Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

The race to lead the World Trade Organisation (WTO) begins. Picking a winner could get messy

The race to lead the World Trade Organisation (WTO) begins. Picking a winner could get messy

On July 8th the window for members to nominate the next director-general of the World Trade Organisation (WTO) closed. Over the next few months members will try to pick between eight candidates, each hoping to rescue the institution from its present sorry state. The process will highlight some of the WTO’s best features—but will also show why the organisation is in such a mess.
Fans of the multilateral trading system boast about its openness. In line with that principle, the top job at the WTO is not sewn up for a European or an American, unlike those at the IMF or the World Bank. In fact, there are no candidates from America, China, the European Union, India or Japan. Nominations range from Egypt and Moldova to Mexico and South Korea.

Members have several credible candidates to choose from. (Britain’s nominee, Liam Fox, is not one of them.) Nigeria’s candidate, Ngozi Okonjo-Iweala, is a political heavyweight: she is a former finance minister and has years of managing operations at the World Bank under her belt. Kenya’s pick, Amina Mohamed, is a trade heavyweight: she chaired the WTO’s ministerial conference in 2015.

From July 15th onwards, candidates will receive a grilling from members. Then the WTO’s consensus-building skills come into play: all 164 members will have to agree on the winner. The process will be a little like therapy, says Hosuk Lee-Makiyama of the European Centre for International Political Economy, a think-tank. “They don’t really understand what they want until they’ve sat and talked about it.”

At this point, the messy reality of trade negotiations will kick in. Just as the quest for consensus can sap ambition from trade talks, the search for a new director-general could end with members plumping for whoever gives the least offence. Robert Lighthizer, the United States Trade Representative, has already said that “any whiff” of anti-Americanism could lead him to use his veto.

The race will probably also highlight the tendency of the WTO’s constituents to talk past each other. A new survey of government officials, academics, NGOs and business groups published by the European University Institute (EUI) finds that many Geneva-based national representatives want a new chief to prioritise restoring the Appellate Body, a sort of supreme court for trade disputes, which the Americans nixed. But they are less interested in reforming the dispute-settlement system, without which the Americans will not get on board.

Expect the months ahead to reveal the disconnect between candidates’ ambitions and what the institution can achieve. Ms Okonjo-Iweala has pledged to mediate between America and China. Good luck with that. Egypt’s Abdel-Hamid Mamdouh has promised to “reboot” the WTO’s ability to negotiate new rules. But the director-general can only move as far as the members want—and members do not want to make the concessions needed.

The victor would therefore inherit a difficult job—if, that is, one is eventually chosen. In today’s fraught circumstances, consensus may not be reachable. The bar is low enough that the appointment of any director-general would count as a success.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Miliband Sets Climate and International Law at Centre of UK Diplomacy
Czech Central Bank Governor Rejects Early Euro Entry and Rate-Cut Pressure
Trump Readies New Tariffs as Temporary Global Levy Nears Expiry
Vivienne Westwood Casts Cicciolina, 74, in Its New Autumn Campaign
Dejavu: Germany’s Military Expansion Reshapes Europe’s Strategic Balance With France
Morgan Stanley Builds a Wall Street Lead in AI Infrastructure Finance
High Prices Push Coffee Drinkers Toward Whole Beans and Home Brewing
Trump Draws Boos and Podium Scrutiny at Spain’s World Cup Triumph
Brilliant move: Péter Magyar Moves to Nominate Chess Grandmaster Judit Polgár as Hungary’s President
Spain Defeats Argentina in Extra Time to Win Second World Cup
Current AI Seeks to Build an Open Global AI Infrastructure Outside Big Tech Control
Germany’s Economic Malaise Reopens the Sunday Shopping Debate
Proposed U.S.-Saudi Nuclear Pact Could Permit Limited Uranium Enrichment Under International Safeguards
Netherlands Declares Water Shortage Emergency After Drought Pushes Rivers to Historic Lows
Why Kentucky Fried Chicken Became KFC—and Why the False Explanations Persist
Ukrainian Drones Strike Wildberries Warehouses Deep Inside Russia
Reported CIA Mission Helped Clear the UAE’s Path to Advanced US AI Chips
Artificial Intelligence Capital Fuels Markets While Governments and Regulators Face Mounting Strategic Tests
China’s Moonshot’s Kimi K3 Narrows the Gap With Anthropic Through Scale, Openness and Lower Cost
The Ledger Will Not Trust on Faith
Trump Administration Pressures Banks to Restrict Financial Access for Undocumented Immigrants
Passenger Bound for Germany Refused to Sit Beside a Woman on a Plane — Then Slapped a Flight Attendant
Ukraine’s Leadership Rift Spills Into the Streets as Protesters Target Army Chief
Ukrainian Drone Barrage Kills Eight and Strikes Russian Logistics Network
The Ten World Cup Finals That Defined Football History
Smartphones Are Getting More Expensive, Sales Are Collapsing, and Even Apple Admits: "Prices Will Rise"
The Monaco Bombing Has Become a Test of Ukraine’s Intelligence Accountability
Leadership Change and Strategic Rivalry Redraw the Political Map
The AI Race Enters Its Infrastructure Era
Britain Nationalises British Steel to Protect Scunthorpe Production and Strategic Supply
French National Assembly Overrides Senate to Pass Historic Assisted-Dying Legislation
Spanish Prime Minister's Wife Ordered to Stand Trial as Corruption Probes Encircle Governing Party
Zelensky Faces Kyiv Protests Over Ousting of Dynamic Ukrainian Defense Minister
Thomas Tuchel Faces Fierce Backlash After Tactical Retreat Costs England World Cup Final Berth
A Quiet Bastille Day: France Grapples with World Cup Heartbreak and Leftover Fireworks
Spain in Ecstasy: "We Feel Unbeatable, We Taught the Whole World a Lesson"
Spain and UK Dismantle Gibraltar Border Following Landmark Schengen Integration Treaty
Hungary's "Puppet" President to Be Ousted, Orbán Fumes: "Democracy Is Dead"
Forget Tinder: The Surprising Platform Where People Find Love
Harvard Astrophysicist to Lead U.S. Scientific Advisory on Unidentified Aerial Phenomena
Emergency Sirens Activated Across Bahrain as Interior Ministry Issues Shelter Directives
World Cup Visitors Turn American Big-Box Stores Into Souvenir Stops
Netflix Weighs Always-On Channels, Bundles and Short-Form Video
Passenger Is Pulled Partly Outside Ryanair Jet After Window Fails Mid-Flight
The AI Invoice Shock: Layoffs Didn't Save Managers Money — They Cost Them More
Concern: Sexually Transmitted Bacterium Among Men Develops Antibiotic Resistance
Passenger Partially Pulled Out of Ryanair Jet After Cabin Window Fails Mid-Flight
Severe Heatwave Drives Dangerous Ground-Level Ozone Pollution Across Two Thirds of European Union
The Physical and Electronic Barriers Disrupting Domestic Wireless Networks
France and Morocco Open World Cup Quarter-Finals as Collina Defends Refereeing
×