The organization established at the end of World War II to promote free trade; also, the treaty signed by member nations.
World Trade Organization (WTO)
The successor to the General Agreement on Tariffs and Trade (GATT).
Preferential Trade Agreement (PTA)
A trade agreement between a relatively small number of signatory nations, often on a regional or subregional basis. Different levels of economic integration can characterize such trade agreements.
Free Trade Area (FTA)
A preferential trade bloc whose members have signed a free trade agreement that entails reducing or eliminating tariffs and quotas.
Free Trade Agreement (FTA)
An agreement that leads to the creation of a free trade area. This represents a relatively low level of economic integration.
Trans-Pacific Partnership (TPP)
A proposed 12-nation free-trade area that includes Japan and the United States.
Transatlantic Trade and Investment Partnership (TTIP)
A proposed free-trade area that includes the United States and the EU.
Rules of Origin
A system of certification that verifies the country of origin of a shipment of goods.
A preferential trade bloc whose members agree to seek a greater degree of economic integration than is provided by a free trade agreement. In addition to reducing tariffs and quotas, a customs union is characterized by a common external tariff (CET).
Common External Tariffs (CETs)
A tariff agreed upon by members of a preferential trading bloc. Implementation of a CET marks the transition from a free trade area to a customs union.
A preferential trade agreement that builds on the foundation of economic integration provided by a free trade area and a customs union.
CARICOM (Caribbean Community and Common Market)
Formed in 1973, a free trade area whose members include Antigua and Barbuda, Bahamas, Barbados, Belize, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, and Trinidad and Tobago.
A highly evolved form of cross-border economic integration involving reduced tariffs and quotas, a common external tariff, reduced restrictions on the movement of labor and capital, and the creation of unified economic policies and institutions such as a central bank.
North American Free Trade Agreement (NAFTA)
A free trade area encompassing Canada, the United States, and Mexico.
Central American Integration System
A customs union comprised of El Salvador, Honduras, Guatemala, Nicaragua, Costa Rica, and Panama.
A customs union comprised of Bolivia, Colombia, Ecuador, Peru, and Venezuela.
Common Market of the South
aka Mercosur. A customs union comprised of Argentina, Brazil, Paraguay, Uruguay, and Venezuela.
Association of Southeast Asian Nations (ASEAN)
A trade bloc comprised ofBrunei, Cambodia, Indonesia, Malaysia, Laos, Myanmar, the Philippines, Singapore, Thailand, and Vietnam.
The 1991 treaty that set the stage for the transition from the European monetary system to an economic and monetary union.
Sixteen countries that use the euro: Austria, Belgium, Cyprus, Finland, Ireland, the Netherlands, France, Germany, Greece, Italy, Luxembourg, Malta, Portugal, Slovakia, Slovenia, and Spain.
The coming together of varying standards and regulations that affect the marketing mix.
Openness in business dealings, financial disclosures, pricing, or other situations where the goal is to remove layers of secrecy or other obstacles to clear the way for understanding and decision making.
Gulf Cooperation Council (GCC)
An association of oil producing states that includes Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates.
Economic Community of West African States (ECOWAS)
An association of 16 nations that includes Benin, Burkina Faso, Cape Verde, Gambia, Ghana, Guinea, Guinea-Bissau, Ivory Coast, Liberia, Mali, Mauritania, Niger, Nigeria, Senegal, Sierra Leone, and Togo.
Southern African Development Community (SADC)
An association whose member states are Angola, Botswana, Democratic Republic of Congo, Lesotho, Malawi, Mauritius, Mozambique, Namibia, Seychelles, South Africa, Swaziland, Tanzania, Zambia, and Zimbabwe.