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��International Trade and Health Conference 2021�Future International Trade and Health: Post COVID-19 Pandemic�26 November 2021����Global Cooperation:�WTO Initiatives and Activities��Roger Kampf, WTO Secretariat

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Impact of COVID-19 Pandemic on Global Trade / Economy

  • Volume of global merchandise trade expected to increase by 10.8% in 2021, and 4.7% in 2022, after having fallen 5.3% in 2020 (WTO Trade Statistics, 4 October 2021)
  • Expansion of world trade would stay below pre-pandemic trend
  • Regional disparities: variations of merchandise trade volume growth, comparing Q1-2019 to Q4-2022

  • COVID-19: greatest threat to trade outlook, new infection waves may undermine recovery

Region

Exports

Imports

North America

8.0%

11.9%

South America

4.8%

10.8%

Europe

7.8%

9.4%

CIS

6.2%

5.7%

Africa

1.9%

8.2%

Middle East

2.9%

5.4%

Asia

18.8%

14.2%

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Diverse recoveries in trade volumes across regions, reflecting divergent economic recovery

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Trade in Medical Goods (Imports & Exports)

  • Note:
    • Increasing share of medical goods in trade: from 5.4% (2019) to 6.6% (2020) and 6.1% (first half 2021)
    • Critical goods for fighting the pandemic, such as face masks, ventilators, sterilizers and ultrasonic scanners: 31% growth in trade (2020), 34.8% (first half 2021)
    • Top 10 exporting economies supplied about 75% of world trade of COVID-19-critical products
    • Top 10 importers accounted for 62% of world imports
  • See WTO Secretariat information note of 30 June 2021

2020 (compared to 2019)

First half 2021

US$ 2,343 billion

US$ 1,286 billion

16% growth

Note: total value of world merchandise trade contracted by 7.6% in same period

12.4% growth

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Medical goods and agricultural products performed�relatively well in 2020

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How to Revitalize Global Trade / Economic Recovery

  • WTO Director-General Okonjo-Iweala, 31 March 2021

«Keeping international markets open will be essential for economies to recover from the crisis and a rapid, global and equitable vaccine roll-out is a prerequisite for the strong and sustained recovery we all need»

  • Joint WHO-WTO DG Statement, 20 April 2020

«Keeping trade in health technologies as open and predictable as possible is therefore of vital interest. This will help countries to respond to this crisis, to recover from it and to build the health systems that will foster greater resilience in the future. (…)

But any measure taken to promote public health that restricts trade should be “targeted, proportionate, transparent and temporary”, consistent with recent calls from world leaders.»

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Challenges Arising from COVID-19

  • Identifying and addressing supply chain bottlenecks
  • Identifying critical inputs for vaccine manufacturing
  • Strengthening/streamlining regulatory cooperation and coherence
  • Ensuring transparency:
    • Government measures
    • Production and delivery schedules
    • Donations
    • Contracts
  • Ramping up and diversifying (vaccine) manufacturing capacities
  • Enabling transfer of know-how and technology

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How to Address Those Challenges:�A High-Level Response (1)

  • G20 Health Ministers Declaration, 5-6 September 2021

«The rapid spread of SARS-CoV-2 in 2020 and the high proportion of cases requiring medical care led to an unparalleled surge in demand for certain medicines, medical devices and medical consumables. We recognize the urgent need to address vulnerabilities and to eliminate WTO-inconsistent barriers that jeopardize the effective operation of the supply chains for essential medical goods, which have been exposed by the pandemic, and we highlight the need to strengthen their resilience to respond to future emergencies. It is important to promote open, resilient, diversified, secure, efficient and reliable global supply chains across the whole value chain related to health, and that trade, procurement and public health policies are transparent in order to facilitate the smooth flow of these goods. By also acknowledging the importance of avoiding undue impediments to the supply of medical countermeasures, G20 members should promote international collaboration, including with the support of relevant IOs and other stakeholders, to identify and address vulnerabilities as well as enhance resilience and rapid scalability of the supply chain at a global level in a coordinated manner, and support expanding local and regional health goods manufacturing capacities

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How to Address Those Challenges:�A High-Level Response (2)

  • G20 Rome Leaders’ Declaration, 31 October 2021

We will reinforce global strategies to support research and development as well as to ensure their by expanding and diversifying global vaccine manufacturing capacity at local and regional level, while promoting vaccine acceptance, confidence and fighting disinformation. To this end, we commit to refrain from WTO inconsistent export restrictions and to increase transparency and predictability in the delivery of vaccines. We reiterate our support to all pillars of the ACT-Accelerator, including COVAX, and will continue to improve its effectiveness. We support the extension of ACT-A’s mandate throughout 2022 and acknowledge the formation of the Multilateral Leaders Task Force on COVID-19. We welcome the work undertaken by the COVAX ACT-A Facilitation Council Vaccine Manufacturing Working Group and its report aimed at creating a broader base for vaccine manufacturing. In particular, we will support increasing vaccine distribution, administration and local manufacturing capacity in LMICs, including through technology transfer hubs in various regions, such as the newly established mRNA Hubs in South Africa, Brazil and Argentina, and through joint production and processing arrangements. (…) we commit to substantially increase the provision of and access to vaccines, as well as to therapeutics and diagnostics. (…)

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How to Address Those Challenges:�A High-Level Response (3)

  • IMF-WBG-WHO-WTO press release, 16 September 2021:

The Task Force stressed that if the 40% coverage threshold is to be reached in all countries by end 2021, the following actions need to be taken immediately by governments and vaccine manufacturers: 

    • Release doses to low- and lower middle-income countries
    • Transparency on supply of vaccines
    • Eliminate export restrictions, prohibitions
    • Regulatory streamlining and harmonization
  • IMF-WBG-WHO-WTO press release, 30 October 2021, calls on G20 to:
    • Accelerate existing dose donations to COVAX, pledge new ones, and provide greater visibility on delivery schedules
    • Execute large swaps of near-term delivery schedules with AVAT, COVAX, and bilateral contracts well in advance of doses expiring
    • Eliminate export restrictions on vaccines and critical inputs
    • Agree on regular high-level political stock takes to build collective accountability to end the pandemic

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WTO Secretariat Contribution to Respond to COVID-19 Pandemic (1): Immediate Contributions

  • Transparency:
    • Trade Monitoring Report (June 2021):
      • Trade has been a force for good by enabling access to medical supplies
      • MLTS has kept trade flowing
      • Central role for WTO in ensuring that supply chains are kept open
    • Monitoring of measures taken by governments in the area of goods, services and IP
  • Analysis and policy support (most recent material):
  • See WTO COVID-19 webpage

for more information

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Contract Production

Production through technology transfer

Licensing and Technology Transfer:

a Dynamic Evolutioin

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Significance of Contracted Production

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WTO Secretariat Contribution to Respond to COVID-19 Pandemic (2): Engagement with IOs and Key Stakeholders

  • Putting in place regular dialogue with IOs, industry and other stakeholders
    • COVID-19 and Vaccine Equity: What Can the WTO Contribute? (14 April 2021)
    • COVID-19 Vaccine Supply Chain and Regulatory Transparency (29 June 2021)
    • WHO-WTO High-Level Dialogue on Expanding COVID-19 Vaccine Manufacture to Promote Equitable Access (21 July 2021)
    • Multilateral Leaders Task Force (IMF, WBG, WHO, WTO)
      • Private high-level consultations with vaccine manufacturer CEOs (3 September and 9 November)
      • Vaccine Network at technical level
  • Selected other global initiatives with WTO Secretariat involvement:
    • ACT-A Vaccine Manufacturing Working Group
      • Workplan includes trade-related advocacy
    • COVAX workstreams and leadership team
      • WS 1 focuses on free flow of goods
    • Report to G20 and G7
  • World Trade Report 2021
    • «International cooperation on trade policies can help cope with shocks»

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Selected Collabortative Initiatives with WTO involvement

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WHO-WIPO-WTO Cooperation

  • Longstanding, close cooperation:
    • In place for more than a decade
    • Benefits from each organization’s expertise in support of an

integrated approach

  • Key products:
    • Trilateral study on Access to Medical Technologies and

Innovation, 2nd edition 2020, includng COVID-19 extract

    • Series of symposia
    • Joint capacity building activities
  • Joint DGs Statement (15 June 2021):
          • Update of COVID-19 information note
          • Launch of trilateral platform for technical assistance
          • Launch of series of technical workshops to build Members’ capacity:

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WHO: Pandemic Preparedness�and Response

  • WHA special session, 29 November to 1 December
    • Decide whether or not to launch negotiations on

an international instrument or other tool

  • Working Group on Pandemic Preparedness and Response
    • Unanimous adoption of report to WHASS, 15 November
  • Recommendations for WHASS to
    • Establish intergovernmental negotiating body in charge of developing a WHO convention, agreement or other international instrument on pandemic preparedness and response
    • Outline a clear, efficient, effective, Member State led, transparent and inclusive process for how to identify and develop the substantive elements and a zero draft of a new instrument, the modalities of negotiation of the instrument, and on what timelines
  • Coverage of trade-related elements
    • (…) addressing barriers to timely access to and distribution of medical countermeasures, as well as related issues such as research and development, intellectual property, technology transfer and empowering/scaling up local and regional manufacturing capacity during emergencies to discover, develop and deliver effective medical countermeasures

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Work on Trade and Health at the WTO

Ministerial Conference / General Council

GC Facilitator Consultations

  • Based on Compilation of elements for WTO Response to COVID-19 and Better Preparedness for Future Pandemics
  • Draft political declaration and decision establishing a work plan for preparedness and resilience
  • Elements so far: export restrictions, trade-facilitating measures, regulatory cooperation and coherence, tariffs, services, transparency, collaboration, pandemic preparedness

TRIPS Council

  • Waiver proposal (IP/C/W/669/Rev.1 and addenda)
  • Draft General Council Declaration on the TRIPS Agreement and Public Health in Circumstances of a Pandemic (IP/C/681)

Reports

Reports

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Pulling the relevant policy dimensions together: Intersections between health, IP and trade

Source: WHO-WIPO-WTO Study on Access to Medical Technologies and Innovation, 2nd edition, 2020

To be effectively dealt with at different levels

To involve a wide range of actors