Brussels, 22/04/2015 (Agence Europe) - Six complaints regarding investment measures adopted by India, Indonesia and Russia - which reportedly favour their national products over imported products by means of requirements for local content - were examined on Thursday 16 April by the WTO committee responsible for monitoring the agreement on trade-related investment measures (TRIM). The EU expressed grievances on each of the cases examined.
The EU and US stated their concern with regard to the new local content requirements adopted by Russia. In the view of the EU and US, Russia is reportedly planning on extending these measures to purchases made by its state-owned companies. The US singled out the Russian anti-crisis plan, which provides for measures to implement an import substitution strategy for medical devices. The EU criticised a worrying trend in Russia for adopting local content requirements in several markets - including medical devices, textiles, machines, vehicles and software - and it reiterated its concerns on local content for agricultural equipment. The EU and Japan also expressed grievances on the new Russian requirements for local content in the automotive sector.
The EU also stated its concern at local content requirements in India for projects involving solar energy production. Also in India, the EU reiterated its grievances regarding certain preferences for electronic and telecommunication products manufactured there.
Four measures taken by Indonesia were raised again, at the request of the US, Japan and the EU - local content requirements for investment in telecommunications; local content arrangements in the energy sector; new legislation on trade and industry; and minimum local product requirements in the distribution sector.
The EU also expressed its concern about local content requirements in Turkey as regards electricity production and it asked Turkey to explain how this measure is in line with WTO rules. Turkey gave assurances that the measure aimed to reduce dependence on imports in the energy sector by developing renewables, and said the measure was not aiming to discriminate against foreign imports. Turkey also gave assurances that investors were not required to purchase local content.
In addition, the EU and US again expressed grievances about certain measures taken by Nigeria for the use of national products in the oil and gas industry.
The EU says it shares the concerns of the US and Japan as regards a recent measure taken by China which they consider to be a local content requirement for ICT equipment used by the banking sector.
The WTO's TRIM agreement recognises that certain investment measures can restrict and distort trade. It stipulates that WTO member countries cannot apply any measure that is discriminatory with regard to foreign products or that leads to quantitative restrictions. The agreement includes a list of forbidden trade-related investment measures, such as requirements for local content. (Emmanuel Hagry)