Geneva: In the first half of 2021, trade in medical goods maintained solid growth, comprising 6.1 per cent of total world trade compared to 5.4 per cent for the second half of 2019, just before the pandemic outbreak.
An update of the information note on trade in medical goods in the context of tackling COVID-19, released by the World Trade Organization today, showed that trade in medical goods grew by 12.4 per cent in the first half of 2021 compared with the same period in 2020.
This increase was slower than the year-on-year growth for the second half of 2020, at 17.1 per cent, but it is an increase of 31 per cent compared to the first half of 2019. It is also a continuation of the strong growth (16 per cent) recorded in 2020.
Key points:
- The total imports and exports of medical goods were valued at US$ 1,286 billion in the first half of 2021. This represents a growth of 12.4 per cent compared to the same period of 2020.
- In the first half of 2021, the medical goods sector comprised 6.1 per cent of total world trade, compared to 5.4 per cent for the second half of 2019, just before the COVID pandemic.
- As vaccination numbers increased, the highest year-on-year growth was for medical supplies, including items critical for administering vaccines (i.e. rubber gloves, syringes and needles), which grew by 34.8 per cent.
- The supply of these items, especially rubber gloves, is geographically concentrated, and any potential for disruption should be identified and planned for. Four of the top five suppliers were countries in Asia and accounted for 86 per cent of the export market for gloves, with Malaysia’s share at 54 per cent.
- Trade of testing materials and diagnostic reagents remains high, which grew by 54.5 per cent in the first half of 2021 compared to the same period of 2020.
- The trade of COVID-19 critical products slightly slowed down in the first half of 2021, valued 4 per cent less than that of the second half of 2020, but it was still 29 per cent more than the value before the pandemic (the second half of 2019).
- The export of face masks was 24.7 per cent less than the first half of 2020, mainly because of price decline.
- Bilateral trade of COVID-19 critical products for the top three traders of such goods (China, Germany, United States) slowed down compared to previous semesters.
- Average applied most-favoured-nation (MFN) tariffs for rubber gloves by WTO members was 8.2 per cent, but syringes and needles had lower tariffs, at under than 4 per cent. Lowering or eliminating these tariffs will reduce import costs and facilitate vaccine administration.
The update features a case study on the critical products needed for administering COVID-19 vaccines. This highlights that as vaccination numbers increased, the highest year-on-year growth (34.8 per cent) was for medical supplies, including items critical for administering vaccines (rubber gloves, syringes and needles).
Trade in testing materials and diagnostic reagents also remained high, growing by 54.5 per cent in the first half of 2021 compared to the same period of 2020.
The first information note on “Trade in medical goods in the context of tackling COVID-19” was issued on 3 April 2020, with previous updates issued on December 20, 2020 and June 30, 2021.
– global bihari bureau
