COVID-19 and world trade

Maintaining open trade

The free movement of goods and services is our strongest, and frankly, our only asset to ensure supplies can go to where they are needed most.  ... It is why we are calling for priority ‘green lanes’ for essential freight transport. These will ensure that crossing the border takes no more than 15 minutes. And they will help ensure that goods and supplies can go where they are needed and we can all avoid shortages.

Ursula von der Leyen, President of the European Commission
26 March 2020

The international trade system functions well in normal times. Now we have to think about how we can make sure the world trade system can better handle crises like this. We will inevitably have a discussion on strategic sectors and strategic stocks, but we also need a discussion on how to uphold trade in times of crisis.

“When all this is done, we will have a discussion on globalization. There are negative effects of globalization, but this also shows that we’re all in this together. The answer to the questions that are raised should not be a plea for less globalization. We have everything to lose if we roll back globalization.

Alexander De Croo, Belgium’s deputy prime minister and finance minister
25 March 2020

In order to facilitate international trade we advocate a simultaneous agreement between the G20 states on a crisis moratorium for new tariffs — on all goods. Also, the pending WTO moratorium on electronic data transfers should be extended and global rules for non-discriminatory digital trade agreed.

Association of German Chambers of Industry and Commerce
25 March 2020

Procurement in health systems is one of the activities most hard-hit by corruption. With medicine and medical supplies shortages being reported there will be an additional strain on procurement. It’s estimated that 10-25% of all money spent in procurement globally is lost to corruption and in the EU 28% of health corruption cases are related specifically to procurement of medical equipment. With the increased demand for medicines and equipment there’s the potential increased risk of collusion and that suppliers might demand higher prices knowing that governments have no other option but to pay. Having open and transparent contracting processes would allow red flags of corruption to be more easily spotted, leaving corrupt actors less space to hide and ensure governments are being charged reasonable prices so they can provide the best care possible to patients.

Natalie Rhodes, Transparency International
13 March