Annex TRM: Notification and Phase-Out (TRIMs)

(in accordance with Article 5(4))

1) Each Contracting Party shall notify to the Secretariat all trade-related investment measures which it applies that are not in conformity with the provisions of Article 5, within

• (a) 90 days after the entry into force of this Treaty if the Contracting Party is a member of the WTO;^* or
• (b) 12 months after the entry into force of this Treaty if the Contracting Party is not a member of the WTO.*

Such trade-related investment measures of general or specific application shall be notified along with their principal features.

2) In the case of trade-related investment measures applied under discretionary authority, each specific application shall be notified. Information that would prejudice the legitimate commercial interests of particular enterprises need not be disclosed.

3) Each Contracting Party shall eliminate all trade-related investment measures which are notified under paragraph (1) within:

• (a) two years from the date of entry into force of this Treaty if the Contracting Party is a member of the WTO;* or
• (b) three years from the date of entry into force of this Treaty if the Contracting Party is not a member of the WTO.*

4) During the applicable period referred to in paragraph (3) a Contracting Party shall not modify the terms of any trade-related investment measure which it notifies under paragraph (1) from those prevailing at the date of entry into force of this Treaty so as to increase the degree of inconsistency with the provisions of Article 5 of this Treaty.

5)    Notwithstanding the provisions of paragraph (4), a Contracting Party, in order not to disadvantage established enterprises which are subject to a trade-related investment measure notified under paragraph (1), may apply during the phase-out period the same trade-related investment measure to a new Investment where:

• (a) the products of such Investment are like products to those of the established enterprises; and
• (b) such application is necessary to avoid distorting the conditions of competition between the new Investment and the established enterprises.

Any trade-related investment measure so applied to a new Investment shall be notified to the Secretariat. The terms of such a trade-related investment measure shall be equivalent in their competitive effect to those applicable to the established enterprises, and it shall be terminated at the same time.

6) Where a state or Regional Economic Integration Organisation accedes to this Treaty after the Treaty has entered into force:

• (a) the notification referred to in paragraphs (1) and (2) shall be made by the later of the applicable date in paragraph (1) or the date of deposit of the instrument of accession; and
• (b) the end of the phase-out period shall be the later of the applicable date in paragraph (3) or the date on which the Treaty enters into force for that state or Regional Economic Integration Organisation.

^* Editor's note: modification based on Article 2 of the Amendment to the Trade-Related Provisions of the Energy Charter Treaty.