![]() Turning over a new leaf this was not – New Delhi followed up later in the month by banning the export of 26 pharmaceutical ingredients and some of the products made with them, such as paracetamol. Of the 27 instances of export restrictions imposed by these 24 nations since the beginning of the year, 16 were implemented in the first ten days of March 2020.Ĭompleteness requires acknowledging that India has reversed some of its export restrictions on masks in early February, allowing some to be exported to China. The pace at which governments are resorting to export restrictions is accelerating. That no export restrictions have been found in North America, one in South America, and relatively few in Africa suggests that at this time, distance from China may be a contributing factor. Figure 1 reveals the identities of those nations. Sorting through press reports, it was possible to identify 24 nations that have imposed either a formal export ban, a de facto export ban, or an export limit on some form of coronavirus-related medical supply. Similarly, North American buyers of Chinese medical supplies report that orders were not fulfilled once the coronavirus began to spread (CNN Business 2020). In addition, a French requisition order has prevented Valmy SAS from fulfilling a contract with the British National Health Service to supply millions of masks (Euronews 2020). In early March 2020, the German authorities stopped delivery of 240,000 masks to a Swiss buyer, prompting the government in Bern to carpet the German Ambassador (NZZ 2020). That these export restrictions are biting is now evident. All of these means – some more transparent than others – have been deployed by governments since the beginning of the year. Lastly, governments may insist that a local supplier ship a maximum percentage of its production abroad or require tedious paperwork to be filled before approval to export is given. Ministers may threaten local medical suppliers if they ship goods abroad. Governments can also tinker with intellectual property rights legislation, effectively frustrating the sale of a medicine abroad. For example, a government can decree that all relevant medical equipment supplies produced in a country must be sold to the state, which in turn decides not to make any product available to foreign buyers. Not all of them are as salient as a publicised export ban. ![]() It is important to appreciate that governments can restrict exports of medical supplies in many ways. Resort to export restrictions since the beginning of this year Here medical supplies are taken to mean protective medical equipment (such as masks) as well as medicines and their ingredients. Consequently, WHO has called on governments to increase production of protective equipment by 40% and to roll back export restrictions.ĭrawing upon a recent analysis by the Global Trade Alert (2020), in this column I assess one of the key findings, namely, that a growing number of governments have been sickening their trading partners by banning or limiting the export of medical supplies. And as the Coronavirus has spread, glaring shortages have arisen. Those workers require gloves, medical masks, respirators, face shields, gowns and the like. To appreciate its significance, recall that the Director-General of the World Health Organization has argued that “e can’t stop COVID-19 without protecting health workers” (WHO 2020). However, there is a troubling trade policy dimension that is now coming to light. Given the centrality of China to many international supply chains, there is considerable interest in the impact of the COVID-19 on global trade flows (Baldwin and Tomiura 2020) and on the value and location of foreign direct investment (UNCTAD 2020). The coronavirus pandemic is no exception. At such times, written and unwritten international rules are tested, with consequences that can last well after the crisis dominated headlines. Decisions to sacrifice open borders on the altar of some other goal are typically influenced by the steps – real or perceived – taken by other governments. In our interconnected world, whenever a global crisis occurs governments must decide whether discriminating against foreign suppliers is part of the solution, or whether foreign knowhow and resources can be tapped for mutual advantage.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |