News Analysis: How will early departure of WTO head impact the organization?

Source: Xinhua| 2020-05-15 21:49:37|Editor: huaxia

by Xinhua writers Yang Xiaohong, Ling Xin, and Chen Junxia

GENEVA, May 15 (Xinhua) -- At a virtual meeting of all World Trade Organization (WTO) members on Thursday, WTO Director-General Roberto Azevedo announced that he would step down on Aug. 31, cutting his second term short by exactly one year.

Analysts have said that after the paralyzing of the WTO's Appellate Body, Azevedo's early departure might once again diminish confidence in the multilateral trading system.

The Appellate Body, which reviews appeals of dispute cases and is normally composed of seven members, has been unable to hear any new cases since Dec. 11, 2019, as it only has one judge left due to a repeated blockage of the nomination of its members by the United States.

WHY LEAVE EARLY?

"It is a personal decision -- a family decision -- and I am convinced that this decision serves the best interests of this organization," Azevedo said, adding that his decision is not health-related or aiming to pursue any political opportunities.

He said that his premature departure would allow members to select his successor in the coming months, without diverting political energy and attention from preparations for the 12th WTO Ministerial Conference set to be held in 2021.

Meanwhile, the COVID-19 pandemic has significantly slowed down many WTO activities. "This offers us a window to launch the selection process with less impact than usual on our work," he said.

The WTO chief plays a key role in the group's functioning. According to the organization's structure, all agencies of the WTO Secretariat are responsible to the director-general.

Specifically, the WTO head, in addition to appointing staff of the Secretariat and leading the body, is responsible for submitting the WTO's annual budget and financial reports to the WTO Committee on Budget, Finance and Administration.

Some analysts have pointed out that the Secretariat without a director-general will become a "caretaker government," making it difficult to accomplish anything.

Citing "a bigger role to play" for the director-general, Lu Xiankun, managing director of consulting institution LEDECO Geneva which is in close collaboration with international organizations, said that the WTO head also plays a vital role in ensuring the normal functioning of the dispute settlement mechanism.

In the daily routine, the chief can also convene informal meetings, listen to members' opinions, and advance WTO-related work, Lu added.

Born in 1957, Azevedo was first appointed WTO head in 2013 for a four-year term. In 2017, WTO members re-appointed him for a second term, which would end on Aug. 31, 2021.

Lu said that Azevedo's early departure may also be related to the current situation of the WTO.

Noting the organization is "in deep trouble," Lu said the three major functions of dispute settlement, multilateral trade negotiations and trade policy monitoring are hindered. Trade conflicts between major economies have occurred, differences among members have widened, and the group's own reforms seem to be in the middle of nowhere, he said.

SELECTING A NEW CHIEF

Azevedo said that in accordance with relevant WTO regulations, the General Council should start the selection process for the new chief as soon as possible.

The selection process normally would be initiated nine months before the end of the current director-general's term. It lasts about half a year and is generally divided into three stages.

First, WTO members should nominate candidates within one month after the start of the process. Then, the candidates have three months to introduce themselves to WTO members, and express opinions on related issues facing the organization. Finally, the General Council narrows down the scope of candidates through consultations, and makes the appointment decision.

Currently, with about three months left before Azevedo's departure, the selection of the director-general will not be able to proceed in accordance with normal procedures. If the candidate cannot be confirmed by Aug. 31, the General Council should appoint one of the current deputy director-generals as acting chief until the appointment of a new chief.

At present, there are four deputy director-generals, namely, Yonov Frederick Agah of Nigeria, Karl Brauner of Germany, Alan Wolff of the United States and Yi Xiaozhun of China.

Some analysts have pointed out that the WTO is a member-driven, consensus-based organization, and decision-making power is mostly in the hands of members. Therefore, Azevedo's early departure has more symbolic than substantial impact on WTO work. Enditem

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