Will Apec nations agree to tariff-free Covid-19 essentials trade?

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Apec Nations' Agreement on Tariff-Free Covid-19 Essentials Trade Remains Uncertain

New Zealand aims to champion a proposal for tariff-free trade of Covid-19 essential goods among the 21 Apec member economies, but an agreement has not yet been secured. The proposal, which seeks to eliminate tariffs on medicines, medical equipment, and hygiene products, requires consensus within the coming weeks to be considered at the Apec trade ministers' meeting in May. While some nations previously committed to keeping supply chains open, concrete actions have been limited, with only New Zealand and Singapore having unilaterally removed tariffs on over 120 essential products.
New Zealand's Proposal for Trade Liberalisation

New Zealand intends to leverage its hosting of the Apec forum this year to advocate for a unified global strategy against the pandemic, specifically focusing on trade liberalisation. The core of the proposal involves making shipments of essential goods for combating Covid-19 tariff-free among Apec members. Furthermore, New Zealand seeks to facilitate the movement of these goods, including vaccines, across borders by easing existing restrictions at air and sea ports. This initiative is partly driven by concerns that smaller nations might be disadvantaged in accessing vital medical supplies.
Limited Progress on Previous Commitments

Despite commitments made by some Apec nations last year to maintain open supply chains for Covid-19 essentials and remove trade restrictions, there has been a notable lack of firm action. Only New Zealand and Singapore have taken the step of eliminating tariffs on more than 120 products identified as essential. This limited participation by other member economies raises questions about the potential for broader agreement on New Zealand's current proposal.
Challenges and Potential Impact of 'Vaccine Nationalism'

The push for tariff-free trade is underscored by concerns over "vaccine nationalism," a phenomenon that Prime Minister Jacinda Ardern has warned against. The risk of new virus mutations necessitates ensuring that all populations have access to vaccinations, thereby avoiding vulnerabilities. While tariffs on vaccines themselves may be low, significant charges on associated equipment like syringes, needles, and gloves could still impede inoculation efforts. The consensus-based nature of Apec has also presented historical challenges in reaching agreements, which could influence the outcome of this proposal.

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Will Apec nations agree to tariff-free Covid-19 essentials trade?

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