‘TRIMs review affected by US, EU reluctance’

S Venkitachalam

New Delhi, Aug 10: The review of the trade-related investment measures (TRIMs) agreement has been adversely affected by the reluctance of the US and the European Union (EU) to participate in it, said a commerce ministry note.

The strategy of both these countries appears to be to slowdown the process so as to settle the issue of transition period provided in the agreement and to make the implementation problems, related to the agreement raised by developing countries, irrelevant, the note opines.

Under the agreement that came into force from January 1, 1995, all the developing countries were given a transition period of five years to eliminate all WTO-inconsistent TRIMs maintained by them for balance of payments reasons.

The agreement also provides for review at the expiry of five years. There was however, some delay in the start of the review due on January 1, 2000.

According to the note, the US and the EU are keen to pursue their own agenda of expansion of the investment and competition policy provisions.

The review process has also been affected by requests from nine developing countries for extension of the transition period to eliminate the TRIMs notified by them.

Further, the US and the EU have involved India in a dispute related
to TRIMs in the 1997 auto policy.

A joint WTO panel is hearing the case. The US has also sought consultations with Philippines on a TRIM notified by it and on which it has sought an extension of the transition period.