- TRIMS is based on the belief that there is a strong connection between trade and investment.
- Importance:
- Aims to ensure fair treatment of investment in all member countries.
- Prohibits investment measures that restrict and distort trade.
- Members may not apply measures that discriminate against foreign investment.
- Violates basic WTO principles like MFN and National Treatment.
- Provides a list of prohibited investment measures (e.g., local content requirement, export obligation).
- Members must notify WTO of inconsistent existing TRIMs.