U.N. trade body urges unity to recover from COVID-19 impact

Nov. 19 (UPI) -- A U.N. trade body said Thursday trade unity is needed to curb worsening inequalities due to COVID-19.

The United Nations Conference on Trade and Development report warns damage to the global economy will continue into the future, even as two COVID-19 vaccines shown to be more than 90% effective in late-stage trials have boosted confidence in an end to the pandemic.

The report, titled "Impact of the COVID-19 Pandemic on Trade and Development: Transitioning to a New Normal," projects the economy will contract by 4.3% this year, sending 130 million more people into extreme poverty.

Since the pandemic began, more than 1 million have died and millions of jobs have already been lost.

Countries worldwide need to come together in a multilateral agreement on a renewed trade policy that works on the challenges of market concentration and environmental impact to curb the economic impact, according to the report.

"It is argued that countries can achieve a stronger, more inclusive and greener economic recovery by adopting an appropriate mix of trade policy, competition and consumer protection policies and environmental policy," the report states.

The report also found that the United Nation's Sustainable Development Agenda 2030 will be halted unless policy action is taken immediately to help the most vulnerable.

"While the pandemic may be far from over, it has become clear that transforming global approaches to trade and development cannot be avoided when charting a sustainable course to recovery from the pandemic," UNCTAD Secretary-General Mukhisa Kituyi wrote in the report's forward.

Kituyi added that UNCTAD's definition of a 'better recovery' from the pandemic is one that can help reset multilateral cooperation to improve efforts to achieve sustainable development goals.

"It is our hope that this better recovery can sow the seeds of a healthier, fairer and greener globalization that can be nourished by a more resilient approach to multilateralism," Kituyi said.

Global hunger inequalities have deepened due to widespread job losses from the pandemic.

The COVID-19 pandemic has worsened global hunger as remittances -- money migrants send home to low or middle-income countries -- have fallen by 7.2%, according to World Bank estimated in October.

"For developing countries -- especially for the poorest and most vulnerable among them -- new international consensus on financing must be reached in order to extend to all countries the fiscal breathing room and liquidity needed to meet the extraordinary outlay of resources required to tackle the health and economic crisis head on," the report said.