Deepening Cooperation on Medical Goods and Services Trade
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gone further by including protocols on the acceptance of good manufacturing practice (GMP) for pharmaceutical products and the acceptance of GMP certificates issued by authorities they recognize as equivalent. These RTAs also include provisions for discussion on standards, regulations, and conformity assessment procedures through committees or subcommittees. These institutional mechanisms—and more generally the regular interaction between member-state governments—can facilitate joint action to respond to shared emergencies (box 3.1).
Box 3.1
RTA cooperation during the COVID-19 pandemic
Several regional trade agreements (RTAs) took concerted action to facilitate trade during the COVID-19 pandemic. They reduced tariffs and certain impediments to trade associated with nontariff measures such as the World Trade Organization’s (WTO’s) Sanitary and Phytosanitary (SPS)a and Technical Barriers to Trade (TBT) Agreement provisions; maintained open trade channels and simplified customs procedures; and offered longer-term financial and other support for businesses and small and medium enterprises. For example, in June 2020, the Eurasian Economic Union (EAEU) temporarily lifted tariffs on a range of medical products and personal protective equipment, and its move to simplify SPS and TBT requirements was joined by others such as the Pacific Alliance (Chile, Colombia, Mexico, and Peru) and the Southern Common Market (MERCOSUR). The Pacific Alliance in 2021 eliminated TBT requirements for medical devices and domestic cleaning products among the parties.b The European Union (EU) and MERCOSUR also tried to keep trade channels open by establishing “green lanes” or “green channels.”c EU members also agreed to follow a centralized procurement procedure for COVID-19 vaccines. EU members avoided an outright ban on exports of vaccines and agreed instead on an export authorization mechanism. The EAEU Council also lifted a ban on exports of products including hospital sheets, certain types of textiles, cotton wool, and adhesive bandages. Longer-term policies to facilitate trade and provide financial support have included the following:
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European Union: The EU enacted the €50.6 billion Recovery Assistance for Cohesion and the Territories of Europe (REACT-EU) programd to support the recovery from the pandemic and provided additional funding through the European Investment Fund. The EU, which already had a comprehensive recognition scheme for recognizing the qualifications for health professionals, issued new recommendations during the pandemic: “Guidance on Free Movement of Health Professionals and Minimum Harmonisation of Training Requirements in Relation to COVID-19 Emergency Measures” (EC 2020b). Pacific Alliance: The trade bloc issued a “Plan of Action against COVID-19” in April 2020 that includes exchange of information; trade facilitation; support for market access and the tourism sector; and a focus on digital transformation, including for education (PA 2020). The plan was funded through the group’s Cooperation Fund. ASEAN: In November 2020, members of the Association of Southeast Asian Nations (ASEAN) signed a “Memorandum of Understanding (MOU) on the Implementation of Non-Tariff Measures (Continued)
