SUBMITTED BY : DEEPIKA MAHESHWARI

The Agreement on Trade Related Investment Measures (TRIMs) are rules that apply to the domestic regulations a country applies to foreign investors, often as part of an industrial policy. The agreement was agreed upon by all members of the World Trade Organization Policies such as local content requirements and trade balancing rules that have traditionally been used to both promote the interests of domestic industries and combat restrictive business practices are now banned. Trade Related Investment Measures is the name of one of the four principal legal agreements of the WTO trade treaty. TRIMs are rules that restrict preference of domestic firms and thereby enable international firms to operate more easily within foreign markets

One of the Uruguay round Agreement 1994 To be signed / accepted by all Members of WTO Principle of Single Undertaking / Acceptance. 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.

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

Article III of GATT 1994

o 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

o Chiefly concerns Elimination of Quantities Restrictions on Imports.

Measures specifically prohibited by the TRIMs Agreement need not be eliminated immediately, although such measures must be notified to the WTO within 90 days after the entry into force of the TRIMs Agreement.

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

Agreement establishes a Committee on TRIMS Committee to monitor operation and implementation of Agreement Committee to report annually to Council for Trade in Goods

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