Nigeria’s candidate for the director-general position of the World Trade Organization (WTO), Ngozi Okonjo-Iweala, has said she enjoys “strong support” from African nations and duly expects African leaders to stand behind her in unison. In fact, she said she has been holding “very constructive conversations” with all 164 members of the body.
One delegate has even described Okonjo-Iweala as being “definitely the favorite,” particularly in light of European Trade Commissioner Phil Hogan’s decision to step out of the race. Other candidates who have announced or indicated they are not running are: Former European Union (EU) Trade Commissioner Cecilia Malmstrom, Canadian Deputy Prime Minister Chrystia Freeland, and Dutch Foreign Trade Minister Sigrid Kaag. Another point in favor of the Nigerian candidate is that the country espouses no ill-will or conflicting opinions from either China or the United States (US), and thus holds appeal across the aisle.
Okonjo-Iweala has outlined her goal of raising Africa’s share of world trade from the current level of 3%, and also of working towards the relaxation of coronavirus-induced export restrictions. She hopes that any such restrictions are “temporary, transparent and proportionate so we make sure they do not harm other members.”
The Nigerian candidate is a former finance and foreign minister in the African nation, and is celebrated for having reduced Nigeria’s debt burden by billions of dollars during her tenure. Late last month, the West African regional bloc Economic Community of West African States (ECOWAS) put out a statement signed by Niger’s President and ECOWAS chairman Mahamadou Issoufou reading: “The ECOWAS authority of heads of state and government...calls on other African countries as well as non-African countries to endorse her candidature.”
Nevertheless, there has been some friction among African states. The African Union (AU) was deliberating between candidates from Benin, Egypt, and Nigeria, but the selection process was disrupted by the coronavirus pandemic. During this time, Nigeria changed its candidate for the position, which Egypt has protested, and which AU rules don’t allow. However, the AU has declined to comment on the matter.
Egypt’s candidate is Hamid Mamdouh, a Geneva-based lawyer and former Egyptian trade negotiator and ex-WTO official. Mamdouh is renowned for his negotiation and mediation skills, which was seen in the Uruguay Round in 1992, when he played a key role in the US and the EU settling their differences on agriculture. Additionally, the US, EU, Japan, and Canada made “significant progress in negotiations on tariffs and related subjects (“market access”).”
Similar friction was observed during Kenya and Djibouti’s tussle for the United Nations Security Council (UNSC) seat, when the AU endorsed Kenya, going against its own rotational principle. According to this principle, Djibouti’s candidature was more legitimate as Kenya had held a seat in the UNSC more recently. However, it is clear that this principle is not followed, as South Africa has held the UNSC seat three times in the past twelve years, while Nigeria won its bid in 2012 and 2014 as well.
Other candidates for the position include Arancha Gonzalez Laya from Spain, Tudor Ulianovschi from Moldova, Jesus Seade from Mexico, and Yoo Myung-hee from South Korea. The Spanish candidate is the current foreign minister of her country, and was chief of staff to erstwhile WTO chief Pascal Lamy from 2005 to 2013. However, given the tensions between Lamy’s leadership and the US during his tenure, it is unlikely that Washington will get behind Laya. Ulianovschi was the foreign minister of Moldova from 2008 to 2019 and is a former diplomat. Meanwhile, Mexico’s candidate is a senior trade official in the government, and was a key figure in the redrafted North American Free Trade Agreement (NAFTA). Likewise, Yoo Myung-hee is South Korea’s trade minister, and is known for renegotiating a trade deal with the US and for presiding over trade agreements with Singapore and the Association of Southeast Asian Nations (ASEAN).
All of the candidates are bidding to replace outgoing chief Robert Azevedo, who unexpectedly resigned in May, and will step down from his post on August 31. Azevedo’s surprise departure comes as the WTO is faced with the impact of the coronavirus pandemic and criticism from US President Donald Trump. Trump has accused the body of treating America unfairly. The Trump administration has repeatedly accused the global trade watchdog of having strayed from its purpose of liberalising and protecting markets, and said that conditions around China’s entry into the organisation in 2001 have led to millions of American job losses.
Also Read: WTO Director-General Roberto Azevedo Resigns
The Trump administration has tried to undercut the efforts of the WTO on numerous occasions. Since December 2019, the US has obstructed the WTO’s trade dispute resolution body by blocking the appointment of judges to the organisation’s top court, the Appellate Body. In the absence of a three-judge quorum, the body has too few officials to rule on major trade disputes.
Nominations for the director-general position are open until July 8. WTO members are looking to shorten the six-month process to just three months to avoid having a leaderless body in September. However, given that the US presidential election is only scheduled in November, it is unlikely that a candidate will be selected until the election is over.
While the US, EU, and Canada want the next leader to be from a developed country, in furtherance of their belief that the WTO should rotate leadership between developed and developing countries, other countries, like the African nations, disagree with this position. There is also a strong push to select a female candidate, as the Organization has always been headed by a male director-general.
Right now, global trade seems under threat in a way it hasn’t been since the Cold War, with the coronavirus crisis having brought much of international commerce to a halt. The WTO predicts that trade could decline this year by as much as 32%. At a time like this, cooperation and collaboration are needed like never before. One hopes that the body will choose wisely and elect a candidate that all nations can support and one who can resolve the Appellate Body’s inability to rule on major trade disputes.