> -----Original Message----- > From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED]] On Behalf Of > Margrete Strand-Rangnes > Sent: Tuesday, May 04, 1999 9:06 AM > Subject: (mai) Two stories on the battle for WTO Director-General > Position > > > BATTLE ROYAL FOR WTO LEADER'S POST > > By Martin Khor > (Director, Third World Network, an international NGO based in Penang, > Malaysia). > > > Blurb: The months-long contest for the job of Director-General of the > World Trade Organisation has reached a dramatic and less-than-pleasant > climax. Supporters of Mike Moore, former New Zealand Prime > Minister, claim > victory. They want Thai Deputy Premier, Dr Supachai Panitchpakdi to > withdraw. But the countries supporting Supachai claim that he has led in > support all the while until manipulation by big players > intensified. They > are calling for a vote, which is being resisted by the US and some other > countries. Underlying the bitter fight is a strong feeling by many > developing countries that the WTO's decision-making process is > again being > manipulated in an undemocratic way to suit the interests of major powers. > > ---------------- > > > The fight over who becomes the next Director-General of the World Trade > Organisation has turned both dramatic and nasty over the past few days in > Geneva. > > The issue has gone beyond whether Thai Deputy Premier Supachai > Panitchpakdi > or former New Zealand Prime Minister Mike Moore is the better candidate. > > At stake is the credibility of the WTO itself, as the months-old selection > process has raised questions about the way key decisions are made and how > the organisation seems to be susceptible to the influence of a few major > powers, especially the United States. > > Supachai is strongly backed by the Asean group in WTO and other Asian > countries (including Japan and India), a majority of African > countries, some > European countries and a few key Latin American (Brazil and Mexico) and > Central American countries. He is thus seen as a candidate of the > developing world. > > Moore however has the support of the United States, a key and perhaps > decisive factor, since the US wields such enormous power at the > WTO. He is > also backed by many European countries (especially France), most Latin > American and some African countries. > > Previous Directors General of the GATT (the predecesor of the WTO) and the > WTO have all come from developed countries, especially from Europe. It had > been said at the time Renato Ruggiero, an Italian, was made D-G > in 1995 that > the next appointment would go to a candidate from a developing country. > > That would be fair, for after all the vast majority of the WTO's members > are developing countries. And Supachai seemed an appropriate > choice, given > his experience as Commerce Minister and Deputy Premier and his scholarly > record (he holds a PhD in Economics, specialising in development > planning). > > Moore too has an interesting history, having risen from trade union leader > to Trade Minister and Prime Minister. > > The WTO members agreed that both candidates were excellent and > suitable. In > that case, many argued, Supachai should be given the advantage since he is > from the developing world. > > Indeed, for the past few months, Supachai has been ahead in the race, > commanding a clear majority support. In a normal democratic procedure, > involving some kind of vote, he would have been acclaimed the victor. > > But in the queer process of the WTO, decisions are made by "consensus." > This theoretically means that everyone should agree or at least no one > should object. > > Given such a vague concept, "consensus" has often really meant that > decisions can be made only when the major powers, particularly the US, > agree. At meeting after meeting at the WTO, no "consensus" could be > reached to approve of Supachai, even though it was widely known > he had clear > majority support. > > Then in the past two weeks, intense campaigning was made on Moore's behalf > by the US. It is widely known that Washington made use of its extensive > network and influence to contact the governments of many developing > countries and persuade them to change their mind in Moore's favour. > > Then, at a marathon WTO session last Friday that went well past midnight, > the chairman of the WTO council, the Tanzanian Ambassador, Ali > Mchumo, made > a controversial opening speech, announcing that "the latest evaluation > indicates" that Moore had the support of 62 countries against 59 for > Supachai. He proposed that Moore be appointed the D-G. > > This raised a storm of controversy from Asean and other delegations > supporting Supachai. They felt that the selection process had been > manipulated, as there had been no announcement by the Chairman of > the levels > of support of the two candidates at previous meetings when it had > been clear > that Supachai enjoyed a clear lead. > > Moreover it was by no means clear how the "evaluation" or head count had > been done, and by who, or when. > > Many countries supporting Supachai said that there was no consensus in > support of Moore, and that the best course of action would be to > vote, which > is provided for in the rules of the WTO when a consensus cannot > be reached. > > This raised the objection of the US and other countries that claimed that > since decisions had always been taken "by consensus," taking a vote would > set a dangerous precedent and would split the organisation. > > Many developing country delegations find this argument difficult > to follow. > "It is only normal in a democratic process to vote, and the candidate or > motion with the majority of votes wins, and everyone would then have to > accept the decision," said Malaysia's Ambassador Hamidon Ali, who is also > currently chairman of the Asean group. > > At the heat of Friday night's debate, a few of Moore's supporters used > undiplomatic language to criticise delegations supporting > Suppachai, calling > them "intellectually dishonest" for asking for a vote, and > accusing them of > being disrespectful to the chairman for not agreeing to his proposal. > > When the session resumed on Saturday afternoon, Moore's supporters were > sending signals to the media that the appropriate solution was > for Supachai > to withdraw. > > But that was not to be. Instead, Hamidon made a strong > statement on behalf > of Asean, saying that what was at stake was not a contest between two > candidates "but the viability and integrity of the > decision-making process" > in the WTO. > > He explained that at first Asean went along with the "no veto, no vote" > understanding. Supachai had consistently been the leading contender, and > if the "no veto, no vote" understanding had been observed, > consensus should > rightfully have been declared in his favour. > > "Furthermore in a consensus-building process, the formulation of consensus > is not deferred indefinitely in a manner which accords the non-leading > candidate every conceivable opportunity to catch up. > > "Being a rules-based organisation, we have no other choice at > this stage but > comply with paragraph 1 Article IX of the WTO Agreement, that > is, we go for > a vote." He described it as a right which cannot be blocked by anyone. > > "What would erode our organisation is not the exercise of the > rights clearly > provided in our rules. What would erode it is the effort to prevent such > exercise." > > Ambassador T.J.B. Jokonya of Zimbabwe made an even more stunning attack on > the whole process. He criticised those who had used terms such as > "dissidents", "blockbusters" and "dishonest" to describe Supachai's > supporters, saying: "We the dissidents or assumed infidels were subjected > to the most incessant vicious air raids and were even treated to scud > missles." > > He described the previous day's debate as "hell breaking loose": > "The most > deadly arsenic diatribe was unleashed on those who dared to > oppose the wish > of the anointed in the name of the credibility of the WTO, of the process > and indeed in the name of the Chairman." > > On those who argued against voting on the ground that the "consensus > concept " has served the WTO well, Jokonya made this rejoinder: > "Of course > it has. It has undoubtedly served the North well. For the Third World in > the WTO, the subordinate players, our ecojnomic hope is supposed > to rest in > the process by which the wealth of the rich will trickle down to the poor > countries. > > "Tell me why the North has not even attempted to fulfil the promises of > Marakesh (the agreements establishing the WTO) if consensus has served > members well? Tell me why many years after coming into being > both GATT and > WTO have never had Southern representation in the Secretariat at a > sufficiently high level?" > > He said Supachai's supporters had asked the chairman to call for > a consensus > around him as the leading candidate some time ago. But the > chairman said he > needed more time to consult. He added that instead the chairman had now > called for a consensus around Moore when there was an indication he had > caught up. > > Jokonya called instead for a vote, saying that "a request for a > vote in the > absence of consensus is very much part of the process of this > organisation." > > He added that past GATT leaders had been from the North and it was time to > accept leadership from the South, especially given Supachai's calibre, and > this would make the WTO more global and acceptable. But, he > added, "we know > that when pick came to shovel, the election of the D-G would once again > derive from the massive pressure of political forces." > > The WTO Council will meet again this week to try to resolve the conflict. > Meanwhile the organisation is without a Director-General as Ruggiero left > his post on 30 April. > > - ends > > ********************** > May 4, 1999 > > WORLD TRADE ORGANISATION > > Supachai rejects call to quit > US under attack for pushing for pull-out > > Bangkok Post, Agencies > > Thailand rejected a United States-led call yesterday for > Supachai Panitchpakdi to > quit the race for the top World Trade Organisation job. > > In Geneva, Mr Supachai, deputy prime minister, said: > "We're not > pulling out," and > in Bangkok, Surin Pitsuwan, foreign minister, said: "We are > solidly behind > Mr Supachai. There is no question of his withdrawing."The prime minister > said he had called Mr Supachai to urge him to stay in Geneva and > battle on. > "I want him to stay and fight till the end," said Chuan Leekpai on his > return from China. > > Mr Supachai would expose the "improper conduct" in > the selection > process when he > returns, said Mr Chuan, stressing Thailand would not resort to tricks. Mr > Supachai had done the right thing by not promising deputy > director-general > posts in return for support for his bid. Bhichai Rattakul, a deputy prime > minister, said a vote was the only way out of the impasse and the outcome > should be considered the consensus. > > Mr Bhichai also supported a call for Thailand to > reconsider its > foreign policy in > light of the US conduct. It was time for Thailand to drop its > tendency to go > with the trend and instead adopt a firm stand internationally. > > The reaction came as Uruguay's mission in Geneva > called for Mr > Supachai's > withdrawal and said it was backed by 10 countries, including the > US, France, > Sweden, Turkey, Bulgaria and five central and south American states. > > In a statement, Uruguay argued that Mr Supachai's withdrawal > would be the simplest > way out of the impasse. > > Long sessions of the WTO General Council on Friday > and Saturday > failed to decide > whether Mr Supachai, or Mike Moore, New Zealand's former prime minister, > should succeed Renato Ruggiero as director-general. > > Ali Mchumo, the General Council chairman, postponed > indefinitely > a meeting to have > been held yesterday. > > Mr Surin said the postponement would prolong > confusion and harm > the "efficiency > and integrity" of the WTO. "As is, it is damaging enough for the > organisation," he said. > > Commenting on weekend meetings of the council, Don > Pramudwinai, > the Foreign > Ministry spokesman, said Mr Mchumo had been influenced to act. > The Tanzanian > ambassador, he said, had not consulted William Rossier, the Swiss > ambassador, who had been facilitating the selection process since > October, > four months before Mr Mchumo was named to his post. > > After talks with Bernard Freymond, the Swiss ambassador to > Thailand, Mr Don said > he believed Mr Mchumo had not consulted Mr Rossier on a way out. > Mr Don said > the WTO race was "more dirty" than he thought possible. > > Sources said the US, in a bid to advance Mr Moore's position, > had sponsored travel > to Geneva by 30 WTO members which lack missions there. Half are African, > eight Caribbean, two Latin American, two Asian (Macau, and the > Maldives) and > three South Pacific. > > The US also promised African nations favourable terms > on debts > and on import > quotas, the sources said. > > Mr Supachai's supporters have also objected to Mr Mchumo's > announcement on Friday > that Mr Moore enjoyed more support across a wider geographical > spread and a > greater degree of acceptability. Mr Don said Mr Mchumo had failed > to admit, > when Mr Supachai was leading, that a consensus could not be built > around Mr > Moore. > > > > > > > > > ********************************** > In accordance with Title 17 U.S.C. Section 107, this material is > distributed > without profit to those who have expressed a prior interest in > receiving the > included information for research and educational purposes. > > Margrete Strand Rangnes > MAI Project Coordinator > Public Citizen Global Trade Watch > 215 Pennsylvania Ave, SE > Washington DC, 20003 USA > [EMAIL PROTECTED] > 202-546 4996, ext. 306 > 202-547 7392 (fax) > > To subscribe to our MAI Listserv send an e-mail to > [EMAIL PROTECTED], or > subscribe directly by going to our website, > www.tradewatch.org (Please indicate organizational affiliation if > any, and > also where you found out about this listserv) > > Search the MAI-NOT & MAI-INTL archives at http://lists.essential.org/ >