Multilateralism to Support Global Supply ChainsBy Alejandro Enríquez | Fri, 05/15/2020 - 12:30
G20 presented the group's global response to COVID-19. The 20 richest economies in the world detailed the short-term actions that need to be implemented simultaneously to alleviate the impact of the pandemic.
The Mexican Ministry of Economy said in a statement that the agreement aims to "set the basis for an economic recovery based on strong, sustainable and inclusive growth." The Ministry of Economy affirmed that short-term actions will strengthen resilience of global supply chains and international investments, while pointing out that long-term actions will support the "necessary reforms" to the World Trade Organization. G20’s short-term actions to support world trade and investment in response to COVID-19 include trade efforts towards sound regulations, trade facilitation, transparency, operation of logistics networks and support of MSMEs.
Particularly in logistics and transportation, ministries of transport are committed "to enhance air, land, and marine connectivity and work with the private sector to prioritize movement of essential goods and having access to freight to achieve a critical mass to maintain connectivity and safeguard jobs." To protect MSMEs, the organization relies on other international bodies to prepare in-depth reports on the disruption of global value chains.
Regarding longer-term actions, countries are committed to support the multilateral trading syste, namely the WTO and its "necessary" reform toward building resilience in global supply chains and strengthening international investment. Countries will "encourage connection and policies to strengthen cooperation between multinational corporations and MSMEs," says the document.
International organizations have deployed all the information at hand to provide evidence for policies and business decision-making. Earlier this week, the Committee for the Coordination of Statistical Activities (CCSA) released the report: "How COVID-19 Is Changing the World: a Statistical Perspective." CCSA is formed by 36 international and supranational organizations, many within the UN System, focused on the provision of international official statistics. “We welcome the collective work carried out by international organizations to provide a consolidated in-depth analysis of the impact of COVID-19 on world trade, investment and global supply chains,” says the G20 on a statement.
As automotive supply chains are getting ready to resume operations in North America, the Mexican Ministry of Economy has already presented the stages upon which the "new normal" will be set. Between May 18 and June 1, companies, individuals and institutions will prepare to return to activities on June 1 when a traffic light indicator will be set for municipalities depending on their level of contagion. Given that transport equipment manufacturing has been labeled as essential, automotive related manufacturers should resume operations no sooner than May 18.