Business outlines trade policy actions to minimize supply chain disruptions and address Covid-19 outbreak.
Paris, 7th April, 2020 – Today, we released a statement outlining priorities for a Covid-19 trade policy response with three overarching objectives for OECD:
- support OECD member and partner countries in establishing necessary, effective, and evidence-based measures to address the Covid-19 pandemic;
- safeguard that governments do not misuse these developments to adopt or keep arbitrary, discriminatory or protectionist policies that disrupt supply chains and put further strains on the economy;
- highlight the crucial role of open trade and global value chains as fundamental drivers to recover from this global crisis.
We submitted this paper as business input into the virtual OECD Trade Committee meeting of senior trade officials from OECD member and partner countries.
Among others, the paper calls for:
- OECD to establish a framework to monitor and analyze trade policy measures that are introduced by governments in response to the Covid-19 pandemic
- OECD in-depth analysis of the impact of COVID-19 on world trade, investment, and global value chains, with policy guidance on international cooperation
- OECD work towards a reduction in tariff and non-tariff barriers as an effective tool in stimulating the economy, and as part of a holistic economic policy response.
Commenting on the role the OECD can play in supporting international coordination on the global pandemic:
- “The OECD should support measures that are targeted, risk-proportionate, transparent, WTO-compliant, and temporary – ideally with sunset clauses and a clear exit strategy’’ – said Clifford Sosnow, Chair of the Business at OECD Trade Committee.
- “Businesses face serious cash-flow constraints that threaten their sustainability and ability to exist in the short-term. Trade Ministers can design effective policies to stimulate the economy, and should be a critical part of a holistic economic policy response.” said Marta Blanco, Vice Chair of the Business at OECD Trade Committee, and President of the Spanish CEOE International. Spain will chair the OECD Ministerial this year.
- “Trade responses will need to be integrated into the OECD-wide strategy to help coordinate a “Global Marshall Plan” based recovery policy. Unilateral measures that disrupt the required trade and investment would have devastating consequences, delay recovery and further aggravate countries’ pandemic preparedness and resilience.” Said Russel Mills, Secretary General, Business at OECD.
The OECD Trade Committee meeting takes
place from 7 to 9 April 2020 – a little more than a week after G20 Trade and
Investment Ministers committed “to presenting a united front against this