With reference to Trade-Related Investment Measures (TRIMS), which of the following statements is/are correct ? 1. Quantitative restrictions on imports by foreign investors are prohibited. 2. They apply to investment measures related to trade in both goods and services. 3. They are not concerned with the regulation of foreign investment. Select the correct answer using the code given below :
A
1 and 2 only
B
2 only
C
1 and 3 only
Correct Answer
D
1, 2 and 3
Explanation
Option (c) is correct because TRIMS prohibits trade-distorting measures like quantitative restrictions (Statement 1) and focuses on the trade effects of investment policies rather than the direct regulation of foreign investment (Statement 3). Statement 2 is incorrect because TRIMS applies exclusively to trade in **goods**, while trade in services is governed by the General Agreement on Trade in Services (GATS). The core concept tested is the specific jurisdictional scope and limitations of WTO agreements regarding international trade and investment.
International Trade / WTOTrade-Related Investment Measures (TRIMS)Trade-Related Investment MeasuresTRIMSQuantitative restrictionsforeign investorstrade in goodstrade in servicesregulation of foreign investment