Regional cooperation during pandemic https://www.observerbd.com/news.php?id=314937

Published : Monday, 31 May, 2021 at 12:00 AM Co

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M S Siddiqui

Regional cooperation during

pandemic

The world experiences

unprecedented interruption in

global supply chain amid this

Covid-19 crisis.The challenge

gets aggravated during

emergencies such as the

COVID-19 pandemic, when

there is a need to maintain

speedy and seamless flows of

essential goods across borders.

In such emergency, the

neighboring can come forward

first to meet the emergency

demands. Many countries often

take temporary, sometimes

drastic emergency trade-related

measures such as export

restrictions. Such restrictions,

while seemingly necessary to

protect public health, can be

counterproductive, depriving

the most vulnerable countries

access to essential products.

Unfortunately, around 80

countries of the world have shut down their borders with neighboring countries causing

immense suffering in many countries.

During normal situation, imported goods undergo multiple inspections for verification of

conformity with the destination country's standards and regulatory requirements. When

standards and regulations in the destination country differ from those in the home

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country, a situation commonly referred to as "regulatory divergence," there could be

high-cost implications for businesses, with a significant slowdown in trade.

It prompted different organizations come up with some suggestions to face the challenge

of pandemic like ongoing COVID 19. United Nations Conference on Trade and

Development (UNCTAD) calls for new and innovative approaches to bridge the

divergence of regulatory practices. Increasing "regulatory cooperation" among countries

could be an efficient way to achieve it.

Regulatory cooperation can take the form of multiple actions, such as enhancing better

information exchange and creation of a joint committee to implement chapters on

sanitary and phytosanitary measures and technical barriers to trade. It may also entail

aligning with international standards, treating other parties' standards as equivalent,

among others.

They have suggested regulatory cooperation for smooth delivery and reduction of trade

costs, particularly through cutting high information costs and shortening the lengthy

process of conformity assessment but all without undermining policy objectives such as

protecting health, safety and the environment.

According to UNCTAD estimates, such cooperation provides countries with an

opportunity to minimize the negative impact of national regulatory measures on trade,

particularly in times of emergencies. It can reduce trade costs by over 25%.

The different organ of UN also considering a permanent option to face disruption of

supply of essential good and medical supplies for such recurring pandemic situations.

Regional Trade Agreement (RTA) is the best option to address such crisis. The UN

Economic and Social Commission for Asia and the Pacific (ESCAP) secretariat

conducted a rapid review of bilateral and RTA texts. The study find that, RTAs include

clauses in order to permit exception to the agreements in time of emergencies; but for the

most part they do not feature provisions that could help deal with trade disruption in

emergency or crisis situations. To address this gap an initiative aims to develop model

provisions to promote more trade cooperation and predictability in times of crisis and

pandemic - and speed up recovery.

RTA can enhance regulatory cooperation through simple efforts such as increasing

transparency and enhancing consultations among cross-border regulatory agencies, as

well as more complex undertakings such as mutual recognition and harmonization of

standards and conformity assessment procedures, which can enable countries to trade

better during emergencies. RTA may include specific provisions such as emergency

provisions can expedite trade in pandemic and ensure disharmonized standards and

regulatory requirements do not hinder trade.

UNCTAD also studied 107 RTAs and their application during COVID 19 and examine

the efforts of nine countries to reduce regulatory divergence to facilitate trade in the

medical goods during the pandemic. A large proportion of existing RTAs put forward

provisions for mutual recognition, equivalence, and/or harmonization with respect to the

other parties' or international standards, including conformity assessment procedures, be

they mandatory or voluntary. These RTA has a good base to build upon. Unfortunately,

many of these provisions are vaguely worded. There also lacks provisions promoting

regulatory cooperation specifically for medical goods, or "emergency-specific" situations.

UNCTAD studies point towards the need to incorporate specific, temporary, or

emergency provisions into RTAs that can facilitate regulatory cooperation and ensure

that trade in medical goods flows unhindered during crises. Such ready-to-apply

regulations and action plans would reduce uncertainty during the already difficult times.

The study makes some proposals to overcome the shortcomings to face emergency. The

RTAs should clearly define a situation of "public health emergency" or a "shortage" of

essential goods; to classify, at a tariff line level, "essential" goods that could be critical

during an emergency; to agree to adopt international standards as a basis for regulatory

cooperation; to treat as equivalent standards of jurisdictions with similar regulatory

frameworks, among others. Specifying a start and an end date of such temporary

measures would help provide more legitimacy to the provisions.

The state parties to RTA have another obligation to other member countries. They should

be consistent with their obligations under the World Trade Organization Trade

Facilitation Agreement, expedite and facilitate the flow and transit of all products listed

in Annex I and Annex II through their respective sea and airports. They should eliminate

all customs duties and all other duties and charges of any kind, within the meaning of

Article II and clause 1(b) of the General Agreement on Tariffs and Trade 1994 ("GATT

1994"), with respect to all products listed in Annex I. The countries should endeavour to

expedite the release of such products upon arrival including adopting or maintaining

procedures allowing for submission of import documentation and other required

information, including manifests, in order to begin processing prior to the arrival of

products. RTA should make option to abide by the WHO's International Health

Regulations (IHR) to allow free pratique to cargo ships - i.e., the permission to enter a

port, discharge or load cargo or stores.

RTA may also incorporate clause to uphold the declaration facilitate the emergency

delivery of medical and essential products of the Council of the International Civil

Aviation Organization (ICAO), at its Fourth meeting of the 219th session held on 9

March 2020.

Members of RTA should cooperate each other by granting free pratique to inspection,

and, if a source of infection or contamination found on board, the carrying out of

necessary, disinfection, decontamination or other measures necessary to prevent spread of

the infection or contamination, pursuant to the IHR.

Trade policies reform will therefore be an essential instrument in the management of the

crisis. Trade in both goods and services will play a key role in overcoming the pandemic

and limiting its impact by providing access to essential medical goods, including material

inputs for their production and services to help contain the pandemic and treat those

affected, smooth trade can ensuring access to food throughout the world. It can provide

farmers with necessary inputs such as seeds, fertilizers, pesticides, equipment, veterinary

products for the next harvest.

Trade reforms, such as tariff reductions, can contribute to reducing the cost and

improving the availability of COVID-19 goods and services. The reduced tax and

administrative burdens on importers and exporters shall reduce the cost of food and other

products heavily consumed by the poor and contributing to the macro-economic

measures introduced to limit the negative economic and social impact of the COVID19

related downturn. Trade reform can support the eventual economic recovery and building

resilience to future crises.

Bangladesh may pursue SAPTA and APTA members to incorporate different provision

to ensure smooth supply of essential products and medical supplies in order to meet the

future pandemic crisis.

The writer is a Legal Economist