The Legality of Local Content Measures under WTO Law

48(3) Journal of World Trade 553-591 (2014), with permission of Kluwer Law International

University of Copenhagen Faculty of Law Research Paper No. 2015-4

King's College London Law School Research Paper No. 2015-22

45 Pages Posted: 23 Apr 2015 Last revised: 9 Nov 2015

See all articles by Holger P. Hestermeyer

Holger P. Hestermeyer

King's College London - The Dickson Poon School of Law; A Dickson Poon Transnational Law Institute

Laura Nielsen

University of Copenhagen - Faculty of Law

Date Written: July 1, 2014

Abstract

Local content measures have proliferated and become a popular tool for governments to incentivize national industry. This article sets out a typology of such measures and analyses the legality of the different types of measures under WTO Law. Questions arise not only with respect to national treatment, the government procurement exemption and the rules on state trading enterprises under the GATT, but also with respect to the TRIMS Agreement, the SCM Agreement as well as the GATS. The article concludes that very few measures can be considered compatible with WTO law.

Keywords: national content measures, WTO law, national treatment, government procurement, TRIMs, GATT, SCM Agreement, Buy American, renewable energy, oil, concessions, import licenses, feed-in tariffs

JEL Classification: K33, F10, F13, N70, Q48

Suggested Citation

Hestermeyer, Holger P. and Nielsen, Laura, The Legality of Local Content Measures under WTO Law (July 1, 2014). King's College London Law School Research Paper No. 2015-22; 48(3) Journal of World Trade 553-591 (2014), with permission of Kluwer Law International; University of Copenhagen Faculty of Law Research Paper No. 2015-4; King's College London Law School Research Paper No. 2015-22. Available at SSRN: https://ssrn.com/abstract=2597969

Holger P. Hestermeyer (Contact Author)

King's College London - The Dickson Poon School of Law ( email )

Somerset House East Wing
Strand
London, WC2R 2LS
United Kingdom

A Dickson Poon Transnational Law Institute ( email )

London, England WC2R 2LS
United Kingdom

Laura Nielsen

University of Copenhagen - Faculty of Law ( email )

Studiestraede 6
Studiegaarden
Copenhagen, DK-1455
Denmark
+4535323162 (Phone)

HOME PAGE: http://www.jura.ku.dk/lauranielsen

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