International Trade Minister of South Korea perceives the World Trade Organization at a 'pivotal crossroad'
In the midst of the global economic crisis triggered by the COVID-19 pandemic, South Korea's candidate for the World Trade Organization (WTO) director-general, Yoo Myung-hee, sees this as a unique opportunity for the WTO to demonstrate its relevance and adaptability.
Yoo Myung-hee, who is currently the South Korean trade minister, made these comments to Handelsblatt. She is one of eight candidates running for the post of WTO's director-general, and if elected, she could become the first woman to hold the position in the WTO's history.
The WTO is currently undergoing significant reforms, with a focus on three main tracks: improving governance and decision-making, addressing non-market practices (including subsidies and state-owned enterprises), and clarifying the dispute settlement system, including the appellate body’s jurisdiction.
One of the key areas of reform is tackling trade-distorting subsidies and fostering fair market access. The European Union (EU) and Germany advocate for new rules to discipline such subsidies, aiming to promote fair competition and open market access. This includes improving transparency and enforcing disciplines on practices that create an unlevel playing field.
Another crucial aspect of the reform is modernizing WTO governance structures for more flexible and effective negotiations. This includes making decision-making more flexible, for example, by better incorporating open plurilateral agreements into the WTO framework, which would help keep WTO rules relevant to modern trade challenges.
The dispute settlement system is integral to WTO reform discussions. While not fully finalized, ongoing consultations focus on restoring and clarifying the jurisdiction and operation of the Appellate Body, which has faced paralysis in recent years. The aim is to resume technical discussions on reforming dispute settlement procedures to enhance effectiveness and fairness.
These reforms also seek to address broader contemporary challenges intersecting with trade, such as sustainable agriculture, digital trade, and trade coercion. The overall goal is to modernize the WTO to remain effective amid evolving global trade dynamics.
Amina Mohamed, deputy chief of the United Nations Secretariat from Kenya, and Ngozi Okonjo-Iweala, the former Nigerian finance minister, are the other female candidates running for the WTO's top job. The first selection round for the WTO's top job is scheduled for this week.
Everyone is convinced that the organization needs to be revitalized, and the 164 member countries must agree on rules for subsidies and market access by summer. The reform ideas of the member states are still far apart at present, but Yoo Myung-hee remains optimistic that the WTO can use the crisis caused by the Corona pandemic to show its ability to adapt and remain relevant in the global trade landscape.
[1] https://www.wto.org/english/news_e/news19_e/gove_27apr19_e.htm [2] https://www.wto.org/english/news_e/news19_e/gove_26jun19_e.htm [5] https://www.wto.org/english/news_e/news19_e/gove_22nov19_e.htm
Yoo Myung-hee, in her comments to Handelsblatt, expressed optimism that the ongoing global economic crisis, triggered by the COVID-19 pandemic, could provide an opportunity for the World Trade Organization (WTO) to demonstrate its adaptability and relevance, particularly as it navigates essential reforms. The reforms aim to modernize WTO governance structures, improve the dispute settlement system, and address contemporary challenges intersecting with trade, such as sustainable agriculture and digital trade.
In the race for the WTO's director-general position, Yoo Myung-hee faces competition from other female candidates, including Amina Mohamed, deputy chief of the United Nations Secretariat from Kenya, and Ngozi Okonjo-Iweala, the former Nigerian finance minister. The first selection round for the WTO's top job is scheduled for this week.
