G20 trade ministers take steps to protect logistics network to support global supply chain

Trade and investment ministers of the world’s 20 largest industrialised nations are taking steps to mitigate the impact of the coronavirus pandemic on global logistics operations as they continue to monitor and assess its impact on international trade. “We will ensure smooth and continued operation of the logistics networks that serve as the backbone of global supply chains,” G20 ministers said in a joint statement late on Monday. “We will explore ways for logistics networks via air, sea and land freight to remain open, as well as ways to facilitate essential movement of health personnel and business people across borders, without undermining the efforts to prevent the spread of the virus.” The group of 20 largest economies in the world is “actively working” to ensure the continued flow of vital medical supplies and equipment, critical agricultural products, and other essential goods and services across borders to fight the pandemic, the ministerial statement said. The G20, the ministers said, is prioritising the accessibility of essential medical supplies to healthcare workers and pharmaceuticals to hospitals and patients at affordable prices and on an equitable basis where they are most needed. The bloc is encouraging increased production through “incentives and targeted investment and … will guard against profiteering and unjustified price increases”, the group said. The call for action by trade and investment ministers follows the G20 leaders' meeting on March 26 in which they presented a united front and committed to inject $5 trillion (Dh18.4tn) into the world economy to counter damage from the pandemic. King Salman of Saudi Arabia chaired the video conference, which assessed the steps that could be taken to tackle the effects of the outbreak. Saudi Arabia currently holds rotating presidency of the G20. In a note on Tuesday, IMF's managing director Kristalina Georgieva thanked Saudi Arabia for calling this extraordinary meeting. “We welcome the decisive actions many of you have taken to shield people and the economy from Covid-19, that led to a decline in volatility in major financial markets in recent days," Ms Georgieva said. “Our forecast of a recovery next year hinges on how we manage to contain the virus and reduce the level of uncertainty. Thus, we support an ambitious G20 action plan to strengthen the capacity of health systems to cope with the epidemic; to stabilise the world economy through timely, targeted and coordinated measures; and to pave the way towards recovery." The coronavirus pandemic is set to push the global economy into recession this year and the International Monetary Fund expects a recovery only next year. International trade has taken a hammering and travel and tourism have come to a grinding halt as countries in Europe, Asia and North America enforce strict lockdowns to stem the spread of the virus. Some 75 million jobs in the tourism sector alone are at risk, according to the latest estimate by the World Travel and Tourism Council. A halt in economic activity in major economies could also lead to widespread lay-offs. The US unemployment rate is expected to rise from 50-year low to anywhere between 10 and 40 per cent as the world’s largest economy remains shut to curtail the spread of the coronavirus, James Bullard, president of the St Louis Federal Reserve, said on Monday. Global foreign direct investment is also expected to fall by as much as by 30 to 40 per cent during 2020-21 due to restrictions on movement, the United Nations Conference on Trade and Development said in a report earlier this month. The UN on Monday called for an economic stimulus package of $2.5tn to ease the economic pain of developing countries. The novel coronavirus has so far infected more than 787,000 people and resulted in a death toll of more than 37,500 globally. More than 166,000 people have also recovered, according to Johns Hopkins University, which is tracking global coronavirus spread. “The pandemic is a global challenge and requires a coordinated global response,” trade and investment ministers said. “We are concerned about the impact of Covid-19 on vulnerable developing and least developed countries, and notably in Africa and small island states,” they said, adding the group will “ensure our collective response is supportive of micro, small and medium-sized enterprises, and recognise the importance of strengthening international investment”.

G20 trade ministers take steps to protect logistics network to support global supply chain

The ministers said they are working to ensure the continued flow of vital supplies around the world