Local content requirements in Thailand’s electric vehicle industry: A WTO law perspective

Many countries are increasingly adopting local content requirements (LCRs) to attract investment and promote domestic production. Thailand is a notable case, linking its electric vehicle development policy to requirements concerning the use of domestically produced components and materials. This study analyzes these measures and assesses their compatibility with Thailand’s obligations under the World Trade Organization (WTO) framework. Drawing on WTO rules and dispute settlement practice, it clarifies the legal limits on LCRs, particularly where such requirements favor domestic products or make incentives conditional on their use. The study then proposes policy implications for developing countries seeking to implement LCRs consistently with their WTO commitments.