-Caveat Lector-

By CLARE NULLIS

GENEVA (May 2, 1999 3:15 p.m. EDT http://www.nandotimes.com) - The World
Trade Organization faced Sunday the prospect of a damaging leadership vacuum
that could undermine its authority in global trade disputes.

Efforts to appoint a new director-general ended in total deadlock after more
than 12 hours of weekend meetings that degenerated into bad-tempered clashes
between supporters of former New Zealand Premier Mike Moore and Thai Deputy
Prime Minister Supachai Panitchpakdi.

Ali Mchumo, chairman of the 134-nation WTO council, reconvened a meeting of
the decision-making body for Monday in hopes of finding a solution.

But prospects looked grim, with Asian and some African nations standing firm
behind Supachai - seen as the candidate of the developing world - and the
United States insisting on Moore.

WTO spokesman Keith Rockwell described the atmosphere at Saturday's session
as "testy, tense and not terribly pleasant."

The impasse and growing North-South split led to fears that a time-consuming
hunt for a new leader might have to begin again from scratch despite the
impressive track record of both current candidates.

Italy's Renato Ruggiero stepped down as scheduled on Friday after a four-year
term in office, taking the WTO's deputy directors with him.

Rockwell said the WTO could continue to function without a leader, although
it might pose some problems for the work of panels set up to adjudicate trade
disputes. If parties involved in the trade rows can't agree on the
composition of the three-member panels, the rules say that the
director-general must name the members.

The Geneva-based body faces an upsurge in disputes following the U.S.
announcement Friday that it will file complaints to the WTO against Europe,
India, South Korea, Canada and Argentina for a variety of alleged unfair
trade practices.

Moreover, the WTO needs a leader with global clout as it prepares for a
November ministerial conference in Seattle, meant to set the trade agenda for
the 21st century and usher in new agreements to liberalize global commerce.

Even if there is agreement Monday on either Moore or Supachai, the successful
candidate would face an uphill struggle in winning over all WTO members given
the depth of bitterness.

WTO council chairman Mchumo, a Tanzanian diplomat, proposed on Friday that
Moore be approved by consensus since he had the support of 62 nations, three
more than Supachai.

However, Japan, Malaysia, India and other Asian nations demanded a vote. That
ran counter to the WTO's time-honored rule that all decisions be reached by
consensus.

Asian countries and their allies are particularly angry that the Thai
candidate held a clear lead for months while the United States and Europe sat
on the fence. Only when Washington opted in favor of Moore did the New
Zealander begin to gain ground.






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