Forced Localization Policies Threaten Global Trade in Innovative Industries

Localization barriers to trade constitute a distinct and rapidly growing class of trade barriers that seek to impose location-specific conditions on global production, procurement, investment, and data flows. These so-called "forced localization" policies are designed to protect, favor, or stimulate domestic manufacturing industries, service providers, and/or intellectual property (IP) providers at the expense of foreign competitors, particularly those operating in innovative industries.