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Impact of swine flu expands with travel, pork import bans
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The swine flu epidemic took a tighter grip on the world economy Tuesday as Cuba issued the first travel ban to Mexico and several other countries banned imports of Mexican and some North American pork.

Following warnings from a number of governments against travel to Mexico, Cuba on Tuesday suspended all flights to and from its neighbor for 48 hours, becoming the first country to impose a travel ban to the epicenter of the epidemic.

Argentina also suspended flights from Mexico for five days as travelers from around the world canceled or postponed trips to the country. Other nations, meanwhile, intensified surveillance at their borders against the new virus that is suspected in 159 deaths across Mexico.

Many airlines issued polices waiving usual penalties for changing reservations for anyone traveling to, from, or through Mexico. Travel agencies across Asia and Europe have canceled tours to the country.

Airlines and cruise lines saw their stocks plunge Monday as investors sold their shares ahead of an anticipated drop in traffic.

Observers said the epidemic could have a multifaceted impact on the global economy, not only in tourism and transportation but also food and other supporting sectors.

Nine countries, including Russia, the Philippines and Thailand, have banned pork imports from Mexico and parts of the U.S. despite assurances that the disease is not spread through meat.

U.S. authorities said Tuesday that they may drop the term 'swine flu' since the virus incorporates genetic material from three species and because many people erroneously think they can get it from meat.

"This is not a food-borne crisis. It's important to not refer to swine flu. It's important to convey the message that consuming pork will not cause this illness," said U.S. Agriculture Secretary Tom Vilsack.

The United States has revved up its response to the outbreak since it began in Mexico more than two weeks ago and has since spread to several American states including Texas, California and New York.

The illness also has been reported in Israel, New Zealand and Europe.

U.S. President Barack Obama on Tuesday asked Congress for 1.5 billion U.S. dollars in emergency funds to combat the illness that has sickened at least 65 people in America.

Obama said in a letter to Congress that the funds could be used to develop a vaccine, support the U.S. public health response to the outbreak and assist other governments and international organizations in stemming the flu's spread.

Major epidemic outbreaks usually mean dwindling business opportunities and reluctant trade. In 2008, a flu pandemic cost 3 trillion U.S. dollars and caused a nearly 5-percent drop in world gross domestic product, according to the World Bank.

Crude prices fell for a second day on Tuesday as investors worried that the outbreak could further depress oil prices and curb a recovery of the global economy. Stocks, meanwhile, recovered slightly because of a slower drop in home prices.

The Obama administration said it was too soon to determine the potential economic impact of the outbreak and that the Treasury Department was monitoring the situation.

(Xinhua News Agency April 29, 2009)

 

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