U.S. to Restrict Mask, Glove Exports for Four Months During Coronavirus Pandemic
April 08 2020 - 5:59PM
Dow Jones News
By William Mauldin
The Trump administration is planning to restrict for four months
the export of certain face masks and gloves designed to slow the
spread of the novel coronavirus as the demand for personal
protective equipment soars in the U.S. along with the number of
cases.
Under the temporary regulation, unveiled Wednesday, the Federal
Emergency Management Agency will have to grant explicit approval
for exports of the masks and gloves, with certain exceptions.
The restriction shows that the U.S. is seeking to keep personal
protective equipment, or PPE, available to U.S. citizens despite
existing private contracts and international trade rules designed
to protect global supply chains.
The regulation, expected to be published Friday, fleshes out a
presidential memorandum from last week and will be valid for 120
days.
President Trump has criticized 3M Co. for not allocating for
domestic use the N95 masks it produces, and invoked a decades-old
defense law giving Washington power over domestic production. This
week, Mr. Trump said the U.S. government would buy 167 million of
the masks from 3M, resolving the dispute. Health experts and mask
makers say only a properly used reusable N95 respirator mask
certified by an independent agency can guard fully against the
coronavirus.
The temporary rule would allow export of masks and gloves if a
company has pre-existing contracts for exports and has sold 80% of
its products domestically.
The coronavirus pandemic has touched off a trade debate over
whether countries should apply trade barriers to secure needed
supplies for citizens, or work to keep the trading system open so
that countries can make the best use of supply chains.
India has banned the export of hydroxychloroquine, an
antimalarial drug that is being reviewed as a possible treatment
for the coronavirus, but New Delhi partially lifted the ban after
criticism from Mr. Trump.
The World Trade Organization, which sets the rules for global
trade, allows for some temporary export restrictions.
"These measures must be targeted, temporary, and they must be
transparent," WTO spokesman Keith Rockwell told reporters
Wednesday. "If all of these things are true, and they're time
limited, then these are all right."
In the longer term, broad trade barriers don't make economic
sense because they result in inefficient and redundant production
that can make countries less efficient and stunt growth, Mr.
Rockwell said.
With the coronavirus threat, companies are continuing to
re-examine supply chains, and skeptics of free trade are demanding
that the U.S. ensure domestic production of critical products.
Write to William Mauldin at william.mauldin@wsj.com
(END) Dow Jones Newswires
April 08, 2020 17:44 ET (21:44 GMT)
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