Performance Requirements

International Legal Research

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Performance Requirements

Performance Requirements and the GATT Policy Negotiations

In relation to the GATT Policy Negotiations, Christopher Mark (1993) provided the following explanation and/or definition of Performance Requirements: Government-imposed rules or conditions requiring foreign investors to serve particular national objectives. Trade-related performance requirements –such as commitments to export a specified amount of the output of a new plant, or to incorporate a minimum share of local content in its production –can have the same effect as export-stimulating or import-restrictingnontariff measures, but without being subject to GA TT rules. Nearly all major trading partners of the United States, impose performance requirements on at least some local affiliates of foreign corporations. See Trade Related Investment Measures.

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