Trims Agreement Refers To Treating Foreign Investment At With Domestic Investment
Any U.S. company interested in international business or investment activities in a WTO member country can benefit from this agreement. Local content requirements (which require the purchase or use of locally produced goods), manufacturing requirements (which require domestic manufacture of certain components), trade compensation requirements, domestic sales requirements, technology transfer requirements, export performance requirements (which require the export of a certain percentage of the production volume), are local. Capital restrictions, foreign exchange restrictions, transfer restrictions, licensing requirements and employment restrictions. These measures can also be used as part of tax incentives, contrary to the requirements. Some of these investment measures distort trade in violation of Articles III and XI of the GATT and are therefore prohibited.  When the TRIPS Agreement entered into force in 1995, all WTO Member States were required to notify the World Trade Organization of all their non-compliant investment measures within 90 days (before 1 April 1995). A transitional period was granted to countries that transmitted the notification in order to eliminate their non-compliant policies. Developed countries (such as the United States and the European Union) have benefited from a two-year transitional period. Developing and least developed countries have benefited from a transitional period of five and seven years. When the TRIPS Agreement entered into force in 1995, all WTO Member States were required to notify their non-compliant trade investment measures and bring them into conformity with the Agreement after a transitional period. The length of the transition period varied depending on the individual level of development of the member.
By that date, all transitional periods had expired, although a limited number of countries had benefited from extensions for some programmes. These extensions generally expired in December 2003 or before December 2003. In addition to the TRIMs agreement, there are other investment agreements that can help your company compete in the international market. The United States has bilateral investment agreements with 40 countries. These agreements typically provide comprehensive investment protection, including disciplines on local content and business balance sheet. The full texts of the BILATERAL INVESTMENT AGREEMENTS are available on the website of the Office for Negotiations and Compliance with Trade Agreements of the Ministry of Commerce. . . .