G-20: We will try to keep the supply chains open

G20 trade ministers have vowed to try to keep supply chains open while the world struggles to curb the coronavirus pandemic and tries to curb economic issues. Ministers also pledged to “guard against unjustified price increases”. This came during a conference call Monday on the commercial and investment implications of the health crisis.

“We will continue to work together to ensure a free, fair, non-discriminatory, transparent, predictable and stable trading and investment environment, and to keep markets open”, says the ministers in a joint statement sent by Saudi Arabia, which currently holds the G20 rotating presidency. “We will look at ways to keep the air, water and land logistics networks open”, adds the statement.

The pandemic has revealed a gap between the traditional promise of countries to maintain free trade and action to meet the short-term needs of their populations, which is facing blockades aimed at stopping the spread of the coronavirus, which has killed more than 35,000 victims worldwide.

For example, Russia last week proposed restricting grain supplies to other countries. On Monday, the European Union criticized such steps and warned against restrictions on food exports.

“There is currently no shortage of global supply and such measures are completely unjustified”, said the EU Trade Commissioner, Phil Hogan.

For its part, the European Union itself has been criticized for the decision, mid-March, to provisionally seek authorization to sell Covid-19 personal protective equipment outside the 27-nation bloc.

In a joint statement, the G20’s trade ministers offered the opportunity for such steps, stating that they may be compatible with World Trade Organization (WTO) rules.

“We agree that emergency measures designed to deal with Covid-19, if necessary, should be targeted, proportionate, transparent and temporary and not create unnecessary barriers to trade or disruption of global supply chains, and in accordance with WTO rules”, says the statement of the ministers.