Bridges Weekly Trade News Digest • Volume 9 • Number 18 • 25th May 2005
Groser Forced To Resign As WTO Ambassador, May Stay On As AG Chair
The New Zealand government has relieved Tim Groser, Chair of the WTO Committee on Agriculture and its Cotton Sub-Committee, of his post as the country’s WTO Ambassador following his announcement that he would stand as a candidate for the opposition centre-right National Party in upcoming national elections. The 23 May decision was in accordance with national legislation requiring public servants to step aside from their official duties if they are running for election. Groser looks likely, however, to continue at least temporarily in his capacity as Chair of the Doha Round agricultural negotiations, and possibly continue through the end of July.
Trade negotiators have expressed mixed views on the potential effects of removing the influential Groser from his Committee post, where his management of the delicate farm trade talks has won praise from many Members. Steve Verheul, Canada’s senior WTO agriculture negotiator, told New Zealand radio that Groser’s stewardship of the Committee had been "exceptionally good," and that " I think if we didn’t have Tim in the chair, our chances of success will be significantly diminished." On the other hand, some Geneva-based trade diplomats, though surprised by the news of Groser’s forced resignation, said that it would not necessarily mean serious disruption for the negotiations, and that everything would depend on who succeeds him.
Groser wants to stay on as Chair, likely to do so at least temporarily
Groser, for his part, has returned to Geneva and indicated that though he would soon retire as a government official, he would like to remain agriculture Chair until the end of his term in December if Members agree to let him do so. In the WTO, Members appoint committee Chairs as individuals — Chairships are not allotted to particular governments. Moreover, there is precedent for naming non-diplomats to chair committees. Groser told the press he would be willing to do the job in his private capacity and without pay, since he would draw a salary from neither his government nor the WTO. "I will ask my mate the Australian Ambassador to send me food parcels," he joked. He also said that it was crucial that he continue shepherding the farm trade talks at least until the Committee’s key July meeting, at which Members are aiming to come up with ‘first approximations’ of a deal that could be adopted at the WTO’s December Ministerial Conference in Hong Kong.
According to the rules governing such appointments, the Chairs of the WTO’s different negotiating groups can be removed by consensus — i.e., if all Members agree that they should step down. They could also choose to resign before the end of their term. A Geneva-based trade source said that in practice, however, Groser’s fate is going to be up to Members — they could make him quit after May or July, or simply let him continue in the post until December. WTO spokesperson Keith Rockwell.told Reuters that Groser would continue to steer the talks "through July."
New Zealand govt alternately conciliatory and hostile
Representatives of New Zealand’s government have been making seemingly contradictory noises about Groser’s staying on as Chair. In a 23 May letter to General Council Chair Amina Mohamed (WT/GC/91), Groser’s former deputy Tony Lynch — now the country’s Acting Permanent Representative to the WTO — indicated that his government "would wish to be as helpful as possible" if the General Council chose to retain Groser’s Chairship. He said that the New Zealand government "would be prepare to consider facilitating Tim [Groser]’s availability to continue a Chairing role… by resourcing him separately" until one month before election day. Lynch said that though a polling date has not yet been set, and must come no later than 24 September, this support would be "reasonably likely" to see Groser funded through the end-July target date for ‘first approximations.’
In stark contrast, however, New Zealand Prime Minister Helen Clark, who belongs to the ruling Labour Party, told a 24 May press conference that her government did not want Groser to stay on as agriculture Chair. "It’s up to the WTO who it appoints…" she said, "but whether the WTO would want to go down the track of employing someone who can’t enjoy the confidence of a member state and has resigned as ambassador is something the WTO would want to consider." Trade Negotiations Minister Jim Sutton expressed "a strong sense of betrayal" at Groser’s decision, and accused him of compromising the nation’s interests by putting the delicate agriculture negotiations at risk. New Zealand, a member of the Cairns Group of agricultural exporters, would stand to benefit from further liberalisation in global farm trade.
Groser’s National Party has urged the government to allow him to continue as agriculture Chair, arguing that removing him from the position would unnecessarily jeopardise the national interest, since the two parties’ positions on international trade were largely similar.
Early May opinion polls suggested that public support for the Labour Party had slipped, leaving it only four to seven percentage points ahead of the National Party. By all accounts, Groser will receive a high place on his party’s electoral list, virtually guaranteeing him a seat in parliament regardless of who wins the election. As a member of parliament, he would be allowed to take a leave of absence to see out his term as agriculture Chair. However, Groser is widely seen as a strong candidate for trade minister in a potential National Party government. If his party wins, it is highly unlikely that other Member delegations would agree to let him stay on in the position.
Barring any unforeseen developments, Groser will chair the upcoming meeting of the Committee on Agriculture, which is slated to start with informal discussions on 30 May.
ICTSD reporting; "Government wants diplomat out of job," NEW ZEALAND HERALD, 24 May 2005; "PM wants Nats’ new man out of WTO role," THE DOMINION POST, 24 May 2005; "Government backs down over Groser role," NEW ZEALAND HERALD, 25 May 2005; "Withdrawn NZ WTO envoy remains farm talks mediator," REUTERS, 23 May 2005; "Groser Resignation Stuns WTO Ag Negotiators; Officials Warn of Consequences for Farm Trade Talks," WTO REPORTER, 24 May 2005; "Groser seeking a stage much closer to home," NEW ZEALAND HERALD, 23 May 2005; "Labour’s tribalism far from rational," NEW ZEALAND HERALD, 25 May 2005; "PM signals complete exit for Groser," NATIONAL BUSINESS REVIEW, 24 May 2005.