Pending the conclusion of the Uruguay Round negotiations, in which a large-scale agreement on trade-related investment measures (`TRIMs Agreement`) has been concluded, the few international agreements providing for disciplines for foreign investment restraint measures provided the text of the TRIPS agreement until the conclusion of the Uruguay Round negotiations, which resulted in the conclusion of a well-concluded agreement on trade investment measures (`TRIMs`). The OECD Code on the Liberalization of Capital Movements, for example, requires members to liberalize restrictions on direct investment in a number of areas. However, the effectiveness of the OECD code is limited by the many reservations of each member.  The Ministerial Declaration of Punta del Este, which launched the Uruguay Round, addressed the issue of trade-related investment measures as the theme of the new round through a carefully crafted compromise: after examining the functioning of the GATT articles with regard to the restricted and trade-distorting effects of investment measures, negotiations should, if necessary, develop other provisions that might be necessary to avoid such adverse effects on trade. The emphasis on the commercial effects of this mandate highlighted the fact that the negotiations were not intended to deal with the regulation of investments as such. The Uruguay Round negotiations on trade-related investment measures were marked by strong differences of opinion among participants on the coverage and nature of possible new disciplines. While some industrialized countries have proposed provisions prohibiting a wide range of measures in addition to local content requirements, which were found to be inconsistent with Article III in the case of the FIRA Panel, many developing countries have opposed them. The compromise that ultimately resulted from the negotiations is essentially limited to an interpretation and clarification of the application of the GATT provisions on the questioning of imported goods (Article III) and quantitative import or export restrictions on trade-related investment measures (Article XI). The TRIPS agreement therefore does not cover many of the measures discussed in the Uruguay Round negotiations, such as export results and technology transfer. As an agreement based on THE existing GATT disciplines on trade in goods, the agreement does not deal with the regulation of foreign investment.
The disciplines of the TRIPS agreement focus on investment measures that are contrary to Articles III and XI of the GATT, i.e. that distinguish imported and exported goods and/or create import or export restrictions. For example, a local content requirement, which is not discriminatory for domestic and foreign companies, is contrary to the TRIM agreement, as it involves discriminatory treatment of imported products in favour of domestic products. The fact that there is no discrimination between domestic and foreign investors when imposing the measure is not negligible in the context of the ON TRIPS agreement. In addition to the TRIMs agreement, there are other investment agreements that can help your business compete with the international market. The United States has bilateral investment agreements with 40 countries. These agreements generally offer comprehensive investment protection, including local content disciplines and commercial compensation. The full text of the bilateral investment contracts is available on the website of the Trade Ministry`s Trade Negotiations and Compliance Office. Similar provisions have also been introduced in the investment chapters of some U.S. free trade agreements, such as NAFTA, with Korea and Panama and others.