Business at OECD of witch Lithuanian Confederation of Industrialist is a member, singled out key points on Building resilience for global supply chains.
The economic fallout from Covid-19 has brought into focus the need to strengthen supply chain resilience. Particularly during the early phases of the pandemic, global supply chains were confronted with significant disruptions and containment measures. At the same time, businesses were facing demand surges for Covid-19 goods and services, and widespread changes in demand patterns caused by the ‘new normal’. Where shortages occurred, these were mostly caused by unprecedented demand, rather than collapsing supply.
In this context, our companies see it as a priority to better anticipate, earlier prepare and faster adapt their operations to ensure business continuity during a second wave of the pandemic and a global vaccination rollout. More transparency, including through early availability and access to reliable public information and data on the pandemic, can help business forecast developments, particularly for Covid-19 goods and services. Clear, timely and forward-looking government communications are critical to allow companies prepare and adapt quickly.
Nonetheless, the Covid-19 pandemic has highlighted once again that a predictable regulatory, trade and investment policy environment is indispensable to alleviate uncertainty about the framework conditions in which global supply chains operate. To this end, trade ministries should closely collaborate with other ministries, particularly those that take a national security lens to supply chain issues, and ensure that evidence-based analytical work on trade becomes more politically relevant – especially in times of crisis. Coordinated, coherent and cooperative international approaches are the only way to meet the challenge of a global pandemic and maintain trust in our rules-based global trade and investment system.