WTO, IMF Ask Nations to Stop Imposing Export Restrictions

(Bloomberg) -- The World Trade Organization and International Monetary Fund asked nations to stop imposing or intensifying export and other trade restrictions and to lift those put in place because of the coronavirus pandemic.

“Export restrictions can be dangerously counterproductive,” the institutions said in a joint statement Friday. “Such measures disrupt supply chains, depress production, and misdirect scarce, critical products and workers away from where they are most needed.”

The bodies reiterated a call to remove barriers made earlier this month as protectionism amid shortages increases. Some have heeded the call: In order to prevent a food crisis, a group of nearly 50 governments signed a pledge aimed at ensuring supply chains remain orderly and that officials exercise restraint with any trade restrictions.

The WTO and IMF are also concerned by the decline in the supply of trade finance.

“Adequate trade finance is important to ensure that imports of food and essential medical equipment reach the economies where they are most needed,” they said. “Our institutions are tracking developments and engaging with key suppliers of trade finance.”

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