With reference to Trade-Related Investment Measures (TRIMS), which of the following statements is/are correct?
- Quantitative restrictions on imports by foreign investors are prohibited.
- They apply to investment measures related to trade in both goods and services.
- They are not concerned with the regulation of foreign investment.
Select the correct answer using the code given below:
[UPSC Civil Services Exam – 2020 Prelims]
(a) 1 and 2 only
(b) 2 only
(c) 1 and 3 only
(d) 1, 2 and 3
- Trade-Related Investment Measures provide quantitative restrictions on imports by foreign investors are prohibited. Hence statement 1 is correct.
- TRIMS agreement applies only to investment measures related to trade in goods and not in services and it is mentioned in Article 1 of the TRIMS agreement, hence statement 2 is incorrect.
- As per the TRIMs Agreement, members are required to notify the WTO Council for Trade in Goods of their existing TRIMs that are inconsistent with the agreement.
- TRIMs are rules that restrict the preference of domestic firms and thereby enable international firms to operate more easily within foreign markets.
- They don’t regulate foreign investment as such, which is governed by FEMA and DIPP guidelines/regulations. Hence statement 3 is correct.