Agreement Of Trims

As an agreement based on existing GATT disciplines on trade in goods, the agreement does not concern the regulation of foreign investment. The disciplines of the TRIPS Agreement focus on investment measures contrary to Articles III and XI of the GATT, i.e., which distinguish imported products from exported products and/or which create import or export restrictions. For example, a local content requirement imposed in a non-discriminatory manner on domestic and foreign companies is incompatible with the TRIPS Agreement, as it implies 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 requirement is irrelevant under the TRIPS Agreement.