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OECD Policy Responses to Coronavirus (COVID-19)
The face mask global value chain in the COVID-19 outbreak: Evidence and policy lessons
04 May 2020
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Abstract
This note provides information on the global value chain for the production of surgical masks and N95 respirators in the context of the COVID-19 crisis. It analyses the causes of the current shortage of these key medical supplies needed to prevent the spread of coronavirus, and reviews some short-term and long-term policy options, with a focus on the role of trade and investment policy.
Key findings and main policy implications
COVID-19 has caused a dramatic shortage in the supply of face masks1, which is mainly explained by a surge in demand.
Since no country can meet the increase in the demand for masks alone, trade is essential. Export bans are harmful for countries without production capacity, but can also backfire on the country imposing them when they need to import inputs, additional masks or other essential goods. Tariffs or export licenses can delay trade, in addition to increasing prices.
The smooth operation of transportation infrastructure and logistics, especially air cargo, is critical to support the face masks value chain during the crisis. More attention should also be given to the supply of key inputs.
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