Country characteristics and trade policy during the COVID-19 pandemic

Government policy responses to the COVID-19 pandemic often included changes to trade policies. This paper uses detailed data on trade policy measures targeting medical products during the first 18 months of the pandemic (January 2020-June 2021) compiled by the Global Trade Alert to analyze the relationship between national trade policy activism and pre-pandemic trade patterns, import protection and international integration. The focus is on both potential country-specific drivers of unilateral trade policies and the duration of implemented measures. We find significant heterogeneity in the relationships between trade policy actions and country characteristics. The likelihood of import liberalization was more prevalent among net exporters of medical products, whereas net importers were more inclined to impose export restrictions. The results suggest trade policy responses to the challenges raised by the Covid-19 pandemic are only partially explained by extant theory.