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UPSC 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. 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
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Not attemptedCorrect Answer: (c) 1 and 3 only
1. Article 2 of the TRIMs Agreement prohibits Members from maintaining investment measures that breach GATT Article XI, i.e. quantitative import or export restrictions, so statement 1 is correct. 2. Article 1 states that the Agreement "applies to investment measures related to trade in goods only"; it does not cover services, so statement 2 is wrong. 3. The Agreement does not regulate foreign investment per se; it is concerned only with those investment measures that distort trade in goods, making statement 3 correct. Therefore, only statements 1 and 3 are correct (option c). ([wto.org](https://www.wto.org/english/docs_e/legal_e/trims_e.htm?utm_source=openai))
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Frequently Asked Questions
What is the correct answer to this UPSC 2020 Indian Economy question?▼
The correct answer is option (c): 1 and 3 only. Watch the detailed video explanation in our Sherlocking Prelims course on UnlockIAS.
Which year was this International Trade & WTO question asked in UPSC Prelims?▼
This question was asked in UPSC CSE Prelims 2020, GS Paper 1, as Question 56. It falls under Indian Economy > International Trade & WTO.
What is the difficulty level of this UPSC question?▼
This question is rated "moderate". It requires sound conceptual understanding of the topic.
How many UPSC Prelims questions have been asked from International Trade & WTO?▼
UPSC has asked 38 questions from International Trade & WTO (under Indian Economy) across multiple years. Visit the topic page to see the full list and year-wise trends.