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TRIPS & TRIMS,
UNCTAD
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UNCTAD
KAVITA TEWARI
TANISHA MITTALNAVIN GEHANIABHISHEK SHRIVASTAV
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TRIMS
The Agreement on Trade RelatedInvestment Measures (TRIMs) are rules thatapply to the domestic regulations a countryapplies to foreign investors, often as part of anindustrial policy. The agreement was agreedupon by all members of the World TradeOrganization.
Trade Related Investment Measures is thename of one of the four principal legalagreements of the WTO trade treaty.
TRIMs are rules that restrict preference ofdomestic firms and thereby enable
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Overview of Rules
1. Trade Related Investment Measures
In the late 1980s, there was a significantincrease in foreign direct investment
throughout the world. However, some of the countries receiving
foreign investment imposed numerousrestrictions on that investment designed to
protect and foster domestic industries, and toprevent the outflow of foreign exchangereserves
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Examples :
local content requirements manufacturing requirements
trade balancing requirements
domestic sales requirements technology transfer requirements
export performance requirements
local equity restrictions etc
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These measures can also be used inconnection with fiscal incentives as opposed
to requirement. Some of these investment measures distort
trade in violation of GATT Article III and XI,and are therefore prohibited.
Until the completion of the Uruguay Roundnegotiations, which produced a well-roundedAgreement on Trade-Related Investment
Measures (hereinafter the "TRIMsAgreement"), the few internationalagreements providing disciplines formeasures restricting foreign investment
provided only limited guidance in terms of
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The OECD Code on Liberalization of Capital
Movements, for example, requires membersto liberalize restrictions on direct investment ina broad range of areas.
The OECD Code's efficacy, however, is
limited by the numerous reservations made byeach of the members.
Moreover, although the APEC InvestmentPrinciples adopted in November 1994 providerules for investment as a whole, includingnon-discrimination and national treatment,they have no binding force.
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In addition, there are other internationaltreaties, bilateral and multilateral, under whichsignatories extend most-favoured-nationtreatment to direct investment.
Only a few such treaties, however, providenational treatment for direct investment.
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LEGAL FRAMEWORK GATT 1947 prohibited investment measures that
violated the principles of national treatment andthe general elimination of quantitative restrictions,but the extent of the prohibitions was never clear.
The TRIMs Agreement, however, containsstatements prohibiting any TRIMs that areinconsistent with the provisions of Articles III or XIof GATT 1994.
In addition, it provides an illustrative list thatexplicitly prohibits local content requirements,trade balancing requirements, foreign exchangerestrictions and export restrictions (domesticsales requirements) that would violate Article III:4
or XI:1 of GATT 1994.
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TRIMs prohibited by the Agreement include thosethat are mandatory or enforceable underdomestic law or administrative rulings, or thosewith which compliance is necessary to obtain an
advantage (such as subsidies or tax breaks).
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Local contentrequirement
Trade balancingrequirement
Measures requiring thepurchase or use by anenterprise of domestic products,whether specified in terms ofparticular products, in terms ofvolume or value of products, orin terms of a proportion ofvolume or value of its localproduction. (Violation of GATT
Article III:4)
1.Measures requiring that anenterprise's purchases or use ofimported products be limited toan amount related to the volumeor value of local products that itexports. (Violation of GATTArticle III:4)2.Measuresrestricting the importation by anenterprise of products used in or
related to its local production,generally or to an amountrelated to the volume or value oflocal production that it exports.
(Violation of GATT Article XI:1)
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Foreign exchangerestrictions
Export restrictions(Domestic salesrequirements)
Measures restricting theimportation by an enterprise ofproducts (parts and othergoods) used in or related to its
local Production by restricting itsaccess to foreign exchange toan amount related to the foreignexchange inflows attributable tothe enterprise. (Violation of
GATT Article XI:1)
Measures restricting 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.
(Violation of GATT Article XI:1)
TRANSITIONAL PERIOD E i f d l i E i bl i i
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TRANSITIONAL PERIOD Exceptions for developingcountries
Equitable provisions
measures specificallyprohibited by the TRIMsAgreement need not be
eliminated immediately,although such measuresmust be notified to theWTO within 90 days afterthe entry into force of theTRIMs Agreement.Developed countries will
have a period of two yearsin which to abolish suchmeasures; in principle,developing countries willhave five years and least-developed countries willhave seven years.
Developing countries arepermitted to retain TRIMsthat constitute a violation of
GATT Article III or XI,provided the measures meetthe conditions of GATTArticle XVIII which allowsspecified derogation from theGATT provisions, by virtue ofthe economic development
needs of developingcountries.
To avoid damaging thecompetitiveness of companiesalready subject to TRIMs,
governments are allowed toapply the same TRIMs to newforeign direct investmentduring the transitional perioddescribed .
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TRIPS The Agreement on Trade Related Aspects of
Intellectual Property Rights (TRIPS) is aninternational agreement administered by the WorldTrade Organization(WTO) that sets down minimum
standards for many forms of intellectual property (IP)regulation as applied to nationals of other WTOMembers.[1]
It was negotiated at the end of the Uruguay Round of
the General Agreement on Tariffs and Trade (GATT)in 1994.
http://en.wikipedia.org/wiki/Agreement_on_Trade-Related_Aspects_of_Intellectual_Property_Rightshttp://en.wikipedia.org/wiki/Agreement_on_Trade-Related_Aspects_of_Intellectual_Property_Rights7/31/2019 Trips,Trims n Unctad
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WHAT IS TRIPS? TRIPS contains requirements that nations' laws must
meet for copyright rights, including the
rights of performers
producers of sound recordings
broadcasting organizations
industrial designs
integrated circuit layout-designs
monopolies for the developers of new plant varieties trademarks trade dress
undisclosed or confidential information.
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TRIPS also specifies enforcement procedures,remedies, and dispute resolution procedures.
Protection and enforcement of all intellectualproperty rights shall meet the objectives to contributeto the promotion of technological innovation and tothe transfer and dissemination of technology, to the
mutual advantage of producers and users oftechnological knowledge and in a manner conduciveto social and economic welfare, and to a balance ofrights and obligations.
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WHAT DID TRIPS DO?
The TRIPS agreement introduced intellectualproperty law into the international trading system forthe first time and remains the most comprehensiveinternational agreement on intellectual property to
date. In 2001, developing countries, concerned that
developed countries were insisting on an overlynarrow reading of TRIPS, initiated a round of talks
that resulted in the Doha Declaration.
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The requirements of TRIPS
Copyright terms must extend to 50 years after thedeath of the author, although films and photographsare only required to have fixed 50 and to be at least
25 year terms, respectively. Copyright must be granted automatically, and not
based upon any "formality", such as registrations orsystems of renewal.
Computer programs must be regarded as "literaryworks" under copyright law and receive the sameterms of protection.
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National exceptions to copyright (such as fair
use in the United States) are constrained by the
Berne three-step test and patent provisions wereimported from the Paris Convention for theProtection of Industrial Property.
Patents must be granted in all "fields of
technology," although exceptions for certainpublic interests are allowed (Art. 27.2 and 27.3)[2]and must be enforceable for at least 20 years(Art 33).
Exceptions to the exclusive rights must belimited, provided that a normal exploitation of thework (Art. 13) and normal exploitation of the
patent (Art 30) is not in conflict.
http://en.wikipedia.org/wiki/Agreement_on_Trade-Related_Aspects_of_Intellectual_Property_Rightshttp://en.wikipedia.org/wiki/Agreement_on_Trade-Related_Aspects_of_Intellectual_Property_Rights7/31/2019 Trips,Trims n Unctad
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No unreasonable prejudice to the legitimateinterests of the right holders of computer
programs and patents is allowed. Legitimate interests of third parties have to be
taken into account by patent rights (Art 30).
In each state, intellectual property laws may not
offer any benefits to local citizens which are notavailable to citizens of other TRIPs signatories bythe principles of national treatment (with certainlimited exceptions, Art. 3 and 5).
Many of the TRIPS provisions on copyright wereimported from the Berne Convention for theProtection of Literary and Artistic Works and
many of its trademark
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UNCTAD
The United Nations Conference on Tradeand Development (UNCTAD) wasestablished in 1964 as a permanentintergovernmental body.
The creation of the conference was based onconcerns of developing countries over theinternational market, multi-nationalcorporations, and great disparity betweendeveloped nations and developing nations.
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WHY WAS IT FORMED?
The United Nations Conference on Trade andDevelopment was established in 1964
UNCTAD grew from the view that existing
institutions like GATT (now replaced by the WTO,the IMF , and World Bank were not properlyorganized to handle the particular problems ofdeveloping countries.
UNCTAD has 193 members.
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One of the principal achievements of
UNCTAD has been to conceive andimplement the Generalised System ofPreferences(GSP).
It was argued in UNCTAD, that in order to
promote exports of manufactured goods fromdeveloping countries, it would be necessary tooffer special tariff concessions to suchexports.
Accepting this argument, the developedcountries formulated the GSP Scheme underwhich manufacturers' exports and some
agricultural goods from the developing-
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Since imports of such items from otherdeveloped countries are subject to the normalrates of duties, imports of the same itemsfrom developing countries would enjoy acompetitive advantage.
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MEETINGS The inter-governmental work is done at 5 levels of
meetings: [1]
The UNCTAD Conference held every 4 years;
UNCTAD XIII will be held in Doha, Qatar in 2012
UNCTAD XII was held in Accra, Ghana in 2125 April2008 [1]
UNCTAD XI was held in So Paulo, Brazil in 1318 June2004 [2]
UNCTAD X was held in Bangkok, Thailand in 1219February 2000 [3]
UNCTAD IX was held in Midrand, South Africa in 27 April 11 May 1996
UNCTAD VIII was held in Cartagena, Colombia in 825
February 1992
http://en.wikipedia.org/wiki/United_Nations_Conference_on_Trade_and_Developmenthttp://en.wikipedia.org/wiki/Dohahttp://en.wikipedia.org/wiki/Qatarhttp://en.wikipedia.org/wiki/Accrahttp://en.wikipedia.org/wiki/Ghanahttp://www.unctadxii.org/http://en.wikipedia.org/wiki/S%C3%A3o_Paulohttp://en.wikipedia.org/wiki/Brazilhttp://www.unctadxi.org/http://en.wikipedia.org/wiki/Bangkokhttp://en.wikipedia.org/wiki/Thailandhttp://www.unctad-10.org/http://en.wikipedia.org/wiki/Midrand,_Gautenghttp://en.wikipedia.org/wiki/South_Africahttp://en.wikipedia.org/wiki/Cartagena,_Colombiahttp://en.wikipedia.org/wiki/Colombiahttp://en.wikipedia.org/wiki/Colombiahttp://en.wikipedia.org/wiki/Cartagena,_Colombiahttp://en.wikipedia.org/wiki/South_Africahttp://en.wikipedia.org/wiki/Midrand,_Gautenghttp://www.unctad-10.org/http://en.wikipedia.org/wiki/Thailandhttp://en.wikipedia.org/wiki/Bangkokhttp://www.unctadxi.org/http://en.wikipedia.org/wiki/Brazilhttp://en.wikipedia.org/wiki/S%C3%A3o_Paulohttp://www.unctadxii.org/http://en.wikipedia.org/wiki/Ghanahttp://en.wikipedia.org/wiki/Accrahttp://en.wikipedia.org/wiki/Qatarhttp://en.wikipedia.org/wiki/Dohahttp://en.wikipedia.org/wiki/United_Nations_Conference_on_Trade_and_Development7/31/2019 Trips,Trims n Unctad
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The UNCTAD Trade and Development Board Four UNCTAD Commissions and one Working
Party these meet more often than the Board
in order to take up policy, programme andbudgetary issues;
Expert Meetings the Commissions willconvene expert meetings on selected topics in
order to provide substantive and expert inputfor Commission policy discussions
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REPORTS
The Trade and Development Report
The Trade and Environment Review
The World Investment Report
The Economic Development in Africa Report The Least Developed Countries Report
UNCTAD Statistics
The Information Economy Report The Review of Maritime Transport
The International Accounting and Reporting IssuesAnnual Review
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It conducts various technical cooperation
programmes such as ASYCUDA,DMFAS, EMPRETEC and WAIPA.
In addition, UNCTAD conducts certain
technical cooperation in collaboration withthe World Trade Organization through the
joint International Trade Centre (ITC), a
technical cooperation agency targetingoperational and enterprise-orientedaspects of trade development.
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THANK YOU