[The Editors' Verdict]To Make the "Korea's Carla Hills" the Head of the WTO

Roundtable on Japanese Government's Export Regulations, Professor Jeong In-kyo, Inha University. Photo by Kim Hyun-min kimhyun81@

Yoo Myung-hee, the head of trade negotiations at the Ministry of Trade, Industry and Energy, has announced her candidacy for the vacant position of Director-General of the World Trade Organization (WTO). Since the WTO Director-General candidacy is not in a personal capacity but represents the government of a member country, our government must have comprehensively reviewed various factors before deciding to appoint Director-General Yoo as the national representative.

The author has observed Director-General Yoo's qualifications and achievements as a trade negotiation expert and organizational leader since the mid-1990s. During the Korea-US Free Trade Agreement (FTA) negotiations, she stood firmly against the US side and was even called the "Korea’s Carla Hills." For reference, Carla Hills was the US Trade Representative (USTR) under President George Bush Sr., leading major trade negotiations such as the North American Free Trade Agreement (NAFTA) and rice negotiations with Korea.

The Director-General of the WTO, which oversees global trade, is responsible for enforcing WTO trade rules and leading discussions on establishing global trade norms. Korea has developed from one of the poorest countries to a middle-income country in half a century and is a representative nation that achieved economic growth through international trade and open policies. As the world’s 7th largest exporter and a model country in COVID-19 prevention, Korea needs to restore the WTO’s stature and lead global trade liberalization.

In the context of the COVID-19 pandemic causing a sharp decline in global trade, protectionism is spreading, and US-China conflicts are intensifying. The sudden resignation of Director-General Roberto Azev?do can be interpreted as reflecting this grave situation. As a country highly dependent on trade, Korea is likely to suffer the most from the worsening global trade environment. Although difficult due to the international political structure, Director-General Yoo’s efforts to restore the WTO are directly linked to national interests.

Several countries, including Mexico, Egypt, and Nigeria, have officially declared their candidacies, and the full lineup will be revealed by the deadline on the 8th. As with WTO norms, the Director-General is selected by consensus, but if necessary, a vote will decide. Candidates are first screened through a process of evaluation.

Past cases show that national-level support and diplomatic power are as important as individual capabilities. The Ministry of Foreign Affairs will likely send instructions to Korean ambassadors worldwide to campaign with local governments. Above all, the role of the Korean mission to the WTO in Geneva, Switzerland, will be crucial. Since trade affairs have been transferred to the Ministry of Trade, Industry and Energy, some have expressed concerns that cooperation might be weaker than during the former Ministry of Foreign Affairs and Trade era, but this is expected to be unfounded. With overseas travel restricted due to COVID-19, the role of our diplomatic missions is more important than ever.

Considering various factors, Japan’s opposition is worrisome. Recent reports from Japanese media indicate that Japan is trying to block Director-General Yoo’s candidacy. This may be a backlash against Korea’s rising international status or a continuation of deteriorated bilateral relations following Japan’s export restrictions in July last year.

If Japan is truly our neighboring country, we hope the Japanese government will move away from fostering conflict and instead engage in cooperation and coordination in the international community. We believe the WTO Director-General election is an opportunity for the Japanese government to restore and reverse bilateral relations. Our government also needs to seek solutions to bilateral issues from a broad and strategic perspective.

In any case, the candidate registration will close on the 8th, and candidates will enter a fierce election campaign. Director-General Yoo should emphasize that she is the right person to establish the WTO’s stature and lead an open trade system. Since a systematic diplomatic campaign targeting 164 WTO member countries is the key to this election, the government should support Director-General Yoo’s campaign at an inter-ministerial level. Furthermore, to seize the opportunity to produce the head of this important international organization from Korea, both the government and the private sector should unite in support and encouragement.

Jung In-kyo, Professor, Department of International Trade, Inha University