World Trade Organization Says Some Tariffs on Protective Goods for COVID-19 Are High
Trade in products that are in severe shortage during the coronavirus COVID-19 pandemic accounted for 1.7% of world trade in 2019, according to a new report from the World Trade Organization. Although many of the medical products that are traded face no tariffs in many countries -- medicines rarely face a tariff, and they account for more than half the traded value -- there are goods that still face high tariffs. The WTO said the average applied tariff for hand soap is 17% and the average tariff on protective gear such as gowns, gloves and masks is 11.5%.
Sign up for a free preview to unlock the rest of this article
Timely, relevant coverage of court proceedings and agency rulings involving tariffs, classification, valuation, origin and antidumping and countervailing duties. Each day, Trade Law Daily subscribers receive a daily headline email, in-depth PDF edition and access to all relevant documents via our trade law source document library and website.
During the last three years, the United States was the largest importer of medical products, accounting for 19% of total world imports in 2019, and 8% of its total imports. Ireland was the top provider, with 17%; Germany was at 12%; Switzerland at 9%; China at 8%; and Mexico at 6%. Switzerland is home to the world's largest ventilator manufacturer.
At the same time, the U.S. is a major medical exporter, with a 12% share of all medical exports. Only Germany sold a larger share. The U.S. exported 35% the world's traded medicines, a quarter of medical equipment, 29% of medical supplies and 12% of the lower-value personal protective gear. China exported 49% of all traded personal protective gear, including 25% of the face masks. The U.S. exported 10.2% of the world's face masks.