Strategies for Local Content Policies in Oil, Gas, and Mining Sectors
Explore key aspects such as policy design, implementation challenges, local content definition, trade and investment treaties, demand from investments, and a holistic approach for successful policy execution in the oil, gas, and mining industries. Key questions on market forces, treaty restrictions, and stumbling blocks for policy implementation are also addressed.
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Presentation Transcript
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 Framework What does local content include? Legal loopholes what is a local company ? Local vs. National Content Voluntary scheme Company dependent Non-binding framework Chile Legislation Timor- Leste Contracts Worldwide Bids Brazil 2
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 3
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 4
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 5
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? 6
