WTO Director-General Selection — Press Reports EU, Japan Join Those Supporting Dr. Ngozi Okonjo-Iweala of Nigeria

10/26/2020

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Terence P. Stewart | Current Thoughts on Trade

With the third round of consultations concluding on Tuesday, October 27, press reports indicate that Japan will be supporting the Nigerian canadidate and the EU, after extended internal debate, has apparently agreed to support Dr. Ngozi Okonjo-Iweala of Nigeria as well. See The Japan Times, October 26, 2020, Japan decides against backing South Korean for WTO chief, https://www.japantimes.co.jp/news/2020/10/26/business/japan-south-korea-nominee-wto/; Politico, October 26, 2020, EU backs Nigerian candidate for WTO top job, https://www.politico.eu/article/eu-backs-nigerian-candidate-for-wto-top-job/.

Dr. Okonjo-Iweala has received the backing of the WTO Members of the African Union and reportedly several dozen other Members from the Americas and Asia. See, e.g., RTL Today, October 19, 2020, ‘I feel the wind behind my back’: Nigerian WTO candidate, https://today.rtl.lu/news/business-and-tech/a/1596831.html.

Some press article have suggested that China is also likely to support the Nigerian candidate, although there has not been formal confirmation to date and some articles have suggested China may have problems with each of the two remaining candidates. See, e.g., South China Morning Post, October 8, 2020, China faces ‘difficult trade-off’ as WTO leadership race heads into final round, https://www.scmp.com/economy/china-economy/article/3104712/china-faces-difficult-trade-wto-leadership-race-heads-final.

The United States has been reported in the press as supporting Minister Yoo Myung-hee from the Republic of Korea. Bloomberg (article in Swissinfo.com), October 21, 2020, Global Trade-Chief Race Slows as U.S., EU Split on Finalists, https://www.swissinfo.ch/eng/bloomberg/global-trade-chief-race-slows-as-u-s—eu-split-on-finalists/46110158.

It is also known that the President of Korea and other senior officials within the Korean government have been actively reaching out to WTO Members to encourage support of Minister Yoo in the third round. See, e.g., Yonhap News Agency, October 20, 2020, Moon requests support from 2 nations for S. Korean candidate’s WTO chief bid, https://en.yna.co.kr/view/AEN20201020009151320; The Korea Times, October 20, 2020, Government goes all out for Yoo’s WTO election, https://en.yna.co.kr/view/AEN20201020009151320.

What do the news articles portend?

Assuming the support for Dr. Ngozi Okonjo-Iweala is as broad and deep as is being reported, the Nigerian should be the candidate who is announced by the troika in the WTO (Chairs of the General Council, Dispute Settlement Body and Trade Policy Review Body) as the candidate most likely to achieve consensus from the membership at an informal heads of delegation. If there is no opposition from a Member or Members suggesting blockage of consensus, the informal heads of delegation meeting could be set for as early as Thursday, October 29, with a General Council meeting to confirm the selection held that afternoon or on the 30th of October. If one or more Members indicates a likelihood of blockage of consensus, it is likely that the informal heads of delegation meeting would not occur on the 29th to give the troika the opportunity to work with those threatening blockage to attempt to achieve consensus. See October 9, 2020:  October 8th video discussion on WTO Director-General selection process following the announcement of two finalists, https://currentthoughtsontrade.com/2020/10/09/october-8th-video-discussion-on-wto-director-general-selection-process-following-the-announcement-of-two-finalists/ (video from WITA; see comments of Amb. Rufus Yerxa, President of the National Foreign Trade Council).

Under the procedures adopted in late 2002 for the selection of a Director-General if there is a failure to achieve consensus, Members could select the Director-General based on a vote. To date, voting has not been required. Hopefully, the same will be true in this selection as well. If so, it appears that Dr. Ngozi Okonjo-Iweala will be the next Director-General of the WTO.

Terence Stewart, former Managing Partner, Law Offices of Stewart and Stewart, and author of the blog, Current Thoughts on Trade.

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