Transcript Local Content Policies Design and Implementation

Local Content Policies Design and
Implementation Issues
Conference on Local Content Policies
in the Oil, Gas and Mining Sectors
Vienna, October 1, 2013
Local Content Mechanisms
Definition
 What does local content
include?
 Legal loopholes – what
is a “local company”?
 Local vs. National
Content
Framework
 Voluntary scheme –




Company dependent
Non-binding framework
– Chile
Legislation – TimorLeste
Contracts – Worldwide
Bids – Brazil
Trade and Investment Treaties
 WTO: Aim to lower tariffs and non-tariff barriers
 Limiting performance requirements related to trade in goods
(TRIMs Agreement in 1995)
 Limiting performance requirements related to trade in services
(GATS Agreement in 1995)
 Limiting performance requirement related to government
procurement (GPA Agreement in 1996)
 Bilateral and Multilateral Trade and Investment Treaties
 International investment agreements with Japan, USA, Canada
and others forbid performance requirements beyond TRIMs
 NAFTA: Example of Mobil vs. Canada case
Implementation
• Demand from
Investment
• Identifying
gaps
• Identifying
potential
• Quantifying
impact
• Setting the
right targets
• Developing
indicators
• Updating
targets
• Tender process
• Audit capacity
• Reporting
requirements
•Transparency
Holistic Approach
Cooperation
• Implementation
Committees
• Procurement
Communication Plan
• Information Sharing
Platform
• Financing
• Capacity Building
• Facilitating Joint
Ventures
• Cluster Development
• Industrial
Policy
• SME Policy
• Education
Strategy
• PPP Potential
• Best practices
• One stop shop
• Capacity
Building
• Project
alignment
• Monitoring
• Dissemination
Questions
 Are market forces sufficient to increase local content?
 Should future trade and investment treaties further restrict
domestic local content policy discretion?
 What is the principle stumbling block in practice for the
successful implementation of a binding local content policy?