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ASSIGNMENT ON Trade Related Investment Measures

Prepared byVAHID ALI MBA 1ST YEAR SECB

SUBMITTED TOPROF. AJAI PRAKASH

INTRODUCTION

The Agreement on Trade Related Investment measures (TRIMs) is one of agreements which signed at the end of the Uruguay Round (UR) negotiations. The agreement addresses investment measures that are trade related and that also violated Article III (National treatment) or Article XI (general elimination of quantitative restrictions) of the General Agreement on Tariffs and Trade.

Investment and Trade

The issue is whether or not a policy with a particular target - in this case an investment measure - can affect trade. There are different degrees of trade effects? Export performance requirements, local content schemes and foreign exchange balancing.

Examples of TRIMS

Market access

Ownership or equity restrictions Joint venture requirements

Performance Requirements

Local content schemes Export performance requirements Foreign Exchange balancing

Aims of the Agreement

Desiring

to promote the expansion and progressive liberalisaiton of world trade and to facilitate investment, while ensuring competition trade, development and financial needs of developing countries, particularly least developed countries certain investment measures can cause trade-restrictive and distorting effects

Take into account

Recognizing

Implementation

Notification Disputes Transition

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.

Disputes

Three disputes

Indonesia vs EU, Japan, US Canada vs. Japan and EU Panama vs EU

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 Five years for developing countries Seven years for Lower Developed Countries.

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 Asia and Latin America Difficulties in meeting the transition period deadlines

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 in force at present. Therefore, India does not have any outstanding obligations under the TRIMs agreement as far as notified TRIMs are concerned.

CONCLUSION

TRIMs is mainly focused on trade investment across country. There are following key points of TRIMsManufacturing balancing Trade balancing. Foreign exchange requirement. Licensing requirement etc..

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