Home remedies: flexibilities to onshore pharmaceutical manufacturing under WTO rules

Abstract In the wake of the Coronavirus Disease 2019 pandemic, governments globally have intensified efforts to localize the production of pharmaceuticals, leveraging local content requirements and incentives to mitigate supply chain vulnerabilities. This shift has revealed tensions with World Trade Organization (WTO) regulations, notably highlighted in Turkey—Pharmaceutical Products (EU). This article explores policy-based flexibilities within the General Agreement on Tariffs and Trade (GATT) 1994, the Agreement on Trade-Related Investment Measures, and the Subsidies and Countervailing Measures (SCM) Agreement that may justify measures inconsistent with WTO norms under specific conditions. Analysing public health exceptions, national security imperatives, and government procurement policies, the paper elucidates how these flexibilities can be mobilized to support onshoring initiatives while adhering to international trade obligations. The findings suggest a nuanced approach to reconciling public health goals and economic strategies with global trade rules, providing a critical framework for policymakers navigating the complex interplay between national interests and international legal commitments.