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Business Reading Room
Glossary and Acronyms - from M to
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A An
B C Con D E F G H
I J K L M N O P Q R S Sp T U VWXYZ
Maastricht Treaty
The Maastricht Treaty (named for the Dutch town in which the treaty was signed) is
also known as the Treaty of European Union. The treaty creates a European Union by:
(a) commiting the 12 member states of the European Economic Community to both
European Monetary Union (EMU) and political union;
(b) introducing a single currency (European Currency Unit, ECU);
(c) establishing a European System of Central Banks (ESCB);
(d) creating a European Central Bank (ECB); and
(e) broadening EEC integration by including both a common foreign and security
policy (CFSP) and cooperation in justice and home affairs (CJHA).
The treaty, negotiated in 1991 and signed in February 1992, entered into force on
November 1, 1993. The Maastricht Treaty envisioned EMU being achieved in three stages:
- A first stage (encompassing treaty negotiations and lasting through January 1,
1994) concludes with ratification of treaty amendments needed to establish EMU, including
participation by all 12 EEC member states in the Exchange Rate Mechanism;
- A second stage (January 1, 1994 through no later than January 1, 1999) involves
establishment of the European Monetary Institute (EMI) to support development of a single
currency (the ecu) and development of the ECB;
- A third stage (starting no later than January 1, 1999) involves irrevocable
fixing of exchange rates and the debut of the ECB with transfer of powers necessary for
administering economic and monetary union.
Maghreb States
The Maghreb states include the three nations of Algeria, Morocco, and Tunisia. The
European Community concluded a trade and aid agreement in 1976 with these states. The term
Maghreb states sometimes also includes Libya and Mauritania. The five Maghreb states
created the Arab Maghreb Union.
Manifest.
See Ship's manifest.
Manufactured Imports Promotion Organization
MIPRO is a non-profit organization, established in 1978 by the joint efforts of the
Japanese Government and the private sector to promote imports of foreign manufactured
products by hosting exhibitions and providing a wide range of market information. MIPRO's
activities are broadly classified into three categories:
(a) holding imported product trade exhibitions for buyers and the general public;
(b) disseminating information regarding imported products and the Japanese market; and
(c) promoting sales of foreign products to Japanese consumers to promote recognition of
the quality of imported goods.
Maquiladora
The maquiladora (or "in-bond" industry) program allows foreign
manufacturers to ship components into Mexico duty-free for assembly and subsequent
reexport. Industry established under the maquiladora program is Mexico's second largest
source of foreign revenue (following oil exports). The maquiladora programs was
established in 1965; in December 1989, the Mexican government liberalized the maquiladora
program to make this a more attractive and dynamic sector of the economy. As a result,
maquiladora operations may import, duty and import license free, products not directly
involved in production, but that support production, including computers and other
administrative materials and transportation equipment.
Marine Cargo Insurance
Broadly, insurance covering loss of, or damage to, goods at sea. Marine insurance
typically compensates the owner of merchandise for losses in excess of those which can be
legally recovered from the carrier that are sustained from fire, shipwreck, piracy, and
various other causes. Three of the most common types of marine insurance coverage are
"free of particular average" (f.p.a.), "with average" (w.a.), and
"All Risks Coverage."
Market Access
Market access refers to the openness of a national market to foreign products.
Market access reflects a government's willingness to permit imports to compete relatively
unimpeded with similar domestically produced goods.
Market Disruption
Market disruption refers to the situation which is created when a surge of imports
in a given product line causes sales of domestically produced goods in a particular
country to decline to an extent that the domestic producers and their employees suffer
major economic hardship.
Market-Oriented Cooperation Plan
The MOCP, established in 1990, is aimed at improving long-term business relations
between Japan's automotive manufacturers and U.S. auto parts suppliers.
Market-Oriented Sector-Selective
The MOSS talks were begun in January 1985 as bilateral trade discussions between
the U.S. and Japan in an effort to remove many trade barriers at once in a given sector.
MOSS talks have focused on five sectors: (a) telecommunications, (b) medical equipment and
pharmaceuticals, (c) electronics, (d) forest products, and (e) auto parts. Overall, the
talks focus high-level attention on reducing certain market obstacles opening
communication channels to resolve follow-up disputes.
Market Oriented Sector Specific Negotiations
(MOSS)
Sectoral trade negotiations between the governments of the United
States and Japan. As of 1995, the only active MOSS negotiations dealt with medical
equipment and technology. Remaining MOSS talks occur under the Framework Agreement.
The Market Promotion Program
(MPP) was authorized by the Food, Agriculture, Conservation, and Trade Act of 1990
and is administered by the U.S. Department of Agriculture's Foreign Agricultural Service.
Under the MPP, surplus stocks or funds from the Commodity Credit Corporation are used to
partially reimburse agricultural organizations conducting specific foreign market
development projects for eligible products in specified countries. Proposals for MPP
programs are developed by trade organizations and private firms. Activities financed by
the programs vary from commodity to commodity, and include activities such as market
research, construction of a three-story wood demonstration building, construction of a
model feed mill, and consumer promotion activities. (MPP is broader in scope than the
Targeted Export Assistance [TEA] program, repealed by the 1990 Farm Bill, whose purpose
was to assist exports of commoditis hurt by unfair foreign trade practices.)
Marking (or Marks).
Letters, numbers, and other symbols placed on cargo packages to
facilitate identification.
Marks of Origin
The physical markings on a product that indicate the country of origin where the
article was produced. Customs rules require marks of origin of most countries.
Master Air Waybill (MAWB).
An air waybill issued by an airline, not a freight forwarder. MAWB
refers to the air waybill governing all MAWBS on a consolidated air shipment.
Matchmaker Events
Matchmaker trade delegations are organized and led by the International Trade
Administration to help new-to-export and new-to-market firms meet prescreened prospects
who are interested in their products or services in overseas markets. Matchmaker
delegations usually target two major country markets and limit trips to a week or less.
This approach is designed to permit U.S. firms to interview a maximum number of
prospective overseas business partners with a minimum of time away from their home office.
The program includes U.S. embassy support, briefings on market requirements and business
practices, and interpreter services. Matchmaker events, based on specific product themes
and end-users, are scheduled for a limited number of countries each year.
MDBs
See under Multilateral Development Banks.
Mercosur
Mercosur (Spanish; Mercosul in Portuguese; or Southern Common Market) is comprised of
Argentina, Brazil, Paraguay, and Uruguay. Mercosur is scheduled to enter into force in
December 1994 for Argentina and Brazil and to enter into force in December 1995 for
Paraguay and Uruguay. Mercosur, modeled similarly to the European Community's Treaty of
Rome, will establish a common external tariff and eliminate barriers to trade in services.
While in the Southern Cone, Chile has not sought entry to Mercosur, but does have an
agreement with Argentina which will provide for some similar benefits.
Military Critical Technologies List
The MTCL is a document listing technologies that the U.S. Defense Department considers to
have current or future utility in military systems. The MCTL describes arrays of design
and manufacturing know-how; keystone manufacturing, inspection, and test equipment; and
goods accompanied by sophisticated operation, application, and maintenance know-how.
Military justification for each entry is included in a classified version of the list.
Ministry of Foreign Economic Relations and Trade
The People's Republic of China (PRC) Ministry of Foreign Economic Relations and Trade,
MOFERT, was established in March 1982 by combining former separate ministries. MOFERT
implements national trade policies through administrative actions, drafting laws and
issuing foreign trade regulations. MOFERT does not engage in foreign trade transactions
but facilitates the foreign trading corporations (FTCs) which do.
Ministry of Health and Welfare
Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating
medical products. The Ministry also is charged with determining Japanese healthcare
expenditures.
Ministry of International Trade and Industry
MITI occupies a central position in Japan's "economic bureaucracy" and is
regarded as one of the three most powerful and prestigious ministries of the central
government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In
formulating and implementing Japan's trade and industrial policies, MITI is responsible
for funding most of Japan's export promotion programs (although operation of these
programs is left to JETRO). The Ministry also supervises the export financing programs of
Japan's Export-Import Bank, operates several types of export insurance programs, supports
research organizations, and facilitates various types of overseas technical and
cooperation training programs. Lately, MITI has assumed a role in encouraging imports of
foreign products into Japan.
Ministry of Posts and Telecommunications
MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust
supply and demand among service providers to ensure that there is not excessive
competition in a given market. To do so, MPT issues "administrative guidance" to
the industry and recommends "unification" when there appears to be excessive
competition in a given market.
Mixed Credit
Mixed credit refers to the practice of combining concessional and market-rate export
credit as an export promotion mechanism.
MOE - Major Office Equipment Justification Form
MOFERT
China's Ministry of Foreign Economic Relations and Trade -
responsible for screening and approving the implementation of the three types of
enterprises with foreign investment in China: the
Wholly Foreign-Owned Venture, the Contractual Joint Venture and the
Equity Joint Venture.
MOSS
See Market Oriented Sector Specific Negotiations.
Most Favored Nation Treatment
A commitment that a country will extend to another country the lowest tariff rates it
applies to any other country. All contracting parties undertake to apply such treatment to
one another under Article I of GATT. When a country agrees to cut tariffs on a particular
product imported from one country, the tariff reduction automatically applies to imports
of this product from any other country eligible for most-favored nation treatment. This
principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade
agreements prior to establishment of GATT. A country is under no obligation to extend MFN
treatment to another country unless both are bilateral contracting parties of the General
Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement.
Multi-Fiber Arrangement
The MFA is an international umbrella compact, authorized by the General Agreement on
Tariffs and Trade (GATT), that allows contracting parties to negotiate bilaterally
quantitative restrictions on textile imports (which normally would be considered contrary
to GATT provisions) to the extent the importing country considers them necessary to
prevent market disruption. The Uruguay Round Agreement on Textiles and Clothing contains
an agreed schedule for the gradual phase-out of quotas established pursuant to the MFA
over a ten-year transition period, after which textile and clothing trade will be fully
integrated into the GATT and subject to the same disciplines as other sectors.
Multilateral Agreement
An international compact in which three or more parties participate.
Multilateral Development Banks
There are five MDBs.
See: African Development Bank Asian Development Bank European Bank for Reconstruction and
Development Inter-American Development Bank World Bank.
Multilateral Investment Fund
The MIF provides program and project grants to advance investment reform and technical
assistance for privatization movements in Latin America and the Caribbean and to encourage
domestic and foreign investment in the area. The Fund, an outgrowth of the Enterprise for
the Americas Initiative, is administered by the Inter-American Development Bank. MIF was
established in January 1993.
Multilateral Investment Guarantee Agency
MIGA was established in April 1988 as a part of the World Bank Group. MIGA encourages
equity investment and other direct investment flows to developing countries through the
mitigation of noncommercial investment barriers. The agency offers investors guarantees
against non-commercial risks; advises developing member governments on the design and
implementation of policies, programs, and procedures related to foreign investments; and
sponsors a dialogue between the international business community and host governments on
investment issues. MIGA provides coverage for equity interests, other forms of direct
investment, industrial cooperation such as management and service contracts, licensing and
franchising agreements, turnkey contracts, and arrangements concerning transfer of
technology and know-how in which the investor assumes a stake in the performance of the
venture.
Multilateral Steel Agreement
Attainment of an MSA was an achievement intended as part of the Steel Trade Liberalization
Program and resulting the Bilateral Consensus Agreements. The MSA would have addressed the
underlying causes of unfair trade in steel by eliminating tariffs, nontariff measures such
as quotas, and most subsidies in the steel sector, and established a dispute-settlement
mechanism. The United States and 34 other countries participated in negotiations for an
MSA under the general auspices of the General Agreement on Tariffs and Trade. MSA
negotiations were suspended in March 1992, coincident with the expiration of the steel
voluntary restraint agreements.
Multilateral Trade Negotiations
A term describing the eight multilateral rounds of negotiations held under the auspices of
the General Agreement on Tariffs and Trade since 1947.
Multinational Corporation
A multinational corporation is a business which owns or controls product or service
facilities outside the country in which it is based.
Mutual Recognition Agreements
MRAs are negotiated on a sectoral basis (such as: telecommunciations, medicial devices,
pharmaceuticals, chemicals, processed foods) and allow countries to accept each other's
final test results, although quality assurances may be required. Under MRAs, the entire
testing and certification process may occur outside the importing country. Under MRA's
with the European Community, a U.S. firm would obtain product certification on an EC-wide
basis, enabling the firms to market its products throughout the Community. Based on
private-law contractual negotiations, subcontracting permits a notified body of the EC to
delegate some of its testing responsibilities to a third-country testing lab or quality
assessment body. However, the notified body retains ultimate responsibility for final
decisions relating to EC certification. Formal discussions between representatives of the
U.S. Government and the European Economic Community on entering MRSs began in October
1992.
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