A perspective on local content

Noise around local content

Guyanese have been clamouring for local content provisions in their relationship with ExxonMobil since it became obvious that oil production will be undertaken by the multinational oil giant.  The preparation for Exxon’s continued upstream operations has led the company to signal its intention to acquire certain skills, services and even goods to carry on its business.  While the noise around local participation in the oil industry brings Exxon into the picture, the issue really applies to all foreign investors who will need inputs into their production processes.  But what some writers have pointed out is that the demands for local content policy have been more pronounced in the oil industry than in other industries.  Countries like Brazil, Kazakhstan, Malaysia, Mexico, Nigeria and Uganda have been cited as examples of where there has been an insistence on the need for local content in the oil industry.  The issue of local content is not as straightforward as it seems on the face of it.  With the adoption of internationally-agreed trading rules in 1994, local content has become something of a pariah.  It is a policy concept that countries have been discouraged from using since restrictions on its use became an integral part of the trading rules that govern trade between countries.  In some of the local stories written about local content, it is often presented as if it is a right and one that cannot be challenged under the rules of the global trading system.  This article seeks to provide some perspectives on the matter of local content. ….

Comments  

Local content policies: the experience of some others

Preventing measures Last week’s discussion of local content around Guyana’s oil industry established two key points based on current talks on the matter.

By ,

Energy: the focus of attention

Any and everything Almost every conversation about sustainable development or climate change gravitates towards energy. 

By ,

An evolving strategy to reduce the carbon footprint

Small Guyana is developing the Green State Development Strategy (GSDS) to promote the development of the country. 

By ,

Knowing your company

Complex makeup Many Guyanese have heard the adage “Show me your company and I’ll tell you who you are”. 

By ,

Finding the will to move forward

Alarm In more recent times, there has been much discussion and expression of alarm about Guyana’s manufacturing sector.

By ,

Your browser is out-of-date!

Update your browser to view this website correctly.

We built stabroeknews.com using new technology. This makes our website faster, more feature rich and easier to use for 95% of our readers.
Unfortunately, your browser does not support some of these technologies. Click the button below and choose a modern browser to receive our intended user experience.

Update my browser now

×