Question

Challenge: Single-country sourcing

The purpose of this assignment is to understand current challenges to international trade in the context of COVID_19 pandemic and to identify the practices to reduce or eliminate the challenges. You are required to demonstrate in-depth understanding and analysis of the given topic by including challenge background, how this challenge will affect the Australian trade with other countries, and recommendations to reduce or eliminate the challenge.

Question: Recommendations to solve the challenge (500-550 words)

Answer 1

Current challenge to International trade in context of Covid - 19 pandemic : Covid 19 is a humanitarian crisis on a global scale.The virus continues to spread throughout the globe, placing health systems under unprecedented street in the battle to save lives.The human scale of this tradegy is set to lower income countries with weaker healthcare systems. A further challenge is the uncertainty about COVID-19, including in terms of the scale and pace of infection; how long and widespread shutdown measures will prove necessary; how long and widespread shutdown measures will prove necessary; the prospects for treatments to better manage symptoms, allowing health services to focus only on the most serious cases; and the risk of "second wave" infections as the virus moves around the globe.This virus is proceeding in waves, with countries succumbing -and set to recover- at different times.What is clear is that the virus and its aftermath looks likely to be with us for some time.

Against this background, there is a clear need to keep trade flowing, both to ensure the supply of essential products and to send a signal of confidence for the global economy.Trade is essential to save both lives and livelihoods.

But keeping trade flowing requires co-operation and trust for example, that the market will supply essential, that countries will not impose export restriction, and that imports do not pose health risks.This is a particular challenge at a time of trade tensions ,where the international trading system was already subject to an increased number of new restrictions and distortions, from tariff increases among major trader, to significant government support in key sectors.But in the context of severe economic strain from COVID-19, it is more important than ever to avoid escalation of the current tensions.

PRACTICE TO REDUCE THE CHALLENGE :

1.Boost confidence in trade and global markets by improving transparency : A strong, shared, transparent information base is critical in underpinning sound national policy responses and the international co - operation to keep trade flowing.It will be critical that countries honour their commitments to notify trade realted measures taken in response to COVID -19 to the World trade organization(WTO).

2.Keep global supply chains going, especially for essentials : An important priority is keeping the key supply chains for essential goods for the crisis - including medical supplies, food products and ICT goods and services. There are some other challenge

- Cancellation of passenger flights linked to travel bans has limited the availablity ofavailability of air cargo while urgent shipping of essential goods has increased demand, resulting in increase in the price of air cargo.Delivery times have also increased.This matter for some time sensitive medical supplies , but also for some high value food trade.

- At the time the virus struck, large number of shipping containers were in Chinese ports, and restriction on their movement have led to a shortage that has seen the price of containers rise, with flow on effects for the price of cargo, including food products.

- Lockdowns are also impacting the availability of labour to unload ships at ports( notable in countries where this is less automated) or raised costs due to increased protective measures for workers.

- More generally, all supply chains are being affected by the need to ensure additional health and safety measures for participants in the supply chain( which affect cost and time).

All of these are adding to the time and costs of international trade on products that matter.They will require co-ordinated action amongst governments - and with the private sector-specific to find solutions to the logistical constraints affecting the ability to get essential products where they are needed most.

An immediate issue is facilitating medical supplies necessary to tackle COVID-19, amny of which are produced across a number of countries and for which trade in the means of ensuring global supply.