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TWN
Info Service on WTO and Trade Issues (Jul24/25) Geneva, 23 Jul (D. Ravi Kanth) — Without a formal decision at the World Trade Organization’s General Council (GC) over advancing the selection process to ensure a second term for the incumbent Director-General, the GC chair appears to have made an unusual announcement on 22 July that he would start discussions with members based on the “sentiments” they expressed at the meeting, said people familiar with the development. On a day when the proposed July package of issues failed to garner consensus at the GC meeting that began on 22 July, the chair, Ambassador Petter Olberg of Norway, seemingly took the unprecedented step to start discussions on the controversial selection process for the DG for a second term, said people present at the meeting. At the GC meeting, Ambassador Olberg informed members that he was moving the fourth item on the agenda on the “Appointment of the WTO Director-General – Request from the African Group (WT/GC/W/948)”, which was slated “for action/decision”, to the “for discussion” section further down the agenda, after he was requested by Chad, the coordinator of the African Group, that it would like to have only a discussion on this item at this stage, said people present at the meeting. However, no opportunity was given to Chad to explain why it sought to move its request from the “for action/decision” to the “for discussion” section of the agenda, as it was not the normal convention, said several members who asked not to be quoted. Privately, several trade envoys said the real reason could be a “No” from the United States to join the consensus on the African Group proposal, a stand that would have stopped any move to advance the DG selection process at this juncture. In a rules-based organization, the most influential member may have read the intention of the African Group and its backers – namely, to allegedly circumvent the established rules of the WTO, so as to prevent a possible veto of the current DG by Donald Trump, should he win the US presidential elections this November. It is rather obvious that the US could not countenance any attempt to compromise its political process. According to the Procedures for the Appointment of Directors-General (WT/L/509) adopted by the General Council in December 2002, the selection process for the DG ought to begin nine months before the term of the incumbent DG ends (at end-August 2025), said a legal expert who asked not to be quoted. After the item on the appointment of the DG was moved to the “for discussion” section of the GC agenda, which explicitly meant that there will be no decision taken on this controversial item, something rather unusual happened at the GC meeting on 22 July during the discussion stage, said people familiar with the discussions. Apparently, 58 members, beginning with Chad, South Africa, Nigeria, Egypt and several other countries from the African, Caribbean and Pacific (ACP) group (some of the mentioned countries actually opposed the proposal within the African Group consultations) made a case for starting the DG selection process without delay, given the contributions that the incumbent DG has made, said people familiar with the discussions. The European Union, China, and the “Friends of the System” group led by Singapore, including Australia, Canada, Switzerland, Norway, and several other members, seemingly spoke in support of the African Group’s request, said people familiar with the discussions. Singapore apparently suggested that the WTO would become “rudderless” if Ms Ngozi Okonjo-Iweala is not selected on a priority basis, said a person who asked not to be quoted. Brazil apparently went a step further by declaring that it would have joined the consensus if the African Group’s proposal was put up for a decision, regardless of the alleged circumvention of the WTO rules, said people familiar with the discussions. During the discussion on this controversial item, several major members such as the US, India, Korea, Indonesia, Pakistan, Saudi Arabia, and the United Arab Emirates among others apparently remained silent and did not take the floor, said people familiar with the development. To recall, Korea had put up a candidate the last time against Ms Okonjo-Iweala, strongly supported by the former US Trade Representative (USTR) Ambassador Robert Lighthizer. The USTR had blocked Ms Okonjo-Iweala’s candidature till the change of administration in Washington. It was the Democratic administration led by President Joe Biden that approved Ms Okonjo-Iweala’s candidature. DG’S STATEMENT Following the statements by members at the GC meeting, the GC chair appears to have requested the DG to say a word or two, said people familiar with the discussions. Ms Okonjo-Iweala appears to have expressed her gratitude to the 58 countries that spoke, saying that she is humbled and emotional about the confidence they placed in her, said people familiar with the discussions. She went on to say that she would consult with her family, particularly her husband, adding that she has not made any decision at this juncture, said people familiar with the discussions. It was rather curious to see that in her first intervention, she forgot to thank the African Group and took the floor a second time to thank them, saying that she is “proud to be African”. In a rather unusual scene, rarely witnessed at the GC meetings known for maintaining certain formalities, some delegates started clapping their hands, said people familiar with the discussions. GC CHAIR’S STATEMENT After the applause by members at the meeting, the GC chair said that based on the overwhelming “sentiments” expressed by the members, he would start consultations in the coming days and weeks, said people who asked not to be quoted. The GC chair acknowledged that there is a procedural issue at stake which would only allow him to move if there is “consensus”. The GC chair is well aware of the concerns of some members regarding the alleged circumvention and violation of the rules governing the DG selection process, which have apparently been expressed informally and behind closed doors, said several trade envoys who asked not to be quoted. Those members including some who supported the African Group proposal in the GC on the basis of “political optics” also have concerns with changing the rules simply for political expediency. The GC chair is yet to respond to the question posed by the SUNS on “how can he start consultations without a formal decision, and if that were to be so, why did he remove the item from the “for action/decision” [and] to the “for discussion” stage?” This is the first time that a GC chair appears to be blatantly circumventing the rules to start a process that has no legal sanctity, said a legal expert who asked not to be quoted. It remains to be seen if the US would be steadfast in its opposition to the alleged circumvention of the long- established WTO rules, apparently aimed at compromising the American political process. +
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