Against the backdrop of a pandemic, recession, US-China tensions and rising protectionism, the World Trade Organization (WTO) needs a new leader. Only the resilient should apply.
Brazilian Director-General Roberto Azevedo stunned the WTO's 164 members last week by announcing he would resign at the end of August, a year earlier than expected, adding to the tumult facing global agencies amid a backlash against globalization.
The Geneva-based body needs a successor by the time Azevedo leaves, or at least by December, when it will get up to speed on a range of issues ahead of its biennial conference in 2021.
That's a tall order for an organization that hasn't produced any major international agreements in years and decides its head by consensus.
Even though the WTO is member-led, a strong and charismatic leader is seen as crucial, particularly as the coronavirus-hit global economy faces its worst recession in nearly a century and tensions between the United States and China resurface.
“These are unprecedented times and the WTO will need a new playbook if it wants any serious role in rebuilding the global economy,” said Kelly Ann Shaw, a partner at Hogan Lovells and a former senior White House official who served under the U.S. Trade Representative during Azevedo’s selection. "What the WTO really needs is a reformer«.
More than 100 trade barriers have been erected since the coronavirus outbreak. Some states question their dependence on other countries, especially China, for supplies. US President Donald Trump has stepped up his criticism of the WTO and the World Health Organisation (WHO), which he says are too favourable to China. He described the WTO last week as “horrible”.
The WHO has rejected criticism that it is too close to Beijing. The WTO has not commented.
The United States and China, which reached a "Phase 1" trade deal in January, are once again at war, with Washington trying to block the supply of chips to blacklisted telecoms giant Huawei.
The United States already crippled the WTO's ability to intervene in trade wars in December after blocking appointments to the WTO body that rules on appeals in disputes.
Spokesman Keith Rockwell admitted the CEO role was "one of the most difficult and demanding jobs there is" with a "daunting record" of problems.
"But we have clear procedures and I'm sure we'll get some outstanding candidates, so I hope everything goes well," he said.
With three of the six previous incumbents from Europe, and the others from Thailand, Brazil and New Zealand, there is pressure to elect a leader from Africa.
Bill Reinsch, a former U.S. Department of Commerce official who now works at the Center for Strategic and International Studies, said there was Four possible candidates from Africa: Hamid Mamdouh, an Egyptian lawyer at King & Spalding LLP and a former WTO official; Yonov Frederick Agah of Nigeria, deputy director-general of the WTO; Eloi Laourou, Benin's ambassador to the UN; and Amina Mohamed, Kenya's former ambassador to the WTO and now the country's sports minister.
Agah, Laourou and Mohamed did not immediately respond to requests for comment. Mamdouh confirmed her candidacy to Reuters and said she was backed by the Egyptian government.
"The problem, as always with Africa, will be whether they can unite behind a single candidate," Reinsch said.
Previous selections for WTO chief have involved what some former officials describe as a “beauty pageant” involving public events and visits for members to vet candidates.
The coronavirus makes such in-person meetings difficult and last month's virtual WTO meetings have been plagued by frozen screens and garbled messages.
Other global bodies such as the UN have switched to written votes, but WTO members have thrown in the towel, saying formal decisions cannot be made online or in writing.
Formal nomination of candidates has not yet begun, but the WTO will be keen to avoid a repeat of 1999, when New Zealander Mike Moore and Thailand's Supachai Panitchpakdi split the vote.
Rohinton Medhora, president of the Canada-based think tank the Centre for International Governance Innovation, said that There would be a “tremendous clash” if Washington and Beijing proposed candidates or sought to play prominent roles in the selection.
A Chinese Foreign Ministry spokesman said it would defer to “relevant departments” on the specific task of finding a new chief and would “maintain close communication and coordination” to ensure a smooth handover.
The U.S. Trade Representative's office declined to comment, referring to an earlier statement by Representative Robert Lighthizer that said the United States looked forward to participating in the process.
The divisions are not just between Washington and Beijing.
Europe defies Trump's steel and aluminum import tariffs on 'national security' grounds
Japan has also invoked national security to curb high-tech exports to South Korea, in a trade dispute between Russia and Ukraine, and in a WTO case brought by Qatar against it.
Source: Reuters
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