UPSC Previous Year Question | Prelims GS | 2020

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.

  1. 1 and 2 only
  2. 2 only
  3. 1 and 3 only
  4. 1, 2 and 3

Answer

Correct Answer

1 and 3 only

Explanation

The TRIMs Agreement prohibits investment measures such as local-content requirements and quantitative import restrictions. It covers trade in goods only, not services, and does not regulate foreign investment as such. So statements 1 and 3 are correct.

Topics: economy, external sector & international institutions, trims agreement, world trade organization (wto)