WTO report finds growing number of export restrictions in response to COVID-19 crisis

Eighty countries and customs territories so far have introduced export prohibitions or restrictions as a result of the COVID-19 pandemic according to a new report by the WTO Secretariat. The report, which is based on information from official sources and news outlets, draws attention to the current lack of transparency at the multilateral level and long-term risks that export restrictions pose to global supply chains and public welfare.

The new export prohibitions and restrictions mostly cover medical supplies such as face masks, pharmaceuticals, ventilators and other medical equipment, the report finds. Some of the measures have extended the controls to other products such as food and toilet paper.

However, only 13 WTO members (or 39 if EU member states are counted individually) have submitted information on these new measures in line with WTO rules for quantitative restrictions. Three of them have notified export restrictions on foodstuffs pursuant to the WTO Agriculture Agreement. The report notes the harms and delays that insufficient information inflicts on countries seeking to procure materials to fight against the COVID-19 pandemic and provides guidance on how WTO members can notify their measures. Only a handful of notifications were submitted in March 2020 and these have since increased in April.

While the report acknowledges exceptions in WTO rules for export prohibitions or restrictions, it also highlights costs that both importing and exporting economies will face in the long run, particularly in terms of lower supply and higher prices for much-needed products.

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Source: WTO