APEC Workshop on Local Content Requirements in Energy

From 7th to 8th October, 2015 in Ha Noi, Viet Nam, "APEC Workshop on Local Content Requirements in Energy” was held. This event is in line with APEC’s cooperation activities in sustainable energy that Viet Nam has recently hosted.

Energy security plays an important role to sustainable economic growth and development, especially in the context of economies’ increasing demands of energy. However, the energy supply is increasingly limited and exhausted. Therefore, “energy security” has remained as one of the top priorities and concerns of many countries in the world in general, and in the Asia - Pacific region in particular.

In international trade in general, trade in energy in particular, many economies are concerned about the fact that more economies apply “Local Content Requirements” (LCRs) in energy, for example: to some parts for equipments production or for energy generation (wind energy, solar energy, biomass, etc.). A number of countries have been applying the LCRs in energy to promote domestic production. However, the unsuitable application of LCRs for protectionism purpose, inconsistent with international commitments, is expected to adversly affect trade and investment facilitation and liberalization in the region, impede the development of the global value chains (GVCs) and indirectly put negative impacts on enterprises’ business. In reality, many lawsuits related to LCRs in general and LCRs in energy in particular have been dealt by WTO as the unreasonable application have violated the General Agreement on Tariffs and Trade (GATT) and Agreement on Trade Related Investment Measures (TRIMS). Regional and international disputes related to LCRs still have been controversial in international trade.

Deputy Minister of Ministry of Industry and Trade Nguyen Cam Tu said, Being aware of the importance of LCRs towards trade and investment liberalization and facilitation in the Asia - Pacific region, the Ministers at the 24th APEC Ministerial Meeting (AMM 24) in Vladivostock, Russian Federation have instructed Senior Officials to examine negative impacts of LCRs toward economic growth and regional economic integration. This workshop therefore aims at raising the APEC delegates’s awareness of LCRs in energy and exchanging points of views as well as making practical recommendations on this important issue.

At the Workshop, distinguished speakers and participants shared valuable knowledge, experiences and practical recommendations in this field, so as to implement APEC Ministers’ instructions to develop a favorable business environment in the APEC region. 

Multilateral Trade Policy Department
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