|
||
|
TWN Info
Service on WTO and Trade Issues (Oct20/33) Geneva, 29 Oct (D. Ravi Kanth) – The United States has thrown the selection of the WTO’s new director- general into uncharted waters, after it refused to accept the recommendation made by the WTO General Council chair to appoint Nigeria’s former finance minister Ms Ngozi Okonjo-Iweala as the new DG, despite her securing the “largest support” from members, trade envoys told the SUNS. At an informal heads of delegation (HoD) meeting on 28 October, the US chose to cast serious aspersions on the selection panel chaired by the General Council (GC) chair, Ambassador David Walker from New Zealand, for its recommendation to appoint Ms Ngozi Okonjo-Iweala as the next director-general of the global trade body, said a trade envoy, who asked not to be quoted. The US said that it cannot accept the recommendation to appoint Ms Ngozi as the next director-general of the WTO by the “three individuals”- i.e., the chair of the GC Ambassador Walker, the chair of the Dispute Settlement Body (DSB) Ambassador Dacio Castillo from Honduras, and the chair of the Trade Policy Review Body (TPRB) Ambassador Harald Aspelund from Iceland – as they did not represent the entire membership, the trade envoy said. GC CHAIR’S BRIEF SUMMARY OF CONSULTATIONS At the HoD meeting, the GC chair provided a brief summary of the consultations held by the “Troika” (the GC chair, the DSB chair, and the TPRB chair) with members on 19-27 October. Ambassador Walker said that “as was the case with the two previous rounds, members were asked “what is your preference”,” suggesting that the selection panel did not accept any negative preferences. Citing several provisions of the procedures laid out for the appointment of the director-general in the document WT/L/509, Ambassador Walker said that the panel tried “to encourage and facilitate the building of consensus” around one of the two finalists based on the preferences expressed by members. Ambassador Walker said “the results of the preferences were conveyed to the two candidates on 28 October.” He said that “our (the panel) assessment of the preferences during the third round of consultations is that the candidate from Nigeria Dr Ngozi Okonjo-Iweala, is the candidate most likely to attract the consensus.” The GC chair said that “Dr Ngozi carried clearly the largest support of members in the final round and she clearly enjoyed the broad support of all levels of development and from all geographical regions.” According to paragraph 19 of the procedures outlined in document WT/L/509, Ambassador Walker said “we are submitting the name of Dr Ngozi Okonjo-Iweala as the candidate most likely to attract consensus and recommending her appointment by the GC as the next DG of the WTO until 31 August 2024,” according to trade envoys who took part in the meeting. The GC chair said that he has scheduled a special GC meeting on 9 November for members to formally adopt the recommendation to appoint Ms Ngozi Okonjo-Iweala as the WTO’s next director-general. During the meeting, the GC chair repeatedly reminded members that the informal HoD meeting is not meant to take a decision on the appointment of the new DG, adding, “that decision can only be taken by the decision- making General Council on November 9,” said a trade envoy, who asked not to be quoted. STATEMENT BY THE US In response to the GC chair’s recommendation, the US trade envoy Ambassador Dennis Shea levelled serious criticism against the manner in which the process was conducted. The US envoy said that Washington “strongly supports the candidature of Korean minister Ms Yoo Myung-hee from South Korea” and “takes note that Ms Yoo remains the candidate for the director-general position.” Ambassador Shea said, “It is our understanding that Ms Yoo enjoys breadth of support across the WTO membership,” according to trade envoys present at the meeting. The US envoy went on to say that the Korean candidate Ms Yoo Myung-hee “is a bonafide trade expert and WTO expert and who has distinguished herself over the 25-year career as a successful trade negotiator,” according to trade envoys present at the meeting. At a time when the WTO is in deep crisis, said Ambassador Shea, “we need someone at the helm with trade expertise.” “Minister Yoo (the Korean candidate) will not need on-the-job training and will hit the ground running here in Geneva,” the US trade envoy claimed. In effect, Ambassador Shea suggested that Nigeria’s candidate would need on-the-job training as she is not a trade expert, said a person, who asked not to be quoted. Ambassador Shea reminded members that the WTO is a member-driven organization, arguing that “it is for us, the members, to decide who the next director-general is going to be” and not “for the three individuals (the GC chair, the DSB chair, and the chair of the TPRB) to decide,” said another person who asked not to be quoted. “I would like to assure members that the WTO is a consensus-based organization and the consensus principle permeates everything we do here, including the DG selection process,” Ambassador Shea said, arguing that the selection process is “opaque” and “byzantine”. He said the US cannot join the consensus. According to Ambassador Shea, the US had indicated that it cannot join the consensus in support of Dr Ngozi during the consultations, maintaining that it is simply not credible to say that Ms Ngozi’s candidacy is likely to attract consensus as members heard from the GC chair, according to participants at the meeting. After the meeting, the US Trade Representative (USTR) Ambassador Robert Lighthizer issued a statement on his website, saying: “The United States supports the selection of Korean Trade Minister Yoo Myung-hee as the next WTO Director- General. Minister Yoo is a bona fide trade expert who has distinguished herself during a 25-year career as a successful trade negotiator and trade policy maker. She has all the skills necessary to be an effective leader of the organization. “This is a very difficult time for the WTO and international trade. There have been no multilateral tariff negotiations in 25 years, the dispute settlement system has gotten out of control, and too few members fulfill basic transparency obligations. The WTO is badly in need of major reform. It must be led by someone with real, hands-on experience in the field.” The US criticisms against the DG selection process seemed somewhat like what President Donald Trump is saying against the mail-in-voting in the current US elections now, said a person, who asked not to be quoted. It remains to be seen as to what the US will do at the GC meeting on 9 November, as the US elections would have been completed by then and whether the Trump administration would continue to be in power, the person said. “Either way, the gauntlet thrown (down) by the US about the selection process has created confusion,” the person added, suggesting that the US opposition seems to be based on its assessment that Ms Okonjo-Iweala is being supported by the former WTO director-general Pascal Lamy, who is seen as a “bete noire” by the US, the person said. By creating confusion in the appointment of the new DG, the US may drag the selection process on for another four months or so, and it could even insist on a “neutral” candidate from the previous round such as Kenya’s Amina Mohamed or Britain’s former trade minister Mr Liam Fox, the person said. In the past, the US had created similar chaos when Washington insisted that it will not accept the appointment of former Thai Prime Minister Supachai Panitchpakdi as the WTO DG in 1999, demanding that Mike Moore, the former New Zealand prime minister, should be appointed as the WTO DG. Later, as part of a compromise, both Mr Moore and Mr Panitchpakdi were appointed as the DG for a period of three years each starting from December 1999. Surprisingly, even as the US held its ground in support of the Korean candidate, Korea did not make any statement at the HoD meeting. US REMAINS ISOLATED More importantly, not one member supported the US charges against the DG selection process at the meeting, the person suggested. Several countries such as Barbados, St Lucia on behalf of the CARICOM (Caribbean Community) countries, and Botswana on behalf of the African Union members, praised the chair for navigating the selection process in an inclusive and transparent manner. They welcomed the recommendation to appoint Ms. Ngozi from Nigeria as a historic moment, according to the short statements issued by these three countries. STATEMENT BY CHINA China’s trade envoy Ambassador Zhang Xiangchen said it is important to adhere to the rules and procedures that were agreed back in 2002, emphasizing that members must respect the recommendation of the “Troika” which is based on the members’ preferences. Ambassador Xiangchen said at this critical juncture, the WTO needs a leader, arguing that there is no loser in the selection process. STATEMENT BY SOUTH AFRICA South Africa, which played a crucial role in mobilizing support for the Nigerian candidate, said Ms Okonjo- Iweala is a consensus candidate, suggesting that “it is a historic moment when an African and a woman with proven expertise and ability will, for the first time, occupy the position of the DG for the WTO.” South Africa’s trade envoy Ambassador Xolelwa Mlumbi-Peter said the appointment of the DG is crucial given the immense challenges facing the multilateral trading system. Ambassador Xolelwa suggested that the membership must work together to ensure that there is no “paralysis” of the WTO. She said it is time for strong leadership, arguing that the selection process must be concluded so as to focus on the critical issues that are facing the organization. India thanked the GC chair and the two facilitators for conducting the process smoothly, arguing that, as members, “we must respect the process we had agreed and expect the candidates and members to respect the process.” India said that members must avoid further confusion and consider the recommendation on 9 November as per the established process. The European Union congratulated Ms Okonjo-Iweala as the candidate most likely to attract wide support. The EU said the WTO is in a deep crisis, underscoring the need to select a new DG without creating another crisis. It argued that members need leadership to take the organization forward. Without naming the US, the EU’s trade envoy Ambassador Joao Aguiar Machado said that the GC chair clearly indicated that Ms Okonjo-Iweala secured the largest support, adding that it is not correct to say the proposal is from three individuals. Ambassador Machado said that the GC chair acted on behalf of all the members, arguing that the rules and procedures “are known to everyone and this process can only work if all, including the candidates, agreed to the process that was agreed at the beginning.” Australia, the United Kingdom, and Mexico also supported the recommendation made by the GC chair about the selection of Ms Okonjo-Iweala.
|
||
