Trade preference

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A trade preference is preference by one country for buying goods from some other country more than from other countries. It grants special support to one country over another. It is the opposite of a trade prohibition.

A trade prohibition is a restriction in which one country will not buy goods from another country unless certain standards are met or conditions are followed, such as labor standards and environmental standards. It is the opposite of a trade preference. An example would be a ban on goods produced from forced labor.

See also

The EUR.1 movement certificate is a form used in international commodity traffic. The EUR.1 is most importantly recognized as a certificate of origin in the external trade in legal sense, especially within the framework of several bi- and multilateral agreements of the Pan-European preference system.

Rules of origin are considered as the rules to attribute a country of origin to a certain product, or the rules to determine the “economic nationality” thereof. The need to establish rules of origin stems from the fact that in various cases, the implementation of trade policy measures, such as tariffs, quotas, trade remedies, depends on the country of origin of a good.

A trade mandate is a restriction in which one country will only buy goods if a certain standard is met or conditions are followed. It grants special support to one country over another more than just a simple trade preference. It functions in a similar way to a trade prohibition, without actually formally being one.

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