INTERNATIONAL TRADE AND INVESTMENT LAWS VIS -A -VIS LOCAL CONTENT COMPLIANCE IN TANZANIA’S EXTRACTIVE INDUSTRIES: A FOCUS OF MINING
Keywords:
Compliance, Investment, International Trade, Extractive IndustriesAbstract
It is the desire of all countries to maximize opportunities presented by the abundance of mineral resources within their boundaries. This desire is manifested through the enactment of various laws for the best interest of the citizens and the nation as a whole including those related to local content compliance. Conversely, under the international trade and investment normative framework, this legitimate motive is not a total buffer. However, it is limited to the extent that the country has chosen to be committed and obliged by the multilateral and bilateral treaties. The more treaties a country has entered into (both multilateral and bilateral) the more limitation on enactment of laws or perform measures that may contradict the existing commitments. This paper examines the rationale for, and use of, local content compliance in the mining industry in Tanzania. Local content compliance is being used to facilitate local participation, wealth creation, domestic linkages, and sustainable development linked to minerals exploitation. Premised on the above, this paper examines Tanzania’s local content compliance in the mining industry vis-à-vis international trade and investment laws. It employs a purely qualitative research approach supported by interviews of relevant key respondents. The author found that the existing legal framework in relation to local content compliance in the mining industry in Tanzania is incompatible with the international trade and investment laws hence not harmonious with the existing benchmarks. This paper recommends further legal reforms to be conducted including enacting local content principal legislation that accommodate where necessary existing international benchmarks and best practices, as well as Tanzania, should drive for a regional local content policy approach to minimize potential legal risk.
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