Pascal Lamy, a French economist and former European trade commissioner, was nominated on Friday to become the next head of the World Trade Organisation (WTO), the global body that sets and enforces international trade laws.
An energetic diplomat with a deep understanding of the issues and players involved in trade, Lamy is expected to elevate the profile of WTO as its new director general when he takes over on Sept. 1. His first task will be to revive the global trade talks known as the Doha round, which are aimed at helping developing nations in particular. More broadly, he will face increasing scepticism about the benefits of trade as rich and poor nations struggle to keep up changes brought about with globalisation.
Lamy became the choice of the 148-member body after his last rival dropped out of the race earlier on Friday. A spokeswoman for Lamy, Catherine Ray, said he would have no comment on Friday. The WTO’s general council is expected to make his selection official at a meeting on May 26. A social Democrat at home, Lamy is something of a political anomaly in the world of trade, which may account for his selection at this pivotal moment.
He won the support of the industrialised nations because of his ambitious agenda to expand trade and enforce trade rules during his five years as the European trade commissioner. Under his stewardship, EU won a string of key victories before the WTO’s judicial panels to enforce global trade laws.
At the same time, he became the preferred candidate of most of the developing world because of his efforts to craft trade agreements to meet the needs of poorer nations. Of particular note was his role convincing the EU to begin reducing its agricultural subsidies, especially for food exports that undercut poor nations.
For his efforts he was strongly criticised by his own government. In attempting to define his philosophy, Lamy, who is 58 years old, says he believes in ‘‘globalisation by the rules — or managed globalisation.’’ ‘‘Trade is good and it is a necessity, but it is not sufficient for economic development and poverty alleviation,’’ said Lamy in an interview this month. ‘‘It’s fine in theory to open up markets but someone has to push for the full benefits of all nations.’’
Carlos Perez del Castillo of Uruguay, the last remaining candidate, announced on Friday that he was withdrawing from the race. Lamy’s term runs for four years and is renewable for a second term only.
He will succeed Supachai Panitchpakdi, who steps down at the end of August. Panitchpakdi was appointed this week as the new head of the UN Conference on Trade and Development. —NYT