In these unprecedented times when countries are battling shortages of supplies and materials for the COVID-19 outbreak, there's a need for even greater collaboration and coordination between governments. We've always known that we live in a globalized economy, but nothing has made it more clear than the current COVID-19 crisis. Indeed nothing has brought out the glaring challenges of an interconnected global economy more...

Let's take the example of the much coveted ventilator which is needed to breathe life into a critical patient in the final stages of COVID-19 infection. For companies like GE and Medtronics to make the ventilators that they have been ordered to make, they will need critical parts. Several of these parts are manufactured in India and other countries around the world. In an attempt to deal with their own shortages of various products, India has blocked the export of certain critical products including ventilators, personal protective equipment (PPE), sanitizers and chloroquine. One can argue that India's desire to meet the needs of its own population is understandable... but what is actually happening on the ground is a bit different.

The flow of exports and imports to countries are governed by the Harmonized Commodity Description Coding System. This Harmonized System is an international nomenclature for the classification of products. It allows participating countries to classify traded goods on a common basis for customs purposes. At the international level, the Harmonized System (HS) for classifying goods is a six-digit code system. Apparently the HS code for ventilator parts is the same as the six-digit code for the ventilator itself. Hence while India's intention is to hold back export of ventilators, it is also preventing the export of much needed ventilator parts.

It doesn't take a genius to see that the production of ventilators which are the lifeline of severely ill COVID-19 patients will be hindered if not completely blocked, if companies cannot get these parts. Clearly India's intention isn't to block these products from being manufactured, but that's what's happening now.

Let's take another example.

As I mentioned above, India has blocked the export of chloroquine which is the active ingredient for a potential treatment for COVID-19. On March 3rd, India also blocked the export of 26 other active pharmaceutical ingredients (API) including those that are needed for the production of other medicines that can be used to treat COVID-19 patients or other infections. After deliberation with Indian generic companies, the Indian government assured that no shortages would exist in India for these APIs, decided to allow export of these 26 APIs but only for companies that had existing contracts prior to the March 3rd ban. The Indian government made it clear that no new contracts were to be signed until further notice. The ban on export of chloroquine however, is still in force.

And another example... South Korea is the largest producer of parts for N95 masks which are used by health professionals and others in direct contact with COVID-19 patients. The U.S. company 3M makes N95 masks in India. However, because of the current crisis, South Korea has blocked the export of parts for N95 masks making it difficult for 3M to manufacture this much needed equipment.

Companies like 3M, GE, Medtronics and various pharmaceutical companies are willing to work with countries where the parts and active ingredients originate to ensure that they get the much needed products. But such piecemeal approaches result in lost time... and time is of the essence now. The problem is far greater than what companies alone can take on.

Now is the time for governments to ensure that the supply chain is open and unhindered. In fact, now is the time to ensure that global supply chains are open all the time, especially for health products. Whether this is accomplished through bilateral trade agreements or through some other mechanism is up to the government leaders, but one thing's for sure... Without a functioning supply chain right now, severely ill COVID-19 patients won't get what they need to survive.