Trims Agreement Features

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. 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). Under the TRIM agreement, members are required to report their existing TRIMs to the WTO Merchandise Exchange Council that are incompatible with the agreement. 1. Within 90 days of the WTO agreement coming into force, members report to the Commodity Exchange Council any TRIPS they apply that do not comply with the provisions of this agreement.

These uses, general or specific, must be notified with their main characteristics (1). 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. [2] These notified TRIMs are expected 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. The Trade-Related Investment Measures Agreement (TRIMS) calls for the introduction of national 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.

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