This paper examines a 2005 Economist article covering the election of Pascal Lamy as the new World Trade Organization director-general, replacing Supachai Panitchpakdi. It explores the divisions between rich and poor WTO member states reflected in the candidacies of Lamy and Carlos Perez del Castillo, the global decline in support for free trade, and the mounting pressure for protectionist measures in Europe and America. The paper also highlights the significance of the December 2005 WTO ministerial conference in Hong Kong and analyzes the WTO's role as a major intergovernmental organization shaping international trade rules.
The prominent British newspaper The Economist published an article about the election of a new director-general for the World Trade Organization. The elections were held to replace outgoing director-general Supachai Panitchpakdi. The top two candidates for the position were Pascal Lamy, a former European Union trade commissioner from France, and Carlos Perez del Castillo, a former ambassador to the WTO from Uruguay.
The two candidacies reflected the growing divisions within the organization between its rich and poor members. European members supported Mr. Lamy, while Mr. Perez del Castillo drew support from Latin American and Middle Eastern members. The United States maintained its neutrality throughout the process. The elections took place on May 13, 2005, in Geneva, Switzerland — the headquarters of the WTO. After garnering sufficient support from developing countries, Mr. Lamy was sworn in as the new WTO director-general.
The article goes on to discuss the various challenges Mr. Lamy would face as the new WTO director-general. Support for free trade has greatly diminished worldwide. Because earlier trade negotiations successfully opened markets globally, the remaining issues — such as the EU's use of agricultural subsidies to support its domestic farmers — are among the most contentious and difficult to resolve. A resolution of these issues had been repeatedly delayed, further widening the divisions between the WTO's rich and poor members. Rising unemployment in both Europe and America, combined with increasing competition from China and Eastern Europe, had prompted domestic constituencies in those regions to call for the reinstatement of protectionist measures.
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