Answer:

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.

But free trade and trade facilitation are not enough to solve the current shortage; an important increase in supply is required in the short-term, requiring government planning and incentives for firms to convert existing assembly lines and create additional capacity. Certification procedures should be expedited to allow masks produced by new companies to be traded as soon as possible

Looking ahead, it would be excessively costly for every country to develop production capacity that matches crisis demand and encompasses the whole value chain. An alternative, more effective and cost-efficient solution in the long-term may involve the combination of strategic stocks; upstream agreements with companies for rapid conversion of assembly lines during crises (with possible government incentives and co-ordination); and supportive international trade measures.

Explanation:

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