Trade Therapy

Trade Flows in Medical Goods and Services

of producing countries. The manufacture of COVID-19 vaccines requires active substances such as mRNA, inactive ingredients, consumables, packaging, and equipment. According to data from China Customs, Eurostat, and the U.S. Census Bureau, trade in such inputs increased by 15 percent relative to prepandemic levels as early as July 2020, with the gap since then varying from 20 percent to more than 60 percent. As of December 2021, the three economies’ combined exports of inputs were 38 percent higher than in December 2019, and imports of inputs were 66 percent higher. Figure 1.17

Exports of PPE soared early in the COVID-19 pandemic

Oct-21 Sep-21 Aug-21 Jul-21 Jun-21 May-21 Apr-21 Mar-21 Feb-21 Jan-21 Dec-20 Nov-20 Oct-20 Sep-20 Aug-20 Jul-20 Jun-20 May-20 Apr-20 Mar-20 Feb-20 Jan-20 Dec-19 Nov-19 Oct-19 Sep-19 Aug-19 Jul-19 Jun-19 May-19 Apr-19 Mar-19 Feb-19 −100

April 2020: WHO reports 1 million cases January 2020: WHO declares COVID-19 a PHEIC

0

100

200

300

400

Monthly growth of exports (%) Face masks

Rubber gloves

Disinfectant

Source: Trade Data Monitor (http://tradedatamonitor.com). Note: PHEIC = public health emergency of international concern; WHO = World Health Organization.

500

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Trade Therapy

Published on Aug 11, 2022Medicine

World Bank Publications

"The COVID-19 (coronavirus) pandemic has exposed the upsides and downsides of international trade in medical goods and services. Open trade can increase access to medical services and goods—and the critical inputs needed to manufacture them—improve quality and variety, and reduce costs. However, excessive concentration of production, restrictive trade policies, supply chain disruptions, and regulatory divergence can jeopardize the ability of public health systems to respond to pandemics and other health crises. Trade Therapy: Deepening Cooperation to Strengthen Pandemic Defenses, coordinated by Nadia Rocha and Michele Ruta at the World Bank and Marc Bacchetta and Joscelyn Magdeleine at the World Trade Organization, provides new data on trade in medical goods and services and medical value chains, surveys the evolving policy landscape before and during the pandemic, and proposes an action plan to improve trade policies and deepen international cooperation to deal with future pandemics. As the COVID-19 pandemi

Trade Therapy

Articles inside

response for future pandemics

Notes

References

3.2 Low levels of GATS commitments in medical services trade

commitments than in GATS

Cooperation beyond trade agreements for global health security

3.3 Potential commitments to bolster governance of trade policy in global crises

Trade policy cooperation to contribute to global health security

3.5 Traceability and illicit trade in medical products in Africa

B3.4.2 Types of health technology transfer programs reported by WTO developed country members under TRIPS Agreement, art. 66.2, 2018–20

3.2 Pricing policies for medical goods in the context of international trade

3.1 RTA cooperation during the COVID-19 pandemic

References

Policies affecting medical goods and services trade during the COVID-19 pandemic

the onset of the COVID-19 pandemic (excluding China), January 2020 to March 2022

Notes

2.11 NRA decisions on WHO-EUL COVID-19 vaccines, December 2020 to February 2022

2.7 Government support measures for the medical goods sector predated the pandemic

2.4 Trade in medical services faces many trade barriers

References

2.2 WTO-notified quantitative restrictions, by type and member income group, 2018–19

2.3 Progress on implementation commitments under the WTO Trade Facilitation Agreement

1.22 The vaccine value chains

2.2 Development of export-oriented medical services in selected countries

1.17 Exports of PPE soared early in the COVID-19 pandemic

Notes

1.11 Trade in medical services hit US$78.6 billion in 2019

1.3 Recent FDI trends in medical goods and services

Personnel—and the blurred boundaries between trade in medical services and migration of health workers

1.6 MNCs’ contribution to global value added and exports varies by industry

Patterns in medical goods and services trade before the pandemic

B1.1.1 Private health insurance schemes as a share of total health expenditure in selected countries, 2019

1.1 Access to health care: The role of (trade in) health insurance services

Drivers of trade in medical goods and services

of medical goods and services, leading to concentration

Notes

1 Trade and trade-related policy actions to improve prevention, preparedness, and

Deepening cooperation on medical goods and services trade

Stronger trade systems for better global health security

References

Organization of the report

Reference

The medical goods and services trade: Relevance, characteristics, and welfare implications