Deepening Cooperation on Medical Goods and Services Trade
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Lack of multilateral mechanisms to mobilize financing to develop vaccines and therapeutics and a joint procurement and distribution platform to provide essential medical products and vaccines to low- and middle-income countries (LMICs) that lack production capacity Absence of precrisis support for innovative international programs put in place following past global health threats to support vaccine development and production in LMICs
Gaps in trade rules
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Weaknesses in systems and procedures to facilitate the rapid cross-border movement of certified medical products Poor implementation of WTO provisions encouraging the use of international standards for products and production requirements Absence of mutual recognition arrangements between regulatory regimes for medical goods (including PPE) and for the qualifications of medical services providers Poor implementation of good regulatory practices, particularly in the area of medical services Lack or inadequate use of good practices for public procurement in times of global excess demand and limited mechanisms for international cooperation between public agencies procuring medical goods and services (for example, health care workers) through instruments such as joint purchasing across jurisdictions
Some of these gaps can be addressed within the framework of WTO agreements and RTAs. Others call for new forms of cooperation between states, nonstate actors, and the private sector, which is discussed in detail at the end of the chapter.
TRADE POLICY COOPERATION TO CONTRIBUTE TO GLOBAL HEALTH SECURITY Policies affecting medical goods trade Open trade in medical products would enable efficiency improvements in health care systems, thus increasing preparedness to address future pandemics. Restrictions of trade in medical goods reduce access, quality, and the choice and cost-effectiveness of medical goods. Similarly, trade restrictions on inputs needed to manufacture medical goods and on trade in services that support the functioning of medical value chains contribute to rising costs and reduced efficiency of health systems. As highlighted in chapter 2, open trade would lead to income gains equal to US$6.18 billion annually, in particular for LMICs.
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