             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, and 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 (hereafter referred to as "TRIMs").


                                Article 2
            National Treatment and Quantitative Restrictions

1.    Without prejudice to other rights and obligations under the GATT 1994, 
no Member shall apply any TRIM that is inconsistent with the provisions of 
Article III or Article XI of the GATT 1994.

2.    An illustrative list of TRIMs that are inconsistent with the 
obligation of national treatment provided for in Article III:4 of the GATT 
1994 and the obligation of the general elimination of quantitative 
restrictions provided for in Article XI:1 of the GATT 1994 is contained in 
the Annex to this Agreement.


                                Article 3
                               Exceptions

      All exceptions under the GATT 1994 shall apply, as appropriate, to the 
provisions of this Agreement.


Article 4Developing Country Members

      A developing country Member shall be free to deviate temporarily from 
the provisions of Article 2 above to the extent and in such a manner as 
Article XVIII of the GATT 1994, the Understanding on the Balance-of-Payments 
Provisions of the General Agreement on Tariffs and Trade 1994, and the 1979 
Declaration on Trade Measures Taken for Balance-of-Payments Purposes permit 
the Member to deviate from the provisions of Articles III and XI of the GATT 
1994.


                               Article 5  
               Notification and Transitional Arrangements

1.    Members, within ninety days of the entry into force of the Agreement 
Establishing the MTO,  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 above within two years of the date of entry into force of the 
Agreement Establishing the MTO 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 above 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 above from those prevailing at 
the date of entry into force of the Agreement Establishing the MTO so as to 
increase the degree of inconsistency with the provisions of Article 2 above.  
TRIMs introduced less than 180 days before the entry into force of the 
Agreement Establishing the MTO shall not benefit from the transitional 
arrangements provided in paragraph 2 above.

5.    Notwithstanding the provisions of Article 2 above, a Member, in order 
not to disadvantage established enterprises which are subject to a TRIM 
notified under paragraph 1 above, 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

1.    Members reaffirm, with respect to TRIMs, their commitment to 
obligations on transparency and notification in Article X of the GATT 1994, 
in the  undertaking on "Notification" contained in the 1979 Understanding 
Regarding Notification, Consultation, Dispute Settlement and Surveillance 
and in the Ministerial Decision on Notification Procedures.  

2.    Each Member shall notify the MTO 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 the 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 TRIMs

1.    A Committee on Trade-Related Investment Measures shall be established, 
open to all Members of the MTO.  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 the GATT 1994, as 
elaborated and applied by the Understanding on Rules and Procedures 
Governing the Settlement of Disputes, shall apply to consultations and the 
settlement of disputes under this Agreement.


                                Article 9
                Review by the Council for Trade in Goods

      Not later than five years after the date of entry into force of the 
Agreement Establishing the MTO, 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 it should be 
complemented with provisions on investment policy and competition policy.

                                  ANNEX

                            Illustrative List

1.    TRIMs that are inconsistent with the obligation of national treatment 
provided for in Article III:4 of the 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 the general 
elimination of quantitative restrictions provided for in Article XI:1 of the 
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. 


1. In 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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