The United Nations Conference on Trade and Development (UNCTAD) has published a Valid identity document research entitled "COVID-19 Non-Tariff Measures: The Good and the Bad, Through a Sustainable Development Lens", which examines the links between non-tariff measures (NTMs) and the Sustainable Development Goals (SDGs). The report aims to guide policymakers in considering the implications of such measures for their economies and for others.
NTMs are “measures other than ordinary customs duties with a likely economic impact on international trade.” These provisions can alter the composition, cost, direction and volume of international trade. The text states that More than 140 countries implemented NTMs during the COVID-19 pandemic, primarily with the aim of safeguarding public health over economic concerns. NTMs can directly and indirectly affect sustainable development through their effect on trade, as well as have both positive and negative implications for sustainable development.
The paper examines NTMs implemented during the pandemic to better understand the implications of such measures on the SDGs. The authors analyse the types of NTMs adopted by countries, their objectives and their implications for the SDGs.Of all the NTMs in response to the pandemic, nearly 60% were put in place to ensure an adequate and affordable domestic supply of medical products and other essential items to combat the coronavirus. Other objectives of the imposition of NTMs included:
- eliminating the entry of potential disease carriers at national borders, for example by banning imports and exports of wildlife, live animals and plant-based foods;
- ensure product quality and safety;
- promote economic objectives, such as protecting domestic industries, managing domestic supply and demand, and providing financial relief to businesses in response to COVID-19.
Overall, NTMs impacted the following SDGs: SDG 1 (no poverty), SDG 2 (zero hunger), SDG 3 (good health and well-being), SDG 8 (decent work and economic growth), SDG 10 (reduced inequalities), SDG 15 (life on land) and SDG 17 (partnerships for the Goals). For example, MNAs that focused on drug certification requirements They had a positive effect on a country’s health and well-being by ensuring safe and quality medicines (SDG 3), but they also restricted quick access to medicines, which had a negative outcome on health and well-being. For other countries, this NTM increased trade and compliance costs for exporters, negatively affecting their export earnings and economic growth (SDG 8).
Another example are MNAs prohibiting the importation of wild animals for the protection of public health. This NTM achieved a positive impact for the country imposing the measure by preventing risks to health and well-being (SDG 3), as well as for other countries by discouraging hunting, including poaching, and trafficking of wild animals, contributing to the conservation of biodiversity (SDG 15). The paper provides a similar analysis of other links between NTMs and the SDGs.
Policy suggestions
To minimize potential adverse consequences on trade and sustainability, the document recommends Policymakers are urged to first consider whether an NTM is needed or whether alternatives exist, and then to design high-quality NTMs where they are needed and implement them strategically with full transparency to inform other countries and the private sector of the measure. The paper further suggests, among other things:
- increased regulatory cooperation to accelerate trade in essential goods and meet high demand;
- Lift emergency measures after the pandemic, especially those that had a negative impact on the SDGs, so that they do not become market distortions;
- retain temporary measures if they delivered more benefits for the SDGs in the long term, such as wildlife trade bans that have more positive than negative impacts, or tariff reductions for medical supplies;
- revitalize the private sector;
- building a resilient economy.
Finally, the report also provides detailed recommendations for the implementation of NTMs to equip the international trading system for the long term, build a more transparent regime y ensure compliance with the rules.
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