Deputy Director-General (DDG) of the World Trade Organization (WTO), Yonov Frederick Agah, has stated that trade has played a significant role in COVID-19 response.
“…another positive sign for trade is that imports and exports are clearly helping to meet the sharply rising demand for key medical goods”.
He made this statement whilst addressing heads of WTO member delegations on 12 October on behalf of the four Deputy Director-Generals.
According to DDG Agah, new trade data shows that trade in personal protective equipment (PPE) in the second quarter of this year was 92% higher than the year before, and 122% higher if we compare May of this year to the same month in 2019.
“This confirms that trade is part of the solution when it comes to supply resilience”, DDG Agah said.
DDG Agah in this address, emphasised “the importance of open and predictable markets to foster a strong and inclusive recovery for all countries”.
He also highlighted the work done by the DDGs to ensure stability and continuity during the transition period until a new Director-General takes office, and reminded members that the policy choices adopted at the WTO and domestically, will matter for stimulating job creation and growth.
Discussing the COVID-19 pandemic and its impacts, DDG Agah called on members to ensure that trade contributes, in every way possible, to making the COVID-19 response more effective.
He noted that, this was an opportunity for the trading system to emerge stronger from this crisis and better-equipped to respond to the aspirations of all members by “bringing ongoing reform efforts to fruition, in the shape of new agreements and renewed cooperation”.
DDG Agah indicated that, the WTO in its recent meetings, has emphasized the critical importance of international cooperation and coordination in meeting today’s challenges.
He further noted that, the WTO has in this meetings, stressed the importance of open and predictable markets to foster a strong and inclusive recovery for all countries.
“And we [WTO] make clear that closing off trade would mean unnecessary supply shocks, slower global trade growth, weaker productivity and lower living standards”.
DDG Agah stated that reports released last week by WTO economists has provided some positive news about global trade flows following the deep, COVID-19 induced slump.
“June and July saw stronger-than-expected growth in merchandise trade. Our economists now predict that the volume of global merchandise trade will shrink by 9.2% this year compared to 2019.
“This would be among the worst contractions in years, on par with the drop seen during the 2008-09 crisis. But it is significantly better than the 13% drop that appeared likely in June, which would have been the worst fall in trade since the 1930s. And back in April, when our economists issued their first forecast for the year, that 13% contraction represented a relatively optimistic scenario. They projected that, if the outbreak and the policy response took turns for the worse, merchandise trade could fall by 32%, or even more”.
He however cautioned against complacency or inaction that may arise as a result of the current data that shows positive signs of rebound in word trade.
“We must remain vigilant, and continue to lay the groundwork for a strong, sustained and inclusive economic recovery. For job creation and growth, the policy choices you adopt at home will matter. So will the decisions and actions you take here at the WTO.
“The pandemic and its impacts only compound the challenges that our organization was already confronting. Our task now is not only to ensure that trade contributes, in every way possible, to making the COVID-19 response more effective”.
