Posted by: mulrickillion | October 10, 2011

WTO | 2011 News items – Investment measures questioned


3 October 2011


Investment measures questioned

At the meeting of the Committee on Trade-Related Investment Measures (TRIMs) on 3 October 2011, some members raised questions about certain investment measures by India, Indonesia and Nigeria. It also carried out its final annual review of China’s implementation of its commitments under the TRIMs Agreement.

The United States expressed concerns about what it said were mandatory local content requirements of India’s Jawaharlal Nehru National Solar Mission. It said the guidelines require that all projects use modules manufactured in India. The European Union shared these concerns. India maintained that the guidelines in question did not violate the TRIMs Agreement.

The United States and the European Union expressed concerns and submitted questions about Nigeria’s measures contained in the “Act to provide for the development of Nigerian content in the Nigeria oil and gas industry”. Japan shared these concerns. Nigeria maintained that the measures in question complied with the TRIMs Agreement. It also noted that it was holding bilateral consultations on this issue with the United States, and that it would be providing written answers to the questions that had been raised.

The European Union and Japan asked follow-up questions regarding what they said were local content requirements by Indonesia in investment in the telecommunications sector. They first raised concerns about Indonesia’s telecom measures in 2009. At the meeting, they were supported by Canada and the United States. Indonesia maintained that the measures in question are consistent with the TRIMs Agreement, and promised detailed answers in the near future.

On another matter, the European Union, Japan and the United States questioned local content provisions in the Indonesian energy sector (mining, oil and gas). Indonesia said that the measures comply with the TRIMs Agreement.

The Committee carried out its ninth and final annual review of China’s implementation of its commitments under the TRIMs Agreement.

Japan expressed concern about China’s technology transfer requirements in new-energy vehicles production. This concern was also expressed by the United States, which also criticized domestic-content requirements in China’s steel sector. The European Union urged China to streamline its investment procedures, and to lift its ban on foreign direct investment in certain sectors. Mexico said that its companies have also complained about China’s technology transfer requirement on foreign investment.

China said that the concerns raised were due to a misunderstanding of its investment rules, which it said did not impose technology transfer requirements. It said that during the past ten years, it has seriously fulfilled the requirements of the TRIMs Agreement, and that it had been consulting, and would continue to consult with members on their concerns. However, China said that a sovereign country has the right to design its own investment policies. It added that it will continue to expand the opening up to foreign investment.

The Committee elected Mr Patrick Van Gheel (Belgium) as its new chair, succeeding Mrs Zhao Hong (China).

WTO | 2011 News items – Investment measures questioned


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s


%d bloggers like this: