Trims Agreement Upsc
These notified TRIMs were to be removed by December 31, 1999. None of these measures are currently in effect. As a result, India has no outstanding obligations under the TRIMs agreement with respect to notified TRIMs. Pending the conclusion of the Uruguay Round negotiations, which resulted in a well-concluded agreement on trade-related investment measures (the “TRIMs agreement”), the few international agreements providing for disciplines for foreign investment restraint measures have provided only limited guidance on substance and countries. The OECD Code on the Liberalization of Capital Movements, for example, requires members to liberalize restrictions on direct investment in a number of areas. However, the effectiveness of the OECD code is limited by the many reservations of each member.  This agreement prohibits the host country from discriminating against foreign investment in relation to domestic investment, i.e. the agreement requires that investment be freely authorized by nations. Given that the WTO is based on consensus, it is extremely difficult to reach agreement on reforms among the 164 members. One possibility that could move forward could be a multi-lateral agreement with a group of like-minded countries on a new set of rules that would complement the broader WTO. The World Trade Organization (WTO) is the only international organization in the world to deal with the rules of trade between nations. The focus is on WTO agreements, which have been negotiated and signed by most countries in the world and ratified by their parliaments. The many WTO agreements have many effects on the Indian economy.
They are discussed below: The Agreement on Trade-Related Investment Measures (TRIMS) calls for the introduction of national treatment of foreign investment and the removal of quantitative restrictions. It refers to five investment measures incompatible with the General Trade and Customs Agreement (GATT) on the widespread elimination of quantitative restrictions by national treatment. These are measures imposed on foreign investors to use local inputs, to produce exports as preconditions for obtaining imported goods as inputs, to compensate for foreign exchange transfers on the import of intermediate goods using foreign exchange products through export, and not to export more than part of local production. The Trade-Related Investment Measures Agreement (TRIM) is a rule that applies to national rules applied by a country to foreign investors, often as part of an industrial policy. The 1994 agreement was negotiated under the WTO`s predecessor, the General Agreement on Tariffs and Trade (GATT), and came into force in 1995.