Briefs
/ Policy brief
Why export restrictions should not be a response to COVID-19: Learning lessons from experience with rice in Asia and the Pacific
The spread of COVID-19 has created tremendous uncertainty on a number of fronts, including the availability of food supplies. In such a situation, countries might be prompted to restrict their food exports to ensure greater domestic availability in the short term. However, such restrictions can cause panic, leading to price surges on international markets, and a breakdown of food supply chains. During the food price crisis in 2007–2008, trade restrictions contributed significantly to price spikes for various commodities (45 percent for rice and 30 percent for wheat (Martin & Anderson, 2020). Price volatility led to social unrest in many countries and made it more difficult for the poor to afford food, especially nutritious food.
This brief will discuss recent food export restrictions employed in the region, analyze their impacts, explain how export restrictions can hurt importers and exporters alike, and give examples of good policies.