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

LohaHridoy

6 views

2025-01-04 04:42

1 Answers

AhmedNazir

Option 3 : 1 and 3 only

The correct answer is 1 and 3.

Trade-Related Investment Measures provide quantitative restrictions on imports by foreign investors are prohibited. Hence statement 1 is correct.
TRIMS agreement applies only to investment measures related to trade in goods and not in services and it is mentioned in Article 1 of the TRIMS agreement, hence statement 2 is incorrect.
As per the TRIMs Agreement, members are required to notify the WTO Council for Trade in Goods of their existing TRIMs that are inconsistent with the agreement.
TRIMs are rules that restrict the 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 statement 3 is correct.

Features of TRIMS are-

Offering equal rights to the foreign investor on par with domestic players
Abolition of restrictions imposed on foreign goods.
Permission grant to import raw material without restrictions.
Abolition of restrictions on any area of investment

As per the provisions of Article. 5.1 of the TRIMs Agreement India had notified three trade-related investment measures which are as follows-

1. Local content (mixing) requirements in the production of News Print,
2. Dividend balancing requirement in the case of investment in 22 categories of consumer goods.
3. Local content requirement in the production of Rifampicin and Penicillin – G

6 views Answered 2022-09-04 04:29

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