7/29/2019 21093108 TRIMS Agreement
1/16
Trade Related Investment Measures
(TRIMs) Agreement
7/29/2019 21093108 TRIMS Agreement
2/16
TRIMs Agreement
One of the Uruguay Round Agreements1994To be signed / accepted by all Members of WTO
Principle of Single Undertaking / Acceptance
7/29/2019 21093108 TRIMS Agreement
3/16
TRIMs Agreement
It covers conditions on investment which are relatedto trade in goods
Measures which are outside the domain of trade ingoods are not covered by it
7/29/2019 21093108 TRIMS Agreement
4/16
TRIMs Agreement Obligation
It prohibits investment restriction which conflict withthe 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
7/29/2019 21093108 TRIMS Agreement
5/16
Article III of GATT 1994National Treatment: requires chiefly that foreign goods be
treated no worse than domestically produced goodsregarding internal taxation and regulation
Article XI Of GATT 1994Chiefly concerns Elimination of Quantitative Restrictions on
Imports
7/29/2019 21093108 TRIMS Agreement
6/16
PROHIBITED MEASURES
The measures to be covered by the prohibition, thegeneral condition is that:
1.These are mandatory or enforceable under a domesticlaw or under administrative rulings, or
2.Compliance with these is necessary to obtain anadvantage
7/29/2019 21093108 TRIMS Agreement
7/16
Measures inconsistent with article III of GATT 1994
Particular products of domestic origin must bepurchased or used by an enterprise or
Particular volume or value of some product of domestic origin must be purchased or used by anenterprise, or
An enterprise must purchase or use domesticproducts at least up to a particular proportion of the volume or value of the local production of theenterprise, or
7/29/2019 21093108 TRIMS Agreement
8/16
Restricting the purchase or use of an importedproduct by an enterprise to an amount related to theexport of its local production
7/29/2019 21093108 TRIMS Agreement
9/16
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 inputsto an amount related to the export of its localproduction
Restricting the foreign exchange for the import of inputs by an enterprise to an amount related to theforeign exchange inflows attributable to theenterprise
7/29/2019 21093108 TRIMS Agreement
10/16
Restricting export by an enterprise by specifying theproducts so restricted, the volume or value of products so restricted, or the proportion of its localproduction so restricted
7/29/2019 21093108 TRIMS Agreement
11/16
Elimination of Notified TRIMs
Developed countries: within 2 years
Developing countries: within 5 years
Least developed countries: within 7 yearsExtension possible on application to Council for Trade
in Goods
(of coming into force of WTO agreements)
7/29/2019 21093108 TRIMS Agreement
12/16
Administration of TRIMs Agreement
Agreement establishes a Committee on TRIMsCommittee to monitor operation and implementation
of Agreement
Committee to report annually to Council for Trade inGoods
7/29/2019 21093108 TRIMS Agreement
13/16
Consultation and Dispute Settlement
Articles XXII and XXIII of GATT 1994 onconsultations apply, as elaborated by Dispute
Settlement Understanding
7/29/2019 21093108 TRIMS Agreement
14/16
Built in Agenda
Council for Trade in Goods to review operation of Agreement not later than 5 years of coming intoforce of WTO Agreement
Review to consider whether Agreement becomplemented with provisions on investment policy and competition policy
7/29/2019 21093108 TRIMS Agreement
15/16
For more
information log on www.wto.org
http://www.wto.org/http://www.wto.org/7/29/2019 21093108 TRIMS Agreement
16/16
Thank you