> -----Original Message-----
> From: mai-not at essential.org [mailto:mai-not at essential.org] On Behalf Of
> Margrete Strand-Rangnes
> Sent: Tuesday, May 04, 1999 9:06 AM
> To: Multiple recipients of list MAI-NOT
> 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
> mstrand at citizen.org
> 202-546 4996, ext. 306
> 202-547 7392 (fax)
>
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