By IPS Correspondents
BRUSSELS, Apr 20 2005 (IPS)

As the competition to become the next head of the World Trade Organisation heats up, all indications are that Pascal Lamy, former European Union Commissioner, will prevail.

The Geneva-based World Trade Organisation (WTO), which sets the rules for global commerce amongst its 148 member states, aims to have a successor to current director-general Supachai Panitchpakdi, from Thailand, by the end of May.

The official campaign to select the new head of the trade body was opened Dec. 1, 2004. Supachai’s term ends Aug. 31, 2005.

Three candidates are now vying for the top post after Luiz Felipe de Seixas Correa, the Brazilian candidate, was eliminated from the competition Friday, finishing last in the first round of consultations of the membership.

Under new WTO rules, which aim to streamline the competition for the new leader, the candidate with least support is knocked out in each round of consultations.

The chairman of the selection panel, Kenyan ambassador Amina Mohamed, said Lamy, a French citizen, had more support than Mauritian trade minister Jaya Krishna Cuttaree and Carlos Pérez del Castillo, former Uruguayan trade envoy to the WTO.

"Under all the criteria, and notably the criteria of North-South diversity, I am far ahead," he said.

And Lamy’s rivals are not underestimating his candidacy.

Speaking before the European Parliament Tuesday, Cuttaree said he expected the final round to be a two-horse race between Europe and his own country, adding that he was confident that Pérez del Castillo would be eliminated in the next round, Apr. 25.

"The Uruguayan candidate is far behind Lamy and myself," Cuttaree told media representatives after a meeting with the European Parliament’s trade committee. "It would be logical to expect that Castillo moves out in the next round."

Cuttaree, who has held several ministerial positions, has the official support of the African, Caribbean and Pacific (ACP) group of countries, which includes many of the WTO’s poorest members.

Cuttaree added that China, India and Brazil have called on Lamy to pull out of the race, but refused to speculate on whether they would now support his own candidacy.

"China, India and Brazil take the position… saying Lamy should pull out," he said.

The Mauritian candidate had earlier told the trade committee that he would seek to be a bridge builder inside the WTO, bringing rich and poor countries together as the body seeks to reach a global trade liberalisation deal.

"My mission would be to bring about an overall agreement for the fair and balanced development of trade to guarantee prosperity for all," he said.

Although he is in favour of free trade, Cuttaree says he does not believe that better market access will solve all of Africa’s problems. Sustainable development must be reconciled with the goal of free trade, said Cuttaree, who is also an expert on the environment.

When asked about the prospects for an agreement on the Doha Development trade round in December in Hong Kong, Cuttaree said there was no need to set a deadline, which "would raise too many expectations".

"We have the skeleton of an agreement," he said, referring to the August 2004 agreement of the WTO Council.

"Now we must put some flesh on the bones. We must focus on agriculture. Negotiations are under way at the WTO and are making good progress. Everything will depend on the attitude of those taking part. If we carry on like this, we will be able to succeed," he added.

The WTO was established in 1995 as a result of the Uruguay Round of negotiations, which brought about the biggest reform of the world’s trading system.

Its main role is as a forum of trade negotiations amongst its now 148 members. It also handles trade disputes and provides technical assistance and training for developing countries.

The WTO is keen to avoid another row over the appointment of the new director general, after tensions in the process in 1999 split developing and developed countries, and left the organisation without a leader for months.

A compromise deal was eventually found which saw Panitchpakdi take office for three years and New Zealander Mike Moore take office for three years before him, instead of the usual four-year term for director-general.

The head of the WTO can have much personal influence, but, unlike the chiefs of the International Monetary Fund (IMF) or World Bank, has no decision-making powers.

A second round of consultations for the new director-general is due to begin Thursday and is expected to last 10 days.

It remains to be seen which candidate the countries that backed Correa will shift their support to, and whether any countries tactically backed one candidate to get him through the first round and will change their vote in the second.

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