Nasty Competition for COVID-19 Gear: Speigel

The COVID-19 pandemic pushed government officials at all levels to place big orders for medical protective gear. Then suppliers cancel orders after the US president implemented the Defense Production Act, allowing the US government to commandeer supply chains, even convincing Chinese manufacturers to cancel contracts for products already paid for by other customers. “The World Trade Organization (WTO) saw it necessary this week to remind the international community that it needed to act in a ‘free, fair, non-discriminatory’ manner,” reports Spiegel Online. “A total of $597 billion (546 billion euros) in medical products were sold worldwide this past year. According to a WTO report, the 10 countries in the world with the strongest purchasing power made three quarters of these deals.” Trade experts suggest that the unseemly competition over essential supplies, including price gouging and substitution of low-quality goods, is eroding global trust. Some government leaders donate token supplies to win political influence, and leaders that initially rejected social distancing and public health recommendations now hoard supplies. Such COVID-19 responses, more self-serving than heroic, could ruin reputations and pose long-term consequences. – YaleGlobal