Trims Agreement

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. Browse or download the text of the TRIMs agreement from the legal texts Gateway Trade-Related Investment Measures is the name of one of the four main legal agreements of the World Trade Organization (WTO), trade treaty. 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). The Ministerial Declaration of Punta del Este, which launched the Uruguay Round, addressed the issue of trade-related investment measures as a theme of the new round through a carefully crafted compromise: after examining the functioning of GATT articles with regard to the restrictive and trade-distorting effects of investment measures, negotiations should, if necessary, develop other provisions that might be necessary to avoid such negative effects. 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.

The Uruguay Round negotiations on trade-related investment measures were marked by strong differences of opinion among participants on the coverage and nature of possible new disciplines. While some industrialized countries have proposed provisions prohibiting a wide range of measures in addition to local content requirements, which were found to be inconsistent with Article III in the case of the FIRA Panel, many developing countries have opposed them. The compromise that ultimately resulted from the negotiations is essentially limited to an interpretation and clarification of the application of the GATT provisions on the questioning of imported goods (Article III) and quantitative import or export restrictions on trade-related investment measures (Article XI). The TRIPS agreement therefore does not cover many of the measures discussed in the Uruguay Round negotiations, such as export results and technology transfer. As an agreement based on THE existing GATT disciplines on trade in goods, the agreement does not deal with the regulation of foreign investment. The disciplines of the TRIPS agreement focus on investment measures that are contrary to Articles III and XI of the GATT, i.e. that distinguish imported and exported goods and/or create import or export restrictions. For example, a local content requirement, which is not discriminatory for domestic and foreign companies, is contrary to the TRIM agreement, as it involves discriminatory treatment of imported products in favour of domestic products.