3. TRIMs AGREEMENT
– One of the Uruguay Round Agreements1994
– To be signed / accepted by all Members of WTO
– Principle of Single Undertaking / Acceptance
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4. 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
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7. 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:
– Article III of GATT 1994
– Article XI of GATT 1994
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8. 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
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9. 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
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10. Contd…
– 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
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11. 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
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12. Contd…
– 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.
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13. 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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14. 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.
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15. CONSULTATION AND
DISPUTE SETTLEMENT
– Articles XXII and XXIII of GATT 1994 on consultations apply,
as elaborated by Dispute Settlement Understanding
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18. 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
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19. CONCLUSION
Highly innovative agreement and remains the most
comprehensive international agreement on trade
investments till date.
Overall it has worked well, however, it needs to continue to
implement wide ranging provisions specially when it
touches significant public policy questions.
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