WTO reform more urgent than ever, or it risks losing its way

Singapore

THE world's problems, many of which are rooted in the disruption caused by the ongoing Covid-19 pandemic, require global solutions to solve them.

Mohammad Al-Tuwaijri, one of eight candidates in the running to become the World Trade Organization's (WTO) next director-general, made this point as he stressed the growing importance of multilateralism during a time of crisis.

"Many economies have been bolstered, and benefitted for years from our multilateral frameworks," the 53-year-old said in an exclusive interview with The Business Times.

"The WTO, being a safeguard and a structure for international commerce, must be central to the global recovery efforts."

Hailing from Saudi Arabia, Mr Al-Tuwaijri is currently the minister advising the royal court on economic strategies.

He was formerly the Kingdom's Minister of Economy and Planning until he left that post in March, having served for about four years.

Before that, he spent six years at HSBC Bank Middle East and North Africa, where he was its group managing director, deputy chairman and chief executive officer.

The Geneva-based WTO is now experiencing what observers say is its biggest crisis in its 25-year history. The global watchdog is currently leaderless after former director-general Roberto Azevedo stepped down on Monday, a full 12 months before his four-year term was due to end.

Mr Al-Tuwaijri, a former air force pilot, said that the delivery of results under the main pillars of the WTO system has "drifted off course", and that reform is now more urgent than ever or the WTO risks losing its way.

"I know that many nations have lost faith in the ability of the WTO to bring countries together," he said.

One way to restore trust in the institution is to have a "wide and genuine" negotiation about how the rules and procedures should operate, so that all 164 members can "reach a new consensus" on the way forward.

He stressed that reconstructing the world's severely disrupted supply chains will be one of the most pressing challenges that the incoming WTO chief - whoever he or she may be - will have to tackle.

"Risk management, strategic moves and rethinking plans are among the main drivers that are triggering the repositioning of businesses' supply chains after the coronavirus crisis, and only the WTO can provide the necessary umbrella to push for resilience and sustainability in this reconstruction," he said.

Asked about the troubled relationship between the United States and China, Mr Al-Tuwaijri described the ongoing tensions involving the world's two superpowers as one of the defining geopolitical forces of the decade.

If he eventually becomes the WTO's next leader, he said he would tap into his "good relations" with both Washington and Beijing over the years and assume the role of an "honest broker" between the two countries in the trade war.

"Furthermore, the Kingdom of Saudi Arabia maintains strong and historic political, security and economic relationships with the US, and in recent years, greatly expanded its economic relations with China," he said.

Noting that the WTO has never had a director-general from an Arab country before, Mr Al-Tuwaijri said Saudi Arabia is a neutral and unbiased party that seeks to bridge divides between Africa, China, Europe and the US.

"I believe our unique position will allow us in a post-Covid world to facilitate effective agreements among WTO member nations," he said.

As for how Singapore can work with global organisations like the WTO on a larger scale, Mr Al-Tuwaijri said that a top priority for the WTO should be to establish a new dispute settlement mechanism, with Singapore able to play a pivotal role on this front.

"Only a neutral mediation process, taking into account the priorities and concerns of all WTO members, will bring about a solution that enjoys the confidence of member states and works for the benefit of all," he said.

"Singapore has an established record of being a neutral ground for parties to come together and engage in dialogue. The Singapore Mediation Convention, of which Saudi Arabia is a signatory along with 52 other countries, is a testament to Singapore's international standing and credibility."

Among the other seven candidates vying for the WTO top job are former UK secretary of state for international trade Liam Fox; South Korea's Minister for Trade Yoo Myung-hee; and former World Bank chief economist and Mexican politician Jesus Seade.

They have all been busy campaigning for past two to three months, and they have until Sept 7 to make their case.

Three WTO ambassadors who chair leading committees are leading the process to establish which candidates have the widest support. The next step is to narrow the field - initially to five and then two - before a final decision is taken.

Barring any delays, the plan is to select a winner by Nov 7, under an agreed elimination process that will see the new director-general appointed by consensus.