Asia/West Split at WTO - 62 to 59

Henry C.K. Liu hliu at mindspring.com
Mon May 3 10:12:01 PDT 1999



>From FT May 3 1999

Battle intensifies at WTO By Frances Williams in Geneva

The countries backing Mike Moore of New Zealand in his bid to become the next head of the World Trade Organisation warned yesterday that the institution risked paralysis unless his Thai rival pulled out of the race.

The 10 countries appealed to the supporters of Supachai Panitchpakdi to drop their objections to the nomination of the former New Zealand premier.

The 134-member organisation has been without a leader since Friday, when Renato Ruggiero formally stepped down as WTO director-general. It needs strong leadership as it prepares to launch a new global trade round at a ministerial meeting in the US at the end of November.

"The obvious way out of the problem would be for Dr Supachai to withdraw voluntarily," the 10 countries said in a statement. They warned that if Mr Moore was vetoed "there would be no way in which Dr Supachai could become the new director-general".

The US, France, Sweden, Turkey, Bulgaria and five Latin American nations called on the core group of Supachai supporters - led by the Association of South East Asian Nations (Asean) - to accept the outcome of the "no vote, no veto" process they had previously agreed to.

WTO members will try again today to reach agreement on the leadership, after hours of talks on Friday and Saturday failed.

Ali Mchumo, the Tanzanian trade envoy who chairs the WTO's ruling general council, said he would continue to seek a consensus in favour of Mr Moore. Mr Mchumo officially "stopped the clock" as of April 30, Renato Ruggiero's last day as WTO director-general.

"This institution will stop, it will completely stop, until we have a new director-general", Rita Hayes, US ambassador to the WTO, said after Saturday's meeting. Mr Mchumo named Mr Moore as WTO members' preferred candidate after a hard-fought contest in which the New Zealander edged narrowly ahead in the final days.

He gained the support of 62 countries spread around all major regions and among rich and poor countries, against 59 who back Mr Supachai, Thailand's deputy prime minister.

While European and some other supporters of Mr Supachai said they would not block a consensus around Mr Moore, the Asean-led group, backed by Egypt, India and Pakistan among others, called for a vote.

Accusing Mr Moore's backers, especially the US, of unfair tactics, they said the decision on the leadership had deliberately been delayed to allow Mr Moore as much time as possible to chip away at Mr Supachai's initial lead.

Most WTO members nevertheless oppose a vote that they fear could set a divisive precedent.



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