7/29/2019 dfgghg

1/13

ASSIGNMENT ON Trade RelatedInvestment Measures

Prepared by-

VAHID ALI

MBA 1ST YEAR SEC-

BSUBMITTED TO-

PROF. AJAI PRAKASH

7/29/2019 dfgghg

2/13

INTRODUCTION

The Agreement on Trade Related Investmentmeasures (TRIMs) is one of agreements whichsigned at the end of the Uruguay Round (UR)negotiations.

The agreement addresses investment measuresthat are trade related and that also violated ArticleIII (National treatment) or Article XI (generalelimination of quantitative restrictions) of theGeneral Agreement on Tariffs and Trade.

7/29/2019 dfgghg

3/13

Investment and Trade

The issue is whether or not a policy with a particular

target - in this case an investment measure - canaffect trade.

There are different degrees of trade effects?

Export performance requirements, local contentschemes and foreign exchange balancing.

7/29/2019 dfgghg

4/13

Examples of TRIMS

Market access

Ownership or equity restrictions Joint venture requirements

Performance Requirements

Local content schemes

Export performance requirements

Foreign Exchange balancing

7/29/2019 dfgghg

5/13

Aims of the Agreement

Desiring

to promote the expansion and progressive liberalisaiton of

world trade and to facilitate investment, while ensuringcompetition

Take into account

trade, development and financial needs of developing

countries, particularly least developed countries Recognizing

certain investment measures can cause trade-restrictive

and distorting effects

7/29/2019 dfgghg

6/13

Implementation

Notification

Disputes

Transition

7/29/2019 dfgghg

7/13

Notification

Government of WTO members, or

countries entitled to be members within 2

years after 1 January, 1995 should make

notification within 90 days after the date of

their acceptance of the WTO agreement.

7/29/2019 dfgghg

8/13

Disputes

Three disputes

Indonesia vs EU, Japan, US

Canada vs. Japan and EU

Panama vs EU

7/29/2019 dfgghg

9/13

Transition

Transition periods Members are obliged to

eliminate TRIMs which have been notified.

Such elimination is to take place within two

years after the date of entry into force of the

agreement for developed countries Fiveyears for developing countries Seven years

for Lower Developed Countries.

7/29/2019 dfgghg

10/13

Implementation Difficulties

Difficulties in identifying TRIMs that violate

the agreement Difficulties in identifying alternative policies to

achieve the same objective

Difficulties in accounting for non-contingent

outcomes such as the financial crisis in Asiaand Latin America

Difficulties in meeting the transition perioddeadlines

7/29/2019 dfgghg

11/13

Indias notified TRIMs

As per the provisions of the TRIMs Agreement India

had notified trade related investment measures as

inconsistent with the provisions of the Agreement

Local content (mixing) requirements in the

production of News Print

Such notified TRIMs were due to be eliminated by

31st December, 1999. None of these measures is inforce at present. Therefore, India does not have any

outstanding obligations under the TRIMs agreement

as far as notified TRIMs are concerned.

7/29/2019 dfgghg

12/13

CONCLUSION

TRIMs is mainly focused on trade investment

across country. There are following keypoints of TRIMs-

Manufacturing balancing

Trade balancing.

Foreign exchange requirement.

Licensing requirement etc..

7/29/2019 dfgghg

13/13

THANK YOU