an analysis of south asian trade measures during covid-19

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An Analysis of South Asian Trade Measures during Covid-19 Pandemic: Preparedness, Protectionism and Prevention Samarth Trigunayat Young Professional (Legal) Ministry of Commerce and Industry, Government of India Prerana Manral Senior Research Fellow (Economics) Centre for WTO Studies Ministry of Commerce and Industry, Government of India Type of Contribution: Team Report Word Count: 15854 Keywords: South Asia; Pandemic; Essential Goods; Trade Facilitation; Export Restrictions; Trade Liberalization A contribution to the Policy Hackathon on Model Provisions for Trade in Times of Crisis and Pandemic in Regional and other Trade Agreements Disclaimer: The authors declare that this paper is their own autonomous work and that all the sources used have been correctly cited and listed as references. This paper represents the sole opinions of the authors and it is under their responsibility to ensure its authenticity. Any errors or inaccuracies are the fault of the authors. This paper does not purport to represent the views or the official policy of any member of the Policy Hackathon organizing and participating institutions.

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An Analysis of South Asian Trade Measures during Covid-19 Pandemic:

Preparedness, Protectionism and Prevention

Samarth Trigunayat

Young Professional (Legal)

Ministry of Commerce and Industry, Government of India

Prerana Manral

Senior Research Fellow (Economics)

Centre for WTO Studies

Ministry of Commerce and Industry, Government of India

Type of Contribution: Team Report

Word Count: 15854

Keywords: South Asia; Pandemic; Essential Goods; Trade Facilitation; Export

Restrictions; Trade Liberalization

A contribution to the Policy Hackathon on Model Provisions for Trade in Times of

Crisis and Pandemic in Regional and other Trade Agreements

Disclaimer: The authors declare that this paper is their own autonomous work and that all the

sources used have been correctly cited and listed as references. This paper represents the sole

opinions of the authors and it is under their responsibility to ensure its authenticity. Any errors

or inaccuracies are the fault of the authors. This paper does not purport to represent the views

or the official policy of any member of the Policy Hackathon organizing and participating

institutions.

2

List of Abbreviations

1. API: Active Pharmaceutical Ingredients

2. APTA: Asia Pacific Trade Agreement

3. ASEAN: Association of South East Asian Nations

4. CAD: Current Account Deficit

5. CEPA: Comprehensive Economic Partnership Agreement

6. DGFT: Directorate General of Foreign Trade (India)

7. EU: European Union

8. FTA: Free Trade Agreement

9. FY: Financial Year

10. GDP: Gross Domestic Product

11. GHI: Global Hunger Index

12. Govt.: Government

13. HDI: Human Development Index

14. ICU: Intensive Care Units

15. ISLFTA: India- Sri Lanka Free Trade Agreement

16. LDC: Least Developed Country

17. MFN: Most Favored Nations

18. NTM: Non-Tariff Measures

19. PHC: Primary Health Centers

20. SAARC: South Asian Association for Regional Cooperation

21. SAFTA: South Asian Free Trade Agreement

22. SAPTA: South Asian Preferential Trade Agreement

23. SIMS: Steel Import Monitoring System (India)

24. Tk: Taka

25. UAE: United Arab Emirates

26. UK: United Kingdom

27. UN DESA: United Nations Department of Economic and Social Affairs

28. UN: United Nations

29. UNDP: United Nations Development Programme

30. US: United States

31. USD: United States Dollar

32. WEF: World Economic Forum

33. WHO: World Health Organization

34. WTO: World Trade Organization

3

INTRODUCTION

The novel corona virus 2019 (hereinafter, Covid-19), which was initially detected in the Wuhan

province of China, has resulted in over 17 million cases globally spread across 188 countries.1

The outbreak is testing the government capacities and health systems across nations, and handle

its socio-economic consequences. As per various reports, the crisis which originally started as

a health emergency has translated into a global economic crisis on scales similar to the great

recession of 2007-08.2 As per the World Economic Outlook3, the projection of global growth

in 2020 will fall to -3 percent which is significantly lower than the growth rates of -0.1 percent

during the 2009 financial crisis. This makes the economic impact of Covid-19 far worse

compared to the 2009 global financial crisis, making it the worst recession since the Great

Depression of 1930s.4

Countries in south Asia are no exception. The region currently hosts around a quarter of world’s

population, has around 2 million confirmed cases of Covid-19.5 This makes south Asia to

account for over 12 percent of confirmed Covid-19 cases, globally. The south Asian region

entered the Covid-19 crisis with low levels of preparedness due to gaps in public health

infrastructure and basic sanitation facilities.6 As per a report published by World Bank7,

overcrowded cities and homes have made it easier for the virus to spread in the region. As the

public health systems in the region are in underdeveloped condition, the counties have resorted

1 ‘Coronavirus: Which Countries Have Confirmed Cases?’ Al Jazeera (Doha, 30 July 2020)

<https://www.aljazeera.com/news/2020/01/countries-confirmed-cases-coronavirus-200125070959786.html>

accessed 31.7.2020 2 Andy Kiersz and Carmen Reinicke, ‘These 5 Charts show how Coronavirus Crisis has dwarfed the Great

Recession in just 2 months’ Business Insider (New Delhi, 23 May 2020) <https://www.businessinsider.in/stock-

market/news/these-5-charts-show-how-the-coronavirus-crisis-has-dwarfed-the-great-recession-in-just-2-

months/slidelist/75920037.cms> accessed 31 July 2020 3 World Economic Outlook Report, April 2020: The Great Lockdown, International Monetary Fund

<https://www.imf.org/en/Publications/WEO/Issues/2020/04/14/weo-april-2020> accessed 31.7.2020 4 Gita Gopinath, ‘The Great Lockdown: Worst Economic Downturn Since the Great Depression’ IMFBlog

(Washington DC, 14 April 2020) <https://blogs.imf.org/2020/04/14/the-great-lockdown-worst-economic-

downturn-since-the-great-depression/> accessed 31.7.2020 5 Countries where Covid-19 has Spread, Worldometers, https://www.worldometers.info/coronavirus/countries-

where-coronavirus-has-spread/ accessed 31.7.2020. 6 ‘Covid-19 and South Asia: National Strategies and Subregional Cooperation For Accelerating Inclusive,

Sustainable and Resilient Recovery’, UNESCAP SSWA <https://www.unescap.org/resources/covid-19-and-

south-asia-national-strategies-and-subregional-cooperation-accelerating> accessed 31.7.2020 7 Hartwig Schafer, ‘Standing with People of South Asia in Fight Against Covid-19’ World Bank Blogs

(Washington DC, 24 June 2020) < https://blogs.worldbank.org/endpovertyinsouthasia/standing-people-south-

asia-fight-against-covid-19> accessed 31.7.2020

4

to enforcements of strict lockdowns to contain the virus.8 Due to gaps in public healthcare

infrastructure coupled with lower levels of technological advancements in field of medical

science, the countries rely on imports of essential medical supplies to ensure their accessibility

to huge population in the region.

The governments in the region spend significantly low percentage of their GDP on healthcare.

As of 2017, the expenditure on healthcare as percentage of GDP, in the big four south Asian

countries (India, Pakistan, Sri Lanka and Bangladesh) stood at 3.6 percent for India, 2.9 percent

for Pakistan, 2.27 percent for Bangladesh and 3.8 percent for Sri Lanka.9 In comparison, the

global average on healthcare expenditure as percentage of GDP stood at 9.8 percent for the

year 2017.

Against this backdrop, the purpose of this research is threefold. In Part I, the researchers review

the trade related measures taken by the big four countries in the region, i.e. Bangladesh, India,

Pakistan and Sri Lanka (hereinafter, the Big Four). The measures that have been analysed under

this part include measures relating to export restrictions, reduction in import tariffs and other

policies pertaining to trade facilitation. In Part II, the researchers examine the trade links

between countries with reference to critical Covid-19 medical supplies, thereby evaluating the

trade overlap between top export and import markets both globally and in the south Asian

region. Lastly, In Part III, on the basis of the review of challenges faced and responses taken,

the researchers provide their suggestions to mitigate the effects of the crisis by strategizing post

Covid-19 economic revival.

PART-I

REVIEW OF TRADE RELATED MEASURES TAKEN BY BIG FOUR SOUTH

ASIAN COUNTRIES IN WAKE OF COVID-19

In the aftermath of Covid-19, the attention of countries globally has been primarily on meeting

the surge in demand of medical supplies. With various lockdowns enforced in every corner of

the world coupled with restrictions on transport, the global medical supply chains have suffered

serious disruptions ultimately leading to downfall in domestic and international markets.

8 Karishma Mehrotra, ‘Explained: India Enforced One of the Strongest Lockdowns, Here’s how it stacks up

against other countries’ The Indian Express (New Delhi, 8 May 2020)

<https://indianexpress.com/article/explained/coronavirus-india-lockdown-vs-global-lockdown-covid-19-deaths-

cases-cure-6399181/> accessed 31.7.2020 9 The data has been taken from World Bank’s Data Bank

<https://data.worldbank.org/indicator/SH.XPD.CHEX.GD.ZS?end=2017&locations=LK&start=2017&view=ba

r> accessed on 31.7.2020

5

While, nearly all the countries impacted by the crisis forecast negative economic growth in

nearly all the quarters of 202010, yet many scholars are of the view that the impact would not

be alike across the international spectrum. This is precisely due to the lack of resources in

developing and least developed world which, unlike the developed world, are economically

incapable of providing social security in order to cushion their people from the post-covid

economic disaster.11

Various countries either as part of a larger group or individually have tried to strategically

counter these impacts and have come up with various measures pertaining to imports and

exports of the essential medical supplies. These measures are primarily twofold- trade

restricting and trade liberalizing. In this part, the authors present a brief overview of these

measures taken by the big four south Asian countries.

For the purposes of this research, by direct trade related measures the researchers intend to

mean all the measures resulting in either promotion or restriction of mutual trade of States

such as contracts containing import and export commitments in respect of specific products,

buy-hack arrangements, state trading operations and government procurement. This definition

is drawn on the lines of SAARC Preferential Trading Arrangement (hereinafter, SAPTA).12

Globally, more than 95 countries have taken export restriction measures. Most of these

measures pertain to a complete ban on export of personal protection equipment, ventilators,

alcohol based hand sanitizers, food and certain other products13. The countries which have not

opted for a direct ban, have used the indirect method of requirement of licenses and permits for

exporting products from these sectors.14 With regards to imports, 11 countries have taken

temporary restriction measures and over 107 countries have liberalised their import policies.15

In this part, the authors review the measures taken by the Big Four South Asian countries.

10 Covid to Slash global economic output by $8.5 trillion over next two years, UN DESA (New York, 13 May

2020) <https://www.un.org/development/desa/en/news/policy/wesp-mid-2020-report.html> accessed 31.7.2020 11 Aileen Kwa, et.al., ‘Covid-19 and WTO: Debunking Developed Countries’ Narratives on Trade Measures’

South Centre Policy Brief 77, May 2020 <https://www.southcentre.int/wp-content/uploads/2020/05/PB-77-

3.pdf> accessed 31.7.2020 12 Article I (7), South Asian Preferential Trade Agreement < http://www.saarc-

sec.org/economic/sapta/sapta.htm> accessed 31.7.2020 13 Covid-19 Temporary Trade Measures, MacMap, <https://macmap.org/en/covid19> accessed 31.7.2020 14 For example, see measures taken by Albania, Argentina, Bahrain, Botswana, Brazil, China, Estonia, Eswatini,

Eurasian Economic Union, European Union, Iceland, Israel, Lesotho, Morocco, Namibia, Norway, Paraguay,

Peru, Romania, South Africa, Switzerland, Liechtenstein, Turkey, UK, US and Viet Nam. 15 Covid-19 Temporary Trade Measures, MacMap, <https://macmap.org/en/covid19> accessed 31.7.2020

6

I. Bangladesh

Bangladesh is characterized as a least developed country (LDC) by UN16, and has the highest

population amongst the LDCs. Bangladesh witnessed around two hundred thousand cases with

over twenty five hundred deaths due to novel corona virus.17 As per the reports by Bangladeshi

media, the recovery rate for Covid-19 in Bangladesh stood at 48.6 percent.18 Economically, the

the real GDP growth, for Bangladesh, is stood at 8.1 per cent in 2019, up from 7.9 per cent in

2018 and was initially projected to grow at 7.2 per cent in 2020 and 7.3 per cent in 2021.

However, due to Covid-19, the country’s revised growth for 2020 was estimated at 4.5 percent,

being highest in the region.19 As per a report published by WHO20 as per 2011 estimates, the

doctor-patient ratio in Bangladesh stood at 3.05 doctors per 10000 population. Eight years later

in 2019, it has been increased to 5.26 doctors per 10000 population, which is lowest among

south Asian nations, only except Bhutan.21 Despite remarkable progress made by Bangladesh

as reported by World Bank22, the situation of public hospitals with regards to hygiene and

disrespect for standard disinfection procedures have been major issues faced by hospitals in

Bangladesh.23 Another alarming issue which plagues healthcare in Bangladesh is regarding

accessibility of specialist treatment in rural communities accounting for more than 60 percent

of population.24

16 For UN list of Least Developed Countries, please visit:

https://unctad.org/en/Pages/ALDC/Least%20Developed%20Countries/UN-list-of-Least-Developed-

Countries.aspx, accessed 31.7.2020 17 For Source of information, please visit Corona Tracker,

<https://www.coronatracker.com/country/bangladesh/> accessed 31.7.2020 18 Kohinur Khyum Tithila, ‘Covid-19: Recovery Rate Jumps in Bangladesh in two months’ Dhaka Tribune

(Dhaka, 11 July 2020) <https://www.dhakatribune.com/health/coronavirus/2020/07/11/covid-19-recovery-rate-

jumps-in-bangladesh-in-two-months> accessed 31.7.2020 19 Rejaul Karim Byron and Md Fazlur Rahman, ‘Bangladesh to post Highest GDP Growth in Asia this Fiscal

Year’ The Daily Star (Dhaka, 19 June 2020) <https://www.thedailystar.net/business/news/bangladesh-post-

highest-gdp-growth-asia-fiscal-year-1917049> accessed 31.7.2020 20 For more information please see, Global Health Workforce Alliance Report on Bangaldesh Responses,

<https://www.who.int/workforcealliance/countries/bgd/en/> accessed 31.7.2020 21 Ahmad Alam, ‘Patient, Doctors, Nurse Ratio: Bangladesh Lags Far behind its Neighbours’ Dhaka Tribune

(Dhaka, 21 July 2019) <https://www.dhakatribune.com/health/2019/07/21/patient-doctors-nurses-ratio-

bangladesh-lags-far-behind-its-neighbours> accessed 31.7.2020 22 Bangladesh: Improving Capacity to Meet Growing Needs, World Bank Report, October 2016

<https://www.worldbank.org/en/results/2016/10/07/bangladesh-health-nutrition-population-improving-capacity-

meet-growing-needs> accessed 31.7.2020 23 MedCOI, 2015 Fact Finding Mission Report, 2016, ‘The Healthcare System in Bangladesh’ <

https://www.justice.gov/eoir/page/file/1162571/download> accessed 31.7.2020 24 Ibid

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1. Export and Import Restriction Measures

As a preliminary response to contain the crisis and in order to meet the domestic demand of

facemasks and hand sanitizers, on 14th March, the government imposed a ban on export of

domestically made facemasks and hand sanitizers. Despite not having significant amount of

export in face masks and hand sanitizers, the Minister of Commerce Tipu Munshi remarked25

that the export ban was a precautionary measure and was taken to maintain sufficient domestic

supply of covid essentials. The detection of first three cases in Bangladesh on 8th March led to

surge in demand of face masks and hand sanitizers resulting in hike in the prices of normal face

masks from Tk 5 to Tk 50 (0.06 USD to 0.6 USD) and standard quality face masks from Tk

20- Tk 30 to Tk 100-Tk 150 (1.2 USD to 1.7 USD) in the city.26 This ban on export was

however lifted later in April.27

As a precautionary measure, to contain the spread of virus, the Bangladeshi government shut

down the entire ship breaking industry including the largest Chittagong Ship breaking yard,

which employs over 200000 people and is responsible for breaking over fifth of world’s total.28

The Bangladeshi government also banned the import of ships for a period of two weeks.29

Despite the ban, local reports suggest that one third of the ship breaking industries never shut

down.30 As a result of the ban, ship dismantling in the country fell by more than 71 percent in

the second quarter of 2020.31 The Bangladeshi government also extended financial support to

export oriented industries.32 The government believes that such a measure will ensure a quicker

economic revival in post-Covid-19 scenario.

25 Hand Sanitizer, Face Mask Export Banned, New Age (Dhaka, 14 March 2020)

<https://www.newagebd.net/article/102207/hand-sanitiser-face-mask-export-banned> accessed 31.7.2020 26 Ibid 27 Export Ban on Masks, Hand Sanitizers Lifted, The Business Standard (Dhaka, 2 April 2020)

<https://tbsnews.net/economy/trade/bangladesh-lifts-ban-export-masks-hand-sanitizers-64366> accessed

31.7.2020 28 Peter Gwin, ‘The Ship Breakers’, National Geographic Magazine, May 2014

<https://www.nationalgeographic.com/magazine/2014/05/The-Ship-Breakers/> accessed 31.7.2020 29 Monira Munni, ‘Ship Dismantling Drops 71 pc in Q2 on Pandemic’ The Financial Express (Dhaka, 13 July

2020) <https://thefinancialexpress.com.bd/trade/ship-dismantling-drops-71pc-in-q2-on-pandemic-1594612566>

accessed 31.7.2020 30 Ibid 31 Ibid 32 Mizanur Rehman, ‘Stimulus for Bangladesh’s Export Oriented Enterprises: Can this be made more

Sustainable and Equitable?’, The Daily Star (Dhaka, 5 April 2020) <

https://www.thedailystar.net/opinion/economics/news/stimulus-bangladeshs-export-oriented-enterprises-

1889563> accessed 31.7.2020

8

2. Trade Liberalizing Measures

Bangladesh’s first liberalizing response to covid-19 crisis came in form of procurement of raw

materials through imports for the purpose of domestic manufacturing of low cost testing kits

for corona.33 The import of raw materials for production of low cost testing kits was granted in

light of kit developed by a non-governmental and non-profit public charitable trust Gono

Shasthaya Kendra that runs hospitals and medical research work in the country.34 This

development of low cost kits helped Bangladesh carry out most of the tests for free. Later

however, due to huge number of samples, the government issued a circular where the testing

cost was between 200 Tk to 500 Tk (2.5-6 USD). In comparison, the test costs around 1500 Tk

to 3000 Tk (17-35 USD) in private hospitals.35

In addition, the banks were directed to advance credit without guarantee for the purpose of

procurement of imported life-saving drugs, medical kits and other essential medical items.36

These measures directly impacted the import of medical supplies either as an intermediate or

as a finished product. As the health infrastructure in Bangladesh is primarily public funded,

most of these imports were directed to government procurements.

Bangladeshi government also waived advance tax on the import of materials for producing

poultry, fisheries and livestock feed to support the sector.37 The advance tax is imposed at the

import stage of the products and is returned upon refund claims by importers. However, due to

cumbersome and complex procedure involved in refunds, the importers demanded the

withdrawal of the upfront tax.38

Apart from these direct measures, Bangladesh has also taken various other measures which

may impact international trade. These measures primarily relate to banking, tourism and

general fiscal stimulus. As per a report published by World Economic Forum (WEF), while

many countries have made good starts in stimulus packages, Bangladesh has been slower to

33 Bangladesh Approves low-cost test kit to detect Covid, Medical Device Network (London, 20 March 2020)

<https://www.medicaldevice-network.com/news/bangladesh-low-cost-covid-19-test/> accessed 31.7.2020 34 Ibid 35 Bangladesh to Charge 500 Taka for Covid-19 Tests MediCircle (Dhaka, 20 June 2020)

<https://medicircle.in/bangladesh-starts-charging-covid-testing> accessed 31.7.2020 36 Bangladesh allows $500000 advance payment to import coronavirus-related medical goods, The Financial

Express (Dhaka, 23 March 2020) < https://thefinancialexpress.com.bd/economy/bangladesh/bb-allows-500000-

advance-payment-to-import-coronavirus-related-medical-goods-1584955336 > accessed 31.7.2020 37 AT on Import of Raw Materials, Machinery Waived, New Age (Dhaka, 28 March 2020)

<https://www.newagebd.net/article/103311/at-on-import-of-raw-materials-machinery-waived> accessed

31.7.2020 38 Poultry, Fisheries, Livestock Sectors Made Tax Free, The Financial Express (Dhaka. 29 March 2020)

<https://thefinancialexpress.com.bd/trade/poultry-fisheries-livestock-sectors-made-tax-free-1585453945>

accessed 31.7.2020

9

react. The Prime Minister initially announced an emergency stimulus package of $600 million

(equivalent to 0.2% of GDP) on 25 March, which on 4 April was enhanced significantly to $8.5

billion (equivalent to 2.5% of GDP).39 The report also noted that despite such a magnanimous

package, the package should be viewed as a stopgap measure, given the scale of the pandemic.40

Despite the measures taken by Bangladesh, there are still gaps which need to be filled in order

to ensure revival of economy in post-covid era. In a report published by World Bank41, food

security risks are currently higher from disruptions to domestic supply chains than international

trade as exports seem to remain largely unaffected by significant logistics disruptions in

exporting countries with major ports and sea freight channels still operating and only air freight

severely affected. However, the report notes that in relation to Bangladesh, connectivity and

logistics challenges can affect the availability of essential food products. Recent reports

indicate that Chattogram Port has run out of storage space resulting in queue of 20 container

vessels are waiting in outer anchorage. Furthermore, the report states that border closures may

lead to substantive disruptions of informal trade flows in many developing countries.42

Table I.1 Timeline of Trade Related Measures taken by Bangladesh

Date Measures

March 20 Import of raw materials for locally developed

low-cost testing kits for corona.

March 23 Banks to advance credit up to USD 500k for

import of coronavirus related life-saving

drugs, medical kits/equipment and other

essential medical items without the guarantee

of repayment.

March 23 Two weeks ban on import of ships for ship

breaking industry.

39 Sheikh Tanjeb Islam and Yash Nitin Divadkar, ‘How Bangladesh’s leaders should respond to the economic

threats of Covid-19’ World Economic Forum News Report, 13 April 2020

<https://www.weforum.org/agenda/2020/04/covid-19-coronavirus-bangladesh/> accessed 31.7.2020 40 Ibid 41 Nora Dihel and Nadeem Rizwan ‘Trade Responses to Covid-19 Food Security Concerns in Bangladesh’

World Bank Report, 15 April 2020

<http://documents1.worldbank.org/curated/en/984941589269970175/pdf/Trade-Responses-to-Covid-19-Food-

Security-Concerns-in-Bangladesh.pdf> accessed 31.7.2020 42 Ibid

10

March 25 Financial Support for export oriented

industries.

March 25 Waiver of Advance tax on feed for fisheries,

livestock and poultry.

II. INDIA

India is the largest country in the south Asian region with a population of over 1.3 bn. Many

studies43 have estimated that India is one of the biggest contenders in the list of future

superpowers. India is estimated to overtake China’s population by 202244, making it one of the

countries with youngest workforce with median age of 29.45 However, this doesn’t mean that

there are no problems in India when it comes to food security and healthcare infrastructure.

India currently ranks 103rd in Global Hunger Index 2019, lower than all the countries in region

except Afghanistan.

When it comes to healthcare, despite having over 14 million doctors, India failed to achieve

the millennium development goals (MDGs)46. Currently India ranks 145 among 195 countries

in terms of quality and accessibility of healthcare.47 The doctor to patient ratio in India stands

at 7.77 which is lower than that of Pakistan and Sri Lanka48. The ratio currently stands at

0.62:1000 which is lower than WHO standard of 1:1000. According to Economic Survey 2018-

19, the Sixty per cent of primary health centres (PHCs) in India have only one doctor while

about five per cent have none. According to a recent study published in the British Medical

Journal, the Indian medical industry fares poorly on many critical parameters, including quality

of health care as well as qualification of doctors, traditionally regarded as a prized human

resource in the West.49

43 Mark P Thirlwell, ‘India the Next Economic Giant’ 2004, Lowy Institute for International Policy

<https://www.lowyinstitute.org/sites/default/files/pubfiles/India_webFINALsml_1.pdf> accessed 31.7.2020 44 https://www.bbc.com/news/world-asia-33720723 45 World’s Population Prospects 2019 Report, UN DESA

<https://population.un.org/wpp/Download/Standard/Population/ > accessed 31.7.2020 46 Sabitri Dutta and Kaushik Lahiri, Int J Health Policy Manag. 2015 Jul; 4(7): 467–474.

<https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4493587/> accessed 31.7.2020 47 India Healthcare Industry Report June 2020, India Brand Equity Foundation

<https://www.ibef.org/industry/healthcare-india.aspx> accessed 31.7.2020 48 Alam (n 20) 49 : Karan A, Negandhi H, Nair R, et al. Size, composition and distribution of human resource for health in

India: new estimates using National Sample Survey and Registry data. BMJ Open 2019

<https://bmjopen.bmj.com/content/bmjopen/9/4/e025979.full.pdf> accessed 31.7.2020

11

1. Export Restrictions

Against this backdrop, India’s trade related measures to combat covid-19 pandemic essentially

focused on procurement of medical and food supplies. In order to meet the domestic needs, the

directorate general of foreign trade (DGFT) on February 25 prohibited the export of all personal

protection equipment including clothing and masks used in healthcare activities where there is

a risk of contamination such as N-95 masks. However, surgical/ disposable (2/3 ply) masks,

surgical blades, gas masks and disposable shoe covers were freely exportable till 19th March.50

India also restricted export of 26 active pharmaceutical ingredients (APIs) on 3rd March owing

to lockdown in Hubei province in China, which is a major producer of these ingredients.

a. The Curious Case of Hydroxychloroquine

One of the export restrictions by India which gathered international attention, especially in the

US, was the ban on export of hydroxychloroquine.51 The drug has been touted as a ‘game-

changer’ by the US President Donald Trump, in the fight against the disease.52 Later in April

however, India decided to lift the ban on hydroxychloroquine citing its international

commitment to fight the pandemic.53 However, the export of hydroxychloroquine was limited

only to foreign governments and not to private companies.54 Despite Trump’s assumption in

favour of efficacy of drug in treating covid, various research organizations, including Oxford

50 Kritika Suneja, ‘Government Bans Exports of Certain Masks, Ventilators, Raw Materials for Masks,

Coveralls’ Financial Times (New Delhi, 19 March 2020)

<https://economictimes.indiatimes.com/news/economy/foreign-trade/government-bans-exports-of-certain-

masks-ventilators-raw-material-for-masks-coveralls/articleshow/74718029.cms?from=mdr> accessed 31.7.2020 51 Trump talks tough, warns of ‘retaliation’ if India doesn’t export Hydroxychloroquine to US, The Hindu

(Washington, 7 April 2020) < https://www.thehindu.com/news/international/would-be-surprised-if-india-doesnt-

allow-export-of-hydroxychloroquine-to-us-trump/article31276161.ece> accessed 31.7.2020 52 Himani Chandana, ‘India bans export of Hydroxychloroquine but Trump is counting on Modi for urgent

supply’ The Print (New Delhi, 5 April 2020) <https://theprint.in/india/governance/india-bans-export-of-

hydroxychloroquine-as-coronavirus-cases-jump-to-over-3000/395766/> accessed 31.7.2020 53 India to export hydroxychloroquine only to foreign governments and not to private companies, Economic

Times (New Delhi, 10 April 2020)

<https://economictimes.indiatimes.com/industry/healthcare/biotech/pharmaceuticals/india-to-export-

hydroxychloroquine-only-to-foreign-governments-and-not-to-private-companies-

sources/articleshow/75078549.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst>

accessed 31.7.2020 54 Ibid

12

University, termed it as ‘useless’ in treatment of covid.55 Within a week after this declaration

by the Oxford University, India lifted the ban completely on 11th June.56

2. Reduction in Import Tariffs

Apart from these restrictions, India also liberalized international trade by lowering the tariff

rate on various medical products. These products included surgical and medical apparatus,

ventilators, face masks, etc.57 However, Indian government didn’t take any steps for reducing

duties on products originating from special economic zones (SEZs). As per Rajiv Nath, Forum

Coordinator for Association of Indian Medical Devices Industry (AiMeD), the duties on

products from SEZs remained at 11 percent.58 Similarly, Vishwaprasad Alva, Founder and

Managing Director of Skanray Technologies, remarked that there is no real impact of such

tariff reductions as the purchases are all from the government and in any case the duty collected

or exempted is from the government to the government.59

3. Other Trade Facilitation Measures

The government of India also took major steps to keep the supply chains intact. The

government integrated covid essentials with its previously launched e-commerce platform

GeM for the purposes of public procurement. Government e-Marketplace (GeM) has set up a

dedicated page on its platform, where it has created several categories for medical supplies

such as COVID-19 sample collection kit, reusable vinyl/rubber gloves, disposable

thermometers, cardiac monitors, ICU beds, and services like temporary hospital and isolation

facilities for COVID-19 asymptomatic and mild symptoms patients.60 The products listed were

55 UK Halts Trial of hydroxychloroquine as ‘useless’ for Covid-19 patients, Economic Times (New Delhi, 6

June 2020) <https://health.economictimes.indiatimes.com/news/industry/uk-halts-trial-of-hydroxychloroquine-

as-useless-for-covid-19-patients/76227019> accessed 31.7.2020 56 India lifts ban on hydroxychloroquine, The Hindu (Bengaluru, 11 June 2020)

<https://www.thehindu.com/news/national/india-lifts-export-ban-on-hydroxychloroquine/article31806635.ece>

accessed 31.7.2020 57 Covid-19 impact: No import duty on ventilators, masks and other key medical equipment for six months, The

Hindu BusinessLine (New Delhi, 10 April 2020)

<https://www.thehindubusinessline.com/economy/policy/covid-19-impact-no-import-duty-key-medical-

equipments-for-six-months/article31305339.ece> accessed 31.7.2020 58 AiMeD applauds government decision to import medical devices, deplores move of duty free imports, Indian

Express Healthcare (New Delhi, 13 April 2020) <https://www.expresshealthcare.in/news/aimed-applauds-

govts-decision-to-import-medical-devices-deplores-move-of-duty-free-imports/418584/> accessed 31.7.2020 59 Ibid 60 GeM adds 146 categories of Medical Products, 8 services to help govt fight covid-19, Economic Times (New

Delhi, 24 April 2020) <https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/gem-adds-146-

categories-of-medical-products-8-services-to-help-govt-fight-covid-

19/articleshow/75348027.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst>

13

both domestic and imported and helped in quick and easy delivery of essential supplies to

public hospitals.

The government also relaxed certificate of origin requirements by allowing retrospective

issuance of certificates for imports originating in any of the countries with which it has trade

deal.61 Another facilitation measure came in form of amendment of import policy of iron &

steel which extended the validity of automatic registration number generated under steel import

monitoring system SIMS for 135 days.62 On 9th April, the government also took steps to issue

electronic certificates of origin for products falling under India-ASEAN FTA, India-Japan

CEPA, SAPTA, SAFTA, APTA and India-Sri Lanka FTA.63

Table I.2 Timeline of Major Trade Related Measures taken by India

Date Measure

19 March Ban on the export of certain kinds of masks,

ventilators and textile raw materials for

masks and coveralls.

25 March Ban on export of Hydroxychloroquine

28 March Launch of e-commerce platform for

government procurements

31 March Grant of one-time relaxation through

extension of validity of automatic

registration number for imports of iron and

steel.

1 April Lower import tariffs on medical or surgical

instruments and apparatus.

4 April Restriction on the export of 26

pharmaceutical ingredients and the

61 Retrospective Issuance of Certificates of Origin under India’s Trade Agreements, Trade Notice 59/2019-2020,

Directorate General of Foreign Trade, 28 March 2020

<https://content.dgft.gov.in/Website/Trade%20Notice%2059.pdf> accessed 31.7.2020 62 Amendment of Import Policy of Iron and Steel and incorporation of policy conditions in Chapter 72, 73 and

86 of ITC (HS), 2017, Schedule-I (Import Policy), Notification No 58/2015-2020, Directorate General of

Foreign Trade <https://content.dgft.gov.in/Website/DGFT%20Notification%20No.%2058%20(English).pdf>

accessed 31.7.2020 63 Electronic Filing and Issuance of Preferential Certificate of Origin for India’s Exports under various

FTAs/PTAs w.e.f. April 7 2020, Trade Notice: 01/2020-2021, Directorate General of Foreign Trade, 7 April

2020 <https://content.dgft.gov.in/Website/Trade%20Notice%201%20eCoO%20go-live%207Apr2020.pdf>

accessed 31.7.2020

14

medicines made from them, including

paracetamol.

9 April Exemption from import tariffs on ventilators,

masks, etc.

17 April Lifting of ban on certain exports of

formulations made from Paracetamol.

6 May Prohibition on export of alcohol based

sanitizers.

III. Pakistan

As of 25 July 2020, there have been about 266,000 confirmed cases with 208,000 recoveries,

and 5,600 deaths in the country.64 Pakistan ranked 94th out of 117 participating countries on

the Global Hunger Index.65 Just like its other south Asian counterparts, the situation of hunger

in Pakistan is considered serious.66 According to the World Food Programme, 43 percent of

Pakistan’s population faces food insecurity. Of this number, 18 percent of people in Pakistan

severely lack access to food. When it comes to healthcare, unlike other developing countries

of the world that allocate a significant portion of their GDPs to maintain and improve

healthcare, Pakistan only spends 2 per cent of its GDP on health.67 According to statistics, the

last few years saw a 40% reduction in basic health facilities at public hospitals.68 The doctor-

patient ratio in Pakistan as of 2019 stood at 9.75 which is higher than that of India as well as

Bangladesh.69 However, due to decentralization of healthcare in Pakistan, there is no

uniformity in access to healthcare facilities. Inequities in access are present across geographical

areas, with disadvantaged districts poorly covered for essential primary services compared to

better resourced districts.70

64 Susmita Pakrasi, ‘Pakistan reports 1332 new Covid-19 cases, records 38 fresh deaths’, Hindustan Times

(Islamabad, 22 July 2020) <https://www.hindustantimes.com/world-news/pakistan-reports-1-332-new-covid-19-

cases-records-38-fresh-deaths/story-GqoXRwZ9jYEZlGNLXMZZXK.html> accessed 31.7.2020 65 For further details, please visit <https://www.globalhungerindex.org/pakistan.html> accessed 31.7.2020 66 Ibid 67 Tufail Ahmed, ‘Story of Neglect: Another Grim Year for Healthcare in Pakistan’, The Express Tribune

(Islamabad, 3 January 2020) <https://tribune.com.pk/story/2129467/story-neglect-another-grim-year-healthcare-

pakistan> accessed 31.7.2020 68 Ibid. 69 Alam (n 20) 70 Primary Care System Profiles and Performance (PRIMASYS) Report: Pakistan Case Study, 2016, World

Health Organization & Alliance for Health Policy and System Research < https://www.who.int/alliance-

hpsr/projects/AHPSR-Pakistan-061016.pdf> accessed 31.7.2020

15

Pakistan’s Prime Minister Imran Khan observed that the drop in the increase of daily new covid

cases is due to his government’s policy of "smart lockdowns," but many observers remain

skeptical about the numbers as Pakistan has failed to maintain adequate number of tests. As

per various reports71, data shows a correlation between the drop in testing and declining new

cases. While the neighbours of Pakistan are continuously striving for increase in testing, the

testing in Pakistan has reduced significantly.72

1. Import and Export Measures

As a reaction to the pandemic, the Pakistan government took several trade restrictive measures

to meet the domestic needs. Although delayed, the responses included ban on export of PPE

kits73, certain anti-malarial drugs74 and all types of edible items75. Most of the measures were

temporary in nature and have been terminated. Pakistan government did not restrict any kind

of imports. In fact, it liberalized trade for various commodities by lowering or exempting the

tariffs. On 20th March, the Pakistani government exempted whole of the customs duty, the

additional customs duty, and the regulatory duty for the import of 61 medical goods for 3

months.76 Pakistan government also granted temporary exemption on custom duties on oxygen

gas and cylinders.77

While these measures tried to address the immediate concerns of Pakistan, the country remains

in position of double jeopardy with the two edged sword of ailing economy and Covid-19.

While various international agencies endorsed the economic management by Imran Khan’s

71 Mavra Bari, ‘Is low testing behind Pakistan’s falling daily new cases?’ DW News (Islamabad, 17 July 2020)

<https://www.dw.com/en/pakistan-coronavirus-testing/a-54221822> accessed 31.7.2020 72 Aamir Latif, ‘Pakistan: Experts say too early to declare victory against virus’ Anadolu Agency (Karachi, 16

July 2020) <https://www.aa.com.tr/en/asia-pacific/pakistan-experts-say-too-early-to-declare-victory-against-

virus/1912253> accessed 31.7.2020 73 Imran Ali Kundi, ‘Government notifies ban on export of onions, personal protective equipment’, The Nation

(Islamabad, 25 March 2020) < https://nation.com.pk/25-Mar-2020/govt-notifies-ban-on-export-of-onions-

personal-protective-equipment> accessed 31.7.2020 74 SRO 297(I)/2020, Ministry of Commerce, Pakistan <http://www.commerce.gov.pk/wp-

content/uploads/2020/04/SRO-297-Anti-Malarial-fldrugs.pdf> accessed 31.7.2020 75 Syed Irfan Raza, ‘Cabinet bans export of all edible items’ The Dawn (Islamabad, 29 April 2020)

<https://www.dawn.com/news/1553088> accessed 31.7.2020 76 Mubarak Zeb Khan, ‘Medical Equipment to be Exempted from Taxes’ The Dawn (Islamabad, 21 March

2020) <https://www.dawn.com/news/1542544> accessed 31.7.2020 77 Pakistan Temporary customs duty exemption on imports of oxygen gas and oxygen cylinders, Global Trade

Alert < https://www.globaltradealert.org/intervention/80017/import-tariff/pakistan-temporary-customs-duty-

exemption-on-imports-of-oxygen-gas-and-oxygen-cylinders>

16

government78, but a recent report published by Observer Research Foundation79 argues

otherwise. The report raises several questions on important issues such as the decrease in

current account deficit (CAD) and the fiscal deficit, the primary balance, better credit

ratings and the country’s rank on the Ease of Doing Business Index. The report states

that, the 70 percent reduction in the CAD was a result of import compression and steep

depreciation of the Pakistani Rupee, which came at the cost of economic growth. From

around 5.5 percent in FY18, Pakistan’s GDP growth came down to 3.3 percent in FY19,

and was further projected by the IMF to fall to 2.4 percent in FY20. 80 The report goes

on to conclude that Pakistan should translate the catastrophic COVID-19 crisis to an

opportunity for undertaking reforms in its economy, polity, and foreign and security

policy. Failing this, the country will face the prospect of further deterioration in its

economy. The increase in poverty and unemployment will fuel political and social

unrest; this, in turn, could destabilise the government and threaten whatever democratic

progress Pakistan has made so far.81

Table I.3 Timeline of Major Trade Related Measures taken by Pakistan

Measures

20 March Exemption of whole of the customs duty, the

additional customs duty, and the regulatory

duty for the import of 61 medical goods for 3

months.

24 March Temporary export ban on certain personal

protective equipment

9 April Exports of certain anti-malarial drugs are

temporarily suspended

18 April Government has decided to lift the ban on the

export of textile masks and sanitizers.

78 Negative to stable: Moody’s upgrades Pakistan’s economic outlook”, The News International (3 December

2019) <https://www.thenews.com.pk/print/577783-negative-to-stable-moody-s-upgrades-pakistan-s-economic-

outlook> accessed 31.7.2020 79 Sushant Sareen, ‘COVID-19 and Pakistan: The Economic Fallout’ ORF Occasional Paper No. 251, June

2020, Observer Research Foundation < https://www.orfonline.org/research/covid19-and-pakistan-the-economic-

fallout-67296/#_edn6> accessed 31.7.2020 80 Sareen (n 80) 81 Ibid

17

28 April The federal cabinet banned exports of all

edible items to ensure adequate food supply

for 3 weeks

22 June Exemption from customs duty and additional

customs duty on the import of Remdesivir

(anti-Covid-19 pharmaceutical product)

23 June Temporary exemption of customs duty on

the imports of oxygen gas and oxygen

cylinders

IV. Sri Lanka

The island nation of Sri Lanka is the only South Asian country to have a high rating on human

development index.82 In 2019, the island nation ranked 71 in the list of HDI. Sri Lanka and

Maldives are the only upper middle income countries in the region.83 Despite a history of

conflict in form of civil war between the Sinhalese and the Tamils, Sri Lanka fares much better

compared to her south Asian neighbours when it comes to food security and healthcare

infrastructure. As per 2019 GHI report, the island nation ranked 66th out of 117 countries84

making it the only country in the region to have moderate situation with respect to hunger.

With respect to healthcare, Sri Lanka has a universal health care system that extends free

healthcare to all citizens. Due to its effective public delivery system, which provides both

preventive and curative care at low cost, Sri Lankan model of healthcare has been one of the

best models in South Asia.85

However, there are significant challenges that ail the healthcare system in Sri Lanka. The public

health sector has inadequate capacity, limited access to specialist treatment and inconsistent

service standards.86 The availability of complex surgical procedures and specialist care in the

82 Human Development Report 2019, United Nations Development Programme

<http://hdr.undp.org/sites/default/files/hdr_2019_overview_-_english.pdf> accessed 31.7.2020 83 Chaitanya Mallapur, ‘India stays lower-middle-income nation while Sri Lanka gets richer: Report’ Business

Standard (Mumbai, 4 July 2019) < https://www.business-standard.com/article/economy-policy/india-stays-

lower-middle-income-nation-while-sri-lanka-gets-richer-report-119070400113_1.html > accessed 31.7.2020 84 For more information visit <https://www.globalhungerindex.org/sri-lanka.html> accessed 31.7.2020 85 Sri Lanka’s effective public healthcare faces new private competition, Oxford Business Group <

https://oxfordbusinessgroup.com/overview/vital-signs-highly-efficient-public-health-sector-faces-new-private-

competition > accessed on 31.7.2020 86 Sri Lanka’s Healthcare Challenges, The Economist (24 November 2014)

<http://country.eiu.com/article.aspx?articleid=1502512534&Country=Sri+Lanka&topic=Economy&subtopic=F

orecast> accessed 31.7.2020

18

public sector is limited to few hospitals. However, in recent years private players have sought

to fill this gap.87

As per the World Bank’s World Development Indicators88, in terms of preparedness, Sri

Lanka was placed at number one in the region. It is not only the richest country among the

four studied in this article, but also has the largest expenditure on health – with the greatest

share contributed by the government.89

With regard to Covid-19, the country witnessed very low number of cases amounting to a

mere 2700. This number is significantly low when compared to other big players in the south

Asian region. As a result, the trade related responses of Sri Lanka were limited only to

masks, disinfectants and non-essential goods. The island nation was in news as it planned

the post-covid economic revival much before any other country in the region.90

The country’s economic revival plan aims to stabilize the exchange rate, increase domestic

value addition, and also strengthen the domestic supply chain to avoid dependency on

imports.91 As part of this plan the government of Sri Lanka has permitted the import of raw

materials for local manufacturing activities provided domestic value addition is at least 30

percent. The government has also permitted the rubber manufacturing industries to import latex

and raw rubber provided they purchased 50 percent or more of local supply, to encourage local

rubber cultivation. These policies ensure that a country can easily balance the development of

its domestic industry with its international commitments to global trade.

Table I.4 Timeline of Major Trade Related Measures taken by Sri Lanka

Date Measure

19 March Elimination of import duties and taxes on

masks and disinfectants

87 Primary Care System Profiles and Performance (PRIMASYS) Report: Sri Lanka Case Study, 2017, World

Health Organization & Alliance for Health Policy and System Research <https://www.who.int/alliance-

hpsr/projects/alliancehpsr_srilankaprimasys.pdf?ua=1> accessed 31.7.2020 88 Data collected from World Bank Data Bank’s World Development Indicators

<https://databank.worldbank.org/source/world-development-indicators> accessed 31.7.2020 89 Deepankar Basu and Priyanka Srivastava, ‘In South Asia, Lanka leads and India lags in Infrastructure,

Medical Response to Covid-19’ The Wire (New Delhi, 11 May 2020) <https://thewire.in/health/in-south-asia-

lanka-leads-and-india-lags-in-infrastructure-medical-response-to-covid-19> accessed 31.7.2020 90 Covid-19: Rajpaksha gives Central Bank 24-hr ultimatum to come up with economic recovery plan, Outlook

India (Colombo, 16 June 2020) <https://www.outlookindia.com/newsscroll/covid19-rajapaksa-gives-central-

bank-24hour-ultimatum-to-come-up-with-economic-recovery-plan/1868033> accessed 31.7.2020 91 Sri Lanka lifts import bans except for vehicles in Covid-19 economic recovery plan, South Asia Monitor

(Colombo, 22 May 2020) < https://southasiamonitor.org/development/sri-lanka-lifts-import-bans-except-

vehicles-covid-19-economic-recovery-plan> accessed 31.7.2020.

19

20 March Exports of all types of surgical masks are

prohibited.

3 April Imports of non-essential goods including

vehicles and plastic goods are suspended.

21 May Lifting of import restrictions on several

products despite retaining the ban on vehicle

imports, as part of COVID-19 economic

revival plan.

PART-II

GLOBAL & SOUTH ASIAN PERSPECTIVE: WHY WE NEED A NEW BASIS FOR

COVID-19 CRITICAL GOODS TRADE?

The Covid-19 pandemic has exposed the economies to unprecedented disruptions and world

trade, as production and consumption are scaled back across the globe.92 One of the most

effectual medium to tackle this crisis is through the smooth flow of critical medical goods,

especially who rely on imports. According to the WTO, world trade in medical products stood

at $2 trillion in 2019 and accounted for 5% of the total merchandise trade.93 LDCs imports of

these medical supplies amounted to nearly USD 7.3 billion with disinfectant and medical

consumable accounting for the majority of imported items in 2017-18. There is a high

dependence of Least developed countries (LDCs) on imports to secure access and availability

of these medical supplies due to the lack of manufacturing capacity. In addition to this, the

escalation of trade restrictive measures raises the magnitude of the pandemic. As highlighted

by the LDC Group that they are inclined towards the need for all countries to safeguard the

lives and health of their peoples. Nonetheless, many WTO Members are applying restrictions

on trade without some level of consideration for LDCs.94

With the current supply scantiness of essential medical products caused by the Covid-19

pandemic, this section examines the trends in the global and south Asia’s trade to capture the

extent of concentration of export and import markets. The study uses "an updated critical goods

list" of HS codes of medical supplies used during the Covid-19 pandemic (see Annex I). The

92 “COVID-19 and World Trade”, WTO

<https://www.wto.org/english/tratop_e/covid19_e/covid19_e.htm#latestnews> accessed 31.7.2020 93 “Trade in medical goods in the context of tackling COVID-19”, WTO, 3 April 2020

<https://www.wto.org/english/news_e/news20_e/rese_03apr20_e.pdf> accessed 31.7.2020 94 “The COVID-19 Pandemic and Trade-Related Developments in LDCS”, WTO, 8 June 2020,

<https://www.wto.org/english/tratop_e/covid19_e/ldcs_report_e.pdf> accessed 31.7.2020

20

types of products covered under the list are test-kits, protective garments, disinfectants and

sterilisation products, oxygen therapy equipment and pulse oximeters, other medical devices

and equipment, other medical consumables and vehicles.

1. Global: Covid-19 critical goods trade scenario

The WTO has acknowledged the liberalisation of trade in medical products in primarily three

ways- firstly, through tariff negotiations at the inception of WTO in 1995; secondly, through

the conclusion of the Plurilateral Sectoral Agreement on Pharmaceutical Products ("Pharma

Agreement") in the Uruguay rounds and its four subsequent reviews; and lastly, through the

expansion of the Information Technology Agreement in 2015.95 In response to COVID-19

pandemic, WTO and IMF joint statement on Trade and the Covid-19 response encourages open

trade policies in defeating the virus, restoring jobs, and reinvigorating economic growth. In

particular, the statement directed the concerns towards supply disruptions from the growing

use of export restrictions and other actions that limit the trade of key medical supplies and food

(Table 2.1).96

The role of international trade is crucial to ensure access to medicine and other medical

products at competitive prices. Developing countries, least-developed countries (LDCs), and

transition economies comprise 85 percent of the world's population but account only for 30

percent of imports and 20 percent of exports of internationally traded health-related products.

The export market for medical products is mainly concentrated in developed countries. In order

to promote trade liberalisation developed world has largely eliminated tariffs on health-related

products, in line with the WTO agreement on pharmaceutical trade. Tariffs applied by other

countries have also fallen significantly, but the picture is still vague.97

Generally speaking, countries are not self-sufficient in producing all the products and

equipment needed to support the public health systems and therefore depend on imports. The

world imports of medical goods stood at $1011 billion in 2019 with an increase of 5% from

2018. The total volume of trade accounted for around $2 trillion comprising 5% of the total

merchandise trade. The US and Germany are the biggest bilateral trade partners for medical

products, and both the US and Germany are the main suppliers to China98

95 “Trade in medical goods” (n 93) 96 “IMF and WTO heads call for lifting trade restrictions on medical supplies and food”, WTO,

<https://www.wto.org/english/news_e/news20_e/igo_15apr20_e.htm> accessed 31.7.2020 97 “Chapter 4: Medical technologies: the access dimension”, WTO,

<https://www.wto.org/english/tratop_e/trips_e/trilatweb_e/ch4d_trilat_web_13_e.htm> accessed 31.7.2020 98 “Trade in medical goods” (n 93)

21

Similarly, from a global perspective, the top markets for COVID-19 critical products are

European Union, Switzerland, China, United States and Netherland. The European Union (EU)

countries are the main exporter of test kits/instruments & apparatus used in diagnostic testing,

disinfectants and sterilization products, oxygen therapy equipment and pulse oximeters, other

medical devices and equipment, other medical consumables and vehicles. China is the main

exporter of protective garments and other essential products. From the import side, United

States is the top importer of disinfectants and sterilization products, oxygen therapy equipment

and pulse oximeters, other medical devices and equipment, other medical consumables,

vehicles and protective garments. Also, the EU is the top importer of test Kits/Instruments &

apparatus.

The Covid-19 critical products exhibit an intriguing trade trend of overlap between importing

and exporting countries. Simply put, the countries which export more tend to import more in

the same product category. According to the OECD policy brief on trade interdependencies in

Covid-19 goods, there is a high dependence on trade in Covid-19 goods. A country can be a

large exporter of one Covid good and simultaneously import huge quantities of other products.

The Grubel-Lloyd Index which captures the overlap between imports and exports shows a high

degree of interdependencies. For instance, for every euro of German exports of COVID-19

goods, Germany imports EUR 0.72 of COVID-19 goods. In the United States, for every dollar

of COVID-19 good imports, the US exports USD 0.75 of COVID-19 goods.

0.0100000000.0200000000.0300000000.0400000000.0500000000.0600000000.0700000000.0800000000.0900000000.0

1000000000.0

Cov

id T

est

Kits/In

strum

ents

used

in

Daig

nostic…

Pro

tective

garm

ents

Disin

fectants

and sterilisatio

n

pro

ducts

Ox

ygen

Therap

y

equip

men

t and

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dev

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Con

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ables

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ers

Global Export-Import: Covid Critical Products

Exports Imports

22

2. South Asia: Covid-19 critical goods trade scenario99

In comparison to the world trade, the share of south Asian big four contributions to world trade

is relatively trivial. In terms of income per capita of south Asia stands at 16% of the world and

only 4% of the industrialised nations. The dismal picture of the economy features a high

absolute poverty level and low nutrition levels. One-third of the world poor live in south Asia’s

urban slums and compact rural areas making the population exposed to the contagious virus.100

The exports between the South Asian Association for Regional Cooperation (SAARC)

countries were US$ 29 billion against their exports to the world stood at US$ 407 billion in

2019. As regards, imports within the region was US$ 29 billion and imports from the world

were US$ 616 billion in 2019.101 A World Bank study ‘A Glass Half Full’ highlighted that

south Asia in trading terms, one of the most disconnected regions as compared with Sub-

Saharan Africa, EU, the US-Mexico-Canada free-trade zone or the ASEAN region and intra-

regional trade in south Asia is negligible — a mere 5 percent of the region’s total trade. This

particularly reflected the damp squib performance of SAFTA agreement in dynamizing intra-

regional trade stands as a failure. Even the gravity of protectionism is greater in the case of

imports from within the region than the rest of the world. The South Asian countries have

bilateral trade with countries outside the region than countries within the region.102

99 The mirror data has been taken from World Integrated Trade Solution (due to unavailability of data, mirror

data is used). 7 100 Deepak Nayyar, “The COVID-19 paradox in South Asia”, The Hindu, (24 April 2020)

<https://www.thehindu.com/opinion/lead/the-covid-19-paradox-in-south-asia/article31417806.ece> accessed

31.7.2020 101 The data has been taken from Trade Map, < https://www.trademap.org/Bilateral_TS.aspx> accessed

31.7.2020 102 Jeevika Weerahewa, “Impact of Trade Facilitation Measures and Regional Trade Agreements on Food and

Agricultural Trade in South Asia”, ARTNeT Working Paper Series,

<https://www.unescap.org/sites/default/files/AWP%20No.%2069.pdf> accessed 31.7.2020

23

With respect to Covid-19 critical goods, India’s major export destinations are United States,

United Kingdom, United Arab Emirates and South Africa. In terms of imports, there is an

increased reliance on China, US, Germany and Singapore for critical products. The signs of

trade interdependence in the same countries for exports and imports are visible in the United

States, United Kingdom and Germany for essential products. For instance, India is exporting

around 27.9% of oxygen therapy equipment and pulse oximeter products but at the same time

importing 19.7% of the total exports to United States in the same category, highlighting a high

degree of interdependence among countries on these essential goods. While comparing the top

ten export destinations of India, intra-industry trade within south Asia is with Nepal in Test

0.00

2000000.00

4000000.00

6000000.00

8000000.00

10000000.00

12000000.00

14000000.00

Test K

its/Instru

men

ts

in D

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g

Pro

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armen

ts

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South Asia Exports (Big Four) : Covid-19 Critical Goods

India Pakistan Srilanka Bangladesh

0.001000000.002000000.003000000.004000000.005000000.006000000.007000000.00

Test

Kits/In

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Testin

g

Pro

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South Asia Imports (Big Four): Covid-19 Critical Goods

India Pakistan Srilanka Bangladesh

24

Kits/Instruments & apparatus used in diagnostic testing (2.56%) and other medical devices and

equipment (2.49%) and Bangladesh in oxygen therapy equipment and pulse oximeters (1.72%).

(Table 2.4)

In Covid-19 critical products Bangladesh, Sri Lanka and Pakistan major trading partners are

European Union, United States, China, UAE, Singapore and Japan (Table 2.6-2.11) Moreover,

the given pandemic situation has resulted in a surge in demand of medical equipment and other

essential items in south Asia.103 This has led to inflated prices in many cases and even

accusations of piracy and other sharp practices. Countries have resorted to export bans that

have disrupted the public health plans of trading partners and put lives at risk. The Global Trade

Alert report “A Trade Bargain to Secure Supplies of Medical goods” mentions regarding the

consequences of current failures to secure enough medical supplies have led in certain quarters

to calls for greater self-reliance, “strategic autonomy,” “repatriated supply chains,” and other

euphemisms that will threaten the commercial viability of existing supply routes without

guaranteeing enough medical.

As the study analyses export and import pre-pandemic data of medical products needed to treat

Covid-19. The ongoing shortage of key medical products is not reflected in the data. The rise

in the number of infections in the countries such as US, UK demands protective personal

equipment such as masks, ventilators, gloves and other medical equipment and reduce their

excess capacity to produce and ship these products.104 Also, countries in the European Union

are fighting the pandemic and imposed export restrictions on medical equipment.105

Collectively, China is the major supplier of around 43% of essential medical supplies such as

face shields, protective garments, mouth-nose-protection equipment, gloves, and goggles in

2018. The reality of global dependence on China for the vital export of medical supplies was

awakened in the initial reduction of 15% in exports of essential hospital supplies in the month

of 2020. The reasons behind the fall in exports were related to hoarding to support their own

103 Nayanima Basu, “India plans SAARC trade talk soon, but past differences could prove to be a hurdle”, The

Print, (2 April 2020)

<https://theprint.in/diplomacy/india-plans-saarc-trade-talk-soon-but-past-differences-could-prove-to-be-a-

hurdle/393876/> accessed 31.07.2020 104 Fernando Leibovici, Ana Maria Santacreu, Makenzie Peake, “The US reliance on other countries for

essential medical equipment”, VOX EU, (13 April 2020) < https://voxeu.org/article/us-reliance-others-medical-

equipment> accessed 31.07.2020 105 Chad P. Bown, “EU limits on medical gear exports put poor countries and Europeans at risk”, Peterson

Institute for International Economics (PIIE), (19 March 2020), <https://www.piie.com/blogs/trade-and-

investment-policy-watch/eu-limits-medical-gear-exports-put-poor-countries-and> accessed 31.07.2020

25

country during the pandemic and retaliation measures of the trade war.106 Moreover, the

presence of China in south Asia was even before the onset of the pandemic. China has emerged

as the main exporter of goods to the south Asian market with its export-led growth strategy.

China has emerged as a top exporter of goods to the region breaking into South Asian markets

with its export-led growth strategy. Bangladesh stands as an absolute example of this trend.

China has become Bangladesh’s top trading partner in 2015, imports from China (including

Hong Kong) were 27 percent of Bangladesh’s total imports. The reason behind the success of

China in influencing the south Asian region is primarily due to the mistrust and old paragon

and lack of meaningful and mutually beneficial trade between the regions remains the greatest

challenge.107

Bangladesh has set an example to take benefit of the current situation by exporting PPE kits

which gave hope to the manufacturer were exposed to order cancellations and fall in exports

of the garment sector.108 Bangladesh’s leading business company, Beximco Group is exporting

6.5 million PPE gowns to US-based brand Hanes and even they have the expertise of making

top-notch PPE gowns. Managing Director of Beximco Pharma Nazmul Hassan MP said in the

initial days of the pandemic, there was huge local demand for PPE and Beximco took the

initiative of providing PPE to local healthcare services through import. "But there was a severe

shortage globally as demand kept increasing. We, therefore, decided to manufacture them to

meet the demand. Today we are not only providing these to our local healthcare services but

also exporting them to very highly regulated, sensitive markets," he said.109 But in other Covid-

related products, Bangladesh, Pakistan and Sri Lanka have low bilateral trade interaction of

0.6% which indicates that these countries do not engage in trading these products with each

other, or either import or export Covid-19 goods but do not do both.110

106 Fernando Leibovici, Ana Maria Santacreu, “Import Dependence on essential medical goods during a

pandemic”. VOX EU, (14 June 2020), <https://voxeu.org/article/import-dependence-essential-medical-goods-

during-pandemic> accessed 31.07.2020 107 Rida Khan, “China’s growing influence in South Asia” The Nation, (5 August 2020), <

https://nation.com.pk/05-Aug-2018/china-s-growing-influence-in-south-asia> accessed 31.07.2020 108 Ibrahim Hossain Ovi, “PPE exports open new avenue for Bangladesh” Dhaka Tribune, (27 June 2020),

<https://www.dhakatribune.com/business/2020/06/27/ppe-exports-provide-new-opportunity-for-bangladesh>

accessed 31.07.2020 109 Arif Uz Zaman, “Bangladesh is entering global protective clothing market”, Textile Today, (16 June 2020)

<https://www.textiletoday.com.bd/bangladesh-entering-global-protective-clothing-market/> accessed

31.07.2020 110 “Policy Response: Trade Interdependencies in COVID-19 Goods”, OECD, (2020), <https://read.oecd-

ilibrary.org/view/?ref=132_132706-m5stc83l59&title=Policy-Respone-Trade-Interdependencies-in-Covid19-

Goods> accessed 31.07.2020

26

3. Roaring Tariff Rates & Non-tariff barriers – backlash on Covid-19 critical goods

trade

During the Uruguay Round, a group of countries comprising 90% of total pharmaceutical

products signed an agreement to eliminate customs duties on pharmaceutical products and

avoid trade-restrictive or trade-distorting measures. On January 1, 1995, WTO’s

Pharmaceutical Tariff Elimination Agreement came into force which exhorted a “zero-for-zero

initiative” to eliminate duties reciprocally in a particular industrial sector. This agreement was

signed onto over subsequent years by the United States, Europe’s 28 member states, Japan,

Canada, Norway, Switzerland, Australia and others countries which currently covers more than

10,000 items that included formulated or dosed medicines, medicines traded in bulk, active

pharmaceutical ingredients (APIs) and other chemical intermediaries in finished

pharmaceuticals. Tariff elimination benefit was extended to imports from all WTO members,

not just parties to the agreement.111

In the current pandemic sitch, reduction of both tariff and non-tariff barriers is the top priority

to facilitate the smooth flow of medical goods. Especially, for countries that have poorly

resourced and fragile health care systems. Also, for the countries which are net importers of

Covid-19 critical products.112 The average Most-favoured-nation (MFN) applied tariff on

Covid-19 relevant medical products for WTO Members is around 4.8%. Furthermore, China’s

average MFN applied tariff is 4.5%, which is slightly below the global average. European

Union members apply the EU common external tariff with an average of 1.5%, and Switzerland

has an average applied tariff of 0.7%. The comparable applied tariff rate statistic for the US is

0.9%.113

However, large middle-income countries and few smaller developing countries like Nepal,

Pakistan, Sri Lanka have the highest rates of medicines tariffs in the world, at 14.6% and 11.1%

respectively.114 The average import tariff on Covid-19 goods in LDCs such as Bangladesh is

111 Andrea Durkin, Alice Calder, “Free trade in Medicines and Supplies is the Healthiest Approach”, Trade

Vistas, (19 March 2020), < https://tradevistas.org/free-trade-in-medicines-and-supplies-is-healthiest-approach/>

accessed 31.07.2020 112 Brendan Vickers, Salamat Ali, “Prioritising the Poor: LDCs and Trade in COVID-19-Related Medical

Supplies”, The Commonwealth, (2020)

<https://thecommonwealth.org/sites/default/files/inline/D17160_V6_TRD_TradeHotTopics_THT164_Covid_S

eries_V_Bates.pdf > accessed 31.07.2020 113 “Trade in medical goods” (n 93) 114 Nilanjan Banik, Philip Stevens, “Pharmaceutical Tariffs, Trade Flows and Emerging Economies”, Geneva

Network, (2020), <https://geneva-network.com/article/medicine-tariffs-make-sense/> accessed 31.07.2020

27

more than 10%.115 Also, India imposes one of the highest duties on the import of various

medical products including medicines, ventilators, oxygen masks and reagents.116

Examining south Asia’s tariff structure prior to the outbreak of the pandemic displays that

Bangladesh has the highest import tariff rate in comparison with other big four south Asian

countries in anti-epidemic goods such as disinfectant, sanitizer, hand drying tissues, liquid

soap. Pakistan has the highest tariff rate in goods related to the manufacturing of masks,

medicines and medical supplies. In medical equipment products such as a ventilator,

thermometer, pulse meter India applies highest import tariff rate. Moreover, the high import

share of the top three countries for all covid critical products necessitate market diversification.

Along with tariffs, non-tariff measures such as customs face myriad inspections and

certifications to confirm they satisfy various safety requirements, health standards and

technical regulations. Additionally, unnecessary trade-restrictive measures, in particular,

export bans and restrictions (as stated before) accumulate the burden of barriers impeding the

smooth flow of medical goods across borders. Albeit, many NTM appears to be legitimate for

health and safety reasons still complying with NTMs makes imports and exports a costly affair

especially during the time of crisis.117

Trade barriers inflate the prices of medical supplies as the production capacity wrestles to meet

demand, making the healthcare systems and economies of LDCs even more vulnerable. In

January 2020, a box of 100 masks could be bought for less than US$4, but at the end of

February, a single mask was being sold for $20. The same situation has been observed with

respirators, with the price of a box of 20 increasing from $17 to $70. According to many studies,

export curbs have inflated prices of almost 25 percent, on average.118 In response to the

pandemic, many countries have adopted measures to facilitate imports of medical products,

such as elimination of tariff duties, export prohibitions or restrictions, expedite the release of

such products upon arrival. Such policy initiatives will assist the world’s poorest countries to

mount an effective public health response to the pandemic (See Box 1.1 in Annexure).

115 Vickers, Ali (n 112) 116 Kritika Suneja, “India charges one of the highest duties on medicines, ventilators, oxygen masks, reagents:

WTO”, The Economic Times, (4 April 2020), <https://economictimes.indiatimes.com/news/politics-and-

nation/india-charges-one-of-the-highest-duties-on-medicines-ventilators-oxygen-masks-reagents-

wto/articleshow/74987909.cms> accessed 31.07.2020

117 Ana Fernandes, Hiau Looi Kee, Caglar Ozden, “Free trade now: A case for tariff reductions and non-tariff

measures simplications to fight COVID-19 (coronavirus)”, World Bank Blogs, (11 May 2020), <

https://blogs.worldbank.org/developmenttalk/free-trade-now-case-tariff-reductions-and-non-tariff-measures-

simplifications-fight> accessed 31.07.2020 118 Vickers, Ali (n 112)

28

Moreover, south Asia can seize the opportunity to enhance regional cooperation and reduce

unnecessary trade barriers with the region. As many researchers have anticipated the decline

of globalisation and the strengthening of regional supply chains. Also, the enhanced role of

geography in the supply chain, with the proximity of production centres weighing equally

against conventional elements such as facility, labour, and transportation time and cost.

Basically, the firms moving out of China can focus on south Asia as a possible option for the

reallocation of global supply chains making the region better integrated economically. In

particular, the small and medium enterprises in the region can benefit from strengthening

regional supply chains. The relatively younger population of the region and a rising middle-

class is well placed to supply the workforce for labour-intensive production and generate

demand for goods and services, respectively.119 In the meantime, the brownie points of

geographical proximity and presence of multilateral and bilateral free trade agreements (FTAs)

in south Asia should be translated into better economic integration.

PART III

SUGGESTIONS FOR POST-COVID ECONOMIC REVIVAL IN THE SOUTH

ASIAN REGION

Taking into account the socio-economic realities of the South Asian, considering the political

instability caused by the two key regional players, review of trade related measures taken by

countries in south Asian region and trade flow of covid-19 critical goods we propose the

following suggestions for economic revival of the region.

1. Strengthening SAARC: It is widely considered that compared to its counterparts like

BIMSTEC, ASEAN, etc, SAARC is a manifestation of both institutional and functional

failure.120 While, the institution was established with a noble objective, the existence of

permanent border tensions, political instability and big brother attitude of India121

towards its neighbours have completely overshadowed SAARC and rendered it

dysfunctional. But, with Covid-19 we have a silver-lining for its revival. Various experts

119 Riya Sinha, Niara Sareen, “South Asia must now build resilient supply chains | Analysis”, Hindustan Times,

(9 June 2020), < https://www.hindustantimes.com/analysis/south-asia-must-now-build-resilient-supply-

chains/story-u1Uv8SzbcVnfpbwhtYNVxK.html> accessed 31.07.2020 120 Jawad Falak, Implacable Failures of SAARC, 21 June 2017, Centre for Strategic and Contemporary

Research <https://cscr.pk/explore/themes/politics-governance/implacable-failures-of-the-saarc/> accessed

31.7.2020 121 Madhavi Bhasin, India’s Role in South Asia: Perceived Hegemony or Reluctant Leadership?, Global India

Foundation <https://www.globalindiafoundation.org/MadhaviBhasin.pdf> accessed 31.7.2020

29

were shocked and internet was flooded with articles when Indian Prime Minister Modi

turned towards SAARC instead of BIMSTEC to tackle the Covid-19 crisis. Many saw

it as a step towards revival of SAARC.122 It is truly surprising for PM Modi to turn to

SAARC given the fact that in recent past, India declined to attend the 19th SAARC

Summit which was scheduled to be held in Pakistan on the grounds of Pakistan’s

involvement in a terrorist attack on India. The last SAARC Summit was held in 2014 in

Kathmandu. Revival and resurrection of SAARC is vital for regional peace and stability.

Without peace, trade between countries cannot take place. It is suggested that the two

key players in the region India and Pakistan should de-hyphenate SAARC with their

bilateral issues.

2. Restructuring SAFTA: Just like SAARC, SAFTA too failed to achieve its desired

objectives. The problem lies in the fact that SAFTA’s scope is too narrow and does not

include provisions on non-tariff barriers to trade. Currently, the intra-regional trade in

South Asia stands at a mere 5 percent of the region’s global trade.123 Despite the

geographical proximity between countries, this makes the region one of the most

disconnected regions in the world. SAFTA also needs to address the logistical issues

pertaining to regional connectivity between the nations in terms of roads, railways and

sea routes. One of the basic provision missing in SAFTA is with respect to foreign direct

investments (FDI). With nearly all the countries in the region being labour intensive,

SAFTA as a whole should attract investments from within the region and across the

globe. The SAFTA should also have a proper provision with regard to investment

disputes.

3. Trade in Services: While with signing of SAFTA, the markets in the region opened

themselves to intra-regional imports and exports of goods, but trade in services were

completely absent in the treaty. To address this situation, SAARC Agreement on Trade

in Services (SATIS) was signed between the parties in 2010. SATIS is based on

"positive list" approach where countries from the region list their offerings with low to

zero tariffs in case of services. Despite the conclusion of treaty in 2010, the countries

have yet not been able to negotiate their positive lists because of unpreparedness of

122 Vivek Mishra, SAARC’s Resurrection: Leadership in times of Covid-19, Indian Council of World Affairs, (1

April 2020) <https://www.icwa.in/show_content.php?lang=1&level=3&ls_id=4651&lid=3503> accessed

31.7.2020 123 Paran Balakrishnan, ‘Galvanize Trade Within South Asia’ The Hindu BusinessLine (New Delhi, 2 October

2018) <https://www.thehindubusinessline.com/opinion/galvanise-trade-within-south-

asia/article25104870.ece#:~:text=Intra%2Dregional%20trade%20in%20South%20Asia%20is%20negligible%2

0%E2%80%94%20a%20mere,in%20behind%20Sub%2DSaharan%20Africa.> accessed 31.7.2020

30

Pakistan. Services constitute a major portion of GDP of these countries and hence should

be given equal priority as trade in goods. The avenues available for trans-border trade

in services in the region transport, travel, construction, communication, financial and

insurance. Taking into consideration the LDC status of Afghanistan and Bhutan, the

other parties have left it to their comfort to include services in their "offer list". But for

rest, the SATIS, incorporates WTO plus commitments. Many scholars are of the view

that once trade in services is liberalized in the region, the problems pertaining to SAFTA

will be automatically removed as goods and services flow are highly inter-related.124 In

post Covid-19 era, countries should come together and finalize their negotiations on

liberalization of services in the region.

4. Sustainable Development Goal 3: Linkage between Trade and Good Health and

Well-being: Increased cross-border flows in goods, services, people and capital has an

effect on health through spread of infectious disease and making the healthcare

unaffordable. In this regard, liberalisation of trade and removal of non-tariff barriers

makes a best mix of measures to reduce protectionism in a pandemic situation. The case

of Singapore and New Zealand in reduction of existing trade restrictive measures on

essential goods, especially medical supplies, in the face of the COVID-19 crisis

illustrates a welcoming practice at the multilateral level. Additionally, an idea paper on

the extension of WTO Pharmaceutical Agreement highlighting the importance of cross-

border trade in health products which should be developed without tariffs and additional

customs bureaucracy. Therefore, all countries should join the WTO Pharmaceutical

Agreement and it should be extended to all the health products and services. It also

covers transparency obligations for relevant regulation as well as best practice

exchanges that should be included in the agreement in order to prevent discriminatory

trade barriers. Special attention given to Least Developed Countries to facilitate their

participation.125 South Asian countries especially India which have higher tariff rates on

medical products indirectly inflating the cost of the product should join the WTO

Pharmaceutical Zero-for-Zero Initiative and extend it to all pharmaceutical and medical

goods. At this time, restrictions on trade to protect public health should be kept at

minimum and authorities should entail electronical data exchange between companies

124 Saman Kelegama, 'SAARC Agreement on Trade in Services: Tardy Progress's The Daily Star (Dhaka, 8

March 2015) <www.thedailystar.net/saarc-agreement-on-trade-in-services-tardy-progress-51332> 125 “Idea Paper Extension WTO Pharmaceutical Agreement”, WTO

<https://www.wto.org/english/tratop_e/covid19_e/dihk_extension_e.pdf> accessed 31.07.2020

31

and customs for import and export clearance. The post-covid era should facilitate full

digitisation of custom procedures with the south Asian region in order to facilitate

trade.126

5. Sustainable Development Goal 17: To significantly increase the exports of

developing countries and the LDC share of global exports: Covid-19 has stalled

UN’s goals to increase the exports of developing countries and the LDC share of global

exports. As world merchandise trade is set to plummet by between 13 and 32%

in 2020 due to the COVID-19 pandemic. And the recovery in 2021 depends in trade is

expected, but dependent on the duration of the outbreak and the effectiveness of the

policy responses. Nearly all regions will suffer double-digit declines in trade volumes

in 2020.127Most LDCs have experienced a significant decline in export earnings since

the outbreak and exports of textiles and clothing have been badly affected by declining

global demand and supply chain disruptions. In the post-covid era, south Asia has an

opportunity to increase intra-regional trade by ameliorating efforts on the geo-political

front and reviving the trust factor which are the major stumbling blocks in the integration

efforts. Moreover, boosting trade connectivity unlocks the regions potential for

prosperity. An example of evidence-based approach in Sri Lanka and India started by

Asia Foundation in collaboration with Social and Economic Change on cross-border

trade barriers. The field study stated that inefficiencies and a lack of redressal

mechanisms were restricting Indian exporters from engaging in Sri Lankan markets. The

evidence and insights gathered from traders and government officials, policy-oriented

networking filled a gap in knowledge on both sides of the border. The trade ministries

should work in collaboration with research organisations in south Asian regions to

identify barriers hindering trade and draft suitable policy injections to facilitate intra-

regional trade.128

126 “Corona – Trade Policy Challenges”,

WTO<https://www.wto.org/english/tratop_e/covid19_e/dihk_statement_e.pdf> accessed 31.07.2020 127 “Press release”, WTO <https://www.wto.org/english/news_e/pres20_e/pr855_e.htm> accessed 31.07.2020 128 “Intra-Regional Trade in South Asia”, The Asia Foundation

<https://asiafoundation.org/resources/pdfs/IndiaRegionalTrade.pdf> accessed 31.07.2020

32

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40

ANNEXURES

Table 2.1: Trade-Related Restrictive Measures

Enacting

Country

Type of Measure Affected Products Measure

Belgium Export restriction medical supply

products

23 March 2020: Restriction on the sale

of medical products and personal

protective equipment.

China Conformity

assessments

medical supply

products

New certification and inspection

requirements on certain medical

supplies products such as surgical face

masks, testing kits and thermometers.

Licensing or permit

requirements to

export

test kits, medical

supplies

April 26: The export prohibition was

downgraded to export restriction upon

authorization. April 1: China bans

export of test kits, medical supplies by

firms not licensed to sell them at home.

European Union Licensing or permit

requirements to

export

personal protective

equipment, medical

supply

May 26: Requirement for export

authorisation for personal protective

equipment comes to its end. April 24:

Commission adjusts export

authorisation scheme for personal

protective equipment to suit current

needs. Measure remains in place for 30

additional days. March 15: The

Commission has taken immediate steps

to protect the availability of supplies of

personal protective equipment (PPE),

by requiring that exports of such

equipment outside of the European

Union are subject to an export

authorisation by Member States.

Netherlands Export prohibition personal protective

equipment

Temporary export ban of personal

protective equipment to third countries.

Switzerland &

Liechtenstein

Licensing or permit

requirements to

export

personal protective

equipment, masks

Medical protection products need

export authorisation when exported

outside EEA.

United Kingdom Export prohibition medicines, drugs Exports of more than 80 vital drugs

have been banned by ministers to

prevent NHS shortages of medicines

needed to treat coronavirus.

Licensing or permit

requirements to

export

protective spectacles,

gloves and garments,

face shields, mouth-

nose protection

equipment,

Temporarily a licence is needed to

export PPE outside the EU, EFTA

member states and certain other

territories.

United States of

America

Licensing or permit

requirements to

export

respirators, surgical

masks and surgical

gloves

Administration issued executive order

directing federal emergency

management and health officials to use

the law’s authority to preserve

respirators, surgical masks and surgical

gloves for domestic use.

Export prohibition personal protective

equipment

Temporary rule banning exports of five

types of personal protective equipment

(PPE) from the United States without

explicit approval by FEMA

41

Box 1.1: International Policy Initiatives needed to address the pandemic

On 26 March, 2020, The G20 countries committed themselves to using measures that would be

“targeted, proportionate, transparent, and temporary”. The leaders emphasized “the importance of

transparency in the current environment and [committed] to notify the WTO of any trade related

measures taken”. The trade ministers further agreed to assure “that emergency measures do not create

unnecessary barriers to trade or disruption to global supply chains and are consistent with WTO

rules.”

On 21 March, New Zealand and Singapore committed to keeping supply chains open. Later, Canada,

Australia, Chile, Brunei and Myanmar joined with New Zealand and Singapore by committing to

keep supply chains open and remove any existing trade restrictive measures on essential goods,

especially medical supplies, in the face of the COVID-19 crisis.

Tariff Elimination and Implementation: Each Participant will eliminate all customs duties and all

other duties and charges of any kind (with respect to all products listed)

The Participants will not apply export prohibitions or restrictions.

Facilitation of Trade in Essential Goods: The Participants will expedite and facilitate the flow and

transit through their respective sea and airports. The participants will endeavour to expedite the

release of such products upon arrival [and gather information] to begin processing prior to the arrival

of products. The Participants will endeavour to allow free pratique to cargo ships – i.e., the permission

to enter a port, discharge or load cargo or stores (with respect to all products listed).

This Declaration will be open to participation by any Member of the WTO, or State or separate

customs territory in the process of acceding to the WTO.

On 16 April, European Trade Commissioner Phil Hogan suggested that EU Member State Trade

Ministers consider the EU negotiating an international agreement to permanently waive tariffs for

medical goods.

On 15 April, the G20 Finance Ministers issued a communique following a virtual meeting in which

they reiterated the statements of the G20 Trade Ministers. They stated their support for the

availability of essential medical supplies and pharmaceuticals. They implicitly recognized the

necessity - or at least the reality -- that trade restrictions would be imposed on Covid-19 needed

supplies.

Source: WTO

https://www.unescap.org/sites/default/files/Declaration%20on%20Trade%20in%20Essential%20Goo

ds%20for%20Combating%20the%20Covid-19%20Pandemic_3.pdf

42

Table 2.2: WORLD: SHARE OF TOP EXPORTERS OF COVID-19 CRITICAL PRODUCTS

Covid Test

Kits/Instruments &

apparatus used in

Daignostic Testing

Protective garments Disinfectants and

sterilisation products

Oxygen Therapy

equipment and pulse

oximeters

Total World

Exports

1708903

05.9

Total World

Exports

1341401

00.6

Total World

Exports

4078138

38.7

Total World

Exports

5651718

9.0

EU 21.43 China 23.83 EU 22.33 EU 17.66

Germany 16.74 Germany 10.19 Germany 12.21 US 15.72

Switzerland 14.76 EU 10.06 Switzerland 9.93 Netherlands 9.99

US 10.93 US 5.80 Belgium 5.57 Germany 9.19

Ireland 8.82 Italy 4.04 China 4.87 Ireland 7.65

Belgium 5.84 Malaysia 4.03 US 4.75 China 5.00

UK 3.40 France 3.36 Ireland 4.63 Japan 4.72

Netherlands 3.19 Netherlands 2.50 Netherlands 4.15 Singapore 3.58

Singapore 1.89 Poland 2.46 France 4.09 Belgium 3.29

France 1.79 Thailand 2.43 UK 3.98 Costa Rica 2.68

Other medical devices

and equipment

Other Medical

Consumables

Vehicles Others

Total World

Exports

1034572

37.5

Total World

Exports

3606194

42.6

Total World

Exports

8691332

68.9

Total World

Exports

1104346

15.5

EU 18.62 EU 16.52 Germany 17.96 China 15.97

US 15.80 US 12.83 EU 17.51 Germany 14.28

Germany 12.49 Germany 11.03 Japan 11.41 EU 13.35

China 6.22 China 9.54 US 5.80 US 9.52

Netherlands 5.80 Netherlands 6.72 UK 4.84 Italy 4.20

Japan 4.94 Belgium 3.99 Canada 4.63 France 3.00

Belgium 3.62 Ireland 3.40 Korea, Rep. 4.41 UK 2.82

Singapore 3.14 Japan 3.19 Spain 4.11 Japan 2.63

Switzerland 3.09 France 2.80 Belgium 3.94 Poland 2.56

France 2.37 Italy 2.60 France 2.95 Czech

Republic

2.38

Source: Author’s calculations from WITS database

Table 2.3: WORLD: SHARE OF TOP IMPORTERS OF COVID-19 CRITICAL PRODUCTS

Covid Test

Kits/Instruments &

apparatus used in

Diagnostic Testing

Protective garments Disinfectants and

sterilisation products

Oxygen Therapy

equipment and pulse

oximeters

Total

World

Imports

15294734

3

Total

World

Imports

14068229

5

Total

World

Imports

37740843

0.7

Total

World

Imports

54548464

.4

EU 15.2 US 17.9 US 18.3 US 21.7

US 12.9 EU 13.8 EU 10.6 EU 13.4

Germany 9.0 Germany 7.8 Germany 7.7 Netherland

s

8.3

China 6.6 Japan 4.7 Japan 4.5 Germany 6.7

Belgium 6.3 France 4.1 Belgium 4.3 Japan 5.5

Italy 5.2 China 3.4 China 4.2 China 5.2

Japan 4.6 UK 3.1 UK 4.1 France 3.1

43

UK 4.4 Netherland

s

2.5 Switzerlan

d

4.0 Belgium 3.1

France 4.2 Canada 2.4 Italy 3.6 UK 2.9

Switzerlan

d

3.3 Italy 2.2 France 3.5 Italy 2.4

Other medical devices

and equipment

Other Medical

Consumables

Vehicles Others

Total

World

Imports

10686447

3.3

Total

World

Imports

36353997

1.9

Total

World

Imports

79712365

2

Total

World

Imports

10612265

6

US 18.9 US 16.8 US 22.5 US 13.5

EU 13.2 EU 13.1 Germany 7.9 EU 11.2

China 8.6 Germany 7.4 EU 6.9 Germany 9.1

Germany 6.6 Netherland

s

5.6 China 6.2 China 5.4

Netherland

s

4.9 China 5.2 UK 5.6 France 3.8

Japan 3.7 Japan 4.5 Belgium 4.9 Japan 3.4

Belgium 3.5 France 3.7 France 4.8 UK 3.1

France 2.8 Belgium 3.7 Italy 4.1 Canada 3.0

UK 2.7 UK 3.1 Canada 3.8 Spain 2.4

Italy 2.3 Italy 2.5 Spain 2.8 Poland 2.4

Source: Author’s calculations from WITS database

Table 2.4: INDIA: SHARE OF TOP EXPORTS OF COVID-19 CRITICAL PRODUCTS

Covid Test

Kits/Instruments &

apparatus used in

Daignostic Testing

Protective garments Disinfectants and

sterilisation products

Oxygen Therapy

equipment and pulse

oximeters

World 175479.

64

World 1761927.

87

World 10987295.

79

World 416196.

02

UK 7.74 US 23.55 US 38.58 US 27.90

US 6.73 United Arab

Emirates

7.37 UK 4.15 Brazil 5.69

Canada 6.71 UK 6.34 South

Africa

4.07 China 5.50

Venezuela 3.84 Germany 4.46 Russian

Federation

3.18 Germany 4.98

Algeria 3.79 Spain 4.28 Nigeria 2.56 France 3.27

Brazil 3.51 Canada 3.34 Canada 1.88 Iran, Islamic

Rep.

3.15

Vietnam 3.43 Nigeria 3.01 Australia 1.87 Netherlands 3.05

Tunisia 3.16 France 2.51 Kenya 1.61 Turkey 2.64

Germany 2.68 Japan 2.06 Brazil 1.59 Italy 1.86

Nepal 2.56 Australia 2.00 Germany 1.56 Bangladesh 1.72

Other medical devices

and equipment

Other Medical

Consumables

Vehicles Others

World 434614.

74

World 3017435.

25

World 7215247.4

1

World 836704.

51

44

US 37.61 US 21.94 Mexico 18.86 US 24.04

Germany 7.64 UAE 5.41 US 16.10 Canada 5.67

China 3.95 Germany 4.60 South

Africa

9.02 UK 5.35

Nepal 2.49 UK 3.61 Saudi

Arabia

4.45 United Arab

Emirates

4.50

Singapore 2.42 China 3.21 Algeria 4.00 Bangladesh 3.63

Brazil 2.18 Brazil 3.18 Chile 3.62 Germany 3.38

Thailand 1.94 France 2.25 UK 3.00 Indonesia 3.20

United Arab

Emirates

1.76 Canada 2.06 United Arab

Emirates

2.59 Spain 2.35

Belgium 1.70 Nigeria 2.06 Nigeria 2.29 Vietnam 1.86

France 1.62 Netherlands 1.99 Italy 2.08 Thailand 1.84

Source: Author’s calculations from WITS database

Table 2.5: INDIA: SHARE OF TOP IMPORTS OF COVID-19 CRITICAL PRODUCTS

Covid Test

Kits/Instruments &

apparatus used in

Diagnostic Testing

Protective garments Disinfectants and

sterilisation products

Oxygen Therapy

equipment and pulse

oximeters

World 1202831.5

3

World 1602722.8

8

World 2197615.4

0

World 632355.02

US 28.99 China 27.51 China 17.07 US 19.77

Germany 12.32 US 9.83 US 15.65 China 15.37

Singapore 9.20 Germany 8.11 Germany 9.75 Netherland

s

10.54

Switzerland 7.28 Korea, Rep. 7.01 Switzerlan

d

8.11 Germany 9.88

France 5.56 Japan 5.45 UK 7.20 Singapore 5.69

China 5.38 Malaysia 5.14 Singapore 4.66 Japan 4.96

Japan 3.69 Hong

Kong,

China

4.27 Netherland

s

3.08 Ireland 3.97

UK 3.35 Singapore 3.59 Italy 3.07 France 3.46

Italy 3.06 France 3.03 Israel 2.93 Malaysia 3.32

Belgium 3.03 Thailand 2.96 Belgium 2.64 Belgium 2.10

Other medical devices

and equipment

Other Medical

Consumables

Vehicles Others

World 1787462.7

8

World 5038223.0

8

World 347999.79 World 1625383.4

6

US 22.85 China 18.85 Sweden 23.71 China 26.46

China 17.18 US 18.09 UK 19.82 US 12.83

Germany 14.82 Germany 11.80 Germany 19.58 Germany 11.97

Japan 7.39 Japan 7.21 China 13.36 Korea,

Rep.

8.94

Singapore 7.32 Singapore 5.41 Singapore 5.66 Japan 5.27

45

Hong

Kong,

China

3.50 Netherland

s

4.31 Italy 3.83 Hong

Kong,

China

3.92

Korea, Rep. 3.43 Korea, Rep. 3.95 Japan 3.63 Singapore 3.02

Netherland

s

3.00 Hong

Kong,

China

3.04 Thailand 2.81 Italy 2.76

France 2.42 France 2.57 US 2.66 UK 2.64

Switzerland 2.06 Belgium 2.44 Belgium 1.96 France 2.36

Source: Author’s calculations from WITS database

Table 2.6 PAKISTAN: SHARE OF TOP EXPORTS OF COVID-19 CRITICAL PRODUCTS

Covid Test Kits/Instruments

& apparatus used in

Daignostic Testing

Protective garments Disinfectants and

sterilisation products

Oxygen Therapy

equipment and pulse

oximeters

World 110.84 World 174253.5

4

World 500651.4

2

World 147.26

Afghanistan 87.55 US 30.69 China 25.60 Afghanista

n

28.61

Qatar 4.80 UK 10.17 Korea, Rep. 20.88 Haiti 26.86

Hong Kong,

China

4.25 Germany 9.62 Netherlands 7.41 Brazil 26.33

UK 0.99 Netherland

s

7.53 Philippines 4.90 Turkey 7.93

Madagascar 0.90 France 3.00 Afghanistan 4.49 Uganda 3.87

Guyana 0.88 Italy 2.79 Turkey 4.31 Singapore 2.76

Zimbabwe 0.59 Spain 2.57 Spain 4.30 Philippines 1.65

Djibouti 0.04 Sweden 2.12 Italy 3.74 UK 0.77

St. Lucia 0.01 Australia 2.02 Sri Lanka 3.10 UAE 0.73

Belgium 0.00 UAE 2.01 Other Asia,

nes

2.94 Saudi

Arabia

0.26

Other medical devices and

equipment

Other Medical

Consumables

Vehicles Others

World 372938.4

3

World 812634.5

7

World 604.56 World 63415.0

9

US 26.86 US 26.42 Japan 54.99 Afghanista

n

21.50

Germany 13.73 Germany 14.05 Iraq 10.32 Saudi

Arabia

20.25

UK 9.35 UK 9.53 Italy 7.54 UAE 12.89

China 5.80 China 5.36 UK 7.26 Kuwait 6.99

France 3.92 France 3.67 Afghanistan 5.48 Kenya 6.04

UAE 2.90 UAE 2.86 Germany 4.85 Banglades

h

4.04

Brazil 2.63 India 2.51 Sri Lanka 3.27 Jordan 3.00

India 2.47 Japan 2.49 Bangladesh 3.05 Qatar 2.39

Japan 2.37 Brazil 2.41 Belgium 1.38 Somalia 1.93

Australia 2.12 Australia 2.07 US 1.10 Oman 1.44

Source: Author’s calculations from WITS database

46

Table 2.7: PAKISTAN: SHARE OF TOP IMPORTS OF COVID-19 CRITICAL PRODUCTS

Covid Test

Kits/Instruments &

apparatus used in

Daignostic Testing

Protective garments Disinfectants and

sterilisation products

Oxygen Therapy

equipment and pulse

oximeters

World 159798.1

3

World 104846.2

0

World 570853.92 World 217295.6

6

Germany 26.21 China 46.02 China 19.43 China 17.62

US 21.32 Japan 10.12 Germany 15.71 US 16.37

China 13.62 Malaysia 9.22 Switzerland 14.27 Ireland 10.59

Japan 4.74 Thailand 4.44 Italy 7.94 Germany 9.00

Switzerlan

d

4.67 Germany 4.21 Swaziland 6.27 Singapore 5.56

UK 4.31 US 4.05 India 3.34 Japan 5.26

Ireland 2.73 Vietnam 2.87 Korea, Rep. 3.16 Switzerlan

d

4.06

Korea,

Rep.

2.51 Singapore 2.25 France 3.10 Netherland

s

3.19

France 2.43 UK 1.93 US 3.06 Malaysia 3.03

Singapore 2.37 India 1.45 UK 2.52 Mexico 2.43

Other medical devices

and equipment

Other Medical

Consumables

Vehicles Others

World 239485.5

9

World 762596.4

0

World 1331010.5

6

World 149019.2

0

US 17.75 China 27.83 Japan 52.92 China 52.68

China 17.36 US 12.20 Thailand 28.31 Germany 7.55

Germany 16.57 Germany 9.42 Indonesia 10.98 Japan 6.89

Japan 14.54 Japan 8.39 China 2.62 US 6.22

Switzerlan

d

5.16 Ireland 6.12 Germany 1.43 Thailand 3.06

UK 3.40 Singapore 3.63 Philippines 0.97 Italy 2.51

Netherland

s

2.59 Malaysia 3.41 US 0.55 Unspecifie

d

1.98

UAE 2.41 Switzerlan

d

2.48 Malaysia 0.44 UK 1.92

Italy 2.35 Mexico 2.24 Other Asia,

nes

0.37 Vietnam 1.91

France 2.27 Turkey 1.88 UK 0.36 UAE 1.79

Source: Author’s calculations from WITS database

Table 2.8: SRI LANKA: SHARE OF TOP EXPORTS OF COVID-19 CRITICAL PRODUCTS

Covid Test

Kits/Instruments &

apparatus used in

Daignostic Testing

Protective garments Disinfectants and

sterilisation products

Oxygen Therapy

equipment and pulse

oximeters

47

World 540.21 World 676662.00 World 6261.74 World 4873.04

Maldives 33.02 EU 40.40 Maldives 55.81 Switzerland 86.18

US 18.75 US 24.31 India 20.30 Maldives 5.00

Japan 16.70 Germany 15.75 China 3.39 US 4.52

Oman 7.75 Belgium 9.77 Poland 2.65 Singapore 2.88

Switzerland 7.51 Australia 4.57 EU 2.56 EU 0.49

Singapore 5.72 UK 4.27 Netherlands 2.53 Germany 0.37

EU 5.50 France 3.60 US 2.38 Pakistan 0.30

UK 2.42 India 2.76 UAE 2.36 Japan 0.28

Seychelles 2.16 Brazil 2.69 Brazil 1.32 India 0.28

Netherlands 1.55 Canada 2.37 UK 1.31 Thailand 0.11

Other medical devices

and equipment

Other Medical

Consumables

Vehicles Others

World 8635.51 World 56640.11 World 299.73 World 15124.58

Maldives 80.61 EU 27.58 India 59.18 EU 25.68

EU 5.08 Maldives 26.80 Maldives 32.25 India 22.91

Seychelles 4.59 US 12.89 EU 9.25 US 22.57

Germany 4.33 UK 11.75 Ghana 5.38 Maldives 9.42

Singapore 2.65 Germany 9.63 UK 2.56 Germany 8.26

India 2.01 India 9.07 Uganda 0.53 UK 6.67

US 1.53 Japan 4.33 Seychelles 0.09 Vietnam 3.20

Switzerland 1.38 Singapore 3.10 Finland 3.08

Japan 1.04 Australia 2.71 France 2.95

Oman 0.47 Seychelles 1.73 Japan 2.57

Source: Author’s calculations from WITS database

Table2.9: SRI LANKA: SHARE OF TOP IMPORTS OF COVID-19 CRITICAL PRODUCTS

Covid Test

Kits/Instruments &

apparatus used in

Daignostic Testing

Protective garments Disinfectants and

sterilisation products

Oxygen Therapy

equipment and pulse

oximeters

World 34400.

32

World 92195.4

2

World 268011.1

8

World 26777.

38

EU 38.43 China 27.12 India 52.71 EU 32.72

Singapore 12.46 India 19.70 EU 10.00 India 17.06

Germany 12.16 Hong Kong,

China

16.59 Switzerla

nd

9.28 Singapore 16.57

US 11.07 EU 8.78 China 7.73 China 10.57

France 10.37 Japan 5.45 Pakistan 5.79 Netherlands 10.18

China 8.31 Other Asia, nes 3.89 Singapor

e

2.45 Germany 9.66

India 7.62 US 3.47 UK 2.27 US 7.12

Switzerland 6.69 Thailand 3.23 France 2.03 Austria 5.24

48

Hong Kong,

China

5.34 Germany 2.78 Indonesi

a

1.89 Malaysia 3.42

Italy 4.15 Malaysia 2.66 Australia 1.77 Hong Kong,

China

3.08

Other medical devices and

equipment

Other Medical

Consumables

Vehicles Others

World 68400.

15

World 239699.

63

World 1201987.

25

World 80227.

35

EU 27.77 China 20.74 Japan 67.55 China 25.98

Singapore 19.73 EU 20.26 EU 18.56 India 16.63

China 16.25 India 15.40 UK 15.08 Hong Kong,

China

15.00

Germany 11.23 Singapore 12.68 Australia 4.72 EU 13.89

India 9.42 Hong Kong,

China

7.48 India 3.54 Thailand 8.72

US 8.38 Germany 7.33 Germany 1.91 Japan 5.82

UK 6.08 US 4.56 Thailand 1.74 Germany 4.91

Japan 5.55 UK 3.82 China 1.70 Italy 3.48

Korea, Rep. 3.68 Japan 3.77 Indonesi

a

0.89 Turkey 2.34

Hong Kong,

China

2.82 Malaysia 3.55 Austria 0.59 US 2.18

Source: Author’s calculations from WITS database

Table 2.10 BANGLADESH: SHARE OF TOP EXPORTS OF COVID-19 CRITICAL PRODUCTS

Covid Test

Kits/Instruments &

apparatus used in

Daignostic Testing

Protective garments Disinfectants and

sterilisation products

Oxygen Therapy

equipment and pulse

oximeters

World 92.87 World 880635.17 World 85446.55 World 548.28

Malaysia 54.02 EU 35.11 India 17.00 Lebanon 72.42

Estonia 27.42 Germany 33.21 EU 14.21 EU 10.08

EU 12.94 France 13.52 Japan 14.04 Greece 7.98

India 3.18 Canada 7.14 Cambodia 10.57 Canada 3.49

Maldives 2.08 Belgium 6.72 Costa Rica 6.73 Denmark 2.75

Germany 1.33 Japan 4.97 Canada 5.96 Italy 1.05

Ireland 0.54 Italy 4.93 Korea,

Rep.

3.96 Germany 0.99

Austria 3.47 Ecuador 2.97 Israel 0.92

China 2.05 Australia 2.96 France 0.83

Korea,

Rep.

1.93 Brazil 2.46 Belgium 0.59

Other medical devices

and equipment

Other Medical

Consumables

Vehicles Others

World 9498.15 World 56041.52 World 56.17 World 227492.42

Brazil 20.23 EU 18.11 EU 66.03 EU 54.43

EU 10.74 India 17.48 Korea,

Rep.

57.15 Canada 13.68

49

India 9.96 Brazil 12.28 Italy 21.04 Korea,

Rep.

9.14

Bulgaria 3.64 China 8.52 Germany 5.16

Belgium 3.43 Germany 7.51 Belgium 3.22

Colombia 2.40 Japan 6.87 Japan 3.13

Kazakhstan 1.36 Canada 6.23 Australia 2.52

Lebanon 0.58 Italy 4.77 France 2.17

Malaysia 0.53 Belgium 4.73 Denmark 2.16

Armenia 0.41 Bulgaria 2.91 Austria 2.12

Source: Author’s calculations from WITS database

Table 2.11 BANGLADESH: SHARE OF TOP IMPORTS OF COVID-19 CRITICAL PRODUCTS

Covid Test

Kits/Instruments &

apparatus used in

Daignostic Testing

Protective garments Disinfectants and

sterilisation products

Oxygen Therapy

equipment and pulse

oximeters

World 65191.56 World 192176.7

4

World 120684.8

0

World 47705.06

EU 40.18 China 45.76 China 34.67 EU 30.66

Germany 15.52 Hong Kong,

China

24.05 EU 22.68 China 18.90

Singapore 13.82 India 10.69 India 9.95 Netherlands 17.35

US 13.04 EU 5.70 Russian

Federation

9.82 India 15.03

Other Asia,

nes

7.26 Thailand 2.96 Germany 9.78 US 10.21

China 6.80 Malaysia 2.95 Singapore 5.17 Singapore 9.12

France 6.30 Germany 2.36 Switzerland 5.15 Malaysia 6.75

Switzerlan

d

6.02 Other Asia,

nes

2.03 Korea, Rep. 5.13 Germany 6.26

Netherland

s

4.73 Italy 1.76 Portugal 3.35 Korea, Rep. 3.06

India 4.63 Japan 1.24 United

Kingdom

2.38 Italy 2.53

Other medical devices

and equipment

Other Medical

Consumables

Vehicles Others

World 141563.6

8

World 471699.1

3

World 498401.4

6

World 299773.6

4

EU 32.82 China 30.35 Japan 55.81 China 33.64

Germany 16.52 EU 18.54 China 16.31 Thailand 20.90

China 12.58 Hong Kong,

China

12.27 India 16.09 Hong Kong,

China

13.52

US 11.99 India 10.91 EU 4.36 India 10.12

Singapore 11.61 Germany 7.83 Thailand 3.25 EU 10.00

Japan 9.00 Singapore 7.48 United

Kingdom

1.76 Turkey 3.91

Netherland

s

7.31 Netherlands 6.18 Germany 1.59 Italy 3.22

India 4.80 Japan 3.78 Korea, Rep. 1.26 Germany 2.84

Korea,

Rep.

4.52 United

States

3.33 Turkey 0.84 Korea, Rep. 1.95

50

UAE 4.51 Malaysia 3.09 Indonesia 0.71 UK 1.24

Source: Author’s calculations from WITS database

*Mirror data used for Bangladesh

Table 2.12: South Asia Trade Scenario in Medical Products

Product

India Pakistan

MFN

(Average) Imports

Top 3

(Share)

MFN

(Average) Imports

Top 3

(Share)

Anti-epidemic goods 9.44 23108515.82 0.66 14.70 3943110.30 0.70

Hygiene 9.17 6399053.13 0.58 20.00 186156.62 0.61

Non-Critical 9.50 15924337.07 0.70 10.73 3588775.94 0.70

Personal Protection

Equipment 10.00 785125.63 0.76 20.00 168177.73 0.92

Manufacturing of

Masks 9.26 24729573.42 0.70 16.18 2252348.77 0.81

Non-Critical 9.26 24729573.42 0.70 16.18 2252348.77 0.81

Medical Equipment 7.56 69112259.06 0.59 5.58 11105261.46 0.62

Case Management 7.47 53433137.03 0.55 5.67 9073583.96 0.58

Non-Critical 7.67 15679122.03 0.63 5.46 2031677.50 0.68

Medical Supplies 12.09 47470993.20 0.68 18.16 5262561.68 0.78

Diagnostics 10.00 9653908.13 0.59 20.00 2052100.63 0.64

Non-Critical 12.63 35363184.41 0.66 18.01 2814366.12 0.76

Personal Protection

Equipment 10.00 2453900.67 0.79 18.50 396094.94 0.86

Medicines 10.00 16212163.75 0.54 14.27 8369472.50 0.48

Non-Critical 10.00 16212163.75 0.54 14.27 8369472.50 0.48

Textile raw material

for masks and

coveralls 10.00 5248433.18 0.73 16.44 1678921.44 0.86

Non-Critical 10.00 5248433.18 0.73 16.44 1678921.44 0.86

Products

Bangladesh Sri Lanka

MFN

(Average) Imports

Top 3

(Share)

MFN

(Average) Imports

Top 3

(Share)

Anti-epidemic

goods 23.18 2600560.47 0.73 13.77 669287.15 0.76

Hygiene 25.00 203324.18 0.74 24.00 112357.74 0.74

Non-Critical 21.57 2032913.01 0.69 11.39 509977.15 0.78

Personal Protection

Equipment 25.00 364323.28 0.85 0.00 46952.26 0.70

Manufacturing of

Masks 14.77 2124116.80 0.89 10.77 1221177.89 0.72

Non-Critical 14.77 2124116.80 0.89 10.77 1221177.89 0.72

Medical Equipment 3.25 7517901.66 0.58 2.20 2794231.90 0.60

Case Management 2.58 6530623.09 0.55 3.75 2379468.59 0.57

Non-Critical 4.58 987278.57 0.62 0.00 414763.31 0.64

Medical Supplies 18.57 5512626.72 0.85 7.78 3055979.22 0.76

Diagnostics 5.00 519032.34 0.42 0.00 549059.73 0.54

Non-Critical 18.41 4249370.41 0.86 6.45 2138458.30 0.76

51

Personal Protection

Equipment 21.85 744223.97 0.94 15.33 368461.20 0.81

Medicines 8.75 800528.83 0.56 0.00 7088027.50 0.66

Non-Critical 8.75 800528.83 0.56 0.00 7088027.50 0.66

Textile raw material

for masks and

coveralls 22.14 849987.24 0.87 0.00 337655.38 0.82

Non-Critical 22.14 849987.24 0.87 0.00 337655.38 0.82

Source: World Bank