Part 1: UK Market Access: Goods Non-discrimination: goods Section 7: The non-discrimination principle: direct discrimination
This section explains what direct discrimination is for the purposes of section 5. It explains that direct discrimination is where relevant requirements apply to incoming goods in a way that they do not apply, or would not apply, to local goods and that puts the incoming goods at a disadvantage compared to local goods.
	Subsection (2) provides that an incoming good would be put at a disadvantage if it is more difficult or less attractive to sell the goods or buy the goods or do anything in connection with their sale.
	Subsection (3) defines "local goods" for the purposes of direct discrimination. It provides that local goods are those that are the materially the same as the incoming good and share the material circumstances of the incoming good but are not produced in, or produced by a business based in, the originating part of the UK and do not come from, or pass through the originating part of the UK before reaching the destination part of the UK. These local comparator goods can be actual or hypothetical.
	Subsection (4) further explains the definition of local goods in subsection (3) by providing the ways in which they are deemed to lack the relevant connection to the originating part of the UK that the incoming goods have. This differs depending on the way in which the incoming goods have a relevant connection to the originating part of the UK.
	Subsection (4)(a) provides that if the incoming good was produced in the originating part, the local good is produced in the destination part. Subsection (4)(b) provides that if the incoming goods are produced by a business based in the originating part, the local goods are produced by a business based in the destination part. Subsection (4)(c) provides that if the incoming goods come from or pass through the originating part before reaching the destination part, the local goods have come from the destination part and did not pass through anywhere outside that part.