Trade-Related Investment Measures is the name of one of the four main legal agreements of the World Trade Organization (WTO), the trade agreement. Sorting is a rule that restricts the preference of domestic companies and thus allows international companies to operate more easily in foreign markets. The TRIPS agreement prohibits certain measures that violate national treatment and quantity requirements imposed by the General Agreement on Tariffs and Trade (GATT). In addition to the TRIMs agreement, there are other investment agreements that can help your business compete with the international market. The United States has bilateral investment agreements with 40 countries. These agreements generally offer comprehensive investment protection, including local content disciplines and commercial compensation. The full text of the bilateral investment contracts is available on the website of the Trade Ministry`s Trade Negotiations and Compliance Office. Similar provisions have also been introduced in the investment chapters of some U.S. free trade agreements, such as NAFTA, with Korea and Panama and others. The Trade-Related Investment Measures Agreement (TRIM) is a rule that applies to national rules applied by a country to foreign investors, often as part of an industrial policy. The 1994 agreement was negotiated under the WTO`s predecessor, the General Agreement on Tariffs and Trade (GATT), and came into force in 1995. The agreement was reached by all members of the World Trade Organization.
Trade-related investment measures are one of the four main legal agreements in the WTO trade agreement. Browse or download the text of the TRIMs agreement in the Gateway Legal Texts The Agreement on Trade-Related Investment Measures (TRIMS) calls for the introduction of domestic treatment of foreign investment and the removal of quantitative restrictions. It refers to five investment measures incompatible with the General Trade and Customs Agreement (GATT) on the widespread elimination of quantitative restrictions by national treatment. These are measures imposed on foreign investors to use local inputs, to produce exports as preconditions for obtaining imported goods as inputs, to compensate for foreign exchange transfers on the import of intermediate goods using foreign exchange products through export, and not to export more than part of local production. These notified TRIMs were to be removed by December 31, 1999. None of these measures are currently in effect. As a result, India has no outstanding obligations under the TRIMs agreement with respect to notified TRIMs. Pending the conclusion of the Uruguay Round negotiations, which resulted in a well-concluded agreement on trade-related investment measures (the “TRIMs agreement”), the few international agreements providing for disciplines for foreign investment restraint measures have provided only limited guidance on substance and countries. The OECD Code on the Liberalization of Capital Movements, for example, requires members to liberalize restrictions on direct investment in a number of areas. However, the effectiveness of the OECD code is limited by the many reservations of each member.  The Ministerial Declaration of Punta del Este, which launched the Uruguay Round, addressed the issue of trade-related investment measures as the theme of the new round through a carefully crafted compromise: after examining the functioning of the GATT articles with regard to the restrictive and trade-distorting effects of investment measures, negotiations should be , if necessary, develop other provisions that may be necessary to avoid such adverse effects on trade. The emphasis on the commercial effects of this mandate highlighted the fact that the negotiations were not intended to deal with the regulation of investments as such.