외교부

AGREEMENT ON TRADE-RELATED INVESTMENT MEASURES

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:

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.

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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.

1In 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.

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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.

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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.

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ANNEX

Illustrative List

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.