The Wto Agreement Related To Investment Measures Is

The Agreement on Trade-Related Investment Measures (TRIMs) is often applicable to a country`s national rules towards 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 entered into force in 1995. The agreement was concluded 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. No later than five years after the entry into force of the WTO Agreement, the Council for Trade in Goods shall review the application of this Agreement and, where appropriate, propose to the Ministerial Conference that its text be amended. As part of this review, the Council for Trade in Goods is examining whether there is a way to supplement the agreement with provisions on investment policy and competition policy. point (a) of paragraph 1 of the illustrative list includes local content TRIMs requiring the purchase or use of domestic products or sources by an undertaking (local content requirements), while point (b) of paragraph 1 covers the commercial compensation of TRIMs limiting the purchase or use of imported products by an undertaking to an amount; that feeds according to the volume or value of the local products it exports. In both cases, the inconsistency with Article III(4) of the GATT 1994 results from the fact that the measure subjects imported products (intended for purchase or use by an enterprise) to less favourable conditions than domestic products (intended for purchase or use by enterprises). The Committee on Trade-Related Investment Measures monitors the implementation and implementation of the TRIPS Agreement and allows members to consult on all related matters. The Committee shall report to the Trade in Goods Council. The current presidency is.

Article 7 of the TRIPS Agreement insinuates a Committee on Trade-Related Investment Measures as a forum for the review of the implementation of the Agreement. The Committee shall meet at least once a year. Much of the Committee`s early work focused on notifications received under Article 5(1) of the Agreement. Today, the Committee`s work focuses primarily on addressing the specific concerns expressed by some members regarding other members` trade-related investment measures. The concept of trade-related investment measures (TRIM) is not defined in the agreement. However, the Agreement contains in an Annex an illustrative list of measures inconsistent with Article III:4 of the GATT or Article XI:1 of the GATT 1994. This agreement, negotiated in the framework of the Uruguay Round, applies only to measures affecting trade in goods. Considering that certain investment measures may have restrictive and trade-distorting effects, it is stated that no Member may apply a measure prohibited by Article III (national treatment) of the GATT (national treatment) or Article XI (quantitative restrictions). The scope of the Agreement is set out in Article 1, which provides that the Agreement shall apply only to investment measures related to trade in goods. Therefore, the TRIMs agreement does not apply to services. The measures referred to in point (b) of paragraph 2 of the List shall provide for an import restriction in the form of a foreign exchange balance obligation.

The importation by an enterprise of products used or related to local production is limited by limiting the enterprise`s access to foreign currency to an amount related to the foreign exchange inflows attributable to the enterprise. . . .