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TWN Info
Service on WTO and Trade Issues (Jul20/12) Geneva, 13 Jul (D. Ravi Kanth) – The selection of the next WTO Director-General to replace the current incumbent Roberto Azevedo could prove to be a race among the eight candidates that will best serve the anti-multilateral interests of the United States, said people familiar with the selection process. In an email sent to members on 10 July, the chair of the WTO’s General Council, Ambassador David Walker of New Zealand, announced the schedule of meetings between members and the eight candidates. According to the schedule, Mr Jesus Seade Kuri from Mexico, Ms Ngozi Okonjo-Iweala from Nigeria, and Mr Abdulhameed Mamdouh from Egypt will interact with members on 15 July; Mr Tudor Ulianovschi from the Republic of Moldova, Ms Yoo Myung-hee from Korea, and Ms Amina C. Mohamed from Kenya will do so on 16 July; and Mr Mohammad Maziad Al-Tuwaijri from Saudi Arabia, and Mr Liam Fox from Britain will do so on 17 July. Even before they present their world-view of the global trading system, the rejuvenation of the much-weakened WTO, and how they intend to proceed with their priorities, the candidates have already been threatened by Washington not to issue any anti-American pronouncements. The US Trade Representative (USTR) Ambassador Robert Lighthizer “has already said that “any whiff” of anti-Americanism could lead him to use his veto,” according to The Economist magazine in a report in its 11-17 July issue. During his Chatham House interview on 9 July, the USTR said that Washington “will be looking for a DG who understands the need for fundamental reforms of the WTO and is willing to take on the issue of how to deal with China,” according to a report in Washington Trade Daily (WTD) on 10 July. The fundamental reforms being proposed by the US include: 1. Differentiation/graduation for availing special and differential treatment; 2. Punitive notification requirements; 3. New tariff negotiations or the “reset” of global tariff rates; 4. New disciplines for industrial subsidies at a time when the US and EU members are attempting to build their domestic industries; 5. Doing away with the Appellate Body because it has been used “to get rules favourable to them without going through the negotiations”; 6. The US withdrawal from the WTO if the trade body cannot deal with China and other state-run economies. Although Ambassador Lighthizer has declined to come out in favour of any of the eight candidates for the post of DG, he said that Mr Liam Fox from Britain is “certainly one of the favorites”. With these seemingly threatening pronouncements, the US has subtly informed the eight candidates that they cannot criticize the anti-multilateral US trade policies and that they must embrace the US agenda. “Now this is the test as to who among the eight candidates will best serve the US priorities,” suggested a former trade envoy, who asked not to be identified. Even the Democratic Presidential candidate and former vice-president Mr Joe Biden has unveiled last week a “Buy America” plan, akin to President Trump’s “America First” trade policy. According to American media reports on 9 July, Mr Biden said that he will create at least 5 million good-paying jobs through a “Buy America” plan, direct $700 billion in new government spending toward American-made products and enhanced research and development, with emphasis on minority- and women-owned businesses. He will also identify ways to boost US production of high-priority goods, to reduce dependence on China and other foreign suppliers for equipment such as key medical supplies. According to a report in the WTD on 10 July, Mr Biden’s plan will involve reinvigorating US manufacturing, including a more comprehensive Buy American program. Mr. Biden said if elected President, he will invest $400 billion in his first term in additional federal purchases of products made by US workers, “with transparent, targeted investments that unleash new demand for domestic goods and services and create American jobs,” the WTD report suggested. Mr Biden said that as part of his “Buy American” plan, he will: tighten domestic content rules; crack down on waivers to Buy American requirements; end “false” advertising; extend Buy American to other forms of government assistance; strengthen and enforce Buy America; update the trade rules for Buy American; and ship American (ensuring that American cargo is carried on US-flag ships). In short, amid the seemingly aggressive US trade plans, it is highly unlikely that any of the eight candidates seeking the post of WTO DG will provide a vision countering Washington’s trade policies, the trade envoy said.
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