President Biden

WTO and forced labor in cotton — Commentary by Amb. Dennis Shea, former Deputy U.S. Trade Representative

· April 27, 2021 · cotton subsidies, including forced labor · , , , , , · 2 Comments

Ambassador Dennis Shea served as U.S. Permanent Representative to the World Trade Organization during the Trump Administration. He is now an Adjunct Fellow (Non-resident), Scholl Chair in International Business at the Center for Strategic & International Studies (CSIS). Today a commentary of Amb. Shea was posted by CSIS. See CSIS Commentary, Dennis Shea,The WTO Can Help Shine a Spotlight on Forced-Labor Practices in Xinjiang’s Cotton Industry, https://www.csis.org/analysis/wto-can-help-shine-spotlight-forced-labor-practices-xinjiangs-cotton-industry.

Amb. Shea notes that there is an upcoming “dedicated discussion” on trade developments on cotton at the WTO on May 28. His commentary states that

“For next month’s dedicated discussion to have credibility, it must examine the trade impact of the use of forced labor to pick cotton in China’s Xinjiang province. In light of what we have learned about forced-labor practices in Xinjiang, it is inconceivable that the WTO would convene a meeting on cotton and trade and not include these practices as a topic worthy of review. Simply put, ignoring what is happening in Xinjiang would be tantamount to the WTO holding a meeting on global public health and trade without mentioning the Covid-19 pandemic.”

I have in prior posts looked at the issue of forced labor and child labor both broadly and with special focus on cotton. See March 24, 2021, When human rights violations create trade distortions — the case of China’s treatment of the Uyghurs in Xinjiang, https://currentthoughtsontrade.com/2021/03/24/when-human-rights-violations-create-trade-distortions-the-case-of-chinas-treatment-of-the-uyghurs-in-xinjiang/; January 25, 2021, Child labor and forced labor in cotton production — is there a current WTO mandate to identify and quantify the distortive effects?, https://currentthoughtsontrade.com/2021/01/25/child-labor-and-forced-labor-in-cotton-production-is-there-a-current-wto-mandate-to-identify-and-quantify-the-distortive-effects/; January 24, 2021, Forced labor and child labor – a continued major distortion in international trade for some products, https://currentthoughtsontrade.com/2021/01/24/forced-labor-and-child-labor-a-continued-major-distortion-in-international-trade-for-some-products/.

As Amb. Shea points out, WTO Members should present information relevant to trade in cotton including potential subsidies (such as government provision of labor at little or no compensation (forced labor)). His commentary urges the U.S. to bring forward any information it may have on the cotton industry in Xinjiang. He notes that

“The United States should bring the issue of forced labor in Xinjiang directly to the WTO by placing it on the agenda of the upcoming dedicated discussion on cotton and trade. Whatever information the U.S. government has developed about forced labor in the cotton fields of Xinjiang and its impact on trade should be shared with other WTO members. Doing so would be consistent with President Biden’s trade agenda, which makes combating forced labor a priority. It is also consistent with the views of U.S. Trade Representative Katherine Tai, who said during her confirmation hearing that forced labor is ‘the crudest example of the race to the bottom in global trade.’”

While the Director-General of the WTO has been quoted as indicating that China does not respond well to being singled out, the cotton initiative at the WTO is looking at all trade practices that affect trade in cotton. Labor subsidies for a region that produces 85% of China’s cotton and 20% of the world’s is obviously fair game. See RT, Stop targeting China if you want it to support global trade reforms, WTO head tells world powers, April 26, 2021, https://www.rt.com/news/522151-wto-chief-stop-targeting-china-cooperation/ (“World Trade Organization (WTO) chief Ngozi Okonjo-Iweala has called on countries to stop targeting China if they want cooperation on global reforms, claiming that putting pressure on Beijing will only get ‘resistance.’ * * * Speaking to a conference held by the European Commission, Okonjo-Iweala suggested targeting China only alienates it further. He urged nations to just ‘put the facts on the table,’ claiming Beijing is ‘willing’ to consider proposals when they are presented without ‘negative spillovers.’”). While China challenges the claim that it uses forced labor for cotton or any other products, it makes sense for WTO Members to marshall the information available so that the matter can be considered as part of the semiannual dedicated session.

Amb. Shea’s commentary is a useful note on seeing to what extent the WTO’s existing process can address significant trade distortions of China or any other cotton producer. Hopefully, a robust process will occur next month in Geneva.

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WTO Director-General Okonjo-Iweala’s statement on International Women’s Day, a broader read on gender equality; U.S., EU and New Zealand actions and statements

· March 9, 2021 · International Women's Day · , , , , , , , , · No Comments

In my post yesterday, I pulled some information from a short video put together by the WTO, UNCTAD and ITC that dealt with the issue of priorities for the three organizations in terms of recovering from the pandemic. I also reviewed some actions President Biden was taking in the United States. See March 8, 2011, March 8, 2021, International Women’s Day — statements of UN Women Executive Director,  heads of WTO, UNCTAD and International Trade Centre, and U.S. Executive Orders and Statement by President Biden, https://currentthoughtsontrade.com/2021/03/08/march-8-2021-international-womens-day-statements-of-un-women-executive-director-heads-of-wto-unctad-and-international-trade-centre-and-u-s-executive-orders-and-statement-by-president-biden/.

WTO Director-General Ngozi Okonjo-Iweala

Yesterday the WTO hosted a virtual event entitled “Women in leadership: Achieving an equal future in a COVID-19 world,” Director-General Okonjo-Iweala gave an opening statement which chronicles both the disproportionate harm women have encountered during the COVID-19 pandemic but also some of the actions some governments are taking to address the challenges facing women. See WTO, International Women’s Day: Focus on women for a stronger recovery, March 8, 2021, https://www.wto.org/english/news_e/news21_e/women_08mar21_e.htm. While the two priorities of the Director-General (DG) reviewed in yesterday’s post are also present in her statement at yesterday’s event (equitable and affordable access to vaccines, therapeutics and diagnostics; eliminating or phasing out export restraints), there is a lot more ground covered in the statement. The women and trade agenda at the WTO is relatively limited at the present time. Having a woman as Director-General can lead to changes in the organization and structure of the Secretariat — which is identified as a topic DG Okonjo-Iweala will be addressing — and can help ensure that women are at the table for all negotiations so that trade policy and negotiations include an understanding of the implications for gender equality and empowerment of women and girls. DG Okonjo-Iweala reviews the reasons women have been disproportionately affected — including being overrepresented in sectors heavily impacted by the pandemic (textile and apparel manufacturing, tourism), being heavily concentrated in the informal economy of countries with limited or no safety net if jobs are lost, for entrepreneurs, being in small businesses with limited financial resources making surviving a pandemic more challenging, shouldering heavy loads at home in terms of child care, and facing great health care risks because of the concentration in medical and essential services jobs, The text of DG Okonjo-Iweala’s statement, which ls linked to the press release is copied below. See Speeches — DG Ngozi Okonjo-Iweala, 2021 WTO International Women’s Day: “Women in Leadership: Achieving an Equal Future in a COVID-19 World”, March 8, 2021, https://www.wto.org/english/news_e/spno_e/spno2_e.htm.

“Ladies and gentlemen,

“Today is my first International Woman’s Day as the WTO Director-General. Given the particular challenges the pandemic has brought to women globally, I wish to focus my opening remarks today on what the WTO can do to help address these challenges. But I am keenly aware that achieving gender equality is also one of the top priorities for the Secretariat itself, and we will find an occasion soon to have a focused discussion on gender issues for the Secretariat.

“The COVID-19 pandemic has deepened inequalities of every kind. Between countries with money to spend on vaccines and economic relief, and those that cannot. Between workers who must risk their health every day, and those who can safely work from home. Between big firms and small businesses.

“But perhaps no divide has deepened more than that between men and women.

“In both paid and unpaid work, women bore the brunt of the pandemic’s social and economic impact.

“Globally, 5% of women lost jobs in 2020.  The employment loss of men was 3.8%. Women have also been much more likely than men to drop out of the labour market and become inactive.

“In low-income countries without the means to offer economic support during lockdowns, many women lost their only source of income. As family incomes fell, many girls stayed home when schools reopened, or went to work.

“Why has the recession caused by the pandemic had such a disproportionate impact on women?

“First, women are overrepresented in sectors that have been more negatively affected than others.

“This includes jobs requiring in-person contact, such as food service and retail — sectors that either shut down or became much riskier. Women also account for a large share of workers in services such as tourism — sectors directly affected by travel restrictions.

“Women also outnumber men in the manufacturing sectors hardest hit by the pandemic, such as textiles and apparel, where factories shut down early in the pandemic in response to plummeting export demand. In Bangladesh, for example, female employees represent 80 per cent of the workforce in ready-made garment production. Industry orders declined by 45.8 per cent over the first quarter of 2020 — by 81 per cent in April 2020 alone.

Second, more women work in informal sectors than men. Women make up 58% of employment in informal sectors, and the numbers are higher in developing and least-developed economies. In Africa, for example, almost 90% of employed women work in the informal sector.​ These women workers are hurt the most because they are likely to have lost their only source of income and been left with no social and legal protection. 

“Third, many women entrepreneurs own or manage small businesses that already struggle with limited financial resources and borrowing capacity. The pandemic worsened these pressures.

“And within families, women continue to shoulder a heavier burden than men. Temporary school closures made fathers step up a little, but mothers stepped up much more. Working mothers changed work schedules, reduced hours or took unpaid leave far more frequently than working fathers. In Germany, 6% of fathers but 62% of mothers indicate they have taken on the primary responsibility for their children during school closures.

“Finally, women face greater health risks as they work more in areas such as health and social care, sales of food and other necessary goods. In many countries, women comprise over 75% of the healthcare workforce. In certain countries (Italy, Spain, and the US), a higher proportion of women healthcare workers (69%, 75.5%, and 73% respectively) were found infected with COVID-19: although work is still ongoing to understand the reasons for this, one possible reason is that personal protection equipment has been designed to fit for men and even the smallest size is too big for some women.

“Even before COVID-19, progress towards gender parity had been too slow, too uneven. Now, unless we act quickly, the pandemic’s disproportionate impact on women could last for decades. This would be a moral failure — and an economic disaster.

“The biggest thing the WTO can do right now is to work with Members to keep trade open.

“As the economic data shows, trade has proven crucial in the global fight against the pandemic.

“While too many export restrictions remain in place, trade helped improve access to key medical products over the past year. In the first half of 2020, while global trade contracted by 14% compared to the year before, total imports of personal protective equipment and other COVID-related products rose by 29%. The value of trade in textile face masks grew six-fold. PPE trade grew by 50%. Trade thus enhanced supply resilience, particularly for those countries without manufacturing capacity.

“The pandemic has also highlighted how the temporary movement of healthcare workers, of whom many are women, has particularly helped the most affected countries to deal with the crisis. Open trade will continue to be key to building faster and more inclusive growth.

“Second, WTO Members must minimize or remove existing export restrictions that are impeding access to essential medical supplies and disrupting supply chains. Transparency on any export trade restrictions should also be improved through prompt notifications.

“In all these efforts, our priority should be to contribute to making vaccines, therapeutics and diagnostics available and affordable in all countries. Until we have successfully tackled health challenges for everyone, we cannot tackle economic ones.

“Third, trade can be a source of more and better jobs, and increased purchasing power for women. Overall, countries that are more open to trade, as measured by the ratio of trade to gross domestic product, have higher levels of gender equality.

“For one, women are more likely to be in formal jobs if they work in trade-integrated sectors with higher levels of exports, thereby giving them opportunities for benefits, training, and job security. A recent World Bank survey shows that, for women, the probability of being informal declines from 20% in sectors with low levels of exports to 13% in sectors with high levels of exports. 

“Digital technologies can also help women overcome gender-based barriers to trade, reach broader markets, and weather the impact of crises better. Women facemasks producers in Kenya, for example, found ways to develop and even expand their businesses during lockdowns using growing e-commerce opportunities. Rwandan women coffee producers were able to export their products directly to China. Let’s close the existing gender digital divide and help all women benefit from the opportunities created by digital technologies.

“Finally, all these efforts must be supported by targeted support measures for women.

“Women could be left behind in the recovery unless adequate measures are put in place to address the uneven impact of the pandemic on them. Let me give you one example of how targeted intervention can make a difference: in Zambia, the Enhanced Integrated Framework (EIF) and the International Trade Centre (ITC) helped women-owned businesses selling textiles, leather, and honey to attend trade fairs and other B2B activities. The result: they were able to break into 10 new international markets, and generate hundreds of thousands of dollars worth of new sales. They also expanded their supplier networks, and many of those new suppliers were also run by women.

“Governments need to prioritize women in the labour force and in the home through financial, legal, and educational measures. Fiscal support for women will be particularly crucial. Yet currently less than 40 per cent of all measures taken globally for the recovery are gender sensitive, with only 7 per cent containing measures supporting women’s economic security.

“This is a crude reminder for all of us that women must be at all decision-making tables equally as men. As Dame Graça Machel once said, “…socio-economic transformation will only be realized once we aggressively address gender-specific challenges, prioritize gender equality and women’s participation, and firmly entrench women in leadership positions at all levels in society.”

“The cost of gender inequality is enormous. A few years ago McKinsey estimated that if women played a fully equal role to men in the labour market, global economic output could increase by as much as $28 trillion per year. To put it in perspective, this pandemic reduced global output last year by between $3 and 4 trillion.

“The COVID-19 pandemic is setting women back in all domains of society.

“At the same time, it has reminded everyone of the enormous value of care and other kinds of work traditionally associated with women. And it has highlighted the power and effectiveness of women’s leadership. Although no analytical study has been conducted yet, anecdotal examples show that economies led by woman leaders (e.g. New Zealand, Denmark, Chinese Taipei, Iceland, Finland, and Norway) have outperformed their peers in terms of management of this pandemic.

“We cannot expect to make good policy for all members of society if half of the population is not properly and equally represented at the table.

“Gender equality is a fundamental human rights issue and also an economic empowerment issue. We should all work harder in our respective roles to achieve complete gender equality.

“I wish you all a happy International Women’s Day!”

Additional actions by President Biden

In yesterday’s post, I also reviewed actions President Biden was taking in the form of two Executive Orders (one Executive Order on Establishment of the White House Gender Policy Council, a second Executive Order on Guaranteeing an Educational Environment Free from Discrimination on the Basis of Sex, Including Sexual Orientation or Gender Identity). But President Biden on March 8th reviewed additional actions he has taken including nominating two women to hold command positions in the U.S. Military and putting forward to Congress the Violence Against Women Reauthorization Act of 2021. See Statement by President Biden on the Introduction of the Violence Against Women Reauthorization Act of 2021 and Remarks by President Biden on International Women’s Day (“On Friday, I submitted to the Senate for confirmation my first slate of nominations for four-star command positions in our Armed Forces — among them, two outstanding and eminently qualified warriors and patriots.  General Jacqueline Van Ovost in the United States Air Force is currently the only female four-star officer serving in our military.  I nominated her as Commander of the United States Transportation Command.  And when confirmed, the Lieutenant General Laura Richardson, of the United States Army, will be promoted in rank and join General Van Ovost as the only four-star — as another four-star general.  I nominated her as Commander in the United States Southern Command.  And, when confirmed, they will become the second and third women in the history of the United States Armed Forces to lead combatant commands.”). The Biden Administration also had a press briefing with the two co-chairs of the Gender Policy Council. See Press Briefing by Press Secretary Jen Psaki, Co-Chair of the Gender Policy Council and Chief of Staff to the First Lady Julissa Reynoso, and Co-Chair and Executive Director of the Gender Policy Council Jennifer Klein, March 8, 2021. And Vice President Kamala Harris reported participated in a discussion with an EU Parliamentary Committee. See eudebates.tv, We are all in this together! Jacinda Ardern on International Women’s Day, March 8, 2021, https://www.eudebates.tv/debates/world-debates/australia/we-are-all-in-this-together-jacinda-ardern-on-international-womens-day/ (“.During the plenary session of the European Parliament in Brussels, Jacinda Ardern, Prime Minister of New Zealand joined MEPs to celebrate the International Women’s Day during a debate. Prime Minister Jacinda was one of a number of high-profile guests, including US Vice President Kamala Harris, to address the European Union Parliament for International Women’s Day.”)..

So the Biden Administration has been taking actions to bring women into positions of power in a unprecedented manner in the United States and to embark on reviews to ensure problems to achieving gender equality are identified and addressed.

European Commission President Ursula von der Leyen

The EU has had relatively strong programs promoting gender equality over time. Like the United States, the EU is looking to do more. European Commission President Ursula von der Leyen made a statement yesterday at the EP FEMM Interparliamentary Committee meeting reviewing the important contributions of women to the development of COVID-19 vaccines and the actions the EU will be taking to improve gender equality. Like President Biden’s cabinet, EC President von der Leyen has much greater balance in the Commission composition in terms gender representation. See Opening speech by President von der Leyen at the EP FEMM Interparliamentary Committee meeting, on the occasion of the International Women’s Day 2021, March 8, 2021, https://ec.europa.eu/commission/presscorner/detail/en/SPEECH_21_1017. Her speech is copied below.

“Thank you very much Evelyn Regner,

“Presidents and Honourable Members,

“It is an honour to be with you today, in the company of so many amazing women. And allow me to begin by mentioning three women who are not with us today. Doctor Özlem Türeci. Professor Sarah Gilbert. Doctor Kizzmekia Corbett. Some of you may have never heard their names before. But we owe them a lot. They are three scientists from Germany, the UK and the U.S. And these three extraordinary women lead the teams that developed the first three vaccines against coronavirus. BioNTech, Moderna and AstraZeneca.

“And I am sure that they, like many of us, have fought against all sorts of stereotypes. But this is how women respond to stereotypes: By going their way, showing leadership and excelling in their field. And today the whole world can see that we are all better off when women get the opportunities they deserve. Of course, women are made for science. Of course, women are fit to lead. Of course, career and motherhood can go together. It is obvious, but unfortunately it still needs to be said.

“This year’s International Women’s Day is for women like these three scientists. This Women’s Day is for women on the front-line, and for women in the back-office. It is for the health workers, who have been our guardian angels, and it is for our sales assistants, who have kept our supermarkets open. And indeed, let us never forget that almost 80% of them are women.

“Women’s Day is also for all the mothers who have taken care of their children during the lockdowns, while also working from home. But this Women’s Day is also for the women who lost their job during the crisis. And Women’s Day is for those who no longer want to settle for discriminations, insecurity and unfairness. As a female leader, I would like 2021 to bring good news to all of them, to all European women. And this is what we are working on: Putting women at the centre of all our policies.

“And let me start with the basics. Later this year we will propose new legislation to fight violence against women. This has become even more urgent because of the lockdowns. Living free from fear and violence is a basic human right. And we must ensure adequate protection for all women, in all European countries, online and offline, and especially at home.

“Second, women must be at the centre of the recovery. This is a clear requirement for all national recovery plans. NextGenerationEU will finance good jobs for women and men alike. It will invest in quality education for girls and women, including scientific education. NextGenerationEU will be for all Europeans, women and men.

“Third, today indeed we are presenting our new Action Plan to implement the European Pillar of Social Rights. We have set ambitious targets on jobs, skills, and poverty reduction. These are clear and measurable goals to drive our work.

“And let me take one of them: By 2030, at least 78% of European adults should be employed. And this can only be achieved by having more women in the labour market. But to do this we need to make progress on work-life balance. Ensuring parental leave for mothers and fathers. Investing in childcare and good schools. And indeed creating a child guarantee, so that all parents, from all social backgrounds, can send their kids to childcare and school. And this is what empowerment means. Freedom to be a mother and to have a career, for all women.

“And this adds up to the fourth point, today we are also proposing a Directive for pay transparency. It builds on a very simple idea: Equal work deserves equal pay. And for equal pay, you need transparency. Women must know whether their employers treat them fairly. And when this is not the case, they must have the power to fight back and get what they deserve.

“And finally, women should always be able to reach for the top, including in private companies. I fought for this when I was a Minister in Germany. And I will not stop pushing for gender quotas on boards until we get a fair system for all European countries. We simply cannot exclude half of our talents from leadership positions.

“Having women in leadership position should become the norm, not the exception. And slowly but steadily, Europe is changing. Five EU governments are now led by women. For the first time, an EU country, Estonia, is led by two women, as President and Prime Minister. And you, President Sakellaropoulou, are the first woman to be elected as Greek President.

“For the first time in our history, not only the European Commission is led by a woman, but we have also achieved gender-balance in the College of Commissioners. As you know, this is something I promised on my nomination. I asked every European country to present a man and a woman as candidates for each post. It was not always easy. But we made it. And it shows that everything can change, with tireless perseverance.

“All of this matters. It matters to the quality of our decision-making. And it matters to our daughters. It tells them that they can reach for the top. It tells them that hard work pays off. That they will be judged on their ideas, their dedication and their talent, not for their chromosomes. A gender-balanced Europe is a better Europe. Not just for women, but for all of us.

“And in this spirit: Long live Europe, and happy Women’s Day!”

New Zealand Prime Minister Jacinda Arden

New Zealand’s Prime Minister Jacinda Arden also spoke to the European Parliament yesterday. Her speech can be found here. eudebates.tv, We are all in this together! Jacinda Ardern on International Women’s Day, March 8, 2021, https://www.eudebates.tv/debates/world-debates/australia/we-are-all-in-this-together-jacinda-ardern-on-international-womens-day/. New Zealand has done a lot to promote gender equality and has leadership in government that is roughly in number equal between women and men. But challenges remain as the Prime Minister notes in her speech including women being “overrepresented in job loss and low paid work and domestic violence statistics.” The Prime Minister’s speech is copied below (headers are from the webpage).

“Jacinda Ardern European Parliament speech on International Women’s Day 

“I’m honoured to see this kind invitation to speak with you and I bring warm greetings from New Zealand. President Sassoli, thank you for convening this session and for the focus on women’s empowerment and leadership during the covid crisis. To say this is a challenging time would be, of course, a monumental understatement. The world is reeling from the effects of the covid-19 pandemic.

“It has had far reaching consequences that have affected every one of us. This is a critical time for us as leaders and representatives to come together, even if it is by video in these constrained times. Covid-19 highlights how truly interdependent we all are, how reliant we are on cooperation, communication and compassion to successfully combat the virus.

“Jacinda Ardern puts people at the centre

“It highlights how important it is that we work together for a sustainable recovery that delivers for our economies and our planet. But it also puts people at the centre of our decision making. In New Zealand our approach in battling covid-19 has been one of inclusivity. The idea that everyone needs to do their bit to protect one another, especially our most vulnerable.

“I want to talk about our population as the team of five million, and we may be a small team, but one that nonetheless has proven the power and importance of the collective. And now that’s exactly what we need from the world. It’s a haunting legacy if the virus drags on around the globe. It has become clear no country is safe until every country is safe. As we move to a phase of vaccination we are not a team of five million, but we are a team of seven point eight billion

“The success of individual countries or regions means little unless we are all successful. In New Zealand‘s indigenous language Te Reo Maori, we say “we are all in this together”. But some have felt the effects of covid-19 even more acutely than others. Covid-19 has ravaged our health systems, our economies, our livelihoods. But it is also exacerbated structural inequalities that disproportionately impact women and girls.

“Women are at the forefront

“Women are at the forefront of fighting the covid crisis. Amongst the doctors, nurses, scientists, communicators, caregivers and frontline and essential workers who face the devastations and challenges of this virus every day. Along with being directly affected by the virus itself and its immediate impacts on our livelihoods, we’re also the subjects of intensified domestic violence.

“Now this is being reported as the shadow pandemic in all corners of the world. Not only by fully and meaningfully including women and girls in leadership and decision making at all levels can we ensure that our responses to the pandemic meet the needs of everyone. As prime minister of a small country on the far side of the world, I’m proud of what our team of five million in New Zealand has been able to achieve over the last year.

“We have a proud history of championing gender rights since we became the first country in the world to give all women the right to vote in 1893. I’m part of the most diverse and inclusive parliament New Zealanders have ever elected, with women making up forty eight per cent of our parliament and fifty five per cent of my party in government.

“Women hold top positions

“Women also hold the post of Governor-General, Prime Minister, Leader of the Opposition and Chief Justice, and increasingly holding senior roles in our public service and business sector. And now, for the first time and long overdue, I might add, New Zealand‘s Minister of Foreign Affairs is a woman. She is a skilled, values driven indigenous woman with a contemporary worldview.

“And yet for all of that, we have so much more to do because it doesn’t matter how many women are in leadership, so long as we have women overrepresented in job loss and low paid work and domestic violence statistics. In my mind, that is the true measure of whether we have made progress and whether we have equality.

“As we look towards the year ahead we all know it will be tough. There will be big challenges and demands made of all of us as leaders. We will be tested. We must all do more to support women lead business, including small enterprises, to be part of the covid-19 economic recovery so they can more readily experience the benefits of trade.

“The European Union and New Zealand. We are Like-Minded Partners with so many values and interests in common, we both desire the stability and freedom afforded us all by global rules and institutions, free and open markets and a world where human rights are valued and prioritised.

“As we all turn towards creating a sustainable global economic recovery, my message to you is simple. We need to stick together because we are all in this together. I wish your Parliament and all our people the very best for the challenges that lie ahead. Stay safe. Stay well.”

Conclusion

Gender equality is an issue that needs a permanent place on agendas of organizations and governments to ensure progress is made for half the world’s people. Progress has been too slow in too much of the world and discrimination or unequal treatment can be found in various forms in nearly all countries. It is unimaginable that the world has not progressed more. We can and must do better.

Biden Administration should join the Joint Statement Initiatives that it is not presently party to

· March 9, 2021 · Joint Statement Initiatives and Joint Declaration · , , , , , , , , , , , , , , , · No Comments

President Biden has made it clear that his Administration will work within multilateral organizations to the extent possible to move the U.S. agenda forward. During the Trump Administration, the U.S. participated actively in the World Trade Organization but was active in only one of the Joint Statement Initiatives that were initiated at the end of the Buenos Aires Ministerial Conference in late 2017.

Thus, the United States is an active participant in the ongoing negotiations following the Joint Statement on Electronic Commerce (WT/MIN(17)/60, 13 December 2017), but is not a party to the other Joint Statement Initiatives. See Joint Ministerial Statement on Services Domestic Regulation (WT/MIN(17)/61, 13 December 2017); Joint Ministerial Statement on Investment Facilitation for Development (WT/MIN(17)/59, 13 December 2017); Joint Ministerial Statement, Declaration on the Establishment of a WTO Informal Work Programme for MSMEs (WT/MIN(17)/58, 13 December 2017); Joint Declaration on Trade and Women’s Economic Empowerment on the Occasion of the WTO Ministerial Conference in Buenos Aires in December 2017.

While India and South Africa have challenged the legitimacy of the Joint Statement Initiatives (JSIs), a great deal of the energy in the WTO in the last several years has been put into the JSIs. See, e.g., February 20, 2021, Will India and South Africa (and others) prevent future relevance of the WTO?, https://currentthoughtsontrade.com/2021/02/20/will-india-and-south-africa-and-others-prevent-future-relevance-of-the-wto/; WTO, Coordinators of joint initiatives cite substantial progress in discussions, 18 December 2020, https://www.wto.org/english/news_e/news20_e/jsec_18dec20_e.htm. The WTO press release is copied below.

“The coordinators of the joint initiatives on e-commerce, investment facilitation, services domestic regulation and micro, small and medium-sized enterprises (MSMEs) said on 18 December that substantial progress has been achieved in their respective discussions and that they are on track to deliver concrete results or additional progress at the WTO’s 12th Ministerial Conference (MC12) scheduled for next year.

“In their communication, the coordinators noted that they have delivered summary statements to WTO members outlining how far the four initiatives have advanced since they were launched three years ago, where they stand today, and what their next steps in the discussions will be.

“’What these statements clearly show is the substantial progress [of the initiatives] in a short period of time, that they are on track to delivering concrete results or progress at MC12, and that they are contributing to building a more responsive, relevant and modern WTO — which will be critical to restoring global trade and economic growth in the wake of the COVID-19 crisis.’

“’These initiatives have grown into an increasingly important part of the agenda of the WTO, with an expanding number of participants from both the developed and developing worlds that account for a significant part of the WTO’s membership, and based on the principles of openness, transparency and inclusiveness,’ the coordinators added.

“The new joint initiatives were launched at the WTO’s 11th Ministerial Conference in Buenos Aires in December 2017 with the aim of commencing negotiations or discussions on issues of increasing relevance to the world trading system.

“The joint initiative coordinators are Ambassador José Luis Cancela Gómez (Uruguay) for the Informal Working Group on MSMEs; Ambassadors George Mina (Australia), Yamazaki Kazuyuki (Japan) and Tan Hung Seng (Singapore) for the Joint Statement Initiative on E-Commerce; Deputy Permanent Representative Jaime Coghi Arias (Costa Rica) for the Joint Statement Initiative on Services Domestic Regulation; and Ambassador-designate Mathias Francke (Chile) for the Structured Discussions on Investment Facilitation for Development.

“The coordinators noted that the consolidated negotiating text on e-commerce will provide a foundation for intensified negotiations in 2021. They highlighted that the negotiations on services domestic regulation are at a ‘mature stage’, with a genuine potential for an outcome by MC12.

“The coordinators also said that substantive provisions of an investment facilitation agreement are being negotiated by the participating members in this initiative. In addition, they noted the recent announcement by the Informal Working Group on MSMEs of a package of declarations and recommendations to help small business trade internationally.

“The coordinators underscored that the shared and ultimate goal of these initiatives is to strengthen and reinforce the multilateral trading system, that they are open to all WTO members, and that they seek the participation of as many members as possible.

“The coordinators stated: ‘The initiatives on e-commerce, investment facilitation, services domestic regulation, and MSMEs clearly demonstrate that the WTO can respond to new economic and technological challenges in a flexible, pragmatic, and timely way. These initiatives — and their innovative approach to cooperation and negotiation — can provide a valuable illustration of WTO reform in action.’”

While the Joint Declaration Trade and Women’s Economic Empowerment on the Occasion of the WTO Ministerial Conference in Buenos Aires in December 2017 is not treated as a JSI, it does have many Members supporting the Declaration and engaging in the informal work programme.

Some of the other countries participating in all of the JSIs and Joint Declaration

While the number of WTO Members participating in the JSIs and supporting the Joint Declaration vary, the following is a partial list of Members who are signatories to all of the JSIs and the Joint Declaration. Other than the Electronic Commerce initiative, the U.S. is presently not a signatory or participant in any of the other JSIs or Joint Declaration.

Argentina, Australia, Brazil, Canada, Chile, China, Colombia, European Union, Japan, Korea, Mexico, New Zealand, Russian Federation, Switzerland are participants in all of the JSIs and supportive of the Joint Declaration. Dozens of other Members are participating in some or many of the JSI’s that the U.S. is not presently supporting or active in.

Conclusion

While the United States has a large agenda of issues it wishes to address at the WTO (including trade and the environment, WTO reform, industrial subsidies), it makes no sense that the United States would not actively participate in work programs where most of the major economies are active and where new rules will be relevant to areas of significance for the United States as well as for trading partners. While the work program on women and trade is in an informal working group, President Biden has made empowerment of women an important priority for his Administration as a range of actions during International Women’s Day made clear. See, e.g., March 8, 2011, March 8, 2021, International Women’s Day — statements of UN Women Executive Director,  heads of WTO, UNCTAD and International Trade Centre, and U.S. Executive Orders and Statement by President Biden, https://currentthoughtsontrade.com/2021/03/08/march-8-2021-international-womens-day-statements-of-un-women-executive-director-heads-of-wto-unctad-and-international-trade-centre-and-u-s-executive-orders-and-statement-by-president-biden/. Similarly, MSMEs are an important part of the U.S. economy and a major driver of economic growth. The U.S. has a very strong services sector which has an interest in domestic regulatory issues both in the U.S. and as addressed overseas. Finally, the U.S. is both a major investor in foreign countries and a recipient of large amounts of foreign investment and has a significant interest in helping the global community address issues involved in investment in developing and least developed countries on a more predictable basis.

Hopefully, the Biden Administration when its USTR nominee is confirmed in the coming days, will opt to engage in all of the JSIs. It is time.

March 8, 2021, International Women’s Day — statements of UN Women Executive Director, heads of WTO, UNCTAD and International Trade Centre, and U.S. Executive Orders and Statement by President Biden

· March 8, 2021 · International Women's Day · , , , , , · No Comments

Today is International Women’s Day. With the pandemic still occupying center stage in global affairs, the UN effort on its Sustainable Development Goal 5 to “achieve gender equality and empower all women and girls” is in trouble. Women have been disproportionately adversely affected by the pandemic, tens millions leaving the workforce to take care of children, tens of millions losing jobs and having no safety net. Various reports have reviewed the disparities and the loss of progress towards achieving gender equality and empowering all women and girls. See, e.g., UN Women, From Insights To Action, Gender Equality in the Wake of COVID-19 (September 2020); (“The pandemic has widened gender and economic inequalities.” “COVID-19 is exposing vulnerabilities in social, political and economic systems. It is forcing a shift in priorities and funding across public and private sectors, with far-reaching effects on the well-being of women and girls. Action must be taken now to stop this backsliding.”); UN Women, SPOTLIGHT ON GENDER, COVID-19 AND THE SDGS, WILL THE PANDEMIC DERAIL HARD-WON PROGRESS ON GENDER EQUALITY?, https://www.unwomen.org/-/media/headquarters/attachments/sections/library/publications/2020/spotlight-on-gender-covid-19-and-the-sdgs-en.pdf?la=en&vs=5013.

It is against this backdrop that statements and actions today on the importance of Women to the achievement of sustainable development goals should be seen. Below are materials from the UN Women’s Executive Director, the heads of the three Geneva organizations with a trade mission or function that are headed by women, and the announced actions today by President Biden in the United States.

UN Women Executive Director Statement

The following statement was made today by the UN Women Executive Director. See International Women’s Day Statement by Phumzile Mlambo-Ngcuka, UN Women Executive Director, on International Women’s Day 2021, Change up the pace: women at the table, March 8, 2021, https://www.unwomen.org/en/news/stories/2021/3/statement-ed-phumzile-international-womens-day-2021. The statement is copied below in its entirety.

“International Women’s Day this year comes at a difficult time for the world and for gender equality, but at a perfect moment to fight for transformative action and to salute women and young people for their relentless drive for gender equality and human rights. Our focus is on women’s leadership and on ramping up representation in all the areas where decisions are made – currently mainly by men – about the issues that affect women’s lives. The universal and catastrophic lack of representation of women’s interests has gone on too long.

“As we address the extraordinary hardship that COVID-19 has brought to millions of women and girls and their communities, we also look ahead to the solid opportunities of the Generation Equality Forum and Action Coalitions to bring change.

“During the pandemic, we have seen increased violence against women and girls and lost learning for girls as school drop-out rates, care responsibilities and child marriages rise. We are seeing tens of millions more women plunge into extreme poverty, as they lose their jobs at a higher rate than men, and pay the price for a lack of digital access and skills. These and many other problems cannot be left to men alone to solve. Yet, while there are notable exceptions, in most countries there is simply not the critical mass of women in decision-making and leadership positions to ensure that these issues are tabled and dealt with effectively and this has affected the pace of change for women overall.

“There are breakthroughs to celebrate, where women have taken the helm of organizations such as the World Trade Organization, the International Monetary Fund and the European Central Bank and we look forward to more such appointments that help to change the picture of what a leader looks like. Yet this is not the norm. In2020, as a global average, women were 4.4 per cent of CEOs, occupied just 16.9 per cent of board seats, made up only 25 per cent of national parliamentarians, and just 13 per cent of peace negotiators. Only 22 countries currently have a woman as Head of State or Government and 119 have never experienced this – something that has important consequences for the aspirations of girls growing up. On the current trajectory, we won’t see gender parity in the highest office before 2150.

“This can and must change. What is needed is the political will to actively and intentionally support women’s representation. Leaders can set and meet parity targets, including through appointments for all executive positions at all levels of government, as has occurred in the few countries with gender equal cabinets. Special measures can work; where countries have put in place and enforced quotas, they have made real progress on women’s leadership, as have those that have policies to address representation. Where these measures do not exist, progress is slower or even nonexistent and easily reversed.

“No country prospers without the engagement of women. We need women’s representation that reflects all women and girls in all their diversity and abilities, and across all cultural, social, economic and political situations. This is the only way we will get real societal change that incorporates women in decision-making as equals and benefits us all.

‘This is the vision of the 2030 Agenda and the Sustainable Development Goals and the vision of the Beijing Declaration and Platform for Action. It is the vision of civil society and multitudes of young people who are already leading the way and of all those who will join us in the Generation Equality Action Coalitions. We need bold decisive action across the world to bring women into the heart of the decision-making spaces in large numbers and as full partners, so that we can make immediate progress on a greener, equitable and inclusive world.”

Video of Director-General Ngozi Okonjo-Iweala of the WTO, Acting Secretary-General Isabelle Durant of UNCTAD, and Executive Director Pamela Coke-Hamilton of the International Trade Centre

For International Women’s Day, the three heads of multilateral organizations in Geneva involved in trade put out a video entitled, International Women’s Day — Leading global trade: Three women, three organizations. The note accompanying the video states “For the first time, all three major global trade organizations have women leaders: Ngozi Okonjo-Iweala at the WTO, Isabelle Durant at UNCTAD and Pamela Coke-Hamilton at ITC. On International Women’s Day, they talk about the importance of looking at trade through a gender lens, and how trade can help tackle the challenges related to the COVID-19 pandemic.” https://www.wto.org/english/news_e/news_e.htm.

Top priorities to boost recovery outlined by the three leaders include the following. For Director-General Okonjo-Iweala, her first priority to boost economic recovery, is the health aspect. “It is absolutely a top priority for me that we should look at how to make equitable and affordable access to vaccines, therapeutics and diagnostics happen. It is unconscionable that any countries or peoples should be waiting for any of these medical products. And we know that until we tackle the health challenges, we will not be able to really get a handle on the economic challenges and return to a sustainable growth path that would spell recovery from the pandemic. So that’s a really important priority. Second is what can trade do to boost the economic recovery? How can we liberalize trade in certain sectors to make sure that supply chains stay open and work and that countries can produce more and sell more? So what can trade contribute to that? It’s a priority for me that export restrictions and prohibitions that have been put by countries during this time of the pandemic be dropped or minimized or phased out very quickly so that we can have a freer flow of goods and intermediate inputs. So those are two top priorities that I think we need to focus on to boost economic recovery.”

For Acting Secretary-General Durant, her first priority is “to ensure that our institutions contribute to making trade a real tool for recovery, especially for those countries, groups and sectors that have paid a high price due to the pandemic. My priority is that everything we provide them in terms of analysis, data, technical and intergovernmental support helps them steer their recovery towards more inclusive and greener sectors and strategies. Climate change is indeed the greatest threat to current and future generations. Countries need urgently to start planning and implementing actions to adapt their production and trade to the ruthless effects of climate change: what does this imply for better production methods; new comparative advantages; investments; diversification of their economies; and regional integration and value chains? I have the same concern for fairness in the digital revolution. How can developing countries derive the greatest benefit for their development, and become players in it, when digital technology has become the driving force of the economy? COVID has shown the importance of digital infrastructure, policies and skills. More than ever, we need the cooperation, expertise and experience of all to build the road to recovery, because we all know that countries we are far from being equal when it comes to these issues.” (English translation from French as provided in the video).

For Executive Director Pamela Coke-Hamilton, her first priorities are “empowerment and equality — empowerment by building resiliency for MSMEs through partnership; empowerment for recovery by moving towards greener trade. ITC is starting a new initiative to support MSMEs and green trade, helping MSMEs adopt more sustainable practices, pursue opportunities in the circular economy and participate in greener supply chains. Empowerment through digital inclusion by promoting greater integration of MSMEs in digital economies and facilitate digital access for all. Empowerment of women and youths. A dedicated program at ITC will lead the way to women’s economic empowerment, and we will continue to work with governments to build an eco-system of new and innovative jobs for youths. And secondly, equality. Ultimately we want to make sure that no one is left behind as we seek paths for recovery, and build resilience against future shocks. COVID-19 has loaid bare the depths of inequality still prevailing from the global economic system. We must choose to challenge the status quo, and as women we will.”

Action by President Biden

President Biden provided a statement on International Women’s Day and issued two Executive Orders. See Statement by President Biden on International Women’s Day, March 8, 2021, https://www.whitehouse.gov/briefing-room/statements-releases/2021/03/08/statement-by-president-biden-on-international-womens-day/; Executive Order on Establishment of the White House Gender Policy Council, March 8, 2021, https://www.whitehouse.gov/briefing-room/presidential-actions/2021/03/08/executive-order-on-establishment-of-the-white-house-gender-policy-council/; Executive Order on Guaranteeing an Educational Environment Free from Discrimination on the Basis of Sex, Including Sexual Orientation or Gender Identity, March 8, 2021, https://www.whitehouse.gov/briefing-room/presidential-actions/2021/03/08/executive-order-on-guaranteeing-an-educational-environment-free-from-discrimination-on-the-basis-of-sex-including-sexual-orientation-or-gender-identity/; Fact Sheet: President Biden to Sign Executive Orders Establishing the White House Gender Policy Council and Ensuring Education Free from Sexual Violence, March 8, 2021, https://www.whitehouse.gov/briefing-room/statements-releases/2021/03/08/fact-sheet-president-biden-to-sign-executive-orders-establishing-the-white-house-gender-policy-council-and-ensuring-education-free-from-sexual-violence/. The President’s statement is copied below as is the fact sheet on the two Executive Orders.

“Women’s history is American history — and world history. On International Women’s Day, we celebrate the achievements, contributions, and progress of women and girls in the United States and around the globe.
 
“My Administration is committed to honoring women by investing in their opportunity, security, and wellbeing. I was proud to issue an Executive Order today establishing the White House Gender Policy Council, to ensure that every domestic and foreign policy we pursue rests on a foundation of dignity and equity for women. My Administration is also committed to ensuring that women are represented equally at all levels of the federal government. That starts with Vice President Harris, who broke through a barrier that stood for more than two centuries. And it includes a record number of diverse women whom I’ve nominated to serve in Cabinet-level roles and appointed to senior-level positions.
 
“In our nation, as in all nations, women have fought for justice, shattered barriers, built and sustained economies, carried communities through times of crisis, and served with dignity and resolve. Too often, they have done so while being denied the freedom, full participation, and equal opportunity all women are due. Their contributions have been downplayed. Their stories have been neglected. That is why International Women’s Day is also a time for us to recommit ourselves to the cause of equity and equality for women the world over, and to shine a light on the systemic obstacles that fuel gender disparities and undermine women’s potential.
 
“Despite persistent obstacles, women are leading every day. Over the past year, women have played a critical, often outsized role in responding to the global coronavirus pandemic. They are our vaccine researchers and public health officials. They are our doctors and nurses. They are our essential workers — so many of whom are women of color — in fire stations and nursing homes, on farms and in grocery stores, in schools and in shelters.
 
“Around the world, we are seeing decades of women’s economic gains erased by this pandemic. It’s forcing millions more girls out of school, which could impact economic growth for decades to come. Incidents of violence against women in their homes and communities have spiked. And, as is so often the case, COVID-19 is hitting the poorest and most marginalized women the hardest. These global trends damage all of us, because we know that governments, economies, and communities are stronger when they include the full participation of women — no country can recover from this pandemic if it leaves half of its population behind.
 
“Elevating the status of women and girls globally is the right thing to do — it is a matter of justice, fairness, and decency, and it will lead to a better, more secure, and more prosperous world for us all.  On International Women’s Day, let us recommit to the principle that our nation, and the world, is at its best when the possibilities for all of our women and girls are limitless.”

Fact Sheet

“Biden-Harris Administration establishes a government-wide focus on uplifting the rights of women and girls in the United States and around the world

“The full participation of all people – including women and girls – across all aspects of our society is essential to the economic well-being, health, and security of our nation and of the world. This is a matter of human rights, justice and fairness. It is also critically important to reducing poverty and promoting economic growth, increasing access to education, improving health outcomes, advancing political stability, and fostering democracy.

“Today, President Biden will sign two Executive Orders. The first establishes the White House Gender Policy Council to ensure that the Biden-Harris Administration advances gender equity and equal rights and opportunity for women and girls. The second directs the Department of Education (ED) to review all of its existing regulations, orders, guidance, and policies for consistency with the Administration’s policy to guarantee education free from sexual violence.

“A year into COVID-19, women are still contending with the public health crisis, an ensuing economic crisis, and on top of those challenges, a caregiving crisis. The pandemic has exacerbated barriers that have held back women, especially women of color, forcing many to leave the workforce, manage virtual schooling, and absorb additional caregiving responsibilities. Many women are also on the frontlines of the response to COVID-19 – as essential workers keeping our economy, communities and families going. As the country continues to grapple with the pandemic and reckons with the scourge of systemic racism, President Biden knows that we need a government-wide focus on uplifting the rights of women and girls in the United States and around the world, restoring America as a champion for gender equity and equality.

“Today’s actions will:

“Establish the Gender Policy Council. The first Executive Order formally establishes the Gender Policy Council within the Executive Office of the President, with a role in both domestic and foreign policy development. The Council will work in coordination with the existing policy councils to advance gender equity and equality, including by:

“Combatting systemic bias and discrimination, including sexual harassment;

“Increasing economic security and opportunity by addressing the structural barriers to women’s participation in the labor force, decreasing wage and wealth gaps, and addressing the caregiving needs of American families and supporting care workers, predominantly low-paid women of color;

“Ensuring access to comprehensive health care and preventing and responding to gender-based violence;

“Promoting equity and opportunity in education and leadership; and

“Advancing gender equality globally through diplomacy, development, trade, and defense, and by recognizing the needs and roles of women and girls in conflict prevention, peacebuilding, democratic rights-respecting governance, global health and humanitarian crises and development assistance.

“The White House Gender Policy Council will be an essential part of the Biden-Harris Administration’s plan to ensure we build a more equal and just society – by aggressively protecting the rights and unique needs of those who experience multiple and intersecting forms of discrimination, including individuals who are Black, Latina, Native, Asian American and Pacific Islander, people with disabilities, and LGBTQI+.

“The Executive Order requires the Co-Chairs of the Council to submit to the President a Government-wide strategy to address gender in policies, programs and budgets, and an annual report to measure progress on implementing the strategy. To prevent and respond to gender-based violence, wherever it occurs, there will be a Special Assistant to the President and Senior Advisor on Gender-Based Violence on the Council staff. The Executive Order also requires engagement with non-profit and community-based organizations, state and local government officials, Tribal Nations, foreign government officials and multilateral organizations.

“Ensure education free from sexual violence. President Biden will sign an Executive Order that will direct the Department of Education (ED) to review all of its existing regulations, orders, guidance, and policies to ensure consistency with the Biden-Harris Administration’s policy that students be guaranteed education free from sexual violence. It also directs ED to specifically evaluate the Title IX regulation issued under the previous administration and agency action taken pursuant to that regulation, to determine whether the regulation and agency action are consistent with the policies of the Biden-Harris Administration.”

Conclusion

The WTO at its 2017 Ministerial Conference held in Buenos Aires saw a joint declaration on women and trade released. There are currently 127 WTO Members who support the declaration. There was an interim report released in 2019 and an informal working group on trade and gender working on a voluntary basis to share information and best practices in ways to increase women’s role in global trade. Such activities are a start for the WTO, but much more could be done if there was greater support by the Members. The 2020-21 selection of Dr. Ngozi Okonjo-Iweala was an important action and will likely presage change at the Secretariat. Her priorities as reviewed in today’s video address trade issues that are important to economic recovery which may facilitate greater movement towards gender equality.

The challenges women face globally during the pandemic are significantly greater than those faced by men both in terms of lost employment, withdrawal from the workforce to deal with child care and much more. The UN Sustainable Development Goal of gender equality and empowerment of all women and girls is important for many reasons. In trade, gender equality will promote growth and innovation. This is true in all societies regardless of level of economic development.

The pandemic has pushed back progress in economic development for much of the world as has been often reported and has slowed or reversed the drive for gender equality and empowerment of half the world’s population.. More focus and efforts are needed to ensure achieving the UN SDG 5 by 2030. Trade is but one aspect of the challenge.

Today’s speeches by the three leaders of multilateral organizations handling trade show some of the broader issues facing global trade to recover from the pandemic and highlight the capabilities of women leading important organizations. The UN Women’s Executive Director highlighted the deep societal challenges that continue to retard gender equality in fact in many parts of the world.

Finally, the actions by President Biden and his Administration are the types of actions needed by countries who have not achieved gender equality to date. More can and must be done by nations around the world. International Women’s Day is a reminder of the enormous global opportunities that exist if gender equality and empowerment of women and girls is achieved.

WTO Director-General selection process — withdrawal of Korea’s Trade Minister Yoo important step to consensus behind Nigeria’s Dr. Ngozi Okonjo-Iweala

· February 5, 2021 · Selection of WTO Director-General · , , , · No Comments

Press accounts report that Korea’s Trade Minister Yoo Myung-hee announced today that she would be withdrawing as a candidate to become the next Director-General of the WTO. See, e.g., Kyodo News, South Korea’s trade minister withdraws from race for next WTO head, February 5, 2021, https://english.kyodonews.net/news/2021/02/0ddc7c65b2cb-s-koreas-trade-minister-withdraws-from-race-for-next-wto-head.html#:~:text=South%20Korea’s%20minister%20for%20trade,of%20the%20World%20Trade%20Organization.&text=The%20career%20bureaucrat%20had%20been,Ngozi%20Okonjo%2DIweala%20of%20Nigeria; South China Morning Post, WTO: South Korea’s Yoo Myung-hee withdraws from director general race, clearing path for Nigeria’s Ngozi Okonjo-Iweala, February 5, 2021, https://www.scmp.com/economy/china-economy/article/3120709/wto-south-koreas-yoo-myung-hee-withdraws-director-general; Bloomberg, Okonjo-Iweala’s Path to WTO Clears Hurdle as Korean Quits Race, February 5, 2021, https://www.bloomberg.com/news/articles/2021-02-05/korean-minister-drops-wto-bid-clears-way-for-nigerian-candidate.

Minister Yoo and Dr. Okonjo-Iweala had been the two remaining candidates entering the third round of consultations in October 2020, and Dr. Okonjo-Iweala had been announced by the Chairman of the General Council as the candidate most likely to attract consensus following the third round. The United States and Korea had spoken before the informal heads of delegation meeting where the WTO Members were provided the results of the consultations. While the procedures being followed were those agreed to by the General Council in late 2002 and followed in earlier selections of the Director-General, Korea failed to withdraw its candidate as required by the procedures and the United States indicated it would not agree to a consensus behind Dr. Okonjo-Iweala, also contrary to the intended spirit of the procedures and prior actions of Members in the 2005 and 2013 selection processes. See WT/L/509, para. 18 (“The outcome of the consultations shall be reported to the membership at each stage. It is understood that the candidate or candidates least likely to attract consensus shall withdraw. The number of candidates expected to withdraw at each stage shall be determined according to the initial number of candidates, and made known in advance. This process shall be repeated in successive stages on the basis of a revised slate of candidates each time, with the aim of establishing consensus around one candidate.”).

I have provided a lot of coverage of the 2020-21 slection process and details of prior actions can be found by reference to those earlier posts. See, e.g., January 26, 2021, Letter from variety of former U.S. officials to President Biden urges U.S. support for Dr. Ngozi Okonjo-Iweala as next WTO Director General, https://currentthoughtsontrade.com/2021/01/26/letter-from-variety-of-former-u-s-officials-to-president-biden-urges-u-s-support-for-dr-ngozi-okonjo-iweala-as-next-wto-director-general/; January 19, 2021,   The next Director-General of the WTO – USTR Lighthizer’s comments to the Financial Times, https://currentthoughtsontrade.com/2021/01/19/the-next-director-general-of-the-wto-ustr-lighthizers-comments-to-the-financial-times/; November 19, 2020, The WTO selection process for the next Director-General – possible steps that can be taken in the coming weeks, https://currentthoughtsontrade.com/2020/11/19/the-wto-selection-process-for-the-next-director-general-possible-steps-that-can-be-taken-in-the-coming-weeks/; November 10, 2020, The values of the WTO – do Members and the final Director-General candidates endorse all of them?, https://currentthoughtsontrade.com/2020/11/10/the-values-of-the-wto-do-members-and-the-final-director-general-candidates-endorse-all-of-them/; November 6, 2020, Postponement of WTO General Council meeting to consider recommendation of Dr. Ngozi Okonjo-Iweala as next Director-General, https://currentthoughtsontrade.com/2020/11/06/postponement-of-wto-general-council-meeting-to-consider-recommendation-of-dr-ngozi-okonjo-iweala-as-next-director-general/; October 29, 2020, WTO press release from informal Heads of Delegation meeting on October 28 and Amb. Walker’s statement to the WTO membership on the outcome of the third round of consultations in the Director-General selection process, https://currentthoughtsontrade.com/2020/10/29/wto-press-release-from-informal-heads-of-delegation-meeting-on-october-28-and-amb-walkers-statement-to-the-wto-membership-on-the-outcome-of-the-third-round-of-consultations-in-the-director-general/; October 29, 2020, October 29th video discussion on WTO Director-General selection process following the announcement of results of third round of consultations and U.S. announcement of not backing the candidate with the greatest support, https://currentthoughtsontrade.com/2020/10/29/october-29th-video-discussion-on-wto-director-general-selection-process-following-the-announcement-of-third-round-of-consultations-and-u-s-aanouncement-of-not-backing-the-candidate-with-the-greatest/; October 29, 2020, U.S. support for Minister Yoo for WTO Director-General premised on need for person with trade expertise, https://currentthoughtsontrade.com/2020/10/29/u-s-support-for-minister-yoo-for-wto-director-general-premised-on-need-for-person-with-trade-expertise/; October 28, 2020:  WTO Director-General selection process doesn’t generate immediate consensus, https://currentthoughtsontrade.com/2020/10/28/wto-director-general-selection-process-doesnt-generate-immediate-consensus/.

What press articles are reporting Minister Yoo said on announcing her withdrawal

The Kyodo News article quotes the Minister as saying, “‘With the vacancy state of the WTO head being prolonged, the future of the WTO is also getting unclear,’ Yoo told a press conference. ‘I therefore have decided to withdraw from candidacy following close arbitration and agreement with the United States, our strong ally.'” The article also indicates that the Ministry had indicated that Minister Yoo would soon “notify the WTO of her decision.”

The South China Morning Post article indicates that the WTO had not as yet received formal notification of Minister Yoo’s withdrawal, and there is nothing on the WTO webpage as of this writing that indicates such a notification has been received.

The Bloomberg article states in part that –

“Yoo decided after discussions with the U.S. and other major nations, and took various issues into account including the need to revitalize the multilateral organization, according to a statement from Korea’s trade ministry on Friday.

“’There was no consensus,’ Yoo said. ‘So we needed enough time for in-depth consultations with important members, including the U.S.’”

Next steps

One would expect that the formal notification of withdrawal from Korea to the WTO will be received in the next week or so. The focus then shifts to the United States and whether the U.S. will indicate it is willing to be part of the consensus behind Dr. Ngozi Okonjo-Iweala or not. Many have urged the Biden Administration to join the consensus. The comments of Minister Yoo indicating consultations with various trading partners, including the United States, suggests that the U.S. is comfortable with her withdrawal. Obviously with the withdrawal of Minister Yoo, there is only one candidate from the 2020 process remaining. So unless the United States opts to fight on for the consideration of alternative individuals (including restarting or redoing the selection process), the likely question is simply one of timing.

Timing for the U.S. making a change in position of Dr. Ngozi Okonjo-Iweala for WTO Director-General likely, but not necessarily, will relate to when President Biden’s nominee for U.S. Trade Representative is confirmed by the Senate and sworn in. The confirmation hearing has not yet been set. Moreover, the Senate moves to the impeachment trial of former President Trump next week which could take up several weeks. It is understood that Senate Committees can hold hearings but can’t refer nominations to the full Senate for approval during the trial. Thus, it is unlikely that the new USTR will be confirmed in the next few weeks.

The President has taken other actions involving international agreements or organizations without waiting for Senate confirmation of cabinet or other senior officials (e.g., rejoining the Paris Climate Agreement and revoking withdrawal from the World Health Organization. So it is possible that the President and his current senior team will decide on the WTO DG without waiting for Katherine Tai to be confirmed.

The Chair of the General Council can call a special meeting of the General Council at any time for the purpose of considering the recommendation he and his facilitators make on the selection of the next Director-General. That said, the next regularly scheduled General Council meeting is set for March 1-2.

Conclusion

Since late October 2020, there were always going to be two actions needed to resolve the Director-General selection process. The first has now been announced but not yet notified, the withdrawal of Minister Yoo from the process. The second, and remaining issue, is the change of position by the United States to be willing to join the consensus behind Dr. Okonjo-Iweala. If Minister Yoo has been in contact with the U.S., as reported in the press articles, it is likely that the U.S. is both supportive of her withdrawal and seriously considering joining the consensus behind the remaining candidate. Hopefully, by early to mid-March that second step will occur, and the WTO can appoint Dr. Ngozi Okonjo-Iweala as the next Director-General.

Letter from variety of former U.S. officials to President Biden urges U.S. support for Dr. Ngozi Okonjo-Iweala as next WTO Director General

· January 26, 2021 · Selection of WTO Director-General · , , , , , · No Comments

With the inauguration of President Joseph R. Biden, Jr. accomplished, a number of former U.S. officials and others — many with roles in U.S. relations with one or more countries in Africa — wrote President Biden urging him to back Dr. Ngozi Okonjo-Iweala for the Director-General post at the WTO. See All Africa, Africa: Former U.S. Officials Call on Biden to Back WTO Selection for Okonjo-Iweala, 22 January 2021, https://allafrica.com/stories/202101220055.html?utm_campaign=allafrica%3Aeditor&utm_medium=social&utm_source=twitter&utm_content=promote%3Aaans%3Aababae.

The Trump Administration had opposed forming a consensus behind Dr. Okonjo-Iweala despite her having received the largest level of support from WTO Members and, pursuant to the procedures being followed (and that were consistent with procedures adopted by the General Council at the end of 2002) was found to be the candidate most likely to command a consensus. According to para. 19 of the 2002 procedures, “At the end of the final stage of the consultative process, the Chair, with the support of the facilitators, shall submit the name of the candidate most likely to attract consensus and recommend his or her appointment by the General Council.” WT/L/509, para. 19. Korea’s candidate, Trade Minister Yoo Myung-hee, did not withdraw as required by the procedures. As noted, the United States indicated it could not join a consensus around Dr. Okonjo-Iweala on the basis of the belief that the WTO needed a Director-General with extensive trade expertise and Dr. Okonjo-Iweala did not possess that background. As a result, the Chair of the General Council has not put forward Dr. Okonjo-Iweala to the General Council for a decision, and the WTO remains without a Director-General.

I have reviewed these developments in prior posts. See, e.g., January 19, 2021,   The next Director-General of the WTO – USTR Lighthizer’s comments to the Financial Times, https://currentthoughtsontrade.com/2021/01/19/the-next-director-general-of-the-wto-ustr-lighthizers-comments-to-the-financial-times/; November 19, 2020, The WTO selection process for the next Director-General – possible steps that can be taken in the coming weeks, https://currentthoughtsontrade.com/2020/11/19/the-wto-selection-process-for-the-next-director-general-possible-steps-that-can-be-taken-in-the-coming-weeks/; November 10, 2020, The values of the WTO – do Members and the final Director-General candidates endorse all of them?, https://currentthoughtsontrade.com/2020/11/10/the-values-of-the-wto-do-members-and-the-final-director-general-candidates-endorse-all-of-them/; November 6, 2020, Postponement of WTO General Council meeting to consider recommendation of Dr. Ngozi Okonjo-Iweala as next Director-General, https://currentthoughtsontrade.com/2020/11/06/postponement-of-wto-general-council-meeting-to-consider-recommendation-of-dr-ngozi-okonjo-iweala-as-next-director-general/; October 29, 2020, WTO press release from informal Heads of Delegation meeting on October 28 and Amb. Walker’s statement to the WTO membership on the outcome of the third round of consultations in the Director-General selection process, https://currentthoughtsontrade.com/2020/10/29/wto-press-release-from-informal-heads-of-delegation-meeting-on-october-28-and-amb-walkers-statement-to-the-wto-membership-on-the-outcome-of-the-third-round-of-consultations-in-the-director-general/; October 29, 2020, October 29th video discussion on WTO Director-General selection process following the announcement of results of third round of consultations and U.S. announcement of not backing the candidate with the greatest support, https://currentthoughtsontrade.com/2020/10/29/october-29th-video-discussion-on-wto-director-general-selection-process-following-the-announcement-of-third-round-of-consultations-and-u-s-aanouncement-of-not-backing-the-candidate-with-the-greatest/; October 29, 2020, U.S. support for Minister Yoo for WTO Director-General premised on need for person with trade expertise, https://currentthoughtsontrade.com/2020/10/29/u-s-support-for-minister-yoo-for-wto-director-general-premised-on-need-for-person-with-trade-expertise/; October 28, 2020:  WTO Director-General selection process doesn’t generate immediate consensus, https://currentthoughtsontrade.com/2020/10/28/wto-director-general-selection-process-doesnt-generate-immediate-consensus/.

The letter sent to President Biden was signed by thirty-seven individuals, many with prior State Department responsibilities (many involving Africa), some from USTR and other government agencies or the White House (some with Africa responsibilities), some from private companies (often working in Africa) or from academia. The list as it appears in the All Africa publication with stated prior and current affiliations is copied below.

The Hon. Mimi Alemayehou
Former Executive Vice President, U.S. Overseas Private Investment Corporation (OPIC)
Former U.S. Executive Director of the African Development Bank

Ambassador Johnnie Carson
Former U.S. Assistant Secretary of State for Africa Affairs
Former U.S. Ambassador to Kenya, Zimbabwe, and Uganda

Teresa Clarke
Chairman and CEO, Africa.com

Ambassador Herman J. “Hank” Cohen
Former U.S. Assistant Secretary of State for African Affairs
President & CEO, Cohen and Woods International

Akunna Cook
Former U.S. Foreign Service Officer
Founder and Principal, Drake Road Strategies

John G. Coumantaros
Chairman of Flour Mills of Nigeria
Chairman CEO of Southern Star Shipping Co Inc (New York)
Founding Member of US Nigeria Council

Ambassador Ruth Davis
Former U.S. Ambassador to the Republic of Benin
Former Director, U.S. Foreign Service Institute
Former Director General, U.S. Foreign Service and Director of Human Resources

The Hon. Vivian Lowery Derryck
Former Deputy Assistant Secretary (EEO and Civil Rights), U.S. Department of State
Founder of the Bridges Institute
Former Assistant Administrator for Africa, USAID

The Hon. Lauri Fitz-Pegado
Former Assistant Secretary
Director General, U.S. Foreign Commercial Service

Melvin Foote
President & CEO, Constituency for Africa

The Hon. Tony Fratto
Former Assistant Secretary, U.S. Treasury
Former White House Deputy Press Secretary
Managing Partner Hamilton Place Strategies

Ambassador Jendayi Frazer
Former U.S. Assistant Secretary of State, Bureau of African Affairs
Former U.S. Ambassador to South Africa
Former Special Assistant to the President & Senior Director for African Affairs, National Security Council
President & CEO, 50 Ventures LLC

Ambassador Michelle D. Gavin
Former U.S. Ambassador to Botswana
Former Senior Director for Africa, National Security Council

Dr. Gloria Herndon
Former Foreign Service Officer, U.S. Department of State
Chair Corporate Board, National Association for Equal Opportunity in Higher Education (NAFEO)
CEO, GB Group

Cameron Hudson
Former Director, African Affairs, National Security Council
Senior Fellow, Atlantic Council Africa Center

Ambassador Makila James (ret.)
Former Deputy Assistant Secretary, East Africa and The Sudans, U.S. Department of State
Former U.S. Ambassador to The Kingdom of Swaziland

Ambassador (ret.) Howard F. Jeter
Former U.S. Ambassador to Nigeria and Botswana
Former Special Presidential Envoy to Liberia

Jeffrey Krilla
Former Deputy Assistant Secretary of State

Florie Liser
Former Assistant U.S. Trade Representative for Africa
President and CEO of Corporate Council on Africa (CCA)

Clay Lowery
Former Assistant Secretary, U.S. Treasury
Former Director, International Finance, National Security Council

Ambassador (ret.) Terence P. McCulley
Former U.S. Ambassador to Mali, Nigeria and Côte d’Ivoire
Chairman, US-Nigeria Council for Food Security, Trade and Investment

Mora McLean
President Emerita, Historian, and Program Strategist, The Africa-America Institute
Former Chair, USTR Trade Advisory Committee on Africa

Cheryl Mills
Former Counselor and Chief of Staff, Office of the Secretary, U.S. Department of State
Former Deputy Counsel to the President, The White House

Todd Moss, PhD
Former U.S. Deputy Assistant Secretary of State

Ambassador John Negroponte
First Director, National Intelligence
Former Ambassador to the United Nations
Former Deputy Secretary of State

The Hon. Constance Berry Newman
Former Assistant Secretary of State for African Affairs
Chair of the African Renaissance and Diaspora Network

Thomas R. Nides
Former Chief of Staff, Office of the United States Trade Representative
Former Deputy Secretary of State for Management and Resources, U.S. Department of State
Vice Chairman, Morgan Stanley

Bernadette Paolo
Former Staff Director, U.S. House of Representatives Subcommittee on Africa
Co-founder & Former CEO, The Africa Society

Bobby J. Pittman
Deputy Assistant Secretary for International Finance and Debt, U.S. Department of Treasury
Special Assistant to the President & Senior Director for African Affairs, National Security Council, White House

Pearl Robinson
Associate Professor, Tufts University
Past President, The African Studies Association

Ambassador Robin Renee Sanders
Former U.S. Ambassador to Nigeria
Former U.S. Ambassador to ECOWAS
Former U.S. Ambassador to Republic of Congo
Former Africa Director, National Security Council
CEO-FEEEDS

Jeannine B. Scott
Chairman, Constituency for Africa (CFA)
Principal, America to Africa Consulting (A2A)
Former Alternate & Advisor to the U.S. ED at the African Development Bank

Timothy Shortley
Former Director, African Affairs, National Security Council
Chief Operating Officer, 50 Ventures, LLC

Ambassador John Simon
Former Senior Director, National Security Council
Former U.S. Ambassador to the African Union
Managing Partner, Total Impact Capital
Member, USTR Trade Advisory Committee for Africa

The Hon. Gayle Smith
Former Administrator, USAID
Former Special Assistant to the President & Senior Director for African Affairs, National Security Council

Joseph E. Stiglitz
Former member and Chair of the Council of Economic Advisers
University Professor, Columbia University
Chief Economist, Roosevelt Institute
Former Chief Economist of the World Bank
Recipient of Nobel Memorial Prize in Economics, 2001

Rosa Whitaker
Former Assistant United States Trade Representative for Africa
President, The Whitaker Group

It is unclear whether the Biden Administration will take trade actions ahead of having the USTR nominee, Katherine Tai, confirmed. In prior posts, I have indicated that I hoped the Biden Administration would quickly alert the WTO to its willingness to join a consensus for Dr. Ngozi Okonjo-Iweala becoming the next Director-General. While there is little doubt that Minister Yoo has a greater trade background that Dr. Okonjo-Iweala, a trade background is not critical to being a successful WTO Director-General. Dr. Okonjo-Iweala has very strong credentials and was supported by the vast majority of the membership. If the U.S. indicates it is willing to join the consensus that action will almost certainly result in Korea withdrawing Minister Yoo as a candidate. These two actions would put the WTO membership back on track to abide by the procedures agreed by the General Council and being used in the 2020 Director-General selection process. Most importantly, it would get the WTO a new Director-General. Such a result is a first step in moving the WTO in the right direction going forward. The letter from former U.S. officials and others is the right message for the Biden Administration to receive. Hopefully, the President will act quickly on this particular issue.