Trade-Related Investment Measures (TRIMS)

The WTO's TRIMS Agreement prohibits investment measures that restrict or distort trade, such as imposing quantitative restrictions or local content requirements on foreign investors (Statement 1 is correct). Crucially, TRIMS applies strictly to trade in goods, not services (Statement 2 is incorrect). The agreement itself does not regulate foreign direct investment policies globally; it merely prohibits trade-distorting conditions attached to such investments (Statement 3 is correct). > One-line conceptual takeaway: TRIMS focuses solely on removing trade-distorting investment measures for goods, not laying down comprehensive FDI laws. Answer: (c).