You are on page 1of 16

Trade Related Investment Measures

(TRIMs) Agreement
TRIMs Agreement

One of the Uruguay Round Agreements1994


To be signed / accepted by all Members of WTO

Principle of Single Undertaking / Acceptance


TRIMs Agreement

It covers conditions on investment which are related


to trade in goods
Measures which are outside the domain of trade in
goods are not covered by it
TRIMs Agreement Obligation

It prohibits investment restriction which conflict with


the obligation of a member in the WTO agreement
Members not to apply TRIMs that are inconsistent
with:
 Article III of GATT 1994
 Article XI of GATT 1994

Article III of GATT 1994
 National Treatment: requires chiefly that foreign goods be
treated no worse than domestically produced goods
regarding internal taxation and regulation
Article XI Of GATT 1994
 Chiefly concerns Elimination of Quantitative Restrictions on
Imports

PROHIBITED MEASURES

The measures to be covered by the prohibition, the


general condition is that:
1. These are mandatory or enforceable under a domestic
law or under administrative rulings, or
2.Compliance with these is necessary to obtain an
advantage
Measures inconsistent with article III of GATT 1994

Particular products of domestic origin must be


purchased or used by an enterprise or
Particular volume or value of some product of
domestic origin must be purchased or used by an
enterprise, or
An enterprise must purchase or use domestic
products at least up to a particular proportion of the
volume or value of the local production of the
enterprise, or
Restricting the purchase or use of an imported
product by an enterprise to an amount related to the
export of its local production
Measures inconsistent with article XI of GATT 1994

Imposing a general restriction on the import of inputs


by an enterprise or restricting the import of inputs
to an amount related to the export of its local
production
Restricting the foreign exchange for the import of
inputs by an enterprise to an amount related to the
foreign exchange inflows attributable to the
enterprise


Restricting export by an enterprise by specifying the
products so restricted, the volume or value of
products so restricted, or the proportion of its local
production so restricted
Elimination of Notified TRIMs

 Developed countries: within 2 years


 Developing countries: within 5 years
 Least developed countries: within 7 years
 Extension possible on application to Council for Trade
in Goods

(of coming into force of WTO agreements)



Administration of TRIMs Agreement

Agreement establishes a Committee on TRIMs


Committee to monitor operation and implementation
of Agreement
Committee to report annually to Council for Trade in
Goods
Consultation and Dispute Settlement

 Articles XXII and XXIII of GATT 1994 on


consultations apply, as elaborated by Dispute
Settlement Understanding
Built in Agenda

Council for Trade in Goods to review operation of


Agreement not later than 5 years of coming into
force of WTO Agreement
Review to consider whether Agreement be
complemented with provisions on investment policy
and competition policy
 For more
information log on
www.wto.org

 Thank you