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TWN
Info Service on WTO and Trade Issues (May24/13) At the WTO’s General Council meeting on 22 May, members are expected to discuss several issues, including the most controversial issue of “responsible consensus” that is being mooted by Singapore and several other countries, including Norway. The issue of the selection process for the next WTO DG, after Ms Ngozi Okonjo-Iweala completes her tenure at the end of August 2025, is not going to be discussed at the General Council meeting. Yet, behind the scenes, some countries are already discussing ways to advance the selection process for the next DG, because of the upcoming US Presidential elections, particularly over the fear that former President Donald Trump could return to power and the consequences it may have for Ms Okonjo-Iweala’s prospects for a second term, said people who asked not to be quoted. According to a news report in the Financial Times on 19 January 2021, the former US Trade Representative in the Trump administration, Ambassador Robert Lighthizer, had said that Ms Okonjo-Iweala “had no experience in trade at all.” “We need a person who actually knows trade, not somebody from the World Bank, who does Development,” Ambassador Lighthizer told FT in the interview. “We need a trade person with real trade experience,” he added. “And there are very few areas where you would say, “here’s an organisation in very bad shape, let’s get someone who knows nothing about its core mission”.” To avert any possible disapproval from the Trump administration, if it indeed stages a comeback to the White House, attempts are allegedly being made by some members to reach as many agreements as possible before any change of administration in Washington, said people familiar with the discussions. DG SELECTION PROCESS The procedures for the appointment of the WTO DG are set out in document WT/L/509, particularly paragraph 7. Under the sub-heading of “Time-frames for the process,” paragraph 7 explicitly stated that “the appointment process shall start nine months prior to the expiry of the term of an incumbent Director-General with a notification from the Chair to the General Council. The process shall conclude with a meeting of the General Council convened not later than three months prior to the expiry of an incumbent’s term, at which a decision to appoint a new Director-General shall be taken.” While Ms Okonjo-Iweala began her term on 1 March 2021 after the early resignation of the previous DG, Mr Roberto Azevedo, the selection process has to start on 1 December 2024, which has to be concluded “not later than three months prior to the expiry of an incumbent’s term, at which a decision to appoint a new Director- General shall be taken.” Mr Azevedo would have concluded his second term at the end of August 2021 if he had stayed in office. However, he resigned abruptly as WTO DG to become an Executive Vice President at PepsiCo in September 2020. In effect, a decision has to be made by 31 May 2025 considering that Ms Okonjo-Iweala’s term comes to an end on 31 August 2025. According to the “Procedures for the Appointment of Directors-General”, it is clearly stated that “Members shall have one month after the start of the appointment process to nominate candidates.” In short, members can do so by 31 December 2024, said a legal analyst, who asked not to be quoted. Further, in case an incumbent DG is seeking a second term, she or he is required to notify the General Council chair before the start of the process, and she or he shall automatically be considered as a candidate. Subsequently, the nominated candidates, including an incumbent DG who is seeking re-appointment, shall have three months (i.e. 31 March 2025) to campaign and make themselves known to the membership. Finally, the period between 30 April 2025 and 31 May 2025 is to be used by the membership to select one of the candidates on a consensus basis following the relevant rules, the legal analyst said. After the final process, the candidate who emerges as a frontrunner in the race after considering the breadth and diversity of support garnered in the General Council chair’s consultations, is open to any Member not to join the consensus and thereby stall the final selection. This is what happened in 2020 when former USTR, Ambassador Lighthizer, and his deputy trade representative Ambassador Dennis Shea, blocked the final selection of Ms Okonjo-Iweala, even after she had secured maximum support as the candidate from Nigeria. At a time when some powerful members are chipping away at the margins of the Marrakesh Agreement, by proposing new approaches to decision-making based on the notion of “responsible consensus”, it is important that the General Council chair follows the process as set out in document WT/L/509, said a trade envoy who asked not to be quoted. +
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