Race for WTO chief: India spells out terms for its support

India has spelt out terms for backing the next head of the World Trade Organization (WTO), with the race to helm the UN body heating up.

The country will back candidates in favour of having a global trade facilitation pact for services, ensuring food security in poorer nations, and committing to talks on developmental issues. At present, eight candidates from as many nations are vying for the position of director general, with incumbent Roberto Azevedo having announced he will be leaving office on August 31.

New Delhi has not yet declared its support to any candidate, and will have discussions with each of them before taking a call, said senior officials in the know.

“India is not even leaning towards any candidate, and will take time to announce its choice, considering the important juncture at which global trade stands. Traditional allies from the developing world, and the bloc of least developed countries will be taken into confidence by New Delhi, before a move is made,” said one of them.

Meanwhile, discussions have been held with multiple candidates — who hail from Kenya, South Korea, Moldova, Egypt, Saudi Arabia, Nigeria, the UK, and Mexico.

The next director general will have to negotiate keeping in mind the rising demand for more scrutiny into the body’s basic role and way of functioning, rising spectre of protectionism, and a dysfunctional dispute settlement mechanism, which, according to Azevedo, has kept most trade arbitrations hostage.

In his farewell address to the WTO on Thursday, Azevedo said all nations need to take up the fundamental issue of updating the global trading system, which is under pressure due to fundamental structural changes in the global economy and not because of local triggers.

He also pointed out that no consequential discussion had taken place on digital trade, while cautioning that if broad rules of trade were not updated, private interests would step in to carve out benefits for themselves.

The power of the WTO as a single stop for resolution of trade spats has been dwindling for a long time. At present, cases take more than a year to be heard, said trade officials in Geneva. Further, smaller nations continue to feel marginalised because issues crucial to them — like a permanent solution to the public stockholding of food grains and demand for a special safeguard mechanism — have eluded mention, they added.

Azevedo had abdicated from the position of director general more than a year before his term was set to end, arguing that the process to find his successor would have hampered preparations for the 12th ministerial conference.

Earlier slated for June in Kazakhstan, the biennial meeting of trade ministers has been pushed back to mid or end-2021.

However, it is still not expected to leave much time for the new chief to sort out the house given the long, complicated process of elections. The second phase of the process, in which the candidates make themselves known to members, will end on 7 September.

The third phase, which involves more than one stage of consultations as members seek to narrow the field of candidates, will then begin. The WTO has announced the third phase will last no more than two months.

“Since decisions are intrinsically based on consensus, a negative vote by even a single member may block the nomination of a candidate. As a result, the process is based on elimination, spread over a number of rounds. This year, there may be three rounds,” said Jayanta Dasgupta, former ambassador of India to the WTO.

The slow but sure death of the WTO’S clout has not surprised India. Over the past two years, New Delhi has repeatedly stitched coalitions with least-developed and developing countries, and arranged multiple mini-ministerials in India to push for a return to multilateralism.

It has also intermittently clashed with richer economies over legacy conflicts — such as the practice of not taxing digital transactions, lack of a services trade facilitation agreement — and also over calls for a global set of e-commerce rules.

EIGHT CANDIDATES FROM AS MANY NATIONS ARE VYING FOR THE POSITION OF DIRECTOR GENERAL, WITH INCUMBENT ROBERTO AZEVEDO HAVING ANNOUNCED HE WILL BE LEAVING OFFICE ON AUGUST 31