The WTO's Agreement on Trade-Related Investment Measures (TRIMs) prohibit national rules that place restrictions of foreign companies including:

Question

Quizplus · Accepted Answer

A. Local content requirements - These are measures that require a company to purchase or use domestic goods rather than imported goods, or to use domestic sources for certain percentages of the goods in its production.
B. Export Performance Requirements - These are measures that require a company to export a certain level of its production, either in absolute terms or as a proportion of its total production or imports.
C. Payment of taxes for goods sold in the foreign country - This is not prohibited by the TRIMs Agreement. Countries are generally allowed to tax foreign and domestic companies according to their own tax laws, provided that the taxation does not discriminate against foreign companies in violation of the national treatment principle.
Therefore, the correct answer to the question is:
E. A & B Only
Local content requirements and export performance requirements are the types of national rules that are prohibited by the TRIMs Agreement because they can distort trade and investment flows, whereas the payment of taxes for goods sold in the foreign country is not covered by the TRIMs Agreement.

The WTO's Agreement on Trade-Related Investment Measures (TRIMs) Prohibit National