Trade balance refers to the difference between the value of a country's exports and imports over a certain period. A positive Trade balance indicates a surplus, while a negative balance indicates a deficit, impacting the nation's economy and currency valuation.
Deadweight loss refers to the inefficiency caused in a market when supply and demand are out of equilibrium, typically due to external interventions like taxes, price ceilings, or subsidies. It represents the total loss of economic welfare that occurs because resources are not allocated optimally, leading to a decrease in total surplus for society.
The Agreement on Customs Valuation establishes a fair, uniform, and neutral system for the valuation of goods for customs purposes, ensuring that the process is not used as a tool for protectionism. It is based on the transaction value of the imported goods, which is the price actually paid or payable for the goods when sold for export to the country of importation, adjusted in accordance with the provisions of the Agreement.