Coronavirus: IMF, World Bank urge countries to keep trade open

The International Monetary Fund (IMF) and the World Bank Group (WBG) have called on countries to keep the multilateral trade open even as the COVID-19 pandemic ravages the planet.

The IMF and World Bank's advocacy for free trade came as protectionist sentiments are growing across the globe amid the pandemic. Some 46 export curbs on medical supplies have been introduced by 54 governments since the beginning of the year, according to a report published on March 23, by Global Trade Alert, a trade policy monitoring initiative.

At a virtual press conference during the just-concluded spring meetings of the two multilateral institutions, they warned that export controls on medical supplies and other essentials could backfire.

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IMF Chief Economist Gita Gopinath said that this is not a time to restrict the trade of medical supplies and essential equipment around the world, Xinhua reported.

Kenneth Kang, deputy director of the Asia and Pacific Department at the IMF, told Xinhua in a recent written interview that countries should avoid trade restrictions on medical and health products to ensure that they go to where they are most needed.

"Countries with limited health care capacity and resources will need international aid to prepare for and weather the pandemic," Kang said, adding, "the health emergency is a powerful reminder of the need for policy coordination and solidarity in an interconnected world."

The IMF official said that countries should cooperate to reduce tariff and non-tariff barriers that impede cross-border trade and investment and to strengthen global supply chains as the recovery takes hold.

World Bank President David Malpass, meanwhile, said at a virtual press conference on Friday that big countries need to step forward and pledge not to use the crisis as a reason to close or block the markets.

Thirty-three of the above-mentioned export curbs have been announced since the beginning of March, "an indication of just how quickly new trade limits are spreading across the globe."