Can The U.S. Unilaterally Stall The WTO Chief’s Appointment?

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After months of evaluating different candidates, the World Trade Organization’s General Council has finally made its final choice and recommended Ngozi Okonjo-Iweala as Director-General.

The U.S. is not only the world's largest economy, but it's also the WTO's largest contributor and a founding member. As such, not having Washington on board can be problematic for the organization and the upcoming Director-General. Since the WTO takes its decision on a consensus basis, the U.S. could also significantly delay the election process - but the upcoming presidential elections could also have an impact....

"It is not hard to see that the US action fits Trump’s ideology of favouring bilateral trade deals over the multi-lateral system embodied by the WTO," Meenal Shrivastava, a professor of political economy at the University of Athabasca in Canada, said. The WTO is therefore seriously facing the possibility of a deadlock, and negotiations between the United States and the WTO are likely ongoing at a very high level to find a compromise, a source said on the condition of anonymity.

If the U.S. continues to oppose her nomination, it could put the WTO in weeks or months of stalemate. The former Director-General of the organization, Roberto Azevêdo, a Brazilian diplomat, stepped down in August, so the seat has been empty since then. There are currently four deputies in charge, but there are limits to what they can accomplish.

 

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