Export Restrictions: A Negative-Sum Policy Response to the COVID-19 Crisis

28 Pages Posted: 30 Jun 2020

See all articles by Bernard Hoekman

Bernard Hoekman

Robert Schuman Centre for Advanced Studies; European University Institute - Robert Schuman Centre for Advanced Studies (RSCAS); Centre for Economic Policy Research (CEPR)

Matteo Fiorini

European University Institute - Robert Schuman Centre for Advanced Studies (RSCAS)

Aydin Yildirim

European University Institute - Robert Schuman Centre for Advanced Studies (RSCAS)

Date Written: April 2020

Abstract

Many countries, including China, European member states, the European Union, India and the United States have put in place measures to restrict exports of medical products as part of their response to the COVID-19 pandemic. The objective is to allocate domestic supplies to national healthcare systems and citizens. These policies break supply chains that rely on sourcing of inputs from different countries, reduce access to critically needed supplies and foster excessive price spikes and volatility, and generate foreign policy tensions. Experience with widespread use of export restrictions by food exporting countries in times of market disruption and supply shortages suggests a priority for the G20 should be to work with industry to put in place systems to enhance access to information on production capacity, investments to boost supplies and address supply chain bottlenecks affecting production and trade in essential medical supplies.

Keywords: Coronavirus; COVID-19 pandemic; export restrictions; trade policy; G20

Suggested Citation

Hoekman, Bernard and Fiorini, Matteo and Yildirim, Aydin, Export Restrictions: A Negative-Sum Policy Response to the COVID-19 Crisis (April 2020). Robert Schuman Centre for Advanced Studies Research Paper No. RSCAS 2020/23, Available at SSRN: https://ssrn.com/abstract=3634552 or http://dx.doi.org/10.2139/ssrn.3634552

Bernard Hoekman (Contact Author)

Robert Schuman Centre for Advanced Studies ( email )

Fiesole, Tuscany
Italy

European University Institute - Robert Schuman Centre for Advanced Studies (RSCAS) ( email )

Villa La Fonte, via delle Fontanelle 18
50016 San Domenico di Fiesole
Florence, Florence 50014
Italy

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Matteo Fiorini

European University Institute - Robert Schuman Centre for Advanced Studies (RSCAS) ( email )

Villa La Fonte, via delle Fontanelle 18
50016 San Domenico di Fiesole
Florence, Florence 50014
Italy

Aydin Yildirim

European University Institute - Robert Schuman Centre for Advanced Studies (RSCAS) ( email )

Villa La Fonte, via delle Fontanelle 18
50016 San Domenico di Fiesole
Florence, Florence 50014
Italy

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