An analysis of the potential legal disjoint between International Investment Agreements and Local Content Policies

Abstract

Many resource-rich countries have adopted domestic policies such as local content policies (LCPs) to make sure that their nationals profit from their resources and to ensure economic development for their countries. However Despite the value that LCPs bring into the local economy, they might be in conflict with international investment agreements. The study will look at what local content entails and what international investment agreements entail. The study will look into the possible areas of conflict such as employment requirements, support schemes and local procurement and determine whether such measures are in conflict with international investment agreements. The findings of the study outline that local content policies are in breach with international investment agreements such as the General Agreement on Tariffs and Trade, Agreement on Subsidies and Countervailing Measures, the Agreement on Trade-Related Investment Measures.