Agreement on Trade-Related Investment Measures

The Agreement on Trade-Related Investment Measures (TRIMs) requires that no Member will apply any TRIM that is inconsistent with the provisions of Article III (National Treatment) or Article XI (General Elimination of Quantitative Restrictions) of the GATT, unless it can be justified under GATT exceptions.

An Illustrative List of five types of TRIMs that are agreed to be inconsistent with Articles III or XI is annexed to the Agreement. The list involves measures which require particular levels of purchase or use of products of domestic origin (ie. local content requirements), or which restrict the volume or value of imports to an amount related to the level of exports (ie. trade-balancing requirements).

All TRIMs inconsistent with the Agreement must be notified within ninety days of its entry into force. TRIMs that are so notified must be eliminated within a transition period; two years for developed country Members and longer for developing and least-developed country Members. A Committee on Trade-Related Investment Measures will be established to monitor the implementation of the Agreement.

Within five years of entry into force of the WTO Agreement, consideration will be given as to whether the TRIMs Agreement should be complemented with provisions on investment and competition policies.

Recognition of Interests

Preamble

The expansion and progressive liberalization of trade and investment across international frontiers, aimed at increasing economic growth of all Members and especially that of developing country Members, is to take into account the particular trade, development and financial needs of developing country Members, particularly those of the least-developed countries.

Fewer Obligations

Developing Country Members: Article 4



Particular recognition is given to the right of developing country Members to temporarily apply TRIMs figuring in the Illustrative List in accordance with Article XVIII: C (protection of infant industries) and GATT rules on balance-of-payments safeguard measures (ie. GATT Article XVIII: B, the 1979 Declaration and the Uruguay Round Understanding).

Implementation Period

Notification and Transitional Arrangements: Article 5:2



Developing country Members will have five years to eliminate all GATT inconsistent TRIMs and developed country Members will have two years. Least-developed country Members will have a seven-year transitional period.

Notification and Transitional Arrangements: Article 5:3



A developing country Member that demonstrates particular difficulties in implementing the provisions of the Agreement may have this transitional period extended by a decision by the Council for Trade in Goods. The Council will take into account the individual development, financial and trade needs of the Member concerned.