The objectives of TRIMS'. - MAINS QUESTION - DAILY CURRENT AFFAIR QUESTIONS AND ANSWERS

Monday, September 14, 2020

The objectives of TRIMS'.

Trade-Related Investment Measures-Trims-related investment rules or criteria-trims) are the rules that apply to a country's regulatory act to foreign investors. This is a part of industrial policy. The agreement was negotiated under the World Trade Organization (WTO) predecessor to the Customs and Trade (GAT) General Agreement in 1994.
Was done in 1995, which came into existence in 1995. This agreement was implemented with the mutual consent of all WTO members. All investment criteria or rules related to trade are one of the four major legal contracts of the WTO trade treaty.

The Trims rule is that it restricts the preference of domestic firms and enables international companies to operate more easily within foreign markets. Traditionally established material requirements and policies in the form of trade balance rules and restrictive or competitive trade practices in domestic industries are also being banned. Five investment criteria have been identified by the Trims Agreement, which is inconsistent with the general abolition of quantitative restrictions and the GATT provisions involving equal national behavior. The purpose of the Trims agreement is to end this inconsistency. These investment criteria include foreign
A specific ratio of production to exports and a specific proportion of local production as a condition of using local inputs on investors, balancing the foreign exchange spending on import inputs by export income, receiving imported products as inputs Including commitments such as not being destined for more than.
According to the TRIMS agreement, member countries have to end such measures that affect trade within a timeframe. Such measures have also been identified under the Trims Agreement. 
The last date or period to conclude inconsistent agreements was set for July 1, 1997, for developed countries, 2000 for developing countries, and 2002 for underdeveloped countries.
The basic objective of this agreement is that if the exporters have increased their exports improperly, the domestic industry of the importing country may be affected by the glut of cheap goods. In such a situation, the associated importing country will have no option but to save the domestic industry. Hence, a provision has been made that if the import of a particular product increases spontaneously and as a result, the domestic industry will suffer
In such a situation, the importing country may levy supplementary duty for the purpose of saving the domestic industry, so that the export price becomes normal. If so
If there is no provision, then imports will become very cheap and as a result, the domestic industry of the importing country will be destroyed. So basically the purpose of this agreement is to protect domestic industries.

No comments:

Post a Comment

Most Read

Monetize your website traffic with yX Media
//disable Text Selection and Copying