WTO now leaderless as chief Azevedo steps down

Reuters

The World Trade Organization’s director-general Roberto Azevedo stepped down on Monday, leaving the global watchdog leaderless as it faces the biggest crisis in its 25-year history.

Rising international tensions and protectionism during a COVID-induced slowdown make reform of global trade rules ever more urgent.

In particular, the WTO appeals court, which rules on international trade disputes, has been paralyzed by Washington’s blockade on the appointment of new judges.

Azevedo, a Brazilian, is heading for a job at PepsiCo Inc and eight candidates are vying to replace him.

In 1999, a four-month gap leadership vacuum was widely seen as damaging, and guidelines to prevent a repeat envisaged the 164 members selecting a temporary replacement from among four current deputies. But Washington’s insistence on its candidate prevented agreement, leaving a vacuum that will last for months.

In theory, a winner should be selected by November 7, under an agreed elimination process that seeks to have a new director-general appointed by consensus.

In practice, trade sources say the uncertainty around the presidential election on November 3 in the United States, which has not said publicly which candidate it prefers, could delay matters further. The 2021 budget, due to be set at the end of the year, which Washington might question, could also be a hurdle.

Peter Ungphakorn, a former WTO staff member who now writes blogs on trade, said there was a risk of a similar “messy selection” of the next full-time chief, citing trade tensions and members’ unwillingness to compromise over the acting director-general.

Day-to-day operations can be handled by the deputies.