Work

Hometown Heroes: Onshoring, Promoting Local Content & WTO Law

Year: 2024

Type: article

Abstract: This article examines the complexities and challenges associated with onshoring manufacturing through local content requirements within the context of World Trade Organization (WTO) law. Governments have intensified efforts to relocate production within their territories, leveraging local content requirements and incentives. This shift is primarily justified by the need for supply chain resilience, public health, and national security, aiming to mitigate risks associated with reliance on foreign suppliers during crises. However, these strategies may conflict with WTO obligations, particularly those concerning trade-related investment measures and subsidies. Using pharmaceuticals as a case study, this article explores the rationale, scope, and implications of WTO rules on local content policies. The analysis provides insights into how nations navigate the delicate balance between enhancing domestic capabilities and adhering to international trade laws.

Source: The Journal of World Investment & Trade

DOI: 10.1163/22119000-12340333

Author: Andrew D Mitchell

Institution: Monash University

Language: English

Topic: World Trade Organization Law

Subfield: Political Science and International Relations

Field: Social Sciences

Domain: Social Sciences

SDG: Peace, justice, and strong institutions

Open Access status: hybrid

Funders: Medical Research Council, National Health and Medical Research Council