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 ela!orate as appropriate further provisions that ma" !e necessar" to avoid such adverse effects on trade"# Desiring to promote the expansion and progressive li!eralisation of world trade and to facilitate investment across international frontiers so as to increase the economic growth of all trading partners particularl" developing countr" Mem!ers while ensuring free competition# Taking into account the particular trade development and financial needs of developing countr" Mem!ers particularl" those of the least-developed countr" Mem!ers# Recognizing that certain investment measures can cause trade-restrictive and distorting effects# $ere!" agree as follows% Article 1 Coverage This Agreement applies to investment measures related to trade in goods onl" &referred to in this Agreement as "T'(Ms")* Article 2 National Treatment and Quantitative Restrictions +* ,ithout pre-udice to other rights and o!ligations under GATT +../ no Mem!er shall appl" an" T'(M that is inconsistent with the provisions of Article ((( or Article 0( of GATT +../* 1* An illustrative list of T'(Ms that are inconsistent with the o!ligation of national treatment provided for in paragraph / of Article ((( of GATT +../ and the o!ligation of general elimination of 2uantitative restrictions provided for in paragraph + of Article 0( of GATT +../ is contained in the Annex to this Agreement* Article 3 !ce"tions All exceptions under GATT +../ shall appl" as appropriate to the provisions of this Agreement* Article # Develo"ing Countr$ Members

A developing countr" Mem!er shall !e free to deviate temporaril" from the provisions of Article 1 to the extent and in such a manner as Article 03((( of GATT +../ the 4nderstanding on the 5alance-of-Pa"ments Provisions of GATT +../ and the Declaration on Trade Measures Ta6en for 5alance-of-Pa"ments Purposes adopted on 17 8ovem!er +.9. &5(:D 1;:<1=>-1=.) permit the Mem!er to deviate from the provisions of Articles ((( and 0( of GATT +../* Article % Noti&ication and Transitional Arrangements +* Mem!ers within .= da"s of the date of entr" into force of the ,T? Agreement shall notif" the @ouncil for Trade in Goods of all T'(Ms the" are appl"ing that are not in conformit" with the provisions of this Agreement* :uch T'(Ms of general or specific application shall !e notified along with their principal features*+ 1* Each Mem!er shall eliminate all T'(Ms which are notified under paragraph + within two "ears of the date of entr" into force of the ,T? Agreement in the case of a developed countr" Mem!er within five "ears in the case of a developing countr" Mem!er and within seven "ears in the case of a least-developed countr" Mem!er* A* ?n re2uest the @ouncil for Trade in Goods ma" extend the transition period for the elimination of T'(Ms notified under paragraph + for a developing countr" Mem!er including a leastdeveloped countr" Mem!er which demonstrates particular difficulties in implementing the provisions of this Agreement* (n considering such a re2uest the @ouncil for Trade in Goods shall ta6e into account the individual development financial and trade needs of the Mem!er in 2uestion* /* During the transition period a Mem!er shall not modif" the terms of an" T'(M which it notifies under paragraph + from those prevailing at the date of entr" into force of the ,T? Agreement so as to increase the degree of inconsistenc" with the provisions of Article 1* T'(Ms introduced less than +7= da"s !efore the date of entr" into force of the ,T? Agreement shall not !enefit from the transitional arrangements provided in paragraph 1* >* 8otwithstanding the provisions of Article 1 a Mem!er in order not to disadvantage esta!lished enterprises which are su!-ect to a T'(M notified under paragraph + ma" appl" during the transition period the same T'(M to a new investment & i) where the products of such investment are li6e products to those of the esta!lished enterprises and & ii ) where necessar" to avoid distorting the conditions of competition !etween the new investment and the esta!lished enterprises* An" T'(M so applied to a new investment shall !e notified to the @ouncil for Trade in Goods* The terms of such a T'(M shall !e e2uivalent in their competitive effect to those applica!le to the esta!lished enterprises and it shall !e terminated at the same time* Article ' Trans"arenc$ +* Mem!ers reaffirm with respect to T'(Ms their commitment to o!ligations on transparenc" and notification in Article 0 of GATT +../ in the underta6ing on "8otification" contained in the
+ (n the case of T'(Ms applied under discretionar" authorit" each specific application shall !e notified* (nformation that would pre-udice the legitimate commercial interests of particular enterprises need not !e disclosed*

4nderstanding 'egarding 8otification @onsultation Dispute :ettlement and :urveillance adopted on 17 8ovem!er +.9. and in the Ministerial Decision on 8otification Procedures adopted on +> April +../* 1* Each Mem!er shall notif" the :ecretariat of the pu!lications in which T'(Ms ma" !e found including those applied !" regional and local governments and authorities within their territories* A* Each Mem!er shall accord s"mpathetic consideration to re2uests for information and afford ade2uate opportunit" for consultation on an" matter arising from this Agreement raised !" another Mem!er* (n conformit" with Article 0 of GATT +../ no Mem!er is re2uired to disclose information the disclosure of which would impede law enforcement or otherwise !e contrar" to the pu!lic interest or would pre-udice the legitimate commercial interests of particular enterprises pu!lic or private* Article ( Committee on Trade)Related *nvestment Measures +* A @ommittee on Trade-'elated (nvestment Measures &referred to in this Agreement as the "@ommittee") is here!" esta!lished and shall !e open to all Mem!ers* The @ommittee shall elect its own @hairman and 3ice-@hairman and shall meet not less than once a "ear and otherwise at the re2uest of an" Mem!er* 1* The @ommittee shall carr" out responsi!ilities assigned to it !" the @ouncil for Trade in Goods and shall afford Mem!ers the opportunit" to consult on an" matters relating to the operation and implementation of this Agreement* A* The @ommittee shall monitor the operation and implementation of this Agreement and shall report thereon annuall" to the @ouncil for Trade in Goods* Article + Consultation and Dis"ute ,ettlement The provisions of Articles 00(( and 00((( of GATT +../ as ela!orated and applied !" the Dispute :ettlement 4nderstanding shall appl" to consultations and the settlement of disputes under this Agreement* Article Revie. b$ t/e Council &or Trade in 0oods 8ot later than five "ears after the date of entr" into force of the ,T? Agreement the @ouncil for Trade in Goods shall review the operation of this Agreement and as appropriate propose to the Ministerial @onference amendments to its text* (n the course of this review the @ouncil for Trade in Goods shall consider whether the Agreement should !e complemented with provisions on investment polic" and competition polic"* A88E0 *llustrative 1ist

+* T'(Ms that are inconsistent with the o!ligation of national treatment provided for in paragraph / of Article ((( of GATT +../ include those which are mandator" or enforcea!le under domestic law or under administrative rulings or compliance with which is necessar" to o!tain an advantage and which re2uire% &a) the purchase or use !" an enterprise of products of domestic origin or from an" 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 that an enterpriseBs purchases or use of imported products !e limited to an amount related to the volume or value of local products that it exports*

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1* T'(Ms that are inconsistent with the o!ligation of general elimination of 2uantitative restrictions provided for in paragraph + of Article 0( of GATT +../ include those which are mandator" or enforcea!le under domestic law or under administrative rulings or compliance with which is necessar" to o!tain an advantage and which restrict% &a) the importation !" an enterprise of products used in or related to its local production generall" or to an amount related to the volume or value of local production that it exports# the importation !" an enterprise of products used in or related to its local production !" restricting its access to foreign exchange to an amount related to the foreign exchange inflows attri!uta!le to the enterprise# or the exportation or sale for export !" 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*

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