October 15, 2021...7:03 am

What Is Trims Agreement

The Agreement on Trade-Related Investment Measures (TRIMs) is a rule applicable to domestic regulations that a country applies to foreign investors, often as part of an industrial policy. The agreement, concluded in 1994, was negotiated under the WTO`s predecessor, the General Agreement on Tariffs and Trade (GATT), and entered into force in 1995. The agreement was approved by all members of the World Trade Organization. Trade-related investment measures are one of the four main legal agreements of the WTO Trade Agreement. In the Punta del Este Ministerial Declaration, which launched the Uruguay Round, the issue of trade-related investment measures was included as the theme of the new round through a carefully prepared compromise: having considered the application of GATT articles in the context of the restrictive and trade-distorting effects of investment measures, other provisions should be developed in the course of the negotiations, if necessary, which may be necessary to avoid such negative effects on trade. The focus on trade effects in this mandate made it clear that the negotiations were not intended to address investment regulation as such. The Uruguay Round negotiations on trade-related investment measures were marked by strong differences of opinion among participants on the coverage and nature of possible new disciplines. While some developed countries have proposed provisions that would prohibit a wide range of measures in addition to local content requirements that were found to be inconsistent with Article III of the FIRA Group, many developing countries have rejected it. The compromise that ultimately emerged from the negotiations is essentially limited to an interpretation and clarification of the application of GATT provisions on domestic treatment of imported products (Article III) and quantitative restrictions on imports or exports (Article XI) to trade-related investment measures. As a result, the TRIPS Agreement does not cover many of the measures discussed in the Uruguay Round negotiations, such as export performance and technology transfer requirements. In addition to the TRIMs agreement, there are other investment agreements that can help your company compete in the international market.