COVID-19 Update: April 30, 2020

This report highlights some of the latest measures taken around the world. The INC will continue to monitor and provide updates.

However, some countries are easing the measures in order to mitigate the effects of the pandemic, such as Germany, which recently opened most of the stores; China, that relaxed lockdowns in almost all regions; Italy, France and Spain, that have started to reopen stores and businesses in phases; or the Czech Republic, which announced a plan for relaxing restrictions, gradually reopening farmers markets, shops, restaurants and other services.

The COVID-19 pandemic is a global issue that requires a coordinated global response. In order to address the pandemic, the EU and 21 other WTO members signed a joint statement, dated April 22, pledged to ensure well-functioning of global agriculture and agri-food supply chains, and to avoid measures with potential negative impact on food security, nutrition and health. The statement also calls for any emergency measures related to agriculture and agri-food products to be proportionate, transparent, temporary and consistent with WTO rules. These actions should not distort international trade or result in unjustified trade barriers.

On April 21, 2020, the Organization for Economic Co-operation and Development (OECD) declared that the COVID-19 pandemic highlights the need for a comprehensive and integrated approach to human health. As a consequence, the vulnerability of communities to pandemics or other emergencies could be reduced by enhancing environmental health through better air quality, water and sanitation, waste management, along with efforts to safeguard biodiversity. This declaration also states that the economic impact of the pandemic is likely to affect average household incomes, increasing affordability issues. Reduced cash flows combined with pressures on municipal budgets may result in pressure on utilities’ finances. According to OECD, one of the challenges of this health crisis is “to secure revenues for utilities and to maintain capital investment and timely spending on maintenance, while guaranteeing access to households who cannot pay.”

On April 15, the International Monetary Fund (IMF) added a liquidity line to strengthen COVID-19 response. According to Ms. Kristalina Georgieva, Managing Director of the IMF, “The facility is a revolving and renewable backstop for member countries with very strong policies and fundamentals in need of short-term moderate balance of payments support. In these cases, the Short-term Liquidity Line will provide revolving access of up to 145 percent of quota. (…) The facility will fill a critical gap in the Fund’s toolkit and help to facilitate a more efficient allocation of resources.”
 
Another action taken by IMF and the World Bank Group is the mobilization of partners in the fight against COVID-19 in Africa to spur faster response in African countries. H.E. Cyril Ramaphosa of South Africa, United Nations Secretary General Antonio Guterres, Director General of the WHO Dr. Tedros Adhanom Ghebreyesus, Africa Union Commission Chairperson Moussa Faki Mahamat, and officials of individual countries outlined their policy plans for effective use of resources, multilateral organizations including the United Nations pledged their continued support, and bilateral partners reemphasized their commitment to a debt standstill beginning May 1, 2020.
 
Official creditors have mobilized up to $57 billion for Africa in 2020 to provide front-line health services, support the poor and vulnerable, and keep economies afloat. Private creditor support this year could amount to an estimated $13 billion. According to IMF, the continent needs an estimated $114 billion in 2020 in its fight against the disease.

According to BBC, the US president announced on April 16 a plan to reopen States in phases, giving guidance on reopening State economies in the coming months.
 
In order to mitigate the impact of the coronavirus outbreak, the U.S. Department of Agriculture (USDA) announced on April 17 that the Coronavirus Food Assistance Program (CFAP) will spend up to $19 billion in immediate relief program to provide support to farmers and ranchers. Also, the US Government issued an Executive Order to temporarily extend certain deadlines for estimated duties, taxes and fee payments for importers suffering financial hardship as a result of the declaration of national emergency and shutdowns.
 
In addition to the federal measures, some States have also implemented regulations to mitigate the impact of the pandemic. For example, according to CBS News, California Governor Gavin Newsom announced the signature of an executive order to help essential workers in the food supply chain, including workers in the delivery and fast-food industries, amid the coronavirus pandemic.
 
On the other hand, one week before the re-opening of the States as planned by the US Government, Georgia opened sit-down restaurants and other close-contact services on April 27, 2020, according to Time.

Despite the lockdown measures have relaxed during the last weeks, Beijing's Chaoyang District has been designated a high-risk area due to a recent cluster of infections.
 
According to the 57th Meeting of April 23 of the Beijing Leading Group on COVID-19, “Regular containment measures should be implemented in a more targeted and effective way to forestall any resurgence of infections, while advancing all-round resumption of economic activities and restoring the normal order of life and work.” The Government also announced regular controls in arrivals in Beijing and solid and rigorous control measures throughout the May 1 holiday.
 
In order to bolster COVID-19 preparedness, response and support of the health systems of developing countries, China decided to contribute $30 million in cash to the World Health Organization (WHO), in addition to the $20 million cash donation already made.

European Union leaders are negotiating an agreement on how to rebuild the economy when the pandemic subsides. The European Commission’s Directorate General for Trade (DG TRADE) issued a report on the impact of the COVID-19 pandemic on global and EU trade. DG TRADE estimates a 9.7% decrease in global trade for 2020, a reduction of 9.2% in extra-EU27 exports of goods and services, and an 8.8% decrease in extra-EU27 imports in 2020, compared to the latest available statistics.
 
On April 21, the EU published a Roadmap for recovery, with a strong investment component, which sets out some important principles and defines four key areas for action, with the aim to provide a coherent and useful framework for joint action towards overcoming the crisis. The recovery plans shall be flexible, agile, inclusive and maintaining the EU set of values and rights. The document also states key areas of action to re-establish trade flows and supply routes, including a fully functioning and revitalized Single Market, an unprecedented investment in Green and Digital transitions, and a global response through multilateralism and rules-based international order.
 
Furthermore, the European Council adopted a second legislative act amending the rules on the use of EU structural funds. These changes allow Member States to refocus resources on crisis-related operations, giving them exceptional flexibility to transfer money between funds and between regions to meet their particular needs in mitigating the social and economic damage of the pandemic. These unprecedented measures will help alleviate the burden on national budgets by providing targeted investment in healthcare, struggling SMEs, and temporary employment schemes.
 
Farmers can also benefit in the form of favorable loans and guarantees of up to €200,000 to help them with liquidity or compensation for losses. The act entered into force on April 24, 2020.
 
In addition to this, the European Parliament and the European Council published the Regulation (EU) 2020/559 of April 23 amending Regulation (EU) No 223/2014 as regards the introduction of specific measures for addressing the outbreak of COVID-19. The objective is to make it easier for Member States, partner organizations and other parties to access the Fund for European Aid to the Most Deprived (FEAD), in order to help deliver food aid and basic material assistance to EU citizens, as well as personal protective materials.

The EU and the UK resumed the bilateral negotiations on the future relationship, after a six week suspension because of the COVID-19. In June 2020, the UK will have to decide on a possible extension of the transition period, which now ends on December 31, 2020.

According to a recent USDA GAIN Report, India permits paperless customs clearances through electronic documents or communications, while the national lockdown is still in force, now extended until May 3. However, a provisional rollback of the lockdown will be considered in areas where the spread of the disease has either been contained or prevented.
 
Guidelines on the second phase of the lockdown were published and exempted several additional activities from lockdown restrictions from April 20. The Food Safety and Standards Authority published Food Hygiene and Safety Guidelines during COVID-19 pandemic for all type of food businesses, including food service, transport and retail.
 
The port situation in India, according to a USDA GAIN Report published on April 24, indicates that some port operations are constrained by limited truck movement and insufficiency of road transport. However, in Mumbai, most port inspectors and customs agents have returned to work, and consequently, clearances will be accelerated.

Australia closed its borders, imposed strict “social distancing”, banned public gatherings and closed restaurants, bars and other non-essential businesses. These measures are expected to last until mid-May, according to Reuters.
 
In order to help primary producers navigate the challenges and impacts of the pandemic in their business and industry, New South Wales Department of Primary Industries has established a COVID-19 Primary Industries Liaison Team. The Queensland Government offers advice and assistance for agriculture businesses during the pandemic.

Amid the difficulties generated by COVID-19 in Chile, which impacted companies in the country and affected the normal development of businesses and their sales, liquidity, human resources and supplies, the Government announced that the payment of sales and services taxes to be declared or paid by SMEs in April, May or June 2020, are postponed.

Among the measures adopted by Japan to facilitate trade amid the COVID-19 outbreak, there is the procedure for the temporary acceptance of scanned or hard copies of export certificates for animals, plants and their products to be exported to Japan. Prior to this measure, and according to a USDA GAIN Report, Japan provided food labeling flexibility, by the temporary suspension of the monitoring of non-critical food labeling information. Japanese importers bear the sole responsibility for Japan’s Food Labeling Act compliance.
 
The situation in Japan amid the pandemic indicates downward trends in food service sales, while retail sales at supermarkets remain strong. Due to government mitigation measures, non-essential businesses closed voluntarily until May 6, schools closed, and tourism came to a halt. The impact on transportation and supplies is strong, according to a recent USDA GAIN Report, shipments of goods on commercial flights have fallen between 20 and 30%, and a change in consumption patterns is also noticeable.

South Africa applies lockdown measures to contain the spread of the COVID-19 since March 15. These measures are having a significant impact on the economy, as many households and businesses have suffered a significant loss of income. In order to help them stay afloat during this period, the Minister of Finance announced a second set of measures, on April 23. The interventions announced are fast-tracking of VAT refunds and three-month deferral for first payment of carbon tax liabilities, among others.
 
Macadamias South Africa has published a series of documents regarding the COVID-19 lockdown. The South African Revenue Service has clarified that imported cargo may be transported from ports of entry to warehousing sites, and essential goods may be transported from warehouses to essential service providers. Export cargo may be transported in order to decongest ports. Essential cargo will be prioritized for inspection in order to avoid any undue disruption in respect of the supply of critical goods. These inspections will be mainly documentary and, where possible, non-intrusive examination methods will be used.

According to a recent USDA GAIN Report, the effects of the pandemic on the food sector in Turkey are not yet visible. The food processing industry appears to be meeting the challenges well.
 
 
The information above is a review of actions the INC has compiled from government sources, international organizations and press media. This news article is not intended to be exhaustive and it does not reflect the opinions of the INC. While the publishers believe that all information contained in this publication was correct at the time of publishing, they can accept no liability for any inaccuracies that may appear or loss suffered directly or indirectly by any reader as a result of any advertisement, editorial, photographs or other materials published in this news article.