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Understanding international trade obligations for ELLED policies

ELLED policies can impact and potentially go against the intent of World Trade Organisation (WTO) provisions, as well as bilateral treaties countries may have signed (such as investment agreements or free trade agreements). The policy space that still remains is examined in-depth by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), and International Centre for Trade and Sustainable Development (ISTSD) and World Economic Forum (WEF) (see recommended articles in Supplying extractives – Government regulations and contract agreements). In general, rules under the WTO and bilateral agreements work to promote free trade in way that can limit provisions that require local purchasing of goods and services. In addition to these obligations that can limit the policy space for ELLED policies, there can be additional limitations outlined in the contract that a given government has signed with an extractive company operating in their country.

To learn more about the international trade obligations for ELLED policies and potential conflicts, explore the following sections: