{"id":91765,"date":"2025-06-01T11:05:14","date_gmt":"2025-06-01T11:05:14","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=91765"},"modified":"2025-06-01T11:05:14","modified_gmt":"2025-06-01T11:05:14","slug":"with-reference-to-trade-related-investment-measures-trims-which-of","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-trade-related-investment-measures-trims-which-of\/","title":{"rendered":"With reference to Trade-Related Investment Measures (TRIMS), which of"},"content":{"rendered":"<p>With reference to Trade-Related Investment Measures (TRIMS), which of the following statements is\/are correct ?<\/p>\n<ul>\n<li>1. Quantitative restrictions on imports by foreign investors are prohibited.<\/li>\n<li>2. They apply to investment measures related to trade in both goods and services.<\/li>\n<li>3. They are not concerned with the regulation of foreign investment.<\/li>\n<\/ul>\n<p>Select the correct answer using the code given below :<\/p>\n<p>[amp_mcq option1=&#8221;1 and 2 only&#8221; option2=&#8221;2 only&#8221; option3=&#8221;1 and 3 only&#8221; option4=&#8221;1, 2 and 3&#8243; correct=&#8221;option1&#8243;]<\/p>\n<div class=\"psc-box-pyq-exam-year-detail\">\n<div class=\"pyq-exam\">\n<div class=\"psc-heading\">This question was previously asked in<\/div>\n<div class=\"psc-title line-ellipsis\">UPSC IAS &#8211; 2020<\/div>\n<\/div>\n<div class=\"pyq-exam-psc-buttons\"><a href=\"\/pyq\/pyq-upsc-ias-2020.pdf\" target=\"_blank\" class=\"psc-pdf-button\" rel=\"noopener\">Download PDF<\/a><a href=\"\/pyq-upsc-ias-2020\" target=\"_blank\" class=\"psc-attempt-button\" rel=\"noopener\">Attempt Online<\/a><\/div>\n<\/div>\n<section id=\"pyq-correct-answer\">\nThe official answer key for UPSC Prelims 2020 indicates that Statement 1 and Statement 2 are considered correct.<br \/>\n<\/section>\n<section id=\"pyq-key-points\">\nStatement 1: The TRIMS Agreement prohibits investment measures that are inconsistent with GATT Article III (National Treatment) and Article XI (Elimination of Quantitative Restrictions). Measures requiring enterprises to limit their imports to an amount related to the foreign exchange earnings they generate, or to the volume or value of products they export, are examples of quantitative restrictions on imports and are thus prohibited under TRIMS for foreign investors. So, statement 1 is correct.<br \/>\nStatement 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.<br \/>\nStatement 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.<br \/>\n<\/section>\n<section id=\"pyq-additional-information\">\nThe TRIMS Agreement requires WTO members to notify the Council for Trade in Goods of all investment measures that are incompatible with TRIMS and to eliminate them within a specified period (typically two years for developed countries, five for developing countries, and seven for least-developed countries). The illustrative list of prohibited TRIMS includes requirements for local content, trade balancing, foreign exchange balancing, and export restrictions.<br \/>\n<\/section>\n","protected":false},"excerpt":{"rendered":"<p>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 &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"With reference to Trade-Related Investment Measures (TRIMS), which of\" class=\"read-more button\" href=\"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-trade-related-investment-measures-trims-which-of\/#more-91765\">Detailed Solution<span class=\"screen-reader-text\">With reference to Trade-Related Investment Measures (TRIMS), which of<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1092],"tags":[1288,1226],"class_list":["post-91765","post","type-post","status-publish","format-standard","hentry","category-upsc-ias","tag-1288","tag-external-sector-of-economy","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>With reference to Trade-Related Investment Measures (TRIMS), which of<\/title>\n<meta name=\"description\" content=\"The official answer key for UPSC Prelims 2020 indicates that Statement 1 and Statement 2 are considered correct. Statement 1: The TRIMS Agreement prohibits investment measures that are inconsistent with GATT Article III (National Treatment) and Article XI (Elimination of Quantitative Restrictions). Measures requiring enterprises to limit their imports to an amount related to the foreign exchange earnings they generate, or to the volume or value of products they export, are examples of quantitative restrictions on imports and are thus prohibited under TRIMS for foreign investors. So, statement 1 is correct. 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.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-trade-related-investment-measures-trims-which-of\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"With reference to Trade-Related Investment Measures (TRIMS), which of\" \/>\n<meta property=\"og:description\" content=\"The official answer key for UPSC Prelims 2020 indicates that Statement 1 and Statement 2 are considered correct. Statement 1: The TRIMS Agreement prohibits investment measures that are inconsistent with GATT Article III (National Treatment) and Article XI (Elimination of Quantitative Restrictions). Measures requiring enterprises to limit their imports to an amount related to the foreign exchange earnings they generate, or to the volume or value of products they export, are examples of quantitative restrictions on imports and are thus prohibited under TRIMS for foreign investors. So, statement 1 is correct. 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.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-trade-related-investment-measures-trims-which-of\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2025-06-01T11:05:14+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"With reference to Trade-Related Investment Measures (TRIMS), which of","description":"The official answer key for UPSC Prelims 2020 indicates that Statement 1 and Statement 2 are considered correct. Statement 1: The TRIMS Agreement prohibits investment measures that are inconsistent with GATT Article III (National Treatment) and Article XI (Elimination of Quantitative Restrictions). Measures requiring enterprises to limit their imports to an amount related to the foreign exchange earnings they generate, or to the volume or value of products they export, are examples of quantitative restrictions on imports and are thus prohibited under TRIMS for foreign investors. So, statement 1 is correct. 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.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-trade-related-investment-measures-trims-which-of\/","og_locale":"en_US","og_type":"article","og_title":"With reference to Trade-Related Investment Measures (TRIMS), which of","og_description":"The official answer key for UPSC Prelims 2020 indicates that Statement 1 and Statement 2 are considered correct. Statement 1: The TRIMS Agreement prohibits investment measures that are inconsistent with GATT Article III (National Treatment) and Article XI (Elimination of Quantitative Restrictions). Measures requiring enterprises to limit their imports to an amount related to the foreign exchange earnings they generate, or to the volume or value of products they export, are examples of quantitative restrictions on imports and are thus prohibited under TRIMS for foreign investors. So, statement 1 is correct. 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.","og_url":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-trade-related-investment-measures-trims-which-of\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2025-06-01T11:05:14+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-trade-related-investment-measures-trims-which-of\/","url":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-trade-related-investment-measures-trims-which-of\/","name":"With reference to Trade-Related Investment Measures (TRIMS), which of","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2025-06-01T11:05:14+00:00","dateModified":"2025-06-01T11:05:14+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"description":"The official answer key for UPSC Prelims 2020 indicates that Statement 1 and Statement 2 are considered correct. Statement 1: The TRIMS Agreement prohibits investment measures that are inconsistent with GATT Article III (National Treatment) and Article XI (Elimination of Quantitative Restrictions). Measures requiring enterprises to limit their imports to an amount related to the foreign exchange earnings they generate, or to the volume or value of products they export, are examples of quantitative restrictions on imports and are thus prohibited under TRIMS for foreign investors. So, statement 1 is correct. 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.","breadcrumb":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-trade-related-investment-measures-trims-which-of\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-trade-related-investment-measures-trims-which-of\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-trade-related-investment-measures-trims-which-of\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/exam.pscnotes.com\/mcq\/"},{"@type":"ListItem","position":2,"name":"UPSC IAS","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/upsc-ias\/"},{"@type":"ListItem","position":3,"name":"With reference to Trade-Related Investment Measures (TRIMS), which of"}]},{"@type":"WebSite","@id":"https:\/\/exam.pscnotes.com\/mcq\/#website","url":"https:\/\/exam.pscnotes.com\/mcq\/","name":"MCQ and Quiz for Exams","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/exam.pscnotes.com\/mcq\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209","name":"rawan239","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","caption":"rawan239"},"sameAs":["https:\/\/exam.pscnotes.com"],"url":"https:\/\/exam.pscnotes.com\/mcq\/author\/rawan239\/"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/91765","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/comments?post=91765"}],"version-history":[{"count":0,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/91765\/revisions"}],"wp:attachment":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/media?parent=91765"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/categories?post=91765"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/tags?post=91765"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}