Trade Wars and Protectionism

Statement 1 is correct: The Trade-Related Investment Measures (TRIMS) agreement under the World Trade Organization (WTO) prohibits quantitative restrictions on imports by foreign investors. This means that countries cannot impose conditions like mandatory local sourcing or trade-balancing requirements that distort free trade. Statement 2 is incorrect: TRIMS only applies to trade in goods, not services. The regulation of trade in services falls under the General Agreement on Trade in Services (GATS), not TRIMS. Statement 3 is correct: TRIMS is not directly concerned with the regulation of foreign investments. Instead, it focuses on investment measures that affect trade in goods, ensuring that they do not create barriers to international trade. Hence, option C is the correct answer.

Statement 1 is Incorrect: The Vizhinjam International Seaport is designed as an international container transshipment hub, not an exclusively domestic cargo hub. Rather than reducing reliance on coastal shipping, a transshipment hub relies heavily on a "hub-and-spoke" model, where large mother ships offload cargo that is then distributed to other Indian ports via smaller coastal feeder vessels. Furthermore, it actively seeks to attract foreign shipping lines and global integration, rather than eliminating foreign collaborations. Statement 2 is Incorrect: While the port has provisions for a cruise terminal, its primary focus is handling international container transshipment and multi-purpose cargo. It is not primarily focused on passenger cruise tourism or heritage shipping. Statement 3 is Correct: Vizhinjam leverages its natural deep draft of 18 to 24 meters, allowing it to berth Ultra Large Container Ships (ULCS) that previously bypassed Indian ports. Situated just 10 nautical miles from the busy East-West international shipping corridor, it aims to reclaim transshipment cargo historically handled by foreign hubs like Colombo, Singapore, and Jebel Ali. This structural shift reduces dependence on foreign ports, retains an estimated $200 to $400 million annually in transshipment revenues, and repositions India in regional maritime trade. Therefore, option D is the correct answer.

The Broad-based Trade and Investment Agreement (BTIA) is negotiated between India and the European Union (EU).

Statement 1 is Correct: The OEKO-TEX certification ensures that textiles are rigorously tested and proven free from harmful substances, heavy metals, and toxic chemicals. This certification acts as a major endorsement, directly enhancing the global marketability of Eri Silk and allowing Indian exporters to confidently compete in high-end international markets that prioritize sustainable, chemical-free, and ethically produced textiles. Statement 2 is Correct: The certification confirms that a textile meets strict international safety, environmental, and human health standards. This is highly valued by buyers in premium, eco-conscious global markets, particularly in Europe and North America. Combined with its Geographical Indication (GI) status and reputation as a cruelty-free "peace silk," the certification cements Eri Silk's position as a premium eco-friendly fabric, enabling its entry into these premium markets. Therefore, both statements are correct, making the correct option C.

* The country's vegetable oil imports for the first six months of the oil year during November 2018 to April 2019 stood at 75,41,689 tonne, up about 3% from 73,18,295 tonne reported in the same period last year. * Vegetable oils account for the highest import in terms of value in the last five years. India relies on imports for 70 percent of its edible oil consumption.