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TWN
Info Service on WTO and Trade Issues (Nov24/08) Geneva, 11 Nov (D. Ravi Kanth) — The chair of the World Trade Organization’s General Council (GC) on 9 November declared the incumbent Director-General, Ms Ngozi Okonjo-Iweala, as the sole candidate following his invitation to members to submit candidates by 8 November. The DG selection process is “flawed”, as it commenced without a formal decision of the General Council which should have been taken on the basis of consensus among the membership, said several trade envoys, who asked not to be quoted. The GC chair had stated in his earlier letter to members that he had detected “convergence”, and not “consensus”, said trade envoys familiar with the development. In contrast to the GC chair’s decision to proceed with the DG selection process based on “convergence” and not “consensus”, the proposed decision of the DG to appoint facilitators to jumpstart the Doha agriculture negotiations based on “convergence”, appears to have been dropped for the time being, according to an email sent by the chair of the Doha agriculture negotiations on 8 November, said several trade envoys who asked not to be quoted (see separate story). These two diametrically opposing positions appear not to have escaped attention in capitals, as they seemingly exposed the underlying “double-standards” of the decision-making processes at the WTO, several current and former trade envoys told the SUNS. The two differing stands on the issue of “consensus” stemmed from the two separate requests from the African Group, said trade envoys, who asked not to be quoted. THE NEXT PHASE The GC chair, Ambassador Petter Olberg of Norway, apparently quickly moved the issue of the DG selection process on 9 November knowing full well that his actions are allegedly inconsistent with paragraph 7 of the Procedures for the Appointment of Directors-General (WT/L/509) that he had cited in his communication (WT/GC/INF31) of 9 November, said trade envoys familiar with the decision. Paragraph 7 makes it clear 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 GC chair, who is aware that the incumbent DG’s term will expire on 31st August 2025, is not empowered/ authorised to change the previous GC decision without prior consensus from the members,” said several former GC chairs who spoke to SUNS on the condition of anonymity. “Ambassador Olberg’s decision is null and void and the United States with the change of administration or even the existing “lame duck” Biden administration is entitled to say that they will not recognise the GC chair’s decision,” said a former GC chair from an African country, who asked not to be quoted. So far, the US has adopted an ambivalent position, said a Geneva-based trade envoy, suggesting that while Washington said it does not recognize the notion of “convergence” that the GC chair based his decision on to start the DG selection process on 8 October, the current US trade envoy, Ambassador Maria Pagan, remained silent at the crucial GC meeting on 15-16 October without mentioning the DG selection process, said people familiar with the decision. With the sweeping political developments in Washington following the victory of Donald Trump in the US Presidential elections on 6 November, and with the likely reappointment of Ambassador Robert Lighthizer as the new US Trade Representative (USTR), it appears that the GC chair’s allegedly defiant position is likely to irk the new US administration who will be right in demanding to have a say in who should be appointed as the next DG. Instead of giving space to the new administration to make up its mind, the GC chair has chosen to “exacerbate” tensions with the new administration, said several trade envoys who asked not to be quoted. The GC chair has yet to circulate what the next steps would be. He merely stated in his latest communication that he would announce the “next steps shortly.” In all likelihood, the GC chair may convene a special GC meeting to decide on the way forward in the DG selection process. It remains to be seen what the US would say at the special GC meeting as and when it is convened, said trade envoys, who asked not to be quoted. The US trade envoy to the WTO, Ambassador Pagan, and the Office of the USTR remained silent on 6 November to an email query as to whether the US will request the GC chair not to proceed with the DG’s appointment process as it was based on “convergence” and not “consensus”. By allegedly ignoring the relevant WTO rules, the Norwegian GC chair appears determined to ensure that the incumbent DG, Ms Ngozi Okonjo-Iweala, secures a second term without a fight, said people familiar with the development. Moreover, instead of putting the organization’s interest first, the GC chair and his allies appear to attach priority to the DG’s seemingly narrow interest of remaining in office. How can the WTO function without cooperation from the US, asked a trade envoy, who asked not to be quoted. It should be recalled that Ambassador Lighthizer stated that the current DG did not have the credentials to lead a trade negotiating body. It appears that his view has not changed and the DG’s allegedly woeful record seems to back Ambassador Lighthizer’s opinion. The allegedly illegal actions of the GC chair are being backed by the European Union, the “Friends of the System”, a “ginger group” that includes Norway, Singapore, Canada, Switzerland, Korea, and Chinese Taipei among others, as well as China, said trade envoys, who asked not to be quoted. These members need to think of what their relationship with the new US administration would be if they support these irregularities just to deny the US the opportunity to express its view on who should be the next WTO DG. +
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