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Members,
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 free
competition;
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:
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 back to top
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.
All
exceptions under GATT 1994 shall apply, as appropriate, to the
provisions of this Agreement.
Article 4:
Developing
Country Members back to top
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 back to top
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 back to top
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 back to top
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 back to top
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 back to top
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.
Annex:
Illustrative List back to top
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; or
(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.
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