Global Policy Forum

By Stefania Bianchi

Pascal Lamy, former European Union (EU) commissioner for trade was set to become the next head of the World Trade Organisation (WTO) Friday after Carlos Perez del Castillo of Uruguay, Lamy's only remaining rival, withdrew from the race to lead the world trade body. "I would like to congratulate Pascal Lamy and to wish him the best of luck in his job ahead. I accept the result. I have requested my government to withdraw my candidacy," said Perez del Castillo, a former ambassador to the Geneva-based trade organisation, and chairman of the organisation's general council, which oversees the work of the WTO. A formal decision on giving Lamy the job will be made May 26.

Lamy, a 58-year-old Frenchman who cites jogging, tennis and cycling as his hobbies, ended a five-year stint as the European Union (EU) commissioner for trade last November. Before that, he was number two at the French bank Credit Lyonnais SA. With a budget of 102 million euros (130 million dollars) and 600 staff, Lamy will be responsible for overseeing global rules governing trade between nations.

One of his first tasks as the new chief will be to push for a conclusion of the Doha Development Round (DDR) of global trade negotiations due to be wrapped up in 2006. Lamy will help guide the WTO at its next ministerial conference in Hong Kong in December which is due to approve a draft deal on eliminating trade barriers aiming at helping poor countries compete on more equal terms on world markets.

The Doha round of trade talks were launched in Doha in Qatar in 2001. The WTO had hoped to complete the talks by the end of 2004, but the talks are months behind schedule. In an interview with the French financial newspaper La Tribune Thursday (May 12), Lamy said concluding the Doha round of trade talks should be priority for the WTO "because it is clear that it (Doha) will not be concluded unless the developing countries, which account for two thirds of WTO members, are satisfied with the results."

A socialist and former French civil servant, Lamy appeared on the global diplomatic scene in September 1999 when he became the EU trade chief. He was a staunch defender of European protectionist measures in agricultural trade. He played a key role at the WTO ministerial meeting in Qatar in 2001 which launched the Doha trade round. He helped win over developing countries by promising that the EU would put its controversial farming subsidies on the table if other countries were ready to make reciprocal gestures.

The European Commission, the EU executive, which strongly backed Lamy's nomination, welcomed news of his nomination. "We understand that following this last round of votes Pascal Lamy emerged as a clear frontrunner. We welcome this. He's uniquely qualified to lead the WTO at this moment," trade spokeswoman Claude Veron-Reville told IPS Friday (May 13).

In order to secure his victory Lamy also needed the support of some of the WTO's poorest members, namely the Africa, Caribbean and Pacific (ACP) group of countries. During his campaign Lamy targeted this group of countries who have privileged access to EU markets. "You can count on my conviction, on my commitment, and you can be sure of my ability to resist pressure," he said in a statement delivered before the WTO General Council in Geneva Jan. 26 as part of his campaign.

Lamy, who will serve four years, will have much personal influence, but unlike the chiefs of the International Monetary Fund (IMF) or the World Bank, he will have no decision-making powers. However, it is hoped that Lamy will help raise the profile of the WTO because he is a political heavyweight. There are also hopes that Lamy's close links with the United States and his friendship with Robert Zoellick, who until this year was the U.S. trade representative, may facilitate efforts to sort out disputes between Brussels and Washington. But Lamy is regarded with suspicion by many of the world's leading farm goods exporting countries, mostly in Latin America, because of what they see as EU protectionism.

Lamy will take over from Supachai Panitchpakdi, a Thai whose term expires Aug. 31. The WTO was established in 1995 as a result of the Uruguay round of negotiations, which brought about the biggest reform of the world's trading system. The WTO is mainly a forum of trade negotiations for its 148 members. It also handles trade disputes and provides technical assistance and training for developing countries.

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