The Association calls for the reduction of trade barriers including high tariffs currently in place
The Gulf Petrochemicals and Chemicals Association (GPCA), the voice of the chemical industry in the Arabian Gulf, has urged global governments and international legislators to work closely together to ensure the uninterrupted supply of raw materials used for the manufacture of medical and hygiene equipment that are absolutely crucial to fighting the Covid-19 pandemic.
Despite facing significant supply chain disruptions, the GCC chemical industry has stepped up efforts to safeguard the supply of raw materials for the manufacture of products used to enable the hygiene, testing and treatment of patients affected by the virus alongside personal protective equipment for medical staff, as well as ensuring the continued manufacturing of essential food packaging material.
However, trade tariffs imposed prior to the start of the crisis and in the wake of growing global protectionism since mid-2018, combined with border closures in some countries are proving it difficult for chemical raw materials to reach production plants across the world where finished products are made.
GPCA and its members are calling for the reduction of tariffs and the removal of trade barriers and all bureaucratic hurdles currently in place that pose as a significant challenge to the steady supply of chemical and petrochemical products used for the manufacture of specialized equipment and everyday products amid heightened global demand.
The call comes days after world leaders pledged in a statement issued during a G-20 Extraordinary Virtual Leaders’ Summit “to ensure the flow of vital medical supplies, critical agricultural products” and ‘resolve disruptions to the global supply chains’.
The statement went on reiterate the G20’s commitment to a free, fair and stable trade and investment environment, and to keep markets open.
All GCC countries have consented to the World Trade Organization (WTO)’s Trade Facilitation Agreement (TFA) that aims to simplify, modernize and harmonize import and export procedures and processes. As the rapid spread of the COVID-19 pandemic amplifies the need for international cooperation and the removal of trade barriers, GPCA and its members are urging regulators to speed up the full implementation of the TFA during this crucial time.
“As medical facilities in the region are starting to feel the strain from the pandemic, businesses are continuing to manufacture, in difficult circumstances, the various tools, safety equipment and personal protective equipment such as sterile gloves, masks, hand sanitizers and protective clothing urgently needed to protect the health and safety of people and medical personnel,” affirmed Dr. Abdulwahab Al-Sadoun, Secretary General, GPCA.
“At the same time, we depend on FMCG companies to continue to ensure the supply of items such as cleaning products as well as packaged food and beverages. The GCC chemicals industry is safeguarding the supply of raw materials to these sectors and reducing or even removing related bureaucratic hurdles will help secure their timely supply. Eliminating tariffs on these essential products will also reduce the costs on medical facilities and GCC consumers who are already under financial strain,” continued Dr. Al-Sadoun.
“It is imperative that no efforts are spared to secure the robustness of the medical infrastructure within the Arabian Gulf region, while also maintaining a stable socioeconomic environment,” asserted Mutlaq H. Al-Morished, Chairman, International Trade Committee, GPCA and CEO, Tasnee, Riyadh, Saudi Arabia.
