/agreements/executive_brief.htm

free-trade area

group of advanced developing countries, characterised by their common demand for greater agricultural market access from developed countries; members are Argentina, Bolivia, Brazil, Chile, China, Cuba, Egypt, Guatemala, India, Indonesia, Mexico, Nigeria, Pakistan, Paraguay, Philippines, South Africa, Tanzania, Thailand, Venezuela, Zimbabwe

group of 90 developing countries including the LDCs, ACP and African Union member countries.

Global Agriculture Information Network

General Agreement on Trade in Services

General Agreement on Tariffs and Trade

place names (or words associated with a place) used to identify products (for example, ' Champagne ') which have a particular quality, reputation or other characteristic because they come from that place

geographical indications
http://www.thecommonwealth.org/shared_asp_files/uploade dfiles/{5A9BA32A...

agricultural subsidies that are government-funded and do not involve price support; they need not be reduced or eliminated. An example is payments under environmental programmes.
http://www.wto.org/english/tratop_e/agric_e/agboxes_e.htm

meetings of representatives of a limited number of WTO members specifically selected and invited by the host (often the WTO director-general) in order to work out an agreement among themselves, and then present such agreement to the broader WTO membership for general acceptance.
http://agritrade.cta.int/discussion-paper-madeley.pdf

Generalised System of (Tariff) Preferences
A scheme providing for free rates of duty for merchandise from beneficiary developing independent countries and territories to encourage their economic growth.
http://agritrade.cta.int/market/executive_brief.htm

hazard and analysis critical control points

International Coffee Organisation
http://www.ico.org

International Centre for Trade and Sustainable Development

rights that accrue to the creator of an intellectual property,  including: copyrights, trademarks, geographical indications,  industrial designs, patents, and undisclosed commercial  information or data.

Joint Parliamentary Assembly of European and ACP parliamentarians

least-developed countries
http://www.unctad.org/templates/countries.asp?intItemID=1 676

long-distance water fleets

'Liaison Entre Actions pour le Développement de L'Economie Rurale' ('Links between actions for the development of the rural economy').

Multilateral Agreement on Investment
  http://www1.oecd.org/publications/pol_brief/1997/9702_pol .htm

monitoring, control and surveillance

multilateral environmental agreements
http://europa.eu.int/comm/environment/international_issues/agreements_en...

Mercado Común del Sur (Southern Common Market - Argentina, Brazil, Paraguay and Uruguay)
http://www.mercosur.int

most favoured nation treatment; WTO members are normally required not to prefer or favour one or some WTO member over other WTO members

the highest policy- and decision-making body of the WTO, composed of the trade ministers of all WTO members.

the instrument which provides a means to transfer CAP funds from direct aids to farmers and market measures (‘Pillar 1’ of the CAP) to rural-development measures (‘Pillar 2’); it applies to all farmers across the EU with the exception of the smallest; in order to finance the additional rural-development measures agreed in the reform, all direct payments (SPS and other direct aids) will be reduced, by 3 % in 2005, 4 % in 2006 and 5 % from 2007 onwards until 2012

maximum residues levels (for pesticides)

idea that agriculture has many functions in addition to  producing food and fibre, e.g. environmental protection, landscape  preservation, rural employment, etc

North American Free Trade Area

the obligation to treat domestic and imported goods, services, service suppliers, investments, and IPRs equally or in the same way.

net food-importing developing countries

National Indicative Programmes (EDF context)

value-added products produced on the basis of CAP  agricultural raw materials but which were not included in the  agricultural products listed in the annex to the treaty of  Rome and subsequent EU Treaties. 

non-tariff barriers

Overseas Territories of the Community

Organisation of Eastern Caribbean States

the concept of 'originating' product is the key to the rules of origin under the Cotonou Agreement: a product is considered 'originating' if it is 'wholly' obtained in an ACP country or if it has undergone one of the various stages of processing which grants the status of originating product on 'non-wholly obtained products'.

Pacific Closer Economic Relations agreement

the Pacific Island Forum represents 16 Heads of Government of all the independent and self-governing Pacific Island countries including Australia and New Zealand.
http://www.forumsec.org.fj/

provision in Article 13 of the WTO Agreement on  Agriculture which says that agricultural subsidies  committed under the agreement cannot be challenged  under other WTO agreements, in particular the Subsidies Agreement and GATT. Expired at the end of 2003.

‘Pillar 1’ covers direct aids to farmers and market measures under the CAP;
‘Pillar 2’ covers rural-development measures

Specific measures concerning agricultural products to assist the French Overseas Departments (POSEIDOM), the Azores , Madeira (POSEIMA), the Canary Islands (POSEICAN)

the precautionary principle covers cases where scientific evidence is insufficient, inconclusive or uncertain and preliminary scientific evaluation indicates that there are reasonable grounds for concern that the potentially dangerous effects on the environment, human, animal or plant health may be inconsistent with the level of protection chosen by a particular country.

a process in which trade negotiations, by entailing a general reduction in tariffs, erode the value of the preferences granted to developing countries

The commodity-specific protocols allow exports from ACP countries of specified levels of the products concerned to the EU market at reduced levels of duty. Examples are the sugar protocol, the beef protocol, and the banana protocol.

producer support estimate

quantitative restrictions, such as quotas on imports

the USA, Japan, Canada and the EU

the USA , Japan , Canada , Australia and the EU

Regional Economic Partnership Agreement

regional fisheries management organisation

Regional Indicative Programmes (EDF)

Regional indicative strategic development plan of SADC

Regional Negotiating Machinery of CARICOM
www.crnm.org

laws, regulations and administrative procedures which determine a product's country of origin and affects whether a shipment falls within a quota limitation, qualifies for a tariff preference or is affected by an anti-dumping duty

a policy approach that seeks to maintain the vitality of the countryside through a balanced development of rural areas. Agriculture has an important role to play, particularly regarding the landscape and employment

Southern African Customs Union (South Africa and the BLNS countries)

Southern African Development Community(Angola, Botswana, DR Congo, Lesotho, Malawi, Mauritius, Mozambique, Namibia, South Africa, Swaziland, Tanzania, Zambia, Zimbabwe)
http://www.sadc.int/

The SADC countries negotiating an EPA with the EU: South Africa , the BLNS countries, Angola , Mozambique and Tanzania

special and differential treatment; it refers to the principle that allows developing countries with special terms regarding compliance with WTO obligations in view of their different or lower state of economic development. This includes receiving preferential access to developed country markets without having to provide a similar access to their own markets, and flexibility in the application of domestic support measures

Southern and Eastern African Trade Information and Negotiations Institute

products nominated by WTO members as not subject to full disciplines by mutual agreement; the EU has explicitly stated that sensitive products will not be exempt from tariff cuts, although they will be at a reduced level; any allowance for sensitive products would be wider for developing countries

sustainable impact assessment

small-island developing states

the four issues identified in the Singapore Ministerial  Conference in 1996 in which the WTO agreed to create four  separate working groups to discuss the issues as part of the  WTO's work programme: (i) the relationship between trade  and investment; (ii) the relationship between trade and  competition policy; (iii) trade facilitation; and (iv)  transparency in government procurement.

from January 2005, this will replace most of the individual  scheme payments under the current CAP regime. This single  payment will not be linked to production. But it is  conditional: farmers must keep the land in "good agricultural  and environmental condition" (GAEC) and meet cross  compliance requirements.

enterprises with responsibility for domestic and export sales (such as STEs) account for large shares of world trade in certain products: about 40% for wheat and 30% for dairy products

small- and medium-sized enterprises

products which concern food security, rural development or livelihood security designated as ‘special’ with the agreement of the WTO; they enjoy lower tariff-reduction schedules, over a longer implementation period, and are exempt from minimum access-quota provisions
ftp://ftp.fao.org/docrep/fao/005/y4852e/y4852e03.pdf

refers to article 5 of the URAA, which authorises WTO members, when their trade situation justifies such action, to apply additional duties in order to prevent sudden or unpredictable surges in imports or sharp reductions in import prices.

special preferential sugar arrangement

single payment scheme; the EU’s decoupled annual payment to farmers in the third phase of CAP reform

sanitary and phytosanitary (agreement in Uruguay Round); measures to protect humans, animals, and plants from diseases, pests, or contaminants.

STEs are defined by the WTO as ‘governmental and non-governmental enterprises, including marketing boards, which have been granted exclusive or special rights or privileges, including statutory or constitutional powers, in the exercise of which they influence through their purchases or sales the level or direction of imports and exports’; three trade-distorting practices of STEs, i.e. cross-subsidisation, price-discrimination and price pooling, can be identified as ‘hidden’ export subsidies

tariff escalation occurs when the tariff applied on a product category rises as the level of processing increases.

the conversion of quotas or other non-tariff barriers to tariffs that would provide roughly the equivalent level of trade restrictions on imported products.

technical barriers to trade

Trade, Development and Cooperation Agreement (between the EU and South Africa)

Trade Negotiations Insights

trade-related investment measures (agreement): requiring national treatment in measures to encourage or regulate foreign investments, prohibiting quantitative restrictions and requiring transparency.

trade-related intellectual property rights (agreement):makes  the trade concepts of national treatment and most favoured  nation treatment applicable to the protection, application,  and use of intellectual property rights

tariff-rate quota; a defined quota of the import in question (usually a sensitive product) that enters at a certain rate, while imports above that level face a new higher tariff rate

Traditional supply needs

Union Economique et Monétaire Ouest-africaine (West African Economic and Monetary Union)

Uruguay Round agreement on agriculture

the negotiations under the auspices of GATT that were launched at Punta del Este, Uruguay, in 1986 and concluded at Marrakesh, Morocco, in April 1994.

the package of trade agreements made at the conclusion of the Uruguay Round. The main agreement is the WTO Agreement, to which is annexed all the other trade agreements, decisions, and understandings agreed to during the Uruguay Round.

United States Department of Agriculture, Foreign Agricultural Service

vessel monitoring system (satellite-based)

West African Economic and Monetary Union

World Intellectual Property Organization

World Trade Organisation
www.wto.org

the main framework treaty creating the WTO and to which is annexed the various other Uruguay Round agreements. 146 countries have ratified or acceded to the WTO Agreement.

World Wildlife Fund

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