Trade-Related Investment Measures is the name of one of the four main legal agreements of the World Trade Organization (WTO), the trade agreement. Sorting is a rule that restricts the preference of domestic companies and thus allows international companies to operate more easily in foreign markets. The TRIPS agreement prohibits certain measures that violate national treatment and quantity requirements imposed by the General Agreement on Tariffs and Trade (GATT). (c) the importation of products used or related to its local production, in general, or an amount relating to the volume or value of the local production it exports; Paragraph 1, item a), from the illustration list includes local TRIMs that require the purchase or use by a company of products of national or national origin (local content requirements), while paragraph 1, point b), includes commercial compensation limiting the purchase or use of products imported by a company to an amount related to the volume or value of local products it exports. In both cases, the incompatibility with Article III:4 of the 1994 GATT results from the measure that the measure subjects imported products (purchased or used by a company) to less favourable terms than domestic products (to be bought or used by and by companies). In the late 1980s, foreign direct investment increased significantly around the world. However, some of the countries that have benefited from foreign investment have imposed numerous restrictions on these investments in order to protect and encourage domestic industry and to prevent the flow of foreign exchange reserves. The measures covered in paragraph 2, point b) on the list include a limitation on imports in the form of currency clearing. The importation of products used in local production or related to local production is limited by a company by limiting the company`s access to foreign exchange to an amount related to foreign exchange flows attributable to the company. The concept of trade-related investment measures (TRIMs) is not defined in the agreement. However, the agreement contains in an appendix a clear list of measures incompatible with Article III:4 of the GATT or Article XI:1 of the 1994 GATT. In addition, there are other bilateral and multilateral international treaties under which signatories extend the most favourable treatment to direct investment. However, only a few of these contracts provide domestic treatment for direct investment.

The investment principles adopted in November 1994 for Asia-Pacific economic cooperation are general investment rules, but are not binding. 3. Dividend offsetting obligation for investments in 22 categories of consumer goods. The agreement of the representatives on Article 5 should not give a position on whether, or to what extent, the provisions of the agreement on trade-related investment measures, attached to the final act of Uruguay`s multilateral trade round, are implicitly included in Articles III and XI of the GATT. Pending the conclusion of the Uruguay Round negotiations, which resulted in a well-concluded agreement on trade-related investment measures (the „TRIMs agreement“), the few international agreements providing for disciplines for foreign investment restraint measures have provided only limited guidance on substance and countries. The OECD Code on the Liberalization of Capital Movements, for example, requires members to liberalize restrictions on direct investment in a number of areas. However, the effectiveness of the OECD code is limited by the many reservations of each member. [2] 3.

Nothing in paragraph 1 should be construed as preventing a party from applying the trade-related investment measures covered in paragraphs 2, points 2 (a) and (c) as a condition of eligibility for export promotion, foreign aid, public procurement or preferential schemes or quota programs.

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