Bridges Weekly Trade News Digest • Volume 9 • Number 19 • 1st June 2005
Pascal Lamy Confirmed As Next WTO Director-General
WTO Members formally appointed former EU Trade Commissioner Pascal Lamy to be the next Director-General of the WTO at a 26 May meeting of the organisation’s General Council. The Frenchman will start his four-year term on 1 September 2005.
At the gathering, General Council Chair Ambassador Amina Chawahir Mohamed of Kenya, who had led the consultative process to determine Supachai Panitchpakdi’s successor for the WTO’s top job, formally recommended Lamy for the post. Mohamed had announced to delegations on 13 May that Lamy had emerged as the candidate most likely to gain the consensus support of all WTO Members (see BRIDGES Weekly, 18 May 2005). His last rival for the job, Uruguayan WTO Ambassador Carlos Perez del Castillo, withdrew his candidacy at that time. The two other candidates, Mauritian Foreign Affairs and Trade Minister Jayakrishna Cuttaree and Brazilian WTO Ambassador Luiz Felipe de Seixas Correa, had pulled out of the five-month long race after earlier rounds of consultations.
The 148 Members of the WTO unanimously accepted Mohamed’s recommendation. Costa Rica, the only country to express qualms about Lamy’s selection at the 13 May meeting, kept to its promise to not veto his appointment by preventing consensus.
Lamy sets Doha Round completion as priority
In prepared remarks, Lamy said he was "honoured" to assume the role of Director-General. The completion of the Doha Round of trade talks "will be my immediate, first, second, and third priority," he said, "so as to ensure that trade opening continues to contribute to development and that we place the interests of developing countries at the centre of the world trading system."
With the December Ministerial Conference in Hong Kong approaching and a significant end-July target for ‘first approximations’ of an eventual deal, Lamy encouraged trade diplomats not to wait for his arrival on the job, but to achieve as much as possible before the summer break in August. Lamy said "if we were to wait until September to start preparing seriously for the conference, Hong Kong would be in real danger."
Supachai noted, "I intend to make every effort to move the Doha Development Agenda negotiations as far as possible to ensure that we are well positioned for our Hong Kong… A solid outcome in our July General Council will give Pascal a very good platform from which to launch the last stage of Ministerial preparations."
In addition to the Doha Round talks, Lamy will also have to address the effects of China’s surging textile exports in the wake of the expiry of trade quotas, which have created tension with the US and EU (see related story, this issue). He may also have to contend with a high-profile WTO dispute between the US and the EU over billions of dollars worth of subsidies to their respective large civilian aircraft manufacturers (see related story, this issue).
Positive response surrounding Lamy appointment
Lamy’s candidacy had been controversial because of policies he espoused during his tenure as EU Trade Commissioner from 1999 to 2004. Nonetheless, Lamy managed to win the support of many developing countries during his campaign, and a generally positive response surrounded his appointment.
Many trade negotiators expressed relief that in the end, the nomination race went smoothly, and allowed delegations to remain focused on the actual work of the ongoing negotiations. Others had specific praise for Lamy himself. Supachai praised Members’ selection for his successor, saying that Lamy’s "experience in trade matters, his grasp of detail and his proven track record in institutional management, ensure that he will be an excellent Director-General." Pointing to the Lamy’s knowledge of trade matters, international experience, concern for development, and constant search for consensus, EU Commission President Jose Manuel Barroso described him as "uniquely qualified to lead the WTO at this defining moment."
Johannesburg-based daily Business Day quoted South African chief trade negotiator Xavier Carim as saying that the future Director-General had vast experience with the global multilateral trading system and would make a "positive contribution" to the Doha Round. UN Secretary-General Kofi Annan said that Lamy’s "understanding that progress on trade is vital to our work to reach the Millennium Development Goals (MDGs) makes him an excellent leader of the WTO at this defining time."
Groser to stay on as agriculture Chair for time being
During the same General Council meeting, Mohamed read out a statement thanking New Zealand’s government for agreeing to continue to provide funding to their former WTO Ambassador, Tim Groser, as he stayed on as Chair of the WTO agriculture negotiations (see BRIDGES Weekly, 25 May 2005). The former diplomat, who is now running for political office in New Zealand, is chairing this week’s talks in the Committee on Agriculture. He has indicated that he would like to stay on as Chair of the talks in his private capacity until July or even December. However, it is possible that some delegations may not approve of having an active politician as Chair of the sensitive negotiations. Mohamed announced that she would start consultations with WTO members to find out what they think would be the best way to proceed.
ICTSD reporting; "SA upbeat on Lamy’s selection as head of trade body," BUSINESS DAY, 31 May 2005; "Lamy warns on Doha trade talks", FINANCIAL TIMES, 28 May 2005; "Lamy Formally Secures Appointment As Next World Trade Organization Chief," WTO REPORTER, 27 May 2005; "WTO Members choose Lamy as organization’s 5th Director-General," WTO PRESS RELEASE, 26 May 2005; "WTO Confirms European Union’s Lamy as Next Chief," BLOOMBERG, 26 May 2005; "France’s Pascal Lamy chosen to head WTO", REUTERS, 26 May 2005; "Former EU Trade representative confirmed WTO chief", MERCOSUR, 26 May 2005; "European Commission welcomes appointment of Pascal Lamy as next WTO Director General", EUROPA, 26 May 2005; "Annan Congratulates Former EU Official on Selection As Head of World Trade Organization," UNITED NATIONS PRESS RELEASE, 30 May 2005.