WTO: What U.S endorsement means for Okonjo-Iweala
The government of the United States, on Friday February 5, 2021, endorsed the candidacy of Dr. Ngozi Okonjo-Iweala as the next Director General of the World Trade Organisation (WTO).
The U.S Trade Representatives’ (USTR) office announced the decision of the Joe Biden’s administration on the WTO Director General selection process in a statement published on its website.
The statement was initially withdrawn from the USTR website shortly after the announcement and republished about 10 minutes later.
When Neusroom sent an email to the USTR media office to ask why the statement was withdrawn, the office said in an email: “please try again – it should be fixed now.”
No further clarification was provided, and there was no difference between the first statement and the statement republished minutes later.
What the statement says:
According to the statement, “Dr. Okonjo-Iweala brings a wealth of knowledge in economics and international diplomacy from her 25 years with the World Bank and two terms as Nigerian Finance Minister.
“The United States stands ready to engage in the next phase of the WTO process for reaching a consensus decision on the WTO Director General.”
Events that led to the endorsement
Following the abrupt resignation of Roberto Azevêdo, a year before the expiration of his second term as the Director General of WTO, eight candidates were nominated by their respective governments for the position in July 2020.
President Muhammadu Buhari had initially nominated Yonov Frederick Agah, Nigeria’s permanent representative and deputy director-general at WTO. He was later replaced with Okonjo-Iweala.
Okonjo-Iweala and South Korean Trade Minister, Yoo Myung-hee were announced as the two finalists in October 2020.
Yoo’s withdrawal from the race on Friday February 5, 2021, cleared the path for Okonjo-Iweala to lead WTO. Pundits have said her withdrawal may not be unconnected with the decision of the U.S to support Okonjo-Iweala.
Yoo, who had enjoyed the support of the Trump administration, also announced that her decision was made after “close consultation” with the U.S.
What the endorsement means:
The U.S government’s endorsement is the final nod Okonjo-Iweala, 66, needed to become the DG of WTO.
By tradition, WTO chooses a Director General by consensus. All 164 members of the organisation have to approve the candidate. Despite receiving overwhelming support from other members, the U.S refused to approve Okonjo-Iweala’s aspiration.
In October 2020, Okonjo-Iweala was already receiving congratulatory messages for becoming WTO DG after advancing to the final stage of the selection process with Yoo.
Many had expected that as a U.S passport holder, the U.S government would support her over her Korean rival, but the Donald Trump administration blocked her appointment with a last minute objection. In the same year, the Trump administration also mounted opposition to frustrate the leadership of other international organisations led by Africans – the Africa Development Bank (AfDB) led by Akinwumi Adesina, a former minister in Nigeria and the World Health Organisation (WHO) led by Tedros Adhanom, an Ehtiopian.
With this endorsement from the Biden-Harris administration, Okonjo-Iweala, Nigeria’s former Finance Minister, is now on her way to becoming the first African and the first woman to lead the WTO in the history of the institution.
She told Brookings Institution in a recent interview that what she “would like to do as a priority is restore the vision of the WTO as an organisation delivering for development. Trying to lift the lives of people and bring shared prosperity. A WTO with purpose.”
Neusroom could not reach her for comments.
For how long will she be the DG?
The Director General of WTO is appointed for a term of four years, renewable.
When her appointment is confirmed, she will spend a term of four years in office. The term is renewable.
What makes her an outstanding candidate?
Aside from graduating with an A.B. magna cum laude in Economics from Harvard University, and a PhD in Regional Economics and Development from the Massachusetts Institute of Technology, Okonjo-Iweala brings to the table over 30 years of experience in development economics.
She spent 25 years at the World Bank where she held several key positions before rising to become Managing Director. She’s also a two-time former Finance Minister in Nigeria. During her time as finance minister, she lobbied and held negotiations with the Paris Club of Creditors leading to the cancellation of Nigeria’s $30bn debt.
With numerous honours in her bag, Okonjo-Iweala presently sits on the board of local and global organisations including Twitter and the Global Vaccine Alliance (GAVI) where she’s been chairperson since January 2016.
What is WTO and why is it so important?
Launched in January 1995, the WTO is the only international organisation dealing with the global rules of trade. Its main function is to ensure that world trade flows as smoothly, predictably and freely as possible through its trade agreements.
According to The Balance, because roughly two-thirds of WTO members are developing countries (majorly from Africa), their membership gives them immediate access to developed markets at the lower tariff rate.
“Trade is important to developing countries because trade is an instrument. It’s part of the arsenal of tools, if you will, with which a country approaches development,” Okonjo-Iweala told Brookings Institution.
