The Washington International Trade Association (WITA) and the Asia Society Policy Institute cohosted a webinar titled “Impact of COVID-19 on Global Supply Chain and Future of Trade Policies”. The discussion was how COVID-19 has impacted global supply chain with 76 countries, having export restrictions, mainly on personnel protective equipment (PPE). Some countries have also imposed restrictions on agricultural exports. The panelist focused on the need for vertical integration in future trade practices. Rather than depending on multiple companies in multiple countries to produce one product, the companies should have several locations in which all manufacturing occurs. In this scenario, even if manufacturing at one of the companies is disrupted, the other will remain active. The global trade environment emphasizes efficiency, producing the most goods for the least amount of money in the shortest time span. In this particular pandemic, ventilators were the medical devices needed most. What happens if the next pandemic requires something different? The role of trade policy should be to prepare countries for future pandemic. Countries need to ensure that they are able to move goods from where they are produced to where they are needed. The World Trade Organization to play a larger role in establishing trade policy in order to prevent export restrictions and hoarding of materials that have been seen as the pandemic unfolds. This may lead to a broader discussion about the role of governments, companies, and international organizations in the global market.
https://www.sumeetsud.com/impact-of-covid-19-on-future-trade-policy/
https://www.sumeetsud.com/tag/future/
https://www.sumeetsud.com/tag/trade/