Canada, Mexico, China, the United Kingdom, Japan and an assortment of other countries around the world said the World Trade Organization has an essential role to play in ensuring the continued flow of essential goods -- including medical supplies -- across borders. “We stress that trade restrictive emergency measures aimed at protecting health, if deemed necessary, shall be targeted, proportionate, transparent and temporary, not create unnecessary barriers to trade or disruption to global supply chains, and be consistent with WTO rules. We pledge to lift any such measures as soon as possible,” the statement said. “We also stress the necessity of maintaining agriculture supply chains and preserving Members' food security. We, therefore, pledge to not impose export restrictions and to refrain from implementing unjustified trade barriers on agricultural and food products in response to the COVID-19 pandemic.” No country in the European Union signed the statement, issued May 5, nor did the U.S.

The U.S. and United Kingdom will begin virtually negotiating a trade deal this week, U.K. Trade Secretary Elizabeth Truss said. The talks, which have been expected for months (see 2002190021, 2003020061 and 2001280042), will start through video conferences, the Office of the U.S. Trade Representative told Politico May 3, and will be held remotely until international travel resumes. In a May 3 tweet, Truss said the U.K. will “be working to bring benefits to all parts of [the U.K.] and boost our economies during #coronavirus recovery.” The USTR did not comment.

China has received “positive” feedback after increasing inspections of certain medical exports, a Commerce Ministry official said, despite reports of lengthy customs delays due to the measures. The measures, announced earlier this month, increased inspections of 11 medical goods after China received international criticism for the quality of the goods. “Since the implementation of the relevant measures, the effect has been obvious and the international community has made positive comments,” a ministry official said during an April 16 press conference, according to an unofficial translation of a transcript. “I would like to emphasize again that China does not and will not restrict the export of anti-epidemic materials.”

China’s new export inspections for quality control on certain medical equipment (see 2004100043) caused “immediate” delays of shipments as traders and manufacturers tried to understand how best to comply, according to an April 11 report in The New York Times. Producers, freight agents and other stakeholders said the delays have lasted anywhere from a few hours to a few days, the report said.

The World Customs Organization, with help from the World Health Organization, updated its list of tariff classifications for COVID-19 medical supplies, the WCO said in a news release. The updated version expands on the first list (see 2003200061) to “cover a greater range of medical equipment and supplies that are required as critical items by the WHO, such as oxygen concentrators and sample collection sets,” it said. “The initial list contained the classification of essential products needed such as COVID-19 diagnostic test kits and masks, certain protective personal equipment and medical devices such as ventilators and ECMO (extracorporeal membrane oxygenation), consumables and disinfectant products that may be used for the prevention and treatment of the disease.”

Trade in products that are in severe shortage during the coronavirus COVID-19 pandemic accounted for 1.7% of world trade in 2019, according to a new report from the World Trade Organization. Although many of the medical products that are traded face no tariffs in many countries -- medicines rarely face a tariff, and they account for more than half the traded value -- there are goods that still face high tariffs. The WTO said the average applied tariff for hand soap is 17% and the average tariff on protective gear such as gowns, gloves and masks is 11.5%.

The World Customs Organization and the World Trade Organization will be working “closely together to minimize disruption to cross-border trade in goods -- in particular those essential to combat COVID-19 -- while safeguarding public health,” the groups said in a joint news release. “Within our respective mandates, we have already invited Members to increase transparency by sharing information on new trade and trade-related measures introduced in response to the COVID-19 pandemic,” they said. “To the extent appropriate, we are making such information publicly available through our respective websites. We are also willing to establish a coordinated approach in support of initiatives that facilitate cross-border trade in goods, in particular those key to combat COVID-19. This would allow that essential goods can quickly reach those most in need, including in least developed and land-locked countries.” Border measures meant to protect citizens should be temporary and rescinded “once they are no longer needed, especially if they restrict trade,” they said. “We welcome initiatives to facilitate and simplify cross-border procedures and urge our Members to prioritize those for exporting and importing essential goods.”

Export restrictions on food, medicine or medical supplies “must be targeted, proportionate, transparent, and temporary,” the G-20 countries said in a statement on trade and COVID-19 released March 30. They agreed they would notify the World Trade Organization if any restrictions are implemented, and they will consider the needs of other countries for emergency supplies and humanitarian assistance. “We are actively working to ensure the continued flow of vital medical supplies and equipment, critical agricultural products, and other essential goods and services across borders, for supporting the health of our citizens. Consistent with national requirements, we will take immediate necessary measures to facilitate trade in those essential goods,” the ministers wrote. They want global supply chains to continue to function.

There's been a recent uptick in international enforcement activity involving counterfeit medical goods, the World Customs Organization said in a notice. “ While the world is gripped by the fight against COVID-19, criminals have turned this into an opportunity for fraudulent activity,” the WCO said. “There have been an alarming number of reports quoting seizures of counterfeit critical medical supplies, such as face masks and hand sanitizers in particular. Customs and law enforcement agencies in China, Germany, Indonesia, Uganda, Ukraine, United Kingdom, United States and Vietnam, to name but a few, have reported such seizures in the past three weeks.” There's also been a recent trend of export licensing requirements for “certain categories of critical medical supplies, such as face masks, gloves and protective gear,” the WCO said.

Canadian and Mexican politicians are sending different messages to their countries' journalists about how quickly the uniform regulations can be completed for the new NAFTA, now known as the U.S.-Mexico-Canada Agreement. A Canadian politician and a labor leader told a Canadian newspaper that a June 1 date of entry into force is unlikely, given how much remains to be done to be ready, and especially with the disruption caused by the coronavirus COVID-19 pandemic.