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:

• Statement 1 is correct: Quantitative restrictions on imports by foreign investors are prohibited.

The TRIMS agreement explicitly "prohibits investment measures that restrict imports to an amount related to the level of local production". This includes "measures which restrict a firm's ability to import in relation to a certain amount of local content"

Source: https://www.wto.org/english/docs_e/legal_e/18-trims.pdf

• Statement 2 is incorrect: They apply to investment measures related to trade in both goods and services.

The TRIMS agreement applies only to trade in goods. As per the WTO, TRIMS:"does not apply to measures that concern services"

Source: https://www.wto.org/english/tratop_e/invest_e/invest_info_e.htm

• Statement 3 is correct: They are not concerned with the regulation of foreign investment.

As per the WTO, "The TRIMS Agreement does not apply to measures that are not trade-related investment measures, such as general conditions for foreign direct investment"