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Info Service on WTO and Trade Issues (Jul24/13) Geneva, 15 Jul (D. Ravi Kanth) — Chad, the coordinator of the African Group, on 11 July requested the chair of the World Trade Organization’s General Council to “begin the appointment process as soon as possible” to select the incumbent Director-General, Ms Ngozi Okonjo-Iweala, for a second term, despite an alleged violation and circumvention of the relevant WTO rules, said people familiar with the development. With the support of a few members – Nigeria, Sierra Leone, The Gambia, and Djibouti among others – while seemingly ignoring the lack of consensus within the African Group itself on this issue, Chad went ahead to send a communication to the WTO General Council (GC) chair, Ambassador Petter Olberg of Norway, under alleged pressure from the DG, said people familiar with the development. Ms Okonjo-Iweala held a one-on-one meeting with the Indian trade minister Mr Piyush Goyal in Zurich on 14 July, apparently to seek his support on various issues, particularly on fisheries subsidies and agriculture. It remains to be seen whether she broached the issue of her second term during the meeting, said people familiar with the development. However, India seems to have delivered a strong message against the ongoing developments at the WTO, said people familiar with the meeting. The communication (WT/GC/W/948) sent by Chad, titled, “Appointment of the Director-General”, is listed as the fourth item on the General Council agenda, and is expected to come up for discussion at the meeting on 22 July. After highlighting the procedures for the DG selection process as spelled out in document WT/L/509, Chad contends that Ms Okonjo-Iweala’s term ends in August 2025, with the process for the selection of the DG required to be started in December by the GC chair. However, it said that it needs to be advanced as it takes place amidst the preparations for the WTO’s 14th ministerial conference (MC14) in early 2026. To allow members “to focus on the preparations for MC14 that will be taking place in Africa (Cameroon),” Chad said that “it is crucial that the process of appointing the Director-General does not overlap with the preparations for MC14.” “For these reasons, the African Group wishes to request the current Director-General, Dr Ngozi Okonjo-Iweala, to make herself available to serve a second term in accordance with Article 12 of the Procedures for the Appointment of Director-General (WT/L/509),” Chad maintained. Praising the incumbent DG for her leadership during MC12 and MC13 “to conclude several long-standing multilateral agreements,” Chad said that she should serve for a second term. It is an open question whether all the agreements reached at past ministerial conferences have been implemented or the failures of MC13 properly reflected in Chad’s communication. DG’S ALLEGED PRESSURE Several trade envoys alleged that the DG played a role in exerting pressure on Chad and a few other African countries to go ahead with their communication while being aware that it has no consensus within the African Group. It appears somewhat odd that the proposal, without the consent of the DG as well as the African Group, would have been submitted, said people familiar with the communication. Further, when the DG became aware that the rules set out in the relevant GC decision are allegedly going to be circumvented or amended to prematurely start the selection process, she should have intervened to request the African Group to observe the correct procedures. It seems highly unprofessional for Ms Okonjo-Iweala to ignore these developments, said a trade envoy who asked not to be quoted. The trade envoy of The Gambia, one of the few African countries that pushed the proposal, denied any pressure, saying, “we highlighted our reasoning and rationale for the greater good of the WTO.” Ambassador Muhammadou M. O. Kah of The Gambia told the SUNS,” Our efforts about the submitted proposal are within the rules of the WTO and was submitted to the competent authority – the WTO GC chair without pressure or prejudice.” He said that his mission “has never been part of any attempt to circumvent any rules and is never been under any pressure from the DG or the Africa Group of Ambassadors to do so.” However, he did not mention whether the proposal had any consensus within the group, though he mentioned that it is the “collective wish.” WTO DENIES ALLEGATIONS When asked whether the DG has exerted pressure on Chad and five other countries to go ahead with the proposal and whether she is willing to accept an allegedly blatant violation of the rules in a rules-based organization, the WTO spokesperson flatly denied the allegation. In a reply sent to the SUNS, the WTO’s spokesperson, Mr Ismaila Dieng, said: “These allegations are entirely unfounded and grossly misleading.” “The selection of the Director-General (DG) is exclusively within the jurisdiction of the members, with absolutely no involvement from the DG in this process,” Mr Dieng said. “The Director-General has clearly indicated that she is considering the matter and will advise in due course,” the spokesperson said. “Any insinuation to the contrary is not only baseless but also intentionally misleading,” Mr Dieng said, suggesting that “I direct you to the African Group for further context and rationale behind their communication.” According to the WTO’s spokesperson, “The African Group, adhering strictly to the established procedures for the Appointment of Directors-General (WT/L/509), has formally requested the inclusion of an agenda item concerning the appointment of the Director-General for the upcoming General Council.” CIRCUMVENTION OF WTO RULES? The communication from Chad appears to be an ask for circumventing the rules, and the current GC chair ought to have turned down the communication on grounds that it would be tantamount to circumventing/amending the rules, said a former GC chair, who asked not to be quoted. The reason offered by Chad to advance the process because it overlaps with MC14 in Cameroon in 2026 is unsustainable, as the selection process for Mr Pascal Lamy of France in 2004 coincided with the Hong Kong ministerial meeting in December 2005, the former GC chair said. Further, the selection process of Mr Roberto Azevedo of Brazil overlapped with the WTO’s ninth ministerial meeting in Bali, Indonesia, in December 2013. Also, due to the sudden resignation of Mr Azevedo and his early exit, Ms Okonjo-Iweala’s term also overlapped with MC12. However, the current GC chair does not think the African Group’s request amounts to a circumvention of the rules. When asked whether he would entertain such a controversial communication because it amounts to a circumvention of the rules, Ambassador Olberg told the SUNS that “it is a fair ask”. The GC chair said that there is “no circumvention of rules” and that it is for the General Council to decide. Asked about Norway’s stand, which historically stood for respecting the rules since the tenure of former GC chair Ambassador Kare Bryn of Norway in 2000, the GC chair, who is the trade envoy of Norway, said that he cannot comment in his capacity as the current GC chair. Ambassador Olberg said, “You should contact my deputy ambassador on Norway’s stand.” However, the deputy trade envoy of Norway did not respond to calls or messages at the time of writing this article. Several trade envoys who spoke to the SUNS on the condition of anonymity expressed dismay over the GC chair’s comments. They made the following observations: “1. The request is not coming from the African Group. It is only a handful of African countries who have made some sort of agreement with some of the majors to pull this off and it is therefore illegitimate. At the GC, it would be advisable to test whether all African countries have given their assent. But experts representing their Ambassadors or Ambassadors themselves have been [allegedly] bullied into keeping quiet to let the submission go to the GC without making a fuss. 2. The rules are clear that the process has to start 9 months before the expiration of the incumbent’s term. 3. This has been the rule as well as the practice. Now if it is amended, assuming there is consensus among the membership to do so, would this rule change be applicable to only this selection process or all future selection processes? 4. If it is the former then it is clear that it is being done because of the possibility of a change in Administration in the US. In good Western tradition, an outgoing Administration cannot tie the hands of an incoming Administration. 5. Possibility should be given to other candidates to compete whether from Africa or elsewhere. Some interested persons would only make up their minds on the last day. To bring the starting date forward would defeat the ends of justice. 6. The rules should be respected and any attempt to change them would undermine the credibility of the WTO. If the rules could be bent at will, the current DG may not have been appointed. She could well secure the support of the membership for a second term but the rules should be respected. If she is confident that she is doing a good job, she should not be threatened by a Trump Administration. 7. What outcomes has the DG really achieved? It remains a serious question and if you look beneath the surface of those outcomes and the current state of the WTO, the core issues of the negotiations have been diluted and mandates eroded. She has done nothing for Africa except get on their ticket for appointment and now re-appointment, and dismantle the cohesion of the group, who used to be an independent, outspoken voice on African interests in the WTO. Her only success has been giving visibility to the organization and that too, only cosmetically, but she has successfully strengthened the power of the secretariat at the expense of the members.” It remains to be seen whether the United States will support the African Group’s communication or remain silent at the GC meeting, said a trade envoy, who asked not to be quoted. +
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