WTO: "Trade Restrictions Rise Again After Easing of Quarantine Measures"

Due to Export Restrictions on Strategic Crops by Russia and Ukraine

[Image source=AP Yonhap News]

[Asia Economy Reporter Yujin Cho] The World Trade Organization (WTO) announced on the 6th (local time) in a report that trade restrictions worldwide, which had been declining as the world entered the COVID-19 endemic (periodic outbreak of infectious diseases) era, have started to increase again. This is due to the rise in export restrictions on strategic crops following the outbreak of the Ukraine war, affecting trade worth approximately 78 trillion won.

According to the report, 79.2% of the trade restrictions introduced by countries worldwide as COVID-19 quarantine measures between October last year and October this year have been lifted amid the easing of quarantine guidelines. Out of 197 cases of restrictions, only 41 remain in effect.

On the other hand, since Russia's invasion of Ukraine in February, Western countries have imposed sanctions on Russia, and various countries have implemented strategic trade policies citing food security and other reasons, leading to a renewed increase in import and export restrictions, the report stated.

The report particularly pointed out that restrictions on the trade of grains, food, feed, and fertilizers have recently increased. Trade restrictions have taken the form of tariffs, quantity limits, and stringent customs procedures.

Due to the prolonged war, the supply from Ukraine, the world's largest grain producer, has been lost, and it is interpreted that the export restrictions imposed by Russia and Ukraine on strategic crops are the cause. Ukraine accounts for 30% of global wheat production, 30% of sunflower seeds, and 10-20% of soybeans and corn.

WTO Director-General Ngozi Okonjo-Iweala expressed concern, stating, "The trade volume affected by export restrictions has been increasing again since mid-October this year." She urged countries to adopt a market-opening stance to revitalize trade.

Among the 78 food, feed, and fertilizer export restrictions introduced after the outbreak of the Ukraine war in February, 57 are still in effect, with the affected trade volume amounting to approximately 58.8 billion dollars (about 77.6 trillion won).

Director-General Okonjo-Iweala emphasized, "Lifting trade restrictions is essential to reduce price surges and volatility and to ensure goods flow to where they are needed," adding, "To reduce uncertainty in the global economy, restrictions must be eased."