Trade Related Investment Measures (TRIMs)
BACKGROUND
These measures include requirement to use certain minimum levels of locally made components, restricting the level of imported components or measures limiting the purchase or use of imported products by an enterprise to an amount related to the volume or value of local products that it exports.
Examples:
- In the production of automobiles, locally-produced components must account for at least 50% of the value of the components used.
- A company may import materials and other products only up to 80% of its export earnings of the previous year.
Under the WTO, the TRIMs Agreement provides a discipline on investment which focus on non-discriminatory treatment of imported and exported products as well as quantitative restriction.
SCOPE
The scope of this measure includes local content and trade balancing measures.
- Requirements to purchase or use certain minimum levels or types of domestically produced or –sourced products; or restrictions on the purchase or use of imported products based on the volume or value of exports of local products
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Trade balancing measures
- Restrictions on the importation of products used in or related to local production, including in relation to the amount of local products exported; or limitations on access to foreign exchange used for such importation based on the foreign exchange inflows attributable to the enterprise in question.
LIST OF MEASURES