With reference to Trade Related Investment Measures TRIMS consider the following statements Quantita...........

Economic Affairs World Trade Organsiation (WTO)

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With reference to Trade-Related Investment Measures (TRIMS), consider the following statements

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 statement.

1&2 only

2&3 only

1&3 only

All of the above

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Explanation:

Both statements 1&3 are correct.

The TRIMs Agreement prohibits certain measures that violate the national treatment and quantitative restrictions requirements of the General Agreement on Tariffs and Trade (GATT).

In other words, it prohibits the use of TRIMs that are inconsistent with:

Article III of GATT 1994 (National Treatment), or
Article XI of GATT 1994 (General Elimination of Quantitative Restrictions)

The coverage of the Agreement is defined in Article 1 of TRIMS, which states that the Agreement applies to investment measures related to trade in goods only. Thus, the TRIMs Agreement does not apply to services.

The Agreement on Trade-Related Investment Measures (TRIMs) are rules that are applicable to the domestic regulations a country applies to foreign investors, often as part of an industrial policy. TRIMs are rules that restrict 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 option 3rd is correct.