Following the Coronavirus pandemic distress, the G20 virtual meet on Monday decided to keep international trade open. Thus, it will ensure the continuous flow of medical supplies and necessary equipment. Similarly, the G20 leaders are pledging to fight against the global pandemic.
Highlights of the Recent G20 Meet
20 major economies have undertaken an oath to invest over USD 5 trillion to fight the unemployment and wage loss due to the pandemic. Also, to strive to re-achieve the easy flow of supply and achieve a continuous momentum in trade. Which was experiencing a halt during the national closures of borders to prevent the spread of coronavirus. Nonetheless, their focus was to take immediate necessary actions to achieve the same. Besides, they pledge that these measures would be target oriented, proportionate, transparent, and temporary. Further, most importantly it should follow the rules of the World Trade Organization (WTO).
Few Other Necessary Decisions were undertaken Regarding Trade
- A country will not aim to profit or increase price recklessly. Thus, pledging to conduct trade to increase flow while bearing in mind to set a justifiable price.
- The ministers agree to conduct a contaminant free, fair, non- discriminatory, and stable trade
- Highlight to notify the WTO of the measures while stipulating their revoking terms
- The said open trade is nearly an end to the ban on trade. However, trading at this moment will be just the necessities such as drugs, medical supplies, and equipment
Reasons for Restricted Revoking of Trade Ban
The main reason to evoke the ban was to fight the pandemic. Also, simultaneously prevent the spread of coronavirus. However, certain shortfalls act as barriers to attaining the goal. For instance, the lack of medical supplies, several countries depend on China for this purpose. However, due to the lockdown, the supplies were held back, subsequently, there was a delay or cancel of shipment. Similarly, due to the scarcity of air freight capacity and lack of shippers, many supply chains are disrupting. Likewise, the US and Europe are at facing container shortages. Furthermore, due to agricultural disruption, trade further takes a deeper plunge.
In all, the conference headed by WTO, WHO, and Organization for Economic Cooperative and development ends on a positive note. Accordingly, the G20 members pledge to conduct trade while reducing tariffs on necessary medical supplies. Similarly, India has decided to supply goods without the COO. Furthermore, a “Buy America” moment is right around the corner. Meanwhile, another meeting concerning the same is yet to take place very shortly. Nevertheless, it is important to prevent any hurdles of trade to enable the flow of economic trade activities.