World Trade Organization members are likely to refrain from appointing an interim director general to succeed Roberto Azevedo when he steps down at the end of August, two sources following the process said on Wednesday, after Washington’s insistence on a U.S. candidate caused a deadlock.
Under the new proposal, instead of appointing one of four deputy directors to serve as interim chief until Azevedo’s replacement is appointed later this year, those officials from the United States, China, Germany and Nigeria would continue their current responsibilities.
“The U.S. is insisting on an American, but China and Europe put the brakes on that,” said a former WTO official familiar with the current process.
A decision to finalise the interim arrangement could come as early as this week when WTO members are expected to meet.
Meanwhile, eight candidates including Nigeria’s Dr Ngozi Okonjo-Iweala and other candidates from Mexico to Moldova are bidding to become the next director-general of the World Trade Organization to replace Robert Azevedo, who steps down at the end of August.
The next chief would broker international trade talks in the face of widening U.S.-China conflict, protectionism increased by the COVID-19 pandemic and pressure to reform trade rules.
U.S. President Donald Trump’s “America First” policies have upended the global trading order and presented an existential threat to the WTO, which the president has described as “broken” and “horrible”. Washington has blocked appointments to the WTO’s Appellate Body that settles trade disputes, which now no longer has the minimum number of judges to convene.
HOW THE DIRECTOR-GENERAL IS CHOSEN
The candidates have been given two months to campaign until September 7. Normally this would involve trips to national capitals, but with the COVID-19 pandemic much of that is being done in a virtual format.
The next phase involves whittling down the field, most likely first to five, then two before a final decision is taken.
The WTO is a members-driven organisation with decisions reached by consensus among 164 countries. Three WTO ambassadors who chair leading committees will lead the process, seeking to establish which candidates have the widest support.
In so-called “confessionals”, members will tell this “troika” their preferences, without ranking them and without vetoes in a process expected to last two months. Voting on the next director-general is seen only as a last resort if consensus cannot be reached.
The process does not always work smoothly. In 1999, former New Zealand prime minister Mike Moore and Thailand’s Supachai Panitchpakdi divided WTO members, with a compromise finally found to give each a term, shortened to three years from four.
Because Azevedo’s term will finish before his replacement takes office, members must also agree on a temporary caretaker director-general from among four of his deputies.
MORE SOFT THAN HARD POWER
The Marrakesh Agreement that established the WTO in 1995 does not give a detailed description of the director-general role. The responsibilities should be “exclusively international in character”.
The incoming chief would be expected to appoint four new deputies, present budget proposals, and chair the trade negotiations committee which oversees multilateral accords such as on fishing subsidies.
The director-general can also intervene in trade disputes, in very rare cases offering mediation, more often by appointing people to adjudicating panels when parties cannot agree.
Otherwise, the director-general does not forge global trade policy, but is meant to act as a neutral broker: part administrator, part peacemaker