Local Content Requirements

The CSIS Energy and National Security Program hosted Frederic Farschi, Global Local Content Manager for Shell Corporation; Kristina Svensson, Senior Mining Specialist with the Energy and Extractives Global Practice at the World Bank; and David Nelson, senior manager of global government affairs & policy for the Americas, to share their insights on local content requirements (LCRs).

Local content laws and regulations, requiring companies to purchase or procure a minimum threshold of goods and services locally, have been gaining steam in recent years as a way for countries to capture additional value from foreign direct investment. While some parties argue that such requirements strengthen domestic markets and help them diversify products, others claim that the regulations distort the market, undermining the value of competition and free trade.

Panelists will addressed both the benefits and hurdles presented by LCRs. Sarah Ladislaw, Director and Senior Fellow with the Energy and National Security Program, moderated.