The GATT agreement on trade related investment measures: Implications for developing countries and their relationship with transnational corporations

This article addresses three issues. First, it argues that the use of trade related investment measures (TRIMs) by LDCs can only be analysed in the context of their dealings with transnational corporations (TNCs). Second, it considers the applicability of existing GATT rules to TRIMs and shows that they are inadequate and can pose difficulties for LDCs seeking foreign direct investment by TNCs. Third, it suggests a framework for regulating TRIMs as one element of host‐TNC relations. The article concludes with proposals for enhancing the capacity of LDCs in their dealings with TNCs.