Services
What is the WTO Agreement on Trade-Related Investment Measures (TRIMs)
The WTO Agreement on Trade-Related Investment Measures (TRIMs) aims to curb trade-distorting investment measures. It targets specific TRIMs, such as:
- Local content requirements, which refers to measures mandating that a certain proportion of a product must be sourced or produced domestically; and
- Trade balancing requirements, which refers to measures restricting the entry of products used in or related to local production, often tying the amount of imports to the volume or value of local products exported.
Such measures can hinder fair competition and are inconsistent with the national treatment and non-discrimination principles of the WTO system. The TRIMs Agreement mandates the notification and elimination of non-conforming TRIMs within specified timeframes.
The TRIMs Agreement applies to investment measures related to trade in goods only, while the General Agreement on Trade and Services (GATS) covers trade in services and recognises foreign investment in services as one of the four possible modes of supply of services and establishes a general regime and measures for its facilitation.