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TRADE: Poor Countries’ Man Makes a Strong Case

Stefania Bianchi

BRUSSELS, Mar 10 2005 (IPS) - Jaya Krishna Cuttaree, the African, Caribbean and Pacific countries nominee to head the World Trade Organisation says he will fight for a "rule-based multilateral trading system" to protect the world’s poorest countries if he assumes the role later this year.

Mauritian foreign affairs minister since December 2003, Cuttaree says he will push for a free trade system and also give the poorest countries a voice in global trade negotiations if he becomes director general of the Geneva-based trade body.

"An effective and equitable multilateral trading system is in the interest of all WTO members, but it is even more vital for us, weak and vulnerable developing countries who have very little economic and political clout in the trading system," Cuttaree told media representatives in Brussels Thursday.

"If trade is going to be the engine in the fight against poverty and globalisation it is extremely important for the WTO and the world trading system that developing countries feel they have part ownership in the process," he added.

The official campaign to find the new head of the World Trade Organisation (WTO) was opened Dec. 1 last year. The current head, Supachai Panitchpakdi of Thailand, is due to stand down Aug. 30 this year.

Four candidates are vying for the top post – three from developing countries and one from the ‘developed world’.

Cuttaree is competing with Carlos Perez del Castillo, adviser to the Uruguayan President and a former ambassador to the WTO, Luiz Felipe de Seixas Correa, Brazil’s ambassador to the trade body; and former European Commissioner for trade, Pascal Lamy.

Cuttaree says it is important that the next director general of the trade body is from a developing country.

"The WTO’s priority should be to reach an agreement on the Doha Development Round before the end of this year and put the rich and poor divide behind us. That is why it is important that a candidate from the developing world takes over, because they understand the problems from all sides," he said.

Cuttaree says the WTO must have a "deliverable development dimension", and is strongly advocating a WTO agenda which provides for "operational special and differential treatment in favour of developing countries" to ensure that these countries make "meaningful gains" from trade liberalisation.

Outspoken Cuttaree has played an important role in advancing the African, Caribbean, and Pacific (ACP) position throughout the Doha Development trade negotiations.

Following the collapse of the development round in Cancun, Mexico in September 2003, Cuttaree became one of the architects of the so-called G-90, a coalition of the ACP and Least Developed Countries (LDCs).

The group of 79 ACP countries say they are overwhelmingly behind Cuttaree’s candidacy.

When endorsing Cuttaree’s nomination in December, Keith Desmond Knight, Jamaican minister for foreign affairs and foreign trade, and president-in-office of the ACP council of ministers, said Cuttaree’s prominence as a candidate from a developing country would help his application.

"His thorough knowledge of the needs, specificities and interests of this diverse group and indeed of the entire WTO membership allows him to better appreciate their trade and development needs. This is vital to foster sustainable development as well as sustained growth of world trade with a view to achieving the objectives of the WTO," he said.. Such high level interest and support from developing countries in the position reflects their desire to raise their profile at WTO.

The WTO was set up in 1995 as a result of the Uruguay Round of negotiations, which brought about the biggest reform of the world’s trading system.

Its main role is as a forum of trade negotiations between its 148 members. It also handles trade disputes and provides technical assistance and training for developing countries.

The WTO is keen to avoid another row over the appointment of the new director general, which was the case in 1999 which split developing and developed countries and left the organisation without a chair for months.

A compromise deal was eventually found which saw Panitchpakdi take office for three years and New Zealander Mike Moore take office for three years before him, instead of the usual four-year term for a director-general.

Cuttaree says he is keen to avoid a repetition of those events.

"Sharing the post was a mistake. I have my own vision of how the WTO should be while the other candidates have their own visions, and these cannot be compromised. The most important thing is that the voting process is transparent so that each of the WTO members – rich and poor – can exercise their vote," he said.

Given the WTO voting system, poorer members will have considerable influence in selecting the new chief. It will be the job of each of the candidates therefore to convince poorer countries that he is the right man for the role.

But Cuttaree will face tough competition from the contenders from the developing world who each have their own supporters. Del Castillo is already reported to have won the support of Australia, New Zealand and Singapore, while Correa said earlier this month that he is confident he will win the all-important U.S. endorsement.

And of course there is Cuttaree’s former colleague during his time as chairperson of the ACP council of ministers, French socialist Lamy.

Lamy is the most high-profile nominee for the job, but he may have difficulty gaining support from developing countries who were critical of his trade policy during his five-year term as EU commissioner.

Cuttaree says it is unfortunate that the EU and the ACP group who enjoy a special trading relationship will be "pitted against each other" in the race for the top post.

"I was disappointed to learn that Lamy is also going for the post. It was a complete surprise to me. I always thought that the EU-ACP relationship was based on the strengths and weaknesses of each other and I expected the EU to support us in this. Although the EU has the power to control the WTO I don’t think that this will help the Doha Development Round," he said.

But Cuttaree has not ruled out alliances with fellow developing world candidates if the vote does not go his way.

"I have spoken to Latin American representatives and we all agree that if we want a leader from a developing country, then at a certain point we will have to form some developing country coalitions," he said.

Less hopeful candidates are required to withdraw their names from consideration during the final two months of the process, leaving the general council, on which all 148 member states sit, to establish consensus around one candidate by June 1.