Analysis

The reading of the travaux préparatoires of Article XXI GATT indicates that the GATT Contracting Parties did not envisage that a global pandemic such as a virus could amount to a national security exception under the said Article. However, the drafters of GATT 1947 cannot be put to blame since no global health crisis has ever necessitated the applicability of the Article. The 2020 Corona virus (Covid 19) is an example of a global health crisis. In response to the crisis and in a bid to protect their nationals, states are restricting the exportation of medical related equipment. This amounts to quantitative restrictions which is a violation of the World Trade Organisation rules of trade. This paper analyses such measures in lieu of WTO member’s obligations.

Investors have shown time and time again that they will not hesitate to challenge regulatory measures not matter what a states’ underlying intent is. Only when the COVID-19 dust has settled will it be known which states had robust, well-crafted COVID-19 regulatory measures that can survive investor claims.

Many governments, including those in Africa, have adopted travel restrictions and physical-distancing policies to reduce the spread of the coronavirus (Covid-19). These are most important for urban areas where population is dense. As a result, consumers, companies, organisations and individuals are increasingly exploring digital solutions to continue at least some economic and social activity remotely,  but which, due to a gap in digital readiness, cannot be used by all, in particular not by those in the Least Developed Countries (LDCs). This state of affairs raises the questions of how to bridge the divide and facilitate physically-distant work and what significant and constructive role could digital trade law play in Africa?

The best ways to tackle any disease are often scientific, whether based on modern, Western-style medicine, or the traditional methods of our forefathers. In both cases, an ailment was observed, a treatment proposed, and if successful, adopted, with the less effective ones being relegated to the realm of pseudoscience at best. The African continent-wide economic integration project has been in motion in one form or other since the 1950s (some might argue earlier). Now, more than ever, is the time to take an honest look at our history and consider whether, based on the depth of integration of our economies, we are on the right track, or whether we need to consider a different approach. We should use the postponed operationalisation of the AfCFTA to consider how best to implement the ideals that have been negotiated the last couple of years, and not serve as a harbinger of another shelved idea.

The world of commerce after this pandemic will change significantly and controlled by those countries and blocs whose industries, research, trade and technology are robustly resourced and positioned to take advantage of the new market of knowledge, utilities and essential commodities of life. Access to trade finance is predicted to be the fundamental contrasting issue between developed and developing countries. Trade facilitation to move value-added products and services more efficiently across borders to other parts of the world must inform the thinking and planning of governments in the short and medium-term.

The Covid-19 pandemic is not only a threat to human health but is also a threat to the economic and financial health of the world. Many countries and international organisations are already thinking about the post Covid-19 strategies to be implemented. One sector which will play a key role in helping economies to rise is the shipping sector. Carriage of goods by sea will allow countries to gain access to commodities that they require in order to strengthen their economic, infrastructural and human development.

Although COVID-19 is currently making IAT difficult due to restrictions placed on the movement of people and goods, the pandemic justifies enhanced IAT. The situation helps Africa realize the benefits of IAT due to the trade restrictions put in place by our major trading partners who are mainly outside Africa. Most of all, it will help Africa appreciate the good in initiatives put in place to enhance IAT.

Apart from the challenges presented by the pandemic, governments in developing economies have the current difficulty of providing essential public goods and social services even during normalcy. How quickly economies recover after the crisis may depend on the nature of coping initiatives employed during the pandemic. It is therefore pertinent that governments (especially in the global South) revisit their free zone policy architecture to create a reliable alternative economy with which to stimulate the macro economy especially when the risks associated with sustaining economic activities in the customs territory may be too high.

Faced with a public health emergency due to the Coronavirus, a few governments, such as Singapore, Taiwan, and South Korea, have responded promptly and effectively. Some however are only recently beginning to provide substantial funds to counter and control of the spread of the disease, with other financial and economic measures designed to stabilize their economies and employment. These measures have included tax reduction, subsidies for certain sectors, and lowering interest rates. Other measures include shoring up investment in infrastructure projects.

The tragedy of the COVID-19 crisis has laid bare the frailties of African economies. COVID-19 has taught us, in the harshest way possible, that we are only as strong as the most vulnerable among us. This has compelled African leaders to recognize that regional cooperation is at the crux of the solution to the COVID-19 crisis. Hopefully, this positive momentum towards regional cooperation will extend to tackling the broader welfare issues challenging African societies.