Trims Agreement

Trade Related Investment Measures (TRIMs) Agreement

TRIMs Agreement One of the Uruguay Round Agreements1994 To be signed / accepted by all Members of WTO Principle of Single Undertaking / Acceptance 

TRIMs Agreement It covers conditions on investment which are related

to trade in goods Measures which are outside the domain of trade in goods are not covered by it

TRIMs Agreement Obligation It prohibits investment restriction which conflict with

the obligation of a member in the WTO agreement Members not to apply TRIMs that are inconsistent with:

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Article III of GATT 1994

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Article XI of GATT 1994

Article III of GATT 1994  National Treatment: requires chiefly that foreign goods be treated no worse than domestically produced goods regarding internal taxation and regulation Article XI Of GATT 1994  Chiefly concerns Elimination of Quantitative Restrictions on Imports 

PROHIBITED MEASURES The measures to be covered by the prohibition, the

general condition is that: 1. These are mandatory or enforceable under a domestic law or under administrative rulings, or 2.Compliance with these is necessary to obtain an advantage

Measures inconsistent with article III of GATT 1994 Particular products of domestic origin must be

purchased or used by an enterprise or Particular volume or value of some product of domestic origin must be purchased or used by an enterprise, or An enterprise must purchase or use domestic products at least up to a particular proportion of the volume or value of the local production of the enterprise, or

Restricting the purchase or use of an imported

product by an enterprise to an amount related to the export of its local production

Measures inconsistent with article XI of GATT 1994 Imposing a general restriction on the import of inputs

by an enterprise or restricting the import of inputs to an amount related to the export of its local production Restricting the foreign exchange for the import of inputs by an enterprise to an amount related to the foreign exchange inflows attributable to the enterprise 

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Restricting export by an enterprise by specifying the

products so restricted, the volume or value of products so restricted, or the proportion of its local production so restricted

Elimination of Notified TRIMs  Developed countries: within 2 years  Developing countries: within 5 years  Least developed countries: within 7 years  Extension possible on application to Council for Trade

in Goods (of coming into force of WTO agreements)

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Administration of TRIMs Agreement Agreement establishes a Committee on TRIMs Committee to monitor operation and implementation

of Agreement Committee to report annually to Council for Trade in

Goods

Consultation and Dispute Settlement 

Articles XXII and XXIII of GATT 1994 on consultations apply, as elaborated by Dispute Settlement Understanding

Built in Agenda Council for Trade in Goods to review operation of

Agreement not later than 5 years of coming into force of WTO Agreement Review to consider whether Agreement be complemented with provisions on investment policy and competition policy

For more information log on www.wto.org 

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