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 :
1 and 2 only
2 only
1 and 3 only
1, 2 and 3
Answer is Right!
Answer is Wrong!
This question was previously asked in
UPSC IAS – 2020
Statement 2: According to the official key, this statement is considered correct. However, standard interpretation of the WTO TRIMS Agreement is that it applies specifically to trade-related investment measures concerning trade in **goods**, not services. Measures related to trade in services are covered under the General Agreement on Trade in Services (GATS). There might be a specific context or interpretation under which UPSC considers TRIMS relevant to investment measures touching upon both goods and services sectors, but the primary and explicit scope is goods.
Statement 3: TRIMS is fundamentally concerned with regulating certain aspects of foreign investment, specifically those measures that distort or restrict trade in goods. Therefore, the statement that they are *not* concerned with the regulation of foreign investment is incorrect.