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South Korean Trade Minister Yoo Myung-hee and former Nigerian Finance Minister Ngozi Okonjo-Iweala (Hankyoreh archives)

The US openly opposes the candidacy of former Nigerian Finance Minister Ngozi Okonjo-Iweala to become the next director-general of the World Trade Organization (WTO), despite the majority of WTO member states who support her. Instead, the US is rooting for South Korean Trade Minister Yoo Myung-hee.

But major countries in Europe have strongly objected to the position taken by the US, which is seen as being largely responsible for hamstringing the WTO. The fracas leaves South Korea in an awkward position between the two sides.

At 3 pm on Oct. 28, the WTO’s General Council convened a meeting of all ambassadors of its 164 member states in Geneva, Switzerland, to publicly announce that Okonjo-Iweala had received more support than Yoo in preference polls over the past 10 days.

After the General Council meeting, WTO Spokesman Keith Rockwell told reporters that only one national delegation had said it would not support Okonjo-Iweala’s candidacy and would continue to back Yoo. That delegation was the US, Rockwell said.

Rockwell also mentioned an apparent flurry of activity to build a consensus behind Okonjo-Iweala, suggesting that the EU and other players are staunch in their support of the Nigerian candidate despite American opposition. Okonjo-Iweala has the backing not only of the EU but also of important WTO members such as China, Japan, and Canada.

The Office of the US Trade Representative voiced its support for Yoo in a statement on Oct. 28, arguing that the WTO “must be led by someone with real, hands-on experience in the field.” The statement described Yoo as a “bona fide trade expert” and added that “she has all the skills necessary to be an effective leader of the organization.”

The US didn’t specifically mention Okonjo-Iweala in its statement, but it did give the WTO a tongue-lashing. “This is a very difficult time for the WTO and international trade. There have been no multilateral tariff negotiations in 25 years, the dispute settlement system has gotten out of control, and too few members fulfill basic transparency obligations,” the statement said.

The final decision on who will serve as the WTO’s next director-general is traditionally reached through consensus by all member states. That would require not only the US but also South Korea and Nigeria to agree on the winning candidate. The WTO will be holding a meeting to discuss this issue on Nov. 9, after the US presidential election.

“If necessary, as a last resort, a vote could be held to pick a leader [during the meeting on Nov. 9] although that would break the precedent of selecting the WTO chief by consensus,” the Wall Street Journal (WSJ) reported.

“Given that it will come down to a vote, the likelihood of Nigeria winning is 99 percent,” said a EU representative quoted by the Journal.

The meeting on Nov. 9 will probably be affected by the outcome of the US presidential election. Trump’s reelection would probably reinforce American opposition to Okonjo-Iweala and produce more friction with the EU and other WTO members. But given Democratic candidate Joe Biden’s desire to ease trade conflict with American allies, his election could open up room for compromise.

American objection to the selection of Okonjo-Iweala, despite her big lead in preference polls, “prompted an uproar from the delegates of more than two dozen governments and international organizations seated in the room, with European allies, China, Canada, Latin American and African states all rallying against the US,” the WSJ reported.

The EU representative complained in an interview with the WSJ that the US could and should have raised any issues it had with the process at a much earlier point.

A senior American official retorted that the US had raised its objections because the WTO was pushing a candidate who had failed to win American support and added that the WTO’s selection committee was well aware of American opposition.

“The US had opposed Ms. Okonjo-Iweala’s candidacy because she had no background in trade, having spent most of her career at the World Bank,” the WSJ said, paraphrasing the official’s remarks.

The official said that the US “is not trying to weaken the WTO” and added that “Ms. Yoo’s background would make her a stronger leader for the body,” the Journal also reported.

The number of votes awarded to each candidate is kept strictly secret, which is why the deliberations for selecting the WTO director-general are called “confessionals.” Not even the South Korean government has confirmed the exact outcome of the vote.

That said, the South Korean delegation was reportedly informed that the gap between the two candidates was bigger than expected. Seoul reportedly calculates that Yoo is about 20 or so votes behind Okonjo-Iweala.

Under WTO rules, a candidate that receives fewer votes in the preference polling is not required to immediately drop out of the race. Since the director-general is selected by consensus, Yoo has the option of hanging on until Nov. 9 with the hope of pulling off a come-from-behind victory. The US government has reportedly told South Korea that it wants Yoo to stay in the race and has promised its continued support.

But with less backing than expected, it’s unlikely that Yoo could hold on for much longer. On top of her poor chances in the race, the US’ behavior has also provoked sharp pushback from other member states.

“The South Korean government is carrying out an internal review of the upcoming procedures. We intend to make a respectful decision that takes into account both the positions and expectations of member states and the WTO director-general selection process,” said Lee Jae-ung, deputy spokesperson for South Korea’s Ministry of Foreign Affairs, in the regular briefing on Oct. 29.

By Jung E-gil, senior staff writer, and Cho Kye-wan and Kim Ji-eun, staff reporters

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