Heads of two international bodies on finance and trade in a joint statement on Friday urged the governments of different countries to refrain from imposing trade restrictions on key medical supplies and food.
Managing Director of International Monetary Fund (IMF) Kristalina Georgieva and Director-General of World Trade Organisation (WTO) Roberto Azevêdo issued the statement on Friday, which also requested the governments to quickly lift trade restrictions put in place since the start of the year.
“In response to the COVID-19 pandemic, some governments have adopted measures to facilitate imports of medical products, such as cutting import duties, curbing customs-clearance processes, and streamlining licensing and approval requirements,” the heads of IMF and WTO noted in the statement.
“Similar attention should be paid to facilitating exports of key items such as drugs, protective gear and ventilators,” they added.
Mentioning that global trade rules allow for temporary export restrictions to prevent or relieve critical shortages, they added: “We urge governments to exercise caution when implementing such measures in the present circumstances”.
An information note, prepared and released by the WTO secretariat on Thursday, showed that 80 countries and customs territories so far have introduced export prohibitions or restrictions as a step to deal with the COVID-19 pandemic.
“What makes sense in an isolated emergency can be severely damaging in a global crisis,” they warned. “Such measures disrupt supply chains, depress production, and misdirect scarce, critical products and workers away from where they are most needed.”
“The result is to prolong and exacerbate the health and economic crisis — with the most serious effects likely on the poorer and more vulnerable countries,” the statement mentioned.
Ms Georgieva and Mr Azevêdo also expressed concern with the decline in the supply of trade finance, which ensures that imports of food and essential medical equipment reach the economies where they are most needed. In addition, despite strong supply, export curbs on some food items are beginning to appear.
“The experience in the global financial crisis showed that food export restrictions multiply rapidly across countries and lead to ever greater uncertainties and price increases,” they noted.
