Here is Question No. 56 a part of our series on UPSC Prelims 2020.
Q56. 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:
(a) 1 and 2 only
(b) 2 only
(c) 1 and 3 only
(d) 1, 2 and 3
Answer: (c)
- Statement 1 is correct: Under the Agreement on Trade-Related Investment Measures (TRIMS) of the World Trade Organization (WTO), commonly known as the TRIMS Agreement (negotiated during the Uruguay Round 1986-1994), WTO members have agreed not to apply certain investment measures that discriminate against foreign goods that restrict or distort trade (national treatment under GATT Article III) or leads to quantitative restrictions (Article XI), both of which violate basic WTO principles.
- Statement 2 is correct: TRIMS is concerned with trade in goods. It does not apply to trade in services
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