Favourites emerge in WTO leadership race

Date: 24/09/1998

By Simon Taylor

TWO front runners are emerging in the race to be the next head of the Geneva-based World Trade Organisation as the 1 October deadline for nominations approaches.

Although Renato Ruggiero, the outgoing director-general of the 132-member body, cannot be replaced by another European, the EU's support for either of the two favourites - a New Zealander and a Thai - will be vital if they are to succeed.

The leadership of the WTO has taken on even greater importance given the growing wariness about trade liberalisation in the wake of the financial crises in Asia and Russia. WTO members are looking for someone who can argue the case for increased free trade effectively as public opinion starts to question the benefits of globalisation.

The new director-general will play a crucial role in maintaining the momentum behind the liberalisation process as he or she will oversee the next round of multilateral negotiations which start at the end of 1999.

Ruggiero's term expires in April next year, but he has indicated a willingness to stand down earlier to allow his successor more time to prepare for the ministerial meeting at the end of 1999 which will set the agenda for the next round of talks.

So far, four candidates have officially applied for the post: former New Zealand Prime Minister Mike Moore, ex-Canadian Trade Minister Roy MacLaren, Thai Trade and Deputy Prime Minister Supachai Panichpakdi and former Moroccan Trade Minister Hassan Abouyoub.

Despite reports that Brazil's Foreign Minister Luiz Lampreida was also planning to tender his application, no formal bid has been submitted yet.

At the moment, Moore and Supachai are leading the pack, with MacLaren hampered by the fact that another Canadian, Don Johnson, is head of the Organisation for Economic Cooperation and Development (OECD) and Abouyoub by a lack of weighty support.

Supachai is expected to win the support of the Association of South East Asian Nations (ASEAN) and has been lobbying hard in Latin America. As a representative of the country where the 'Asian 'flu' began, calls from him for further liberalisation could carry extra weight in the region.

Support from another regional trade bloc will be vital to the candidates, especially since the votes of the 16-member Cairns Group of farm-trade liberals will be split between candidates from the bloc.

New Zealand officials said Moore received “positive feedback” when he visited Washington and Brussels. The fact that New Zealanders do not hold any key international posts boosts his chances. The EU has not yet declared its support for any candidate but Trade Commissioner Sir Leon Brittan is planning to raise the issue at next month's meeting of EU foreign ministers. Luxembourg.