WTO Candidates Emphasize Experience, Confidence on 2nd Day of Presentations

The headquarters of the World Trade Organization (WTO) are pictured in Geneva, Switzerland, April 12, 2017. REUTERS/Denis Balibouse/File Photo
The headquarters of the World Trade Organization (WTO) are pictured in Geneva, Switzerland, April 12, 2017. REUTERS/Denis Balibouse/File Photo
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WTO Candidates Emphasize Experience, Confidence on 2nd Day of Presentations

The headquarters of the World Trade Organization (WTO) are pictured in Geneva, Switzerland, April 12, 2017. REUTERS/Denis Balibouse/File Photo
The headquarters of the World Trade Organization (WTO) are pictured in Geneva, Switzerland, April 12, 2017. REUTERS/Denis Balibouse/File Photo

As Saudi Arabia’s candidate for the presidency of the largest international trade organization - is expected to unveil his program, the Moldovan and South Korean candidates agreed that the World Trade Organization (WTO) needed to regain the members’ confidence and to launch a series of reforms.

WTO candidates will be presenting themselves until next Friday. They will have a few weeks until September 7 to persuade the capitals, which will choose the next president during a special meeting in Geneva.

This comes after Brazilian Roberto Azevedo suddenly announced leaving his post in mid-May, and officially giving up his duties at the end of August, a year before the end of his term.

On Thursday, candidates Tudor Ulianovschi of Moldova and Yoo Myung-hee of South Korea, underlined in their speeches the need to reform the WTO work mechanism and to restore confidence by enabling it to keep pace with the 21st century’s world trade.

In his address to the WTO members, Ulianovschi said the organization was not related to the global community today and must demonstrate its importance and do more. He noted that he presented his personal vision for the reform to the organization’s advisory council.

The Moldovan candidate said the top priority for the Director-General next year was to revitalize the organization’s functions, including its negotiating ability and the involvement of all members in the global discussions.

He added that the second priority was to revive the WTO’s judicial function. As for the third priority, he emphasized the need to enhance the principles of transparency and strengthen the supervision within the international organization.

Ulianovschi has assumed the post of Foreign Minister of Moldova from January 2018 to June 2019. He held other diplomatic positions, including his country’s ambassador to Switzerland, and has diplomatic experience of about 15 years.

For her part, Yoo Myung-hee, South Korea’s Minister of Trade, presented her vision for the WTO, stressing that the organization should become “a supreme court” in international trade matters.

She also said that the WTO was at a crossroads, and therefore needed a more confident reform process and integration into the global trading system.

“The world has changed and countries have changed, so there is a need to reorganize global trade,” she stated.

On Thursday, candidates Jesus Seade Kuri from Mexico, Abdel-Hamid Mahmoud of Egypt and Ngozi Okonjo-Iweala of Nigeria revealed their programs in front of 164 members of the council.

Other candidates include former British Minister of International Trade Liam Fox and former Saudi Minister of Economy and Planning Muhammad Al-Tuwaijri.

Saudi Arabia attaches great hopes to its candidate’s victory, especially after the strong confidence expressed by the international community in the Kingdom’s role in the global economic scene.

Al-Tuwaijri held a number of meetings with WTO officials, member-states and regional groups, on the sidelines of his visit to Geneva to present his candidacy speech to the Organization’s General Council.

He met with Roberto Azevedo, the current WTO director-general, the ambassadors of Arab countries and the group of Article XII which consists of 38 members, in addition to the Latin American and Caribbean group of 33 members, in the presence of the permanent representative of Saudi Arabia to the organization.

Al-Tuwaijri is expected to present his candidacy statement to the organization’s general council this Friday, following which he will hold a press conference with media representatives.

The Saudi minister’s nomination comes amid major global challenges in the trade system and reflects the Kingdom’s commitment to driving economic growth and achieving sustainable development.



China Launches Late Stimulus Push to Meet 2024 Growth Target

FILE PHOTO: A worker works on a building under construction in Beijing's Central Business District (CBD), China July 14, 2024. REUTERS/Tingshu Wang/File Photo
FILE PHOTO: A worker works on a building under construction in Beijing's Central Business District (CBD), China July 14, 2024. REUTERS/Tingshu Wang/File Photo
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China Launches Late Stimulus Push to Meet 2024 Growth Target

FILE PHOTO: A worker works on a building under construction in Beijing's Central Business District (CBD), China July 14, 2024. REUTERS/Tingshu Wang/File Photo
FILE PHOTO: A worker works on a building under construction in Beijing's Central Business District (CBD), China July 14, 2024. REUTERS/Tingshu Wang/File Photo

China's central bank on Friday lowered interest rates and injected liquidity into the banking system as Beijing assembled a last-ditch stimulus assault to pull economic growth back towards this year's roughly 5% target, Reuters reported.
More fiscal measures are expected to be announced before China's week-long holidays starting on Oct. 1, after a meeting of the Communist Party's top leaders showed an increased sense of urgency about mounting economic headwinds.
On the heels of the Politburo huddle, China plans to issue special sovereign bonds worth about 2 trillion yuan ($284.43 billion) this year as part of fresh fiscal stimulus, two sources with knowledge of the matter have told Reuters.
Capital Economics chief Asia Economist Mark Williams estimates the package "would lift annual output by 0.4% relative to what it would otherwise have been."
"It's late in the year, but a new package of this size that was implemented soon should be enough to deliver growth in line with the 'around 5%' target," he said.
Chinese stocks are on track for the best week since 2008 on stimulus expectations.
The world's second-largest economy faces strong deflationary pressures due to a sharp property market downturn and frail consumer confidence, which have exposed its over-reliance on exports in an increasingly tense global trade environment.
A wide range of economic data in recent months has missed forecasts, raising concerns among economists that the growth target was at risk and that a longer-term structural slowdown could be in play.
On Friday, data showed industrial profits swinging back to a sharp contraction in August.
"We believe the persistent growth weakness has hit policymakers' pain threshold," Goldman Sachs analysts said in a note.
As flagged on Tuesday by Governor Pan Gongsheng, the People's Bank of China on Friday trimmed the amount of cash that banks must hold as reserves, known as the reserve requirement ratio (RRR), by 50 basis points, the second such reduction this year.
The move is expected to release 1 trillion yuan ($142.5 billion) in liquidity into the banking system and was accompanied by a cut in the benchmark interest rate on seven-day reverse repurchase agreements by 20 bps to 1.50%. The cuts take effect on Friday and Pan, in rare forward-looking remarks, left the door open to another RRR reduction later this year.

Given weak credit demand from households and businesses, investors are more focused on the fiscal measures that are widely expected to be announced in coming days.
Reuters reported on Thursday that 1 trillion yuan due to be raised via special bonds will be used to increase subsidies for a consumer goods replacement program and for the upgrade of large-scale business equipment.
They will also be used to provide a monthly allowance of about 800 yuan, or $114, per child to all households with two or more children, excluding the first child.
China aims to raise another 1 trillion yuan via a separate special sovereign debt issuance to help local governments tackle their debt problems.
Bloomberg News reported on Thursday that China is also considering the injection up to 1 trillion yuan of capital into its biggest state banks.
Most of China's fiscal stimulus still goes into investment, but returns are dwindling and the spending has saddled local governments with $13 trillion in debt.
The looming fiscal measures would mark a slight shift towards stimulating consumption, a direction Beijing has said for more than a decade that it wants to take but has made little progress on.
China's household spending is less than 40% of annual economic output, some 20 percentage points below the global average. Investment, by comparison, is 20 points above but has been fueling much more debt than growth.
The politburo also pledged to stabilize the troubled real estate market, saying the government should expand a white list of housing projects that can receive further financing and revitalize idle land.
The September meeting is not usually a forum for discussing the economy, which suggests growing anxiety among officials.
"The 'shock and awe' strategy could be meant to jumpstart the markets and boost confidence," Nomura analysts said in a note.
"But eventually it is still necessary for Beijing to introduce well thought policies to address many of the deep-rooted problems, particularly regarding how to stabilize the property sector."