Unequal distribution of COVID-19 vaccines to dampen economic recovery, WTO chief tells CNBC

• WTO was forced to postpone a key meeting scheduled for this week due to the discovery of omicron

• The comment on disparity around accessing vaccines comes shortly after South Africa reported a new strain of COVID-19

The World Trade Organization chief warned that she is “very concerned” about the unequal distribution of COVID-19 vaccines globally, which could dampen the economic recovery.

The comment on the disparity in accessing COVID-19 vaccines comes shortly after health authorities in South Africa reported a new strain of coronavirus—omicron.

While the wealthier nations have hoarded the highest number of vaccines, many low-income nations have struggled to get their hands on the much-needed vaccines.

In a report, International Monetary Fund (IMF) shows that while Australia has secured 495% of produced vaccines as a percentage of its population, Canada 414% and the U.S. 248%, the rate is worse for the poorer nations.

According to the collated data by the WTO, the World Health Organization (WHO), World Bank Group (WBG), along with IMF, the percentage of secured vaccines is only 30% for Mali and 56% for Kenya.

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Moreover, in information compiled by Our World in Data, only 7% of Africa’s population have been fully vaccinated against the coronavirus. In contrast, the EU and the U.S. have around 67% and 58% of their populations fully vaccinated.

“The level of inequity is quite high,” Ngozi Okonjo-Iweala, Director-General of the WTO, told CNBC in an interview on Thursday.

She noted that the economic recovery in a pandemic situation is linked to two determinants —monetary and fiscal stimulus and access to vaccines.

“I am very concerned that if we continue with the inequity, that will have a dampening effect on (the) recovery in those countries,” the Okonjo-Iweala said.

Health experts have long argued that COVID-19 will continue to thrive as long as parts of the world lack vaccines.

Delay in meeting

In the wake of the newly reported cases caused by the omicron variant, some countries re-imposed travel restrictions. Switzerland even imposed a 10-day quarantine for travelers from certain countries.

Also Read: Dissecting the latest coronavirus variant threat — Omicron

“They should not have been closed so hastily,” Okonjo-Iweala told CNBC, highlighting border restrictions while mentioning that this action could be a disincentive for nations to share COVID-19 related information.

Even WTO was forced to postpone a key meeting scheduled for this week following the discovery of the new strain.

“It was a very painful decision,” she said.

The delay is seen as a blow to hopes of temporarily waiving patents for COVID-19 vaccines and achieving more equitable access to vaccines.

Also Read: Omicron coronavirus variant: All your questions answered

The WTO has also been under pressure to update the way it operates and has been criticized for not being fit for the purpose it was formed.

It has been said that the institution can’t keep pace with the evolving international trade landscape and mounting disputes between nations and trading blocs, such as the U.S. and China and the U.S. and Europe.

“Even though the meeting was postponed through no fault of the WTO’s, we are continuing work at pace,” she told CNBC, adding that it is “not quite correct that nothing is moving.”

Picture Credit: FT