THE TTALK QUOTES


On Global Trade & Investment
Published Three Times a Week (with occasional bonus quotes) by
The Global Business Dialogue, Inc.
Washington, DC  20006
No.54 of 2020
SATURDAY, JULY 18, 2020

Click Here for Wednesday's quote on Liberté, Égalité, and Taxes.


AT THE WTO: U.S. LOOKING FOR A REFORMER

" I look for someone who understands the nature of the problem of free economies dealing with China …. And someone who understands that we need across-the-board reform. "

Amb. Robert Lighthizer
June 17, 2020
CONTEXT
On May 14, Roberto Azevêdo announced he would be stepping down from his position as Director-General of the World Trade Organization on August 31, 2020. The window for members to put forward nominations for his replacement opened soon thereafter and closed on July 8. When it did, these eight candidates* began the process of making themselves known to the members: 

Dr. Jésus Seade Kuri of Mexico
Dr. Ngozi Okonjo-Iweala of Nigeria
Mr. Amdel-Hamid Mamdouh of Egypt 
Mr. Tudor Ulianovschi of Moldova
Ms. Yoo Myung-hee of the Republic of Korea 
Ms. Amina C. Mohamed of Kenya
Mr. Mohammad Maziad Al-Tuwaijri of Saudi Arabia, and 
Dr. Liam Fox of the United Kingdom 

Last week each candidate had an individual opportunity to make his or her case for selection to the WTO General Council, and then to do the same at a WTO arranged meetings with the press. We expect to review several if not all of those press presentations next week. 

Today’s featured quote is from an earlier event, namely USTR Robert Lighthizer ’s testimony before the House Ways and Means Committee on June 17.  Rep. Vern Buchanan (R-Fl) asked the Trade Representative what qualities he would like to see in the next WTO director-general. In response, Ambassador Lighthizer said, “I think the WTO is a mess,” adding that, in his view, the organization has failed America and failed the international trading system. He then turned to the specifics of what he would like to see in whoever takes the helm after Azevêdo, saying:

I ask myself, what do I look for in a new director-general? I would say, first of all, someone who wants reform, fundamental reform. I think we that have to do things very, very differently. I think a number of countries are not treated fairly but particularly the one that I work for is not treated fairly. So, I think we need fundamental reform. And, secondly, I think we need a director-general that understands the fundamental problem that an extremely large, state-run economy cannot be disciplined into the current WTO rules. 

So, I look for someone who understands the nature of the problem of free economies dealing with China …. And someone who understands that we need across-the-board reform . Beyond that I have no real preference.  … If I see any whiff of anti-Americanism in any of the person's past actions, I will certainly be willing to veto their appointment.
COMMENT
We believe this issue is important, that it matters who takes over as the next director-general of the WTO, and so, as indicated above, we expect to spend a portion of next week trying to get a better sense of how each of the eight candidates thinks about the WTO and its future. We are not out to pick the winner. Our goal is simply to try to understand how the membership sees the choices before them. Here we shall stick to three fairly obvious facts. One is that the United States is just beginning to implement a trade agreement, USMCA, with one of the countries championing a would-be successor to Roberto Azevêdo, namely, Mexico. Second, the U.S. is engaged in FTA negotiations with two others, Kenya and the United Kingdom. Those relationships, of course, may have no bearing on how the U.S. sees the process of choosing the WTO’s next DG. The third fact will.  This is that the successful candidate will have to win the approval of the full membership, including, of course, China.  
SOURCES AND LINKS
* The Candidates list a link to the page on the WTO website with the full list of candidates and their biographies. This list is presented in the order in which their nominations were received by the WTO, which is the same order used above. 

At Ways and Mean s takes you to the YouTube video of the Ways and Means Committee’s June 17, 2020, hearing on U.S. trade policy. The link below takes you to the exchange between Rep. Buchanan and Amb. Lighthizer that is discussed above. 
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