Agreement on trade-related investment measures

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The Agreement on Trade-Related Investment Measures (TRIMs) is an international agreement that is part of the World Trade Organization (WTO) framework. It was negotiated during the Uruguay Round of trade negotiations and came into effect on January 1, 1995.

The TRIMs agreement aims to regulate and liberalize investment measures that affect trade. It establishes rules and principles concerning certain investment-related measures that can distort trade or create barriers to foreign investment. The agreement seeks to eliminate or minimize these measures to create a more open and transparent investment environment.

The key provisions of the TRIMs agreement include:

  1. National Treatment: The agreement prohibits discrimination between foreign and domestic investors. It requires WTO members to treat foreign investors and their investments no less favorably than domestic investors and their investments.
  2. Performance Requirements: The agreement restricts the use of certain performance requirements that can distort trade and investment. Performance requirements may include conditions such as local content requirements, export obligations, technology transfer, or the use of specific types of inputs.
  3. Prohibition of Import and Export Restrictions: The agreement prohibits WTO members from imposing certain import and export restrictions on products, such as requirements to purchase locally produced goods or export restrictions on raw materials.
  4. Transparency and Review Mechanism: The agreement emphasizes transparency in the implementation of investment measures. It requires WTO members to notify their investment measures to the WTO and undergo regular reviews to ensure compliance with the agreement.

The TRIMs agreement provides a framework for regulating investment measures and promoting fair and transparent investment policies. By eliminating or minimizing trade-distorting measures, it aims to create a level playing field for foreign investors and encourage international investment flows.

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