Commercial policy
Encyclopedia
A commercial policy is a governmental policy governing trade with third countries
. This covers tariffs, trade subsidies, import quota
s, Voluntary Export Restraints
, restrictions on the establishment of foreign-owned businesses, regulation of trade in services and other barriers to international trade.
These are sometimes restricted within a customs union
. In the case of the European Union
, commercial policy has been dealt with in common since it was created in 1957. A common commercial policy is also an aim of Mercosur
.
International trade
International trade is the exchange of capital, goods, and services across international borders or territories. In most countries, such trade represents a significant share of gross domestic product...
. This covers tariffs, trade subsidies, import quota
Import quota
An import quota is a type of protectionist trade restriction that sets a physical limit on the quantity of a good that can be imported into a country in a given period of time....
s, Voluntary Export Restraints
Voluntary Export Restraints
A voluntary export restraint or voluntary export restriction is a government imposed limit on the quantity of goods that can be exported out of a country during a specified period of time....
, restrictions on the establishment of foreign-owned businesses, regulation of trade in services and other barriers to international trade.
These are sometimes restricted within a customs union
Customs union
A customs union is a type of trade bloc which is composed of a free trade area with a common external tariff. The participant countries set up common external trade policy, but in some cases they use different import quotas...
. In the case of the European Union
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...
, commercial policy has been dealt with in common since it was created in 1957. A common commercial policy is also an aim of Mercosur
Mercosur
Mercosur or Mercosul is an economic and political agreement among Argentina, Brazil, Paraguay and Uruguay. Founded in 1991 by the Treaty of Asunción, which was later amended and updated by the 1994 Treaty of Ouro Preto. Its purpose is to promote free trade and the fluid movement of goods, people,...
.
See also
- Commerce ministerCommerce MinisterA Business minister is a position in many governments that is responsible for regulating external trade and promoting economic growth...
- ProtectionismProtectionismProtectionism is the economic policy of restraining trade between states through methods such as tariffs on imported goods, restrictive quotas, and a variety of other government regulations designed to allow "fair competition" between imports and goods and services produced domestically.This...
- Free tradeFree tradeUnder a free trade policy, prices emerge from supply and demand, and are the sole determinant of resource allocation. 'Free' trade differs from other forms of trade policy where the allocation of goods and services among trading countries are determined by price strategies that may differ from...
- Customs unionCustoms unionA customs union is a type of trade bloc which is composed of a free trade area with a common external tariff. The participant countries set up common external trade policy, but in some cases they use different import quotas...
- European Commissioner for TradeEuropean Commissioner for TradeThe European Commissioner for Trade is the member of the European Commission responsible for the European Union's common commercial policy...
- Trade policy of Japan
- Trade policy of the United States