TRIMS AND THE CONCEPT OF INVESTMENT UNDER THE WTO AGREEMENT

The Agreement on Textiles and Clothing (ATC) under the World Trade Organisation (WTO) introduced the concept of Trims, or Textile and Clothing Trade-Related Investment Measures. Trims are regulations that govern the investment-related aspects of the textile and clothing sector among WTO member countries. The ATC aimed to phase out quotas and restrictions on textile and clothing trade over a transitional period, leading to a more and competitive global market. Regarding investment under the WTO Agreement, the General Agreement on Trade in Services (GATS) covers a broad range of economic activities, including financial services, telecommunications, and professional services. The WTO’s overarching principles of non-discrimination, transparency, and progressive liberalization apply to investment measures. While the WTO primarily focuses on trade in goods, investment-related aspects are often addressed through negotiations and agreements that complement the trade framework, creating a comprehensive approach to international economic relations. The WTO’s fundamental principles, such as non-discrimination, transparency, and the phased liberalization of trade, extend to investment-related measures. Although the WTO primarily concentrates on goods trade, investment considerations are addressed through negotiations and agreements that complement the overall trade framework, reflecting a comprehensive approach to international economic cooperation.