What Is TRIMS?

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TRIMs is more related with the role of negotiations between multinational or transnational companies and the host country’s government. TRIMS can be grouped into three part: measures used to promote exports from the host country (export) performance requirements and trade balancing requirements), measures to reduce imports by the foreign investor (local content requirements), and measures to promote job creation and technology transfer. The aim of this measures is to control investment policies. However, the TRIMS seems to be not fair for developing countries because there is a restriction to use a local content. For instance, if a government imposed investor to use a raw material from domestic industries, it will be said as a disruption for …show more content…
The country can select the sectors for liberalization regarding on which modes that they are going to apply. On its agreement, first, GATS agreements emphasize on the general agreement that all countries should obey, also it contains the transparency to protect Foreign Service companies from unfair domestic market. Second, it talks about the specific sector commitments to be chosen by a country. In this terms, the country should provide the extent of market access which will be allowed to foreign companies to entry. Therefore, the negotiation on GATS has provided four method of supply such as: cross border supply, consumption abroad, commercial presence, and presence of natural person (Riddle, 2000).
The dispute regarding sale and distribution of bananas was an example of problem arising from GATS. The complainants said that EU method of import distribution broke the GATS, because its importer mostly come from EU-entities. However, the panel decided that the category rules in GATS, should focus on market share not on the nationality of providers (Hoekman and Kostecki,
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It needs another international institution to govern this matters. TRIPs was formed in 1995 in order to govern some issues related to intellectual property right such as trademarks, patents, copyrights, and trade secret. The main actors of TRIPs are industrialized countries. It was created in Uruguay round due to the request of some developed countries, however, at that time, developing countries have opposed this agreements because they will lose the revenues to some developed countries. Some critics raised due to the expensive prices of drugs and access to some special medicine because it is too risky to imitate those things, also limitation of new plant varieties. Doha round was used to propose the concern of implication of TRIPS agreement in poor countries especially the access to an affordable medicines and protection of traditional knowledge and biodiversity. Public health become a main concern of critics in terms of TRIPS agreements. It was proposed by some NGOs through their campaigns. Many developing countries complain that it’s unfairly for restricting technological transfer to developing economies. If this matters, it will bring more fear to the humanity also reducing a global welfare. TRIPS didn’t provide a research and development capabilities between industrialized countries and poor countries (Lanoszka, 2003). Affordable medicines is an

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