"WTO Secretary-General Runoff Sees Divergent Support Between US and EU... US Prefers Yoo Myung-hee"

Bloomberg Sources Report... "EU Supports Nigeria's Okonjo-Iweala"
US Presidential Election Likely to Influence WTO Vote... China, Brazil Voting Directions Still Unclear

Yoo Myung-hee, Chief Trade Negotiator of the Ministry of Trade, Industry and Energy, and Ngozi Okonjo-Iweala, former Finance Minister of Nigeria, competing in the next World Trade Organization (WTO) Director-General election.
[Image source=AP Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Bloomberg reported on the 20th (local time) that the United States and the European Union (EU) are expected to clash as they support different candidates in the next World Trade Organization (WTO) Director-General election. The U.S. supports Yoo Myung-hee, Director-General for Trade at the Ministry of Trade, Industry and Energy, while the EU backs Ngozi Okonjo-Iweala, former Finance Minister of Nigeria. The U.S. presidential election is anticipated to be a variable in the election.

Bloomberg cited sources saying that the two candidates confirmed for the runoff are actively working behind the scenes to garner support from member countries. The two candidates, confirmed as finalists on the 8th, are competing for the position of the WTO's first female Director-General. The WTO plans to conduct a preference survey by the 27th of this month and elect the next Director-General by the 7th of next month. The Director-General election is based on consensus among the 164 member countries following the preference survey results, and if unavoidable, the next Director-General will be decided through an election.

Ultimately, securing more votes from member countries during the preference survey period is advantageous at the consensus stage. Among the 164 member countries, not many have clearly stated their positions yet, and it remains unclear where the support of major economic powers such as China, Brazil, and India will go, Bloomberg reported. The voting intentions of the EU, which has many member countries, and the globally influential U.S. are critical factors in deciding the next Director-General.

In this context, Bloomberg assessed that the U.S. presidential election is a key factor influencing the election. Depending on who wins the election on the 3rd of next month?President Donald Trump, who has advocated for WTO reform, or Democratic candidate Joe Biden, who seeks to normalize trade relations?the U.S. stance toward the WTO could change.

In particular, Bloomberg reported that close aides said Robert Lighthizer, U.S. Trade Representative (USTR) and a WTO skeptic who has trade negotiation experience with the U.S., China, EU, and the UK, is likely to prefer Director-General Yoo. It is also said that during the Korea-U.S. Free Trade Agreement (FTA) renegotiations, Lighthizer, who sat across the table from Yoo, recognized her capabilities and jokingly offered her a seat. Additionally, Bloomberg added that Lighthizer's support for Yoo may be influenced by the fact that Ngozi Okonjo-Iweala has a close relationship with Robert Zoellick, former World Bank (WB) President, who is pro-international trade.

Sources say that the EU's votes are leaning toward candidate Okonjo-Iweala. The EU plays an important role in the Director-General election as it can influence the votes of its 27 member countries. Bloomberg explained that the failure of Amina Mohamed, former WTO General Council Chair from Kenya and an initially strong candidate in the first and second rounds, to advance to the runoff was influenced by the EU's selection of Yoo and Okonjo-Iweala as finalists. Okonjo-Iweala also enjoys overwhelming support from the 55 member countries of the African Union.

Accordingly, Director-General Yoo is facing a tough battle in the WTO Director-General runoff. President Moon Jae-in and Prime Minister Chung Sye-kyun are making every effort to support Yoo by directly calling leaders of various countries to request their backing. Yoo acknowledged in an interview on the 16th that she is facing a difficult fight, saying, "I believe that by tackling difficult tasks, sweating, persevering, and working sincerely, I can earn the trust of member countries."