Agreement Establishing the World Trade Organization
Agreement on Trade-Related Investment Measures
Considering that Ministers agreed in the Punta del Este
Declaration that "Following an examination of the operation
of GATT Articles related to the trade-restrictive and distorting
effects of investment measures, negotiations should elaborate,
as appropriate, further provisions that may be necessary to avoid
such adverse effects on trade";
Desiring to promote the expansion and progressive liberalisation
of world trade and to facilitate investment across international
frontiers so as to increase the economic growth of all trading
partners, particularly developing country Members, while ensuring
Taking into account the particular trade, development
and financial needs of developing country Members, particularly
those of the least-developed country Members;
Recognizing that certain investment measures can cause
trade-restrictive and distorting effects;
Hereby agree as follows:
Article 1: Coverage
This Agreement applies to investment measures related to trade
in goods only (referred to in this Agreement as "TRIMs").
Article 2: National Treatment and Quantitative Restrictions
1. Without prejudice to other rights and obligations under GATT
1994, no Member shall apply any TRIM that is inconsistent with
the provisions of Article III or Article XI of GATT 1994.
2. An illustrative list of TRIMs that are inconsistent with the
obligation of national treatment provided for in paragraph 4 of
Article III of GATT 1994 and the obligation of general elimination
of quantitative restrictions provided for in paragraph 1 of Article
XI of GATT 1994 is contained in the Annex to this Agreement.
Article 3: Exceptions
All exceptions under GATT 1994 shall apply, as appropriate, to
the provisions of this Agreement.
Article 4:Developing Country Members
A developing country Member shall be free to deviate temporarily
from the provisions of Article 2 to the extent and in such a manner
as Article XVIII of GATT 1994, the Understanding on the Balance-of-Payments
Provisions of GATT 1994, and the Declaration on Trade Measures
Taken for Balance-of-Payments Purposes adopted on 28 November
1979 (BISD 26S/205-209) permit the Member to deviate from the
provisions of Articles III and XI of GATT 1994.
Article 5: Notification and Transitional Arrangements
1. Members, within 90 days of the date of entry into force of
the WTO Agreement, shall notify the Council for Trade in Goods
of all TRIMs they are applying that are not in conformity with
the provisions of this Agreement. Such TRIMs of general or specific
application shall be notified, along with their principal features 1.
2. Each Member shall eliminate all TRIMs which are notified under
paragraph 1 within two years of the date of entry into force of
the WTO Agreement in the case of a developed country Member, within
five years in the case of a developing country Member, and within
seven years in the case of a least-developed country Member.
3. On request, the Council for Trade in Goods may extend the transition
period for the elimination of TRIMs notified under paragraph 1
for a developing country Member, including a least-developed country
Member, which demonstrates particular difficulties in implementing
the provisions of this Agreement. In considering such a request,
the Council for Trade in Goods shall take into account the individual
development, financial and trade needs of the Member in question.
4. During the transition period, a Member shall not modify the
terms of any TRIM which it notifies under paragraph 1 from those
prevailing at the date of entry into force of the WTO Agreement
so as to increase the degree of inconsistency with the provisions
of Article 2. TRIMs introduced less than 180 days before the date
of entry into force of the WTO Agreement shall not benefit from
the transitional arrangements provided in paragraph 2.
5. Notwithstanding the provisions of Article 2, a Member, in order
not to disadvantage established enterprises which are subject
to a TRIM notified under paragraph 1, may apply during the transition
period the same TRIM to a new investment (i) where the
products of such investment are like products to those of the
established enterprises, and (ii) where necessary to avoid
distorting the conditions of competition between the new investment
and the established enterprises. Any TRIM so applied to a new
investment shall be notified to the Council for Trade in Goods.
The terms of such a TRIM shall be equivalent in their competitive
effect to those applicable to the established enterprises, and
it shall be terminated at the same time.
Article 6: Transparency
1. Members reaffirm, with respect to TRIMs, their commitment to
obligations on transparency and notification in Article X of GATT
1994, in the undertaking on "Notification" contained
in the Understanding Regarding Notification, Consultation, Dispute
Settlement and Surveillance adopted on 28 November 1979 and in
the Ministerial Decision on Notification Procedures adopted on
15 April 1994.
2. Each Member shall notify the Secretariat of the publications
in which TRIMs may be found, including those applied by regional
and local governments and authorities within their territories.
3. Each Member shall accord sympathetic consideration to requests
for information, and afford adequate opportunity for consultation,
on any matter arising from this Agreement raised by another Member.
In conformity with Article X of GATT 1994 no Member is required
to disclose information the disclosure of which would impede law
enforcement or otherwise be contrary to the public interest or
would prejudice the legitimate commercial interests of particular
enterprises, public or private.
Article 7: Committee on Trade-Related Investment Measures
1. A Committee on Trade-Related Investment Measures (referred
to in this Agreement as the "Committee") is hereby established,
and shall be open to all Members. The Committee shall elect its
own Chairman and Vice-Chairman, and shall meet not less than once
a year and otherwise at the request of any Member.
2. The Committee shall carry out responsibilities assigned to
it by the Council for Trade in Goods and shall afford Members
the opportunity to consult on any matters relating to the operation
and implementation of this Agreement.
3. The Committee shall monitor the operation and implementation
of this Agreement and shall report thereon annually to the Council
for Trade in Goods.
Article 8: Consultation and Dispute Settlement
The provisions of Articles XXII and XXIII of GATT 1994, as elaborated
and applied by the Dispute Settlement Understanding, shall apply
to consultations and the settlement of disputes under this Agreement.
Article 9: Review by the Council for Trade in Goods
Not later than five years after the date of entry into force
of the WTO Agreement, the Council for Trade in Goods shall review
the operation of this Agreement and, as appropriate, propose to
the Ministerial Conference amendments to its text. In the course
of this review, the Council for Trade in Goods shall consider
whether the Agreement should be complemented with provisions on
investment policy and competition policy.
1. TRIMs that are inconsistent with the obligation of national
treatment provided for in paragraph 4 of Article III of GATT 1994
include those which are mandatory or enforceable under domestic
law or under administrative rulings, or compliance with which
is necessary to obtain an advantage, and which require:
(a) the purchase or use by an enterprise of products of domestic
origin or from any domestic source, whether specified in terms
of particular products, in terms of volume or value of products,
or in terms of a proportion of volume or value of its local production;
(b) that an enterprise's purchases or use of imported products
be limited to an amount related to the volume or value of local
products that it exports.
2. TRIMs that are inconsistent with the obligation of general
elimination of quantitative restrictions provided for in paragraph
1 of Article XI of GATT 1994 include those which are mandatory
or enforceable under domestic law or under administrative rulings,
or compliance with which is necessary to obtain an advantage,
and which restrict:
(a) the importation by an enterprise of products used in or related
to its local production, generally or to an amount related to
the volume or value of local production that it exports;
(b) the importation by an enterprise of products used in or related
to its local production by restricting its access to foreign exchange
to an amount related to the foreign exchange inflows attributable
to the enterprise; or
(c) the exportation or sale for export by an enterprise of products,
whether specified in terms of particular products, in terms of
volume or value of products, or in terms of a proportion of volume
or value of its local production.
Continue on with
Agreement on Implementation of Article VI
of the General Agreement on Tariffs and Trade 1994
1 In the case of TRIMs applied under discretionary authority, each specific application shall be notified. Information that would prejudice the legitimate commercial interests of particular enterprises need not be disclosed.