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.

          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]