Europe is poised to swing the balance in race for WTO post

Date: 21/01/1999

By Simon Taylor

THAILAND's Deputy Prime Minister Supachai Panichpakdi is poised to take the lead in the race to head the World Trade Organisation next week, with EU foreign ministers expected to tip the balance in his favour.

Recent soundings among the body's 132 members suggest that Supachai is already the front runner for the top trade job. But numerical support alone is not enough to swing the vote, with the WTO's most influential members, the US and the Union, yet to declare their support for a particular candidate.

However, German Foreign Minister Joschka Fischer will urge his EU counterparts to agree on a common candidate at their meeting next Monday (25 January).

Trade officials believe ministers will agree that the next WTO head should come from a developing country, effectively ruling out former New Zealand Prime Minister Mike Moore and Canada's former Trade Minister Roy MacLaren.

In discussions so far, EU governments have been split between the Thai contender and his Moroccan rival Hassan Abouyoub, who have each won support from five or six countries.

Given the existing level of support in Geneva for Bangkok's deputy prime minister, officials believe a decision to support a developing country candidate would make Supachai the odds-on favourite.

Trade officials point out that current WTO director-general Renato Ruggiero is not due to step down until April and could stay on longer if no agreement had been reached by then on his successor. But they say organisation members are eager to make a breakthrough at a meeting next month.

Washington has yet to hint at whom it favours, but Brussels trade sources believe the US is keen to have a candidate from Latin America, given the importance of maintaining the commitment to liberalisation in the US' lucrative markets in the southern half of the continent.

However, American officials in Geneva strenuously deny that there have been discussions about a possible fifth candidate.

Many believe that the US would accept Supachai, given his reputation as an advocate of free trade. They point out that Thailand has not only weathered a financial crisis while maintaining its WTO commitments, but has also unilaterally lowered tariffs.