TWN Info Service on WTO and Trade Issues (Nov24/10)
14 November 2024
Third World Network

WTO: GC chair convenes special meeting to appoint DG for second term
Published in SUNS #10117 dated 14 November 2024

Geneva, 13 Nov (D. Ravi Kanth) — The chair of the World Trade Organization’s General Council (GC), Ambassador Petter Olberg of Norway, is convening a special General Council meeting on 28-29 November to “take a decision on the appointment” of the incumbent Director-General for a second term, even though he has not sought formal approval of the members on advancing the selection process at any GC meeting, said people familiar with the development.

The United States is expected to “reveal its cards” on the GC chair’s proposal to adopt a decision on the appointment of the incumbent Director-General for a second term at the special GC meeting, said people familiar with the development.

On 9 November, the GC chair announced that the incumbent Director-General, Ms Ngozi Okonjo-Iweala, a dual citizen of Nigeria and the US, is the sole candidate, at the end of the nomination period.

In his latest communication (WT/GC/INF/32), the GC chair said, “based on my contacts with delegations over the past days, and as has been done in past instances where the incumbent Director-General was the only candidate, I intend to convene a special formal meeting of the General Council on 28 and 29 November 2024.”

According to his communication, “the first day of the special meeting would allow Members to hear a presentation from Dr Ngozi Okonjo-Iweala on her vision for the WTO, followed by a question-and-answer session.”

“The second day could then provide an opportunity for Members to take a decision on the appointment of the next Director-General,” the GC chair said.

He informed members that he intends to issue “a convening notice” shortly, “indicating the modalities of this special meeting of the General Council.”

“ALARMING” DEVELOPMENTS

The GC chair’s actions seem to have caused some alarm among the members on grounds that he has allegedly violated the procedures governing the appointment of the DG, particularly paragraph 7 of the Procedures for the Appointment of Directors-General (WT/L/509), and worse still, that he is vitiating the overall climate by adopting a “confrontational” stance, said people familiar with the development.

According to paragraph 7 of document WT/L/509, the GC chair is mandated to start the DG selection process nine months prior to the expiry of the incumbent DG’s term of office.

It states: “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.”

Ms Okonjo-Iweala completes her first term on 31 August 2025. Consequently, the selection process of the next DG can only begin in the first week of December.

Moreover, the GC chair started the allegedly “dubious” DG selection process without prior authorization from members.

“Without seeking a formal approval of the members by convening a GC meeting to start the selection process of the next DG, Ambassador Olberg wants members to approve and “rubber stamp” his questionable process at a special GC meeting,” said a trade envoy, who asked not to be quoted.

He appears determined to ensure that the incumbent DG secures a second term before 1 December when the actual selection process is mandated to start, as per the relevant rules, said another trade envoy, who asked not to be quoted.

“The GC chair is creating a dangerous precedent to ensure that the DG, Ms Ngozi Okonjo-Iweala, secured a second term before the new USTR of President Donald Trump takes office,” the envoy said.

At a time when the chair of the Doha agriculture negotiations decided not to proceed with the appointment of facilitators to jumpstart the negotiations due to a lack of “consensus”, it is rather puzzling that the GC chair has decided to advance the DG selection process without “consensus”, said trade envoys, who asked not to be quoted.

Several former chairs of the General Council privately criticised the GC chair for his actions that allegedly violated the procedures from the first day, which could generate tensions with the incoming USTR.

The SUNS on 11 November asked the GC chair for a response/comment to the following questions relating to the alleged illegality of the DG selection process:

“1. You started this process without a mandate from the General Council. Upon what basis do you ask the GC to endorse a candidate who emerged from an illegitimate process?

2. Is it that you want to declare the selection of the incumbent DG as the next DG before 1 December when the process must start as per paragraph 7 of the procedures governing the appointment of Directors-General as prescribed in WT/L/509?

3. While the WTO’s DG, Ms Ngozi Okonjo-Iweala, who wanted to appoint facilitators in the agriculture negotiations based on “convergence” and not “consensus, dropped her plan due to a lack of “consensus”, you are proceeding based on the premise of “detection of convergence.” Are you not only setting double standards but also undermining the rules-based system on irreversible grounds?

4. Your actions seem to indicate that you are in a hurry to get the DG reappointed before the Trump Administration takes office. Have you thought about the consequences of your actions in terms of setting a dangerous precedent for the organization?

5. Don’t you believe that if the incoming US Administration is denied the opportunity to express its views on the next DG, the new USTR may not even cooperate with the WTO leading to the irrelevance of the organization?”

The GC chair has seen the questions sent to his WhatsApp, but he is yet to reply to them.

Much would also depend on what the US intends to do on the GC chair’s decision to convene a special GC meeting to decide on the appointment of Ms Okonjo-Iweala as DG for a second term.

A spokesperson of the Office of the USTR told this writer on 8 October: “The United States is concerned that this action was taken based on the Chair’s assumption of convergence, rather than consensus. The United States will remain engaged in this process, as it will with all other aspects of governance and oversight of the World Trade Organization secretariat.”

Later, the US appears to have given its tacit approval to the GC chair by remaining silent at the GC meeting on 15-16 October.

However, with the changes in the US administration and the likely appointment of former USTR, Ambassador Robert Lighthizer, for a second term, it remains to be seen what the current USTR would do, said people familiar with the development.

Several questions were sent to the US trade envoy to the WTO, Ambassador Maria Pagan, and to the Office of the USTR, for a response on the GC chair’s latest decision to convene a special GC meeting.

The questions posed to Ambassador Pagan and the Office of the USTR are as follows:

“1. Does the US share the view that the GC Chair commenced the selection process illegally and as such any resulting decision is null and void?

2. Would the US request more time for the incoming Administration to make up its mind as to who should become the next DG?

3. It is customary for outgoing US Administrations to refrain from adopting any major decisions. Is the current Administration going to defer the decision as to who should be the next DG to the incoming Trump Administration?

4. The GC chair is behaving as if he has the green signal from your Ambassador Maria Pagan. If this is the case, or do you think that the GC chair and his allies – EU, China, and the “Friends of the System” group led by Norway, Singapore, and Australia among others – want to pressure the US to reveal its position as to whether it accepts the candidature of the incumbent DG or not?”

The Office of the USTR is yet to respond to these questions and it remains to be seen whether the current US administration would remain silent or oppose the decision to appoint the current DG for a second term at the upcoming special GC meeting, said people familiar with the development. +