Under TRIMS, WTO names the list of investment measures which member countries adopt and that discriminates with the foreign investment when compared to domestic ones and hence violate the basic WTO principle of National Treatment. National treatment demands that the same treatment should be given to foreign goods,services and investment which is being given to the domestic ones.

The restrictive measures adopted by countries include:

1. The requirements to achieve a certain level of local content or raw material, compelling foreign investors to buy a certain amount of local inputs. This forces the investors to buy from local sources and not procure from abroad, even if it is cheaper abroad.
2. Produce locally and export a given level/percentage of goods to earn FOREX for the country.
3. Balance the amount/percentage of imports with the amount/percentage of exports, and
4. Transfer their technology, patent or proprietary business information to local industries.

Hence, TRIMS provide the rules that restrict the preference of domestic firms and thereby enable international firms to operate more easily within foreign markets.

In order to bring all these measures under modulation, an agreement was signed between all the WTO members. 

The TRIMs agreement’s overall goal is to urge nations to implement open, non-discriminatory investment policies that support trade and economic growth.