an analysis of south asian trade measures during covid-19
TRANSCRIPT
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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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
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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
pulse o
xim
eters
Oth
er med
ical
dev
ices and
equip
men
t
Oth
er Med
ical
Con
sum
ables
Veh
icles
Oth
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
aigno
stic Testin
g
Pro
tective g
armen
ts
Disin
fectants an
d
sterilisation
pro
du
cts
Ox
yg
en T
herap
y
equip
men
t and
pulse
oxim
eters
Oth
er med
ical dev
ices
and eq
uip
men
t
Oth
er Med
ical
Co
nsu
mab
les
Veh
icles
Oth
ers
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
strum
ents
in D
aigno
stic
Testin
g
Pro
tective
garm
ents
Disin
fectants an
d
sterilisation
pro
ducts
Ox
ygen
Therap
y
equip
men
t and
pulse o
xim
eters
Oth
er med
ical
dev
ices and
equip
men
t
Oth
er Med
ical
Con
sum
ables
Veh
icles
Oth
ers
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