{"id":63185,"date":"2021-03-16T15:03:07","date_gmt":"2021-03-16T04:03:07","guid":{"rendered":"https:\/\/www.aspistrategist.ru\/?p=63185"},"modified":"2021-03-18T06:12:07","modified_gmt":"2021-03-17T19:12:07","slug":"quad-leaders-pledge-being-undermined-by-vaccine-nationalism","status":"publish","type":"post","link":"https:\/\/www.aspistrategist.ru\/quad-leaders-pledge-being-undermined-by-vaccine-nationalism\/","title":{"rendered":"Quad leaders\u2019 pledge being undermined by vaccine nationalism"},"content":{"rendered":"
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Economic nationalism is already threatening to derail the headline commitment of last weekend\u2019s Quad leaders\u2019 summit to manufacture and distribute 1 billion doses of Covid-19 vaccines to poorer nations, which is intended to counter China\u2019s \u2018vaccine diplomacy\u2019.<\/p>\n

US President Joe Biden has extended his predecessor\u2019s use of the Defense Production Act to block exports of key Covid vaccine raw materials, bringing complaints from both India and the European Union.<\/p>\n

Channelling St Augustine\u2019s promise of chastity, but not yet, Biden has vowed to help ease the global shortage of Covid vaccines, but only once the US has looked after itself.<\/p>\n

\u2018If we have a surplus, we\u2019re going to share it with the rest of the world,\u2019 Biden said<\/a> last week. \u2018We\u2019re going to start off making sure Americans are taken care of first, but we\u2019re then going to try and help the rest of the world.\u2019<\/p>\n

He said his administration would continue to invoke the Defense Production Act to expedite critical materials in vaccine production.<\/p>\n

The US has used the act to block the sale of key ingredients to India, which manufactures 60% of the world\u2019s vaccines. The chief executive of the Serum Institute of India, Adar Poonwalla, told a\u00a0World Bank forum<\/a>\u00a0last week: \u2018We are talking about having free global access to vaccines, but if we can\u2019t get the raw materials out of the US\u2014that\u2019s going to be a serious limiting factor.\u2019<\/p>\n

He warned that his institute\u2019s licensed production of the Novavax and AstraZeneca vaccines would be slowed unless the US lifted its restrictions on exports of key inputs. The Serum Institute is the world\u2019s largest vaccine manufacturer.<\/p>\n

The president of the European Council, Charles Michel, has also\u00a0complained<\/a>\u00a0about what he described as \u2018outright bans\u2019 on exports of vaccines and key vaccine ingredients by the US and the UK, which he contrasted with the limited export controls the EU has used to block the export of 250,000 doses of the AstraZeneca vaccine to Australia.<\/p>\n

A new\u00a0World Bank study<\/a>\u00a0explores whether the mutual dependence of the key vaccine-producing countries on raw material supplies from each other will act as a constraint on \u2018vaccine nationalism\u2019. \u2018The government of a nation where final vaccines are manufactured might fear retaliation from those governments where it sources \u2026 final vaccines or the ingredients for those vaccines,\u2019 it says.<\/p>\n

It tied this hypothesis to the economic theory that \u2018the presence of extensive cross-border value chains shifts the political calculus away from beggar-thy-neighbor policies\u2019. However, there is little evidence of this effect so far.<\/p>\n

Around 20 different ingredients are needed to manufacture and distribute Covid vaccines, and all producing countries are dependent on imports for at least some of them.<\/p>\n

The study found that most of the ingredients required to manufacture and distribute Covid vaccines come from other vaccine-producing nations, so any inhibition on protectionism wouldn\u2019t extend beyond the small group of vaccine producers.<\/p>\n

The study counts 13 nations in what it calls the Covid vaccine producers\u2019 club: Argentina, Australia, Brazil, Canada, China, the EU, India, Japan, Russia, South Korea, Switzerland, the UK and the US.<\/p>\n

It cites EU data showing that Australia is one of only three club members that doesn\u2019t also export vaccine ingredients; the others are Canada and Brazil. The EU therefore faces little fear of retaliation from Australia.<\/p>\n

As with much of its manufacturing, Australia is exclusively an importer of key inputs. It gets 47% of the ingredients it needs to manufacture vaccines from the US, 25% from the EU, 6% from the UK, 5% from China and 17% from the rest of the world.<\/p>\n

The essential problem is that supplies of the various vaccines are running far short of demand. The World Bank says that between 3.2 billion and 4.1 billion people need to be vaccinated to defeat the virus, translating to a need for between 6 and 8 billion doses.<\/p>\n

However, the members of the vaccine club, including Australia, have ordered many times their actual requirements, greatly inflating global demand, and there\u2019s only been mixed success so far in meeting the manufacturing challenge of such a massive ramp-up in production.<\/p>\n

Just seven club members\u2014Australia, Canada, the EU, Japan, South Korea, the UK and the US\u2014have collectively ordered 4.3 billion vaccine doses, or more than three times their total population. Australia has made advance purchases of 140 million doses, which is at least three times as much as it needs.<\/p>\n

The EU imposed its export restrictions after vaccine manufacturer AstraZeneca encountered difficulty filling contracted advance orders. It ruled on 30 January that an export could be prohibited if it threatened the EU\u2019s prior advance-purchase agreements.<\/p>\n

Other major vaccine producers are imposing less formal restrictions. Turkey has complained that China delivered only 3 million of 10 million contracted doses of its Sinovac vaccine. China\u2019s foreign ministry explained that domestic demand for vaccines was huge, and that it could only provide support to poorer nations \u2018within our capacity, according to their needs\u2019.<\/p>\n

India\u2019s Serum Institute is subject to the same pressures. Poonwalla admitted that he had been \u2018directed to prioritise the huge needs of India, and along with that, balance the needs of the rest of the world\u2019, urging that foreign governments be \u2018patient\u2019.<\/p>\n

The UK health minister, Matt Hancock, has used language similar to that of the Chinese, saying<\/a>, \u2018We will protect UK supply and we\u2019ll play our part to ensure the whole world can get the job\u2019, but with the government\u2019s advance-purchase agreements from UK-based manufacturers requiring exclusive supply.<\/p>\n

Australia is attempting to push back against the European export ban through a World Trade Organization forum focused on securing medical supply chains. The forum was established last year by a group of 13 members\u2014half of them vaccine producers\u2014with a commitment to exercising \u2018restraint in the imposition of any new export restrictions, including export taxes, on essential medical goods and on any prospective vaccine or vaccine materials\u2019.<\/p>\n

Trade Minister Dan Tehan has reminded the EU that it was a signatory, and complained that the European restrictions will prevent Australia from exporting vaccines into the wider Pacific region. \u2018The more we can put collective pressure on them, the more they will realise what they are doing is wrong,\u2019 he said<\/a>. There has been no public response so far.<\/p>\n","protected":false},"excerpt":{"rendered":"

Economic nationalism is already threatening to derail the headline commitment of last weekend\u2019s Quad leaders\u2019 summit to manufacture and distribute 1 billion doses of Covid-19 vaccines to poorer nations, which is intended to counter China\u2019s …<\/p>\n","protected":false},"author":955,"featured_media":63186,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"footnotes":""},"categories":[1],"tags":[2658,983,2328,2804],"class_list":["post-63185","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-coronavirus","tag-pandemic","tag-quad","tag-vaccine"],"acf":[],"yoast_head":"\nQuad leaders\u2019 pledge being undermined by vaccine nationalism | The Strategist<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.aspistrategist.ru\/quad-leaders-pledge-being-undermined-by-vaccine-nationalism\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Quad leaders\u2019 pledge being undermined by vaccine nationalism | The Strategist\" \/>\n<meta property=\"og:description\" content=\"Economic nationalism is already threatening to derail the headline commitment of last weekend\u2019s Quad leaders\u2019 summit to manufacture and distribute 1 billion doses of Covid-19 vaccines to poorer nations, which is intended to counter China\u2019s ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.aspistrategist.ru\/quad-leaders-pledge-being-undermined-by-vaccine-nationalism\/\" \/>\n<meta property=\"og:site_name\" content=\"The Strategist\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/ASPI.org\" \/>\n<meta property=\"article:published_time\" content=\"2021-03-16T04:03:07+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-03-17T19:12:07+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.aspistrategist.ru\/wp-content\/uploads\/2021\/03\/GettyImages-1231109271.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1024\" \/>\n\t<meta property=\"og:image:height\" content=\"647\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"David Uren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@ASPI_org\" \/>\n<meta name=\"twitter:site\" content=\"@ASPI_org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"David Uren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.aspistrategist.ru\/#website\",\"url\":\"https:\/\/www.aspistrategist.ru\/\",\"name\":\"The Strategist\",\"description\":\"ASPI's analysis and commentary site\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.aspistrategist.ru\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-AU\"},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-AU\",\"@id\":\"https:\/\/www.aspistrategist.ru\/quad-leaders-pledge-being-undermined-by-vaccine-nationalism\/#primaryimage\",\"url\":\"https:\/\/www.aspistrategist.ru\/wp-content\/uploads\/2021\/03\/GettyImages-1231109271.jpg\",\"contentUrl\":\"https:\/\/www.aspistrategist.ru\/wp-content\/uploads\/2021\/03\/GettyImages-1231109271.jpg\",\"width\":1024,\"height\":647,\"caption\":\"MELBOURNE, AUSTRALIA - FEBRUARY 12: Prime Minister Scott Morrison visits the CSL vaccine manufacturing facility on February 12, 2021 in Melbourne, Australia. 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