“TRIMS are concerned
with the liberalization of foreign investment
conditions. Under the national treatment rule WTO
member states commit themselves to treat foreign
enterprises under the same terms and conditions as
their domestic enterprises (GATT,1994,Article
111).Member countries also commit themselves to the
reduction of all quantitative restrictions on
imported goods, including tariffs and non-tariff
barriers (GATT,1994,Article IX).
The TRIMS agreement provides a few concessions to
safeguard local industries such as the requirement
of local content aimed at ensuring that local
industries benefit from providing inputs into the
production process of foreign companies. It is
obvious, however that for countries to benefit from
TRIMS they should have a very organized and advanced
industrial sector, which would be able to respond to
specific input, needs of foreign investors. LDCs
generally lack infrastructure to enable them to
respond positively to input needs of various foreign
investments. If LDCs are to benefit from TRIMS then
their governments have to assist in building
capacity of small and medium enterprises (SMEs).
As has been mentioned earlier on the issue of
investment has important implications for women, as
foreign direct investment tends to rely on women’s
labor in export manufacturing. TRIMS do not address
themselves to working conditions in export
processing zones, a serious loophole since working
conditions in many foreign direct companies have
been neglected as emphasis is placed on export
performance in relation to amounts of profits earned
from various business concerns. TRIMS, like all the
WTO agreements have very little, if anything, to
offer in enhancement of development among poor
countries. TRIMS do not adequately address
themselves to problems faced by developing nations
with regard to foreign exchange.
Whilst TRIMS themselves are very limited in scope,
the proposed Multilateral Investment Agreement (MIA)
is threatening their existence. The MIA, among other
things is aimed at giving foreign investors the
liberty to establish themselves in all sectors in
any WTO member and be accorded “national treatment”.
This renders member states vulnerable to
infiltration by undesirable investments,“ Investors
will thus have freedom without responsibility,
except in respect of their own
profits”(UNIFEM,1998).The MIA therefore places
serious threat to domestic investors and women are
particularly affected due to their concentration in
small and medium enterprises. Presently, land tenure
systems of most developing nations discriminate
against women, with the MIA foreign interests are
likely to extend to land and other resources making
it even more difficult for women to access land”.
(GENTA RESEARCH OFFICE, 2000,
www.wto.org) |
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