The Director-General of the World Trade Organization (WTO), Roberto Azevêdo has urged all countries not to get comfortable though some measures meted out to mitigate the impact of coronavirus pandemic are beginning to yield results.
According to him, efforts to revive economies post-COVID should be intensified to enable a faster recovery.
He made this call while commenting on the organization’s latest biannual monitoring report on trade measures.
Mr. Azevêdo noted that the organization has not encountered encouraging indications as these since 2014 in a single monitoring exercise.
“Historically high levels of trade-restrictive measures remain a source of concern, all the more so at a time when international trade and investment will be critical to rebuild economies, businesses and livelihoods around the world. That said, we also see some encouraging indications: not since 2014 have import-facilitating measures implemented during a single monitoring period covered more trade.”
He maintains that these times require consistency. Mr. Azevêdo went on to call for unity among G20 member countries.
“There are signs that trade-restrictive measures adopted in the early stages of the pandemic are starting to be rolled back. There is no room for complacency: building on these positive indicators will demand consistent efforts and leadership, starting with the G20. Exceptional circumstances require exceptional responses, and this is the time for G20 governments to work together to facilitate a rapid and inclusive economic recovery.”
New import-restrictive measures unrelated to the pandemic covered an estimated USD 417.5 billion worth of merchandise trade, the third-highest figure recorded since May 2012. Tariff increases, import bans, stricter customs procedures, export duties and other such measures introduced during the pandemic affected 2.8 per cent of G20 trade. Meanwhile, the stock of import-restrictive measures implemented since 2009 and still in force continues to grow which is now affecting an estimated 10.3 per cent of G20 imports that is equivalent to USD 1.6 trillion.
However, the WTO report also finds evidence of steps towards more open trade policies across sectors, including goods, services and intellectual property.
According to the biannual report, new measures aiding trade such as tariff reductions, the elimination of import taxes and the reduction of export duties, covered about USD 735.9 billion, excluding policies relating to the pandemic.
This figure is the highest recorded since 2014, and is sharply higher than the USD 92.6 billion trade coverage of import-facilitating measures recorded during the previous monitoring period from May to October 2019.
WTO noted that about 36 per cent of trade restrictions have been repealed by G20 countries. One of these trade restrictions implemented by most countries following the COVID-19 outbreak was a ban on exporting medical products, such as surgical masks, gloves, medicine and disinfectant.
During the monitoring exercise, WTO noted that countries have also lowered barriers to imports of many pandemic-related products. As of mid-May 2020, 65 of the 93 pandemic-related trade measures implemented during the monitoring period were of a trade-facilitating nature.
