Update 15 November
A date has now been set for the re-election of current director general of the World Trade Organization (WTO) Dr Ngozi Okonjo-Iweala, following her unopposed re-nomination as director general.
A meeting of the general council has been scheduled for 28-29 November, where member states could vote on whether or not Okonjo-Iweala will receive a second term. The director general will also answer questions and present her vision for her second term to member states.
Under the rules, the WTO general council is supposed to pick by consensus and only resort to a vote as a “last resort”.
This is meant to be an “exceptional departure” from the normal practice, according to the WTO’s rules.
Elephant in the room
While many nations, including the UK, have supported her bid, the objection of one state could complicate matters.
US president-elect Donald Trump was critical of the director general during his first term in office, but lost re-election before he had a chance to scupper Okonjo-Iweala’s bid the first time round.
He supported South Korean trade minister Yoo Myung-hee but his successor, Joe Biden, chose instead to back to the Nigerian former finance minister.
Original story (11 November): No rival candidates to contest Okonjo-Iweala for WTO top job in expedited re-election process, but US could still veto appointment
The current director general of the WTO, Dr Ngozi Okonjo-Iweala, could stand unopposed in her bid to win re-election to the Geneva-based body’s top job.
The deadline for other candidates to apply for the job passed at midnight on Friday (8 November).
However, last week’s presidential election in the US could yet scupper plans for the Nigerian to return to the role of leading the multilateral body overseeing international trade rules.
Early start
Okonjo-Iweala announced in September that she would stand for re-election, giving potential rivals a 30-day window to submit their candidacy. This deadline passed on Friday.
The WTO General Council chair, Petter Ølberg, told WTO members on Saturday:
“At the end of the nomination period, the only candidacy received for this post is from Dr Ngozi Okonjo-Iweala, the incumbent director general.”
The Nigerian had launched the re-election process early, as the official deadline for her to commence it was the end of November. This decision was “motivated partly by a bid to secure her second term ahead of the US vote in November,” according to Reuters.
The WTO General Council can now approve her second term at its next meeting, which is currently scheduled for 16-17 December. However, WTO members – including the US – could yet veto her appointment.
Trump opposition?
The timing therefore comes at a curious time, given Joe Biden will still be sitting in the White House, but Donald Trump is now confirmed as being the next US president. Trump is due to be inaugurated on 20 January 2025.
His previous administration had opposed Okonjo-Iweala’s first bid to become WTO director general. By the time that WTO members got to the final vote on the position in 2021, however, Joe Biden had succeeded Trump as president, following the 2020 election.
Robert Lighthizer, who served as US Trade Representative during the first Trump presidency and was confirmed to be back in the role over the weekend, called Ngozi-Iweala “China’s ally in Geneva” in his 2023 book ‘No Trade Is Free’.
Trump’s administration also significantly undermined the WTO’s ability to function as the body overseeing the implementation of multilateral trade rules, blocking appointments to the body’s appellate body – something the Biden administration has not reversed.
The president-elect repeatedly proclaimed that he would raise tariffs on all imports into the US during the election campaign, including 60% duties for Chinese goods. If followed through on, this policy could further undermine the legitimacy and purpose of the WTO.
"Those who are likely to be part of the incoming administration either see declining value in WTO or are openly hostile to it," Alan Yanovich, a partner at Akin Gump Strauss Hauer & Feld, told Reuters.
"If they do go ahead and increase tariffs on everyone that will generate a lot of friction and tension."
Contested timeline
The WTO’s decision to expedite the re-election process is therefore now likely to come under scrutiny.
“I don't know what the Biden administration will do, but I think what they should do is tell the WTO to go back to the original timeframe and not try to rush this in the shadow of a US presidential election,” Clete Willems, a trade official from the previous Trump administration, told Politico.
