TWN Info Service on WTO and Trade Issues (Aug21/02)
3 August 2021
Third World Network

TPRB report counters "gloomy" narrative on Covid-related measures
Published in SUNS #9399 dated 3 August 2021

Geneva, 30 Jul (D. Ravi Kanth) -  The United States and India on 29 July supported the findings of a report issued by the WTO's Trade Policy Review Body (TPRB) on trade-related developments from mid-October 2020 to mid-May 2021 that showed that countries adopted more trade-facilitating measures than trade-restrictive measures, said people familiar with the development.

The findings in the report exposed the "gloomy" narrative perpetuated by the European Union, Japan, and Canada on behalf of the Ottawa Group through their trade and health initiative, and the WTO Director-General Ms Ngozi Okonjo-Iweala's proposed "third way" approach, said people, who asked not to be quoted.

At a TPRB meeting held in the presence of the WTO DG on 29 July, the chair of the TPRB, Ambassador Dr Athaliah Lesiba Molokomme from Botswana, presented the findings of the report on trade-policy developments.

The report says that "since the outbreak of the pandemic, 384 COVID-19-related trade measures in the area of goods have been implemented by WTO Members, of which 248 (65%) were of a trade-facilitating nature and 136 (35%) could be considered trade-restrictive" measures.

It argues that "several of these measures, originally introduced in immediate response to the pandemic, have been extended during the review period. Export bans accounted for 84% of all restrictive measures recorded."

The reduction or elimination of import tariffs and import taxes accounted for 60% of trade-facilitating measures taken, and several Members reduced their tariffs on a variety of goods such as PPE, sanitizers, disinfectants, medical equipment and medicines/drugs.

"Some WTO Members and Observers severely affected by successive waves of the pandemic have also eliminated import tariffs on certain goods necessary to fight COVID-19, such as oxygen, oxygen canisters, certain drugs, and active substances".

In para nine of the executive summary, the report states that "WTO Members continued to repeal measures implemented in response to the pandemic and, as at mid-May 2021, around 21% of COVID-19 trade-facilitating measures and 54% of the COVID-19 trade-restrictive measures have been terminated, suggesting a swifter roll-back of trade-restrictive measures."

It further says that "fifty-seven percent of the 114 export restrictive measures put in place since the beginning of the pandemic have been repealed."

The report argues that "the trade coverage of COVID-19-related trade-facilitating measures implemented since the beginning of the pandemic was estimated at USD 291.6 billion, while that of the COVID-19-related trade-restrictive measures stood at USD 205.8 billion. According to preliminary estimates by the WTO Secretariat, the trade coverage of the trade-facilitating measures still in force (USD 107.6 billion) is slightly higher than that of the trade-restrictive measures (USD 106.0 billion)."

The report clearly showed that members proactively adopted several positive measures.

The findings seem to dismiss the "gloomy" narrative portrayed by the trade and health initiative, as well as the DG's "third way" approach highlighting the removal of export restrictions, keeping markets open, and making temporary tariff cuts permanent and so on.

Even the General Council-appointed facilitator, Ambassador David Walker from New Zealand, who is leading members in finding a multilateral and horizontal response to the COVID-19 pandemic, seems to have resorted to this "gloomy" narrative, said people familiar with the discussions.

Effectively, the constant refrain voiced by the EU and the Ottawa Group on export restrictions affecting global value chains and on market access elements appears to be false as per the evidence provided in the TPRB report, said people familiar with the meeting.

Responding to the findings of the TPRB report, Singapore, Korea and the European Union among others appear to have suggested that the issues of so-called “bad" trade measures, including export restrictions, transparency provisions, and disruption of global value chains need to be addressed.

The European Union, which took recourse to export-restrictive measures during the pandemic, has now assumed the role of championing the cause for banning export restrictions and other measures, said people familiar with the discussions.

In sharp contrast, the US pointed out that the report clearly emphasized that trade policy worked fairly well during the pandemic, with members encouraging trade-facilitating measures instead of trade-restrictive measures, said people, who asked not to be quoted.

The US also said that creating a "gloomy" picture in the WTO by trying to push a certain agenda is not correct. The US delegate said members are cautious when these measures are imposed.

India said that it concurs with the US position on the report that export restrictions and other measures cited by the promoters of the trade and health initiative are incorrect according to the evidence provided in the report.

Further, the evidence showed that the supporters of an evidence-based approach must do the same in the discussion in the WTO's TRIPS Council on the TRIPS waiver where they are constantly demanding evidence as to how the waiver would work and where are the barriers for ramping up production of diagnostics, therapeutics and vaccines.

The same members are constantly asking for evidence on how the TRIPS waiver would work and how Intellectual Property (IP) provisions create a barrier, said a person, who asked not to be quoted.

India apparently said that the report vindicated that trade facilitating measures far exceeded the trade-restrictive measures, said people familiar with the discussions.

Many countries also rolled back their trade restrictive measures, which indicates that the WTO members seem to be quite measured in imposing trade measures during the pandemic, India is understood to have said at the meeting.

The Indian official said over the past months arguments are being advanced by some countries to create a "gloomy picture" that trade rules and measures are standing in the way of economic recovery.

These countries also argued that the WTO's response to the pandemic should consist of a package of measures on the trade policy side, including a ban on export restrictions, India said, according to people familiar with the discussion.

India also suggested that the evidence provided by the report appears to be contrary to the picture presented by these countries.

The Indian official apparently argued that these same members emphasize time and time again that members' proposals need to be evidence-based in various committees, including in the TRIPS Council in the discussion on the TRIPS waiver.

India pointed to these members such as the European Union, Switzerland, and the United Kingdom to stop pushing the narrative for the so-called trade facilitating measures, including the ban on export restrictions, as part of the WTO's response to the pandemic.

India said that members need policy space during the pandemic to respond effectively to the evolving situation, suggesting that the report showed that members acted responsibly, said people familiar with the Indian position.