Investment Treaty Arbitration and Access to Medicines

Investment treaties are entered into by and between States in order to promote investments and greater economic cooperation by providing an international legal framework establishing standards of protection and a mechanism for dispute resolution for foreign investors. Restrictions in States’ right to regulate are integral parts of these agreements. The COVID-19 pandemic reignited criticism towards the investment treaty arbitration system and the effects it may have on States’ regulatory autonomy. A number of reforms of relevance to investment treaty arbitration are currently ongoing and recently signed treaties show a clear trend towards including provisions intended to safeguard States’ regulatory autonomy. Investment treaty arbitration involving pharmaceutical investors is still relatively uncommon, but with increased pressure on health systems and in light of global challenges relating to access to medicines, this may change.