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. Statement 1 is correct. The Agreement on Trade-Related Investment Measures (TRIMS) under the WTO prohibits investment measures that are inconsistent with basic GATT principles, namely National Treatment (Article III) and the prohibition of Quantitative Restrictions (Article XI). Measures that restrict imports, such as those requiring an enterprise to limit its imports to an amount related to its exports (trade balancing requirements), violate GATT Article XI and are therefore prohibited under TRIMS. 2. Statement 2 is incorrect. The TRIMS Agreement explicitly states in Article 1 that it applies only to investment measures related to trade in goods. It does not cover trade in services. 3. Statement 3 is correct. While TRIMS deals with certain investment measures, its scope is limited to those with trade-distorting effects. It is not a comprehensive agreement on foreign investment regulation. Its primary concern is ensuring that investment measures do not violate GATT principles regarding trade in goods, rather than regulating foreign investment broadly. 4. Therefore, statements 1 and 3 are correct.