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46<br />
2.3.2 The TRIMs agreement<br />
The TRIMs agreement (“Agreement on Trade-Related Investment Measures” 95 )<br />
was passed during the GATT Uruguay Round in 1994 and constitutes one of the<br />
foundations of the WTO that was founded in January 1995. It recognizes certain<br />
asymmetries to the effect that some transition periods were granted, in order to<br />
put international agreements into practice. This agreement defines the treatment<br />
of investment in the goods sector and not investment in the services sector (which<br />
is regulated by GATS). The TRIMs agreement deals with “trade-related investment<br />
measures of member states,” which in a broad sense affects domestic and foreign<br />
investment. The 5 pages of the treaty do not give an exact definition of the term<br />
“trade-related investment measure,” but instead list in the annex the particular types<br />
of laws, rules and guidelines that are to be considered as relevant for trade with<br />
respect to investment. 96<br />
The TRIMs agreement follows the WTO principle of so-called “National Treatment”,<br />
according to which every foreign investor should be granted the same<br />
conditions as domestic investors. If state regulations should demand any kind of<br />
requirements, so-called “performance requirements” or “local content rules,” from<br />
investors, for example, by passing regulations which demand a fixed percentage<br />
of local, regional or national suppliers or shareholders (so-called “joint ventures”) or<br />
by implementing minimum –percentage -requirements to employ domestic workers,<br />
this would violate the “National Treatment” principle.<br />
If according to a WTO member state another WTO member violates the rules of<br />
the agreement, legal action can be taken within the WTO. Any legal action can only<br />
be undertaken by one government against another, private investors cannot do this<br />
(see the chapter on NAFTA), nonetheless they can convince their respective government<br />
to do so. But for some industrialized countries, this agreement does not reach<br />
far enough, so that several intents were made (Multilateral Agreement on Investment,<br />
MAI, in the OECD, which failed under the pressure of the NGOs and civil society<br />
in 1998) and are being made in order to implement further reaching cross-country<br />
regulations.<br />
95 http://www.wto.org/english/docs_e/legal_e/18-trims.pdf.<br />
96 Also see: Nohlen, Dieter (Ed.): Lexikon Dritte Welt, 10th edition, 1998.