Parallel Imports

Parallel Imports and the GATT Policy Negotiations

In relation to the GATT Policy Negotiations, Christopher Mark (1993) provided the following explanation and/or definition of Parallel Imports: Goods, which are authorized by the owner of intellectual properly rights for sale in one country, but which are then subsequently shipped to another country without the owner’s permission. Traders who engage in such activities are known as parallel traders. Parallel imports are likely to occur when a trader can purchase a particular good in one country and resell the good in another country at a price which is sufficiently higher to cover the costs of the operation; such activities take place at the expense of the rights owner and of authorized licensees. Many LDCs have laws that prevent intellectual property owners from enforcing restrictions on licensees’ exports (seecompulsory licensing and the exhaustion principle).

In the United States

For information about Parallel Imports in the context of international trade, click here

Parallel Imports in International Trade

Meaning of Parallel Imports, according to the Dictionary of International Trade (Global Negotiator): Imports made by parties other than the factory-authorized importer. See also gray market.

Resources

See Also

Further Reading

• Information about Parallel Imports in the Encyclopedia of World Trade: from Ancient Times to the Present (Cynthia Clark Northrup)

Parallel Imports and the Laws of International Trade

Gray Market Goods

Gray Market Goods