Some weeks ago, Mario Draghi, former governor of the European Central Bank, explained that multilateralism, including the WTO, has been questioned even by those who wanted it, the United States, and by those who benefited most from it, China. More recently it was questioned even by Europe. In response to the “manifest inadequacy” the answer has been so far the choice of the populist path rather than the necessary corrective measures, he added.
Mohammad Al-Tuwaijri, the former Saudi economy minister, is one of eight candidates to replace Roberto Azevedo as the World Trade Organization’s next director-general. A former air force pilot, he was a banker who ran JP Morgan’s fledgling Saudi Arabia operations before joining HSBC. He currently advises the kingdom’s royal court on economic strategy. He gave an exclusive interview to Formiche.net.
How can trust be restored?
From my point of view, the only way to gain the trust of Member States is achieving tangible results Since 1995 WTO has only reached one multilateral agreement in 2014 concerning rules on trade facilitation. Without tangible and measurable consistency in delivery, there can be no trust. That is why it is absolutely necessary to take a pragmatic, effective, and problem-solving approach to the organization to build confidence that the WTO can deliver on Members’ expectations.
What impact has the coronavirus pandemic already had and what impact will it have on the dynamics of the WTO?
The pandemic has brought uncertainty and new challenges to the world and has impacted deeply international trades, forcing companies and governments to restructure their supply chains. The WTO is an indispensable and necessary tool if we want to manage this global phenomena in a collective, positive, peaceful way. Trade and trade policies can help societies fulfill their needs and aspirations in the post-COVID-19 era by helping steer the economic recovery onto a more sustainable and resilient track, and the WTO needs to help navigate trade into that crucial role. It is critical that the WTO framework keeps markets and fosters a more favorable business environment. The WTO needs to ensure that trade policy is strong and resilient against any future challenges.
And in the challenge for the Organization’s reformation?
COVID-19 pandemic has severely reduced global trade. But I also see COVID-19, and the post-pandemic era, as a great opportunity. Usually, countries perform better in crises, the same way people can perform better under stress, and the WTO itself and even the GATT were both created under very challenging environments. So why not rethink some of the rules, rethink some of the processes, and introduce new ideas to Members, so that we ensure this ship is steered in the right direction.
Is a reform of the governance system also needed to change the WTO?
Governance reform must be one of the main targets. The Director-General must be in a position to apply WTO resources to support the negotiating process. Additionally, a “delivery unit” should be formed within the Director-General’s office responsible for directing assistance to all states that need it. Moreover, I believe it’s vital to hold an annual Ministerial Conference in order to encourage the proactive and consistent participation of Member States, strengthen relationships, and also to increase transparency, by means of a renewed notification system.
Can and must cooperation with other international organizations be implemented?
The spirit of multilateralism must be safeguarded at this moment in history. Today we have reached a level of interconnection that must be managed, as far as possible in a collective and shared way. Organizations such as the WTO foster and protect the values of multilateralism and its leadership must reflect this approach.
In what way?
It is essential that WTO Members select a candidate who is an impartial facilitator, and thus not part of any partisan dynamic As already mentioned, we need to be able to regain trust, and this can be achieved through transparency and engagement, both within the WTO and between the WTO and other international institutions. What I would like to bring to the table is an integrated solution. Another way is to share the experience of stakeholder engagement, an area where the WTO could benefit from the examples of other international organizations.
What would the experience in Vision 2030 and other personal experiences bring to the WTO?
I have rich experience in initiating and implementing transformation processes, something that WTO has a dire need for. I have had deep involvement in the ongoing economic diversification process in the Kingdom under the ambitious Vision 2030 roadmap for a future economy that further decreases its reliance on oil. Saudi Vision 2030 is in its fifth year and going strong. The economic transformation program in Saudi Arabia included important initiatives to improve the ease of doing business in the Kingdom, a key ingredient for successful global trading.
What is on the agenda of your first 100 days at the WTO?
As Director-General I plan to hit the ground running, meeting Members with an agenda for change, with a view to creating momentum for a positive Ministerial Conference in June 2021. As DG, I will plan to spend 50% on outreach to members, 40% on reforms and WTO improvements, and 10% on management and administration. So essentially, I will do a deep scan, to understand issues from Members’ points of interest.
Intellectual property is one of the central issues of the Italian presence at the WTO, and at the same time, it is a central topic also in the dispute between the United States and China. Where to restart from?
The Director-General’s first role will be making sure the system functions as intended. The DG must support progress on reforms, but once again, this can be done only from a position of impartiality. With regard to intellectual property, as you know, TRIPS introduced intellectual property rules into the multilateral trading system for the first time ever and is essentially a legal recognition of the significance of links between intellectual property and trade. So, the TRIPS adds to existing international conventions and standards, and to the extent, there is a difference of interpretation, the WTO must provide a means to resolve the problem, either through a functioning and fair dispute system or through negotiation. The problem remains that until the WTO is functioning properly, existing rules will not be monitored and enforced, and new rules will not be negotiated. This is why a strong and experienced DG needs to bring all Members to the table to achieve results that benefit the entire membership.
