The struggle the U.S. is having to manage the COVID-19 pandemic is a higher priority than what's happening at the World Trade Organization, said Dennis Shea, U.S. ambassador to the WTO. He noted that the U.S. has a third of the world's reported cases of the disease, and that more Americans have died from COVID-19 than citizens in any other country.

Top U.S. and United Kingdom officials will begin a second round of virtual trade negotiations June 15 as both sides continue to push for a quickly completed deal, the U.K. said May 18. The first round of talks, which ended last week, included discussions on customs procedures, rules of origin, trade remedies and small to medium-sized businesses. The U.K.’s Department for International Trade said both sides vowed to “quickly pursue” a stand-alone “Small and Medium Enterprise (SME) Chapter.” Negotiators from both sides will continue meeting virtually on a “rolling basis” until the second round begins, the U.K. added. “Both sides are hopeful that negotiations for a comprehensive trade agreement can proceed at an accelerated pace,” the DIT said. The Office of the U.S. Trade Representative did not comment.

The director general of the World Trade Organization will resign in August, citing personal reasons and adding that the organization needs a new leader for “post-COVID realities.” Roberto Azevedo made the announcement during a virtual meeting with WTO members on May 14, saying he hopes the WTO continues its reform efforts. He also urged members to “promptly move ahead” to select the next director general. “I urge you not to treat the process of selecting the next DG as business as usual. This organization must start 2021 … ensuring that the multilateral trading system responds to new economic realities, above all the post-COVID recovery,” Azevedo said. “It cannot afford to be distracted by a protracted search for a new DG.” Azevedo will officially step down Aug. 31, one year before his term was set to end.

The World Customs Organization, with help from the World Health Organization, updated its list of tariff classifications for COVID-19 medical supplies to include priority medicines, the WCO said in a news release. “The List of WHO/WCO Priority Medicines for Customs Used during COVID-19 aims at assisting Customs and economic operators in classifying these medicines,” it said. The list contains the suggested HS codes for medicines used in the general medical care administered to hospitalized patients; as part of the direct treatment of the COVID-19 disease; and for which interrupted supply could result in serious health consequences. The new list, which will now be continuously updated, is the result of an efficient collaboration between the WHO and the WCO. The medicines and active substances were compiled by the WHO taking into account various information published by National Health Authorities, scientific societies or pharmacology experts, and with suggested HS codes provided by the WCO Secretariat.”

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%.