Industrialization Compliance: Navigating Value-Added Growth Under the TRIMs Agreement
Understanding Value-Added Products within the TRIMs Agreement In the world of international trade, the journey from raw materials to a finished product is where economic value is created. This process is known as value addition . For many developing nations, the goal is to move away from simply exporting raw commodities (like iron ore or timber) and toward producing value-added products (like steel beams or high-end furniture). However, the strategies countries use to encourage this transition are strictly governed by the World Trade Organization (WTO), specifically under the Agreement on Trade-Related Investment Measures (TRIMs) . What is the TRIMs Agreement? The TRIMs Agreement, established in 1995, recognizes that certain investment measures can restrict and distort trade. It stipulates that no WTO member shall apply any measure that discriminates against foreign products or leads to quantitative restrictions, both of which violate basic GATT (General Agreement on Tariffs and...