Pascal Lamy, who until recently was the European Union's chief trade negotiator, is set to become director-general of the World Trade Organization (WTO) after his last remaining rival withdrew from the race. Barring some unforeseen revolt before the WTO general Council's formal decision, Lamy's four-year term will begin September 1, 2005. But Lamy still faces an enormous challenge in mobilizing the consensus-oriented WTO to complete the Doha round and ensuring that the negotiations produce major results. As head of the Geneva-based body, which sets the rules for trade among its members and mediates their disputes, he would also act as one of the chief advocates for economic globalization, a daunting task in itself. But his success or failure will almost certainly hinge on how he handles the Doha talks. The round, launched in the capital of Qatar a couple of months after the September 11, 2001 terrorist attacks, is supposed to provide especially significant benefits for developing countries who were aggrieved that previous rounds tended to favor the interests of American and European companies. One demand of many developing countries is the elimination of, or at least a sharp cutback in, agricultural subsidies that often spur overproduction and depress prices for crops. Those demands are hotly resisted by powerful agricultural interests in rich countries, particularly in Lamy's native France. Lamy has a particularly delicate tightrope walk to perform, some trade experts think. As director-general, he has little formal power beyond "moral suasion" in trying to forge consensus among the member nations. As an official who represented Europe's position on the main issues - he stepped down as the EU trade commissioner in November after a five-year term - he may enjoy both advantages and disadvantages. US Gives WTO FundsIn an effort to assure that developing nations can participate in the Doha Development Agenda (DDA) trade negotiations, the US announced that it will contribute $992,000 to the World Trade Organization (WTO). USTR Rob Portman said in a statement that the money will go toward technical assistance aimed at integrating developing nations into multilateral trade. It also will help those nations meet their obligations, which can include assistance in preparing regulations and legislation to implement trade commitments, computer-based seminars on the WTO's trading system, and technical seminars on customs. The US donation brings the total contributions to WTO technical assistance for Doha to nearly $5 million since 2001.
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