1. Local Content Policies Design and Implementation Issues Conference on Local Content Policies in the Oil, Gas and Mining Sectors Vienna, October 1, 2013

2. Local Content Mechanisms Framework  Voluntary scheme – Company dependent  Non-binding framework – Chile  Legislation – Timor- Leste  Contracts – Worldwide  Bids – Brazil Definition  What does local content include?  Legal loopholes – what is a “local company”?  Local vs. National Content 2

3. 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

4. Implementation 4 Taking Stock Demand from Investment Identifying gaps Identifying potential Targets/Timelines Quantifying impact Setting the right targets Developing indicators Updating targets Monitoring Tender process Audit capacity Reporting requirements Transparency

5. Holistic Approach 5 Supporting Local Companies Implementation Committees Procurement Communication Plan Information Sharing Platform Financing Capacity Building Facilitating Joint Ventures Cluster Development Monitoring Dissemination Capacity Building Project alignment PPP Potential Best practices One stop shop Industrial Policy SME Policy Education Strategy Govt.Investor Civil Society Donors Cooperation

6. 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