Groser Resignation Stuns WTO Ag Negotiators; Officials Warn of Consequences for Farm Trade Talks

GENEVA--Trade officials in Geneva May 23 were stunned by the news that the chairman of the WTO's agriculture negotiations, New Zealand ambassador Tim Groser, has resigned as New Zealand's ambassador to the WTO, calling into question his continued leadership at a sensitive stage in the farm trade negotiations. Groser was forced to resign his post after announcing that he would stand as a parliamentary candidate in New Zealand general elections expected to take place in September. Groser will run as a candidate for New Zealand's conservative National Party, which is seeking to unseat the ruling Labor government.

Officials in Geneva said Groser's announcement caught them completely by surprise and was an unwelcome distraction from the ongoing work of theagriculture negotiators, who will meet in Geneva May 26-27 to addressseveral outstanding issues related to the May 4 agreement on procedures for carrying out the conversion of specific tariffs into ad valoremequivalents.

Groser, who was returning to Geneva May 23 to discuss his situation with member governments, is expected to chair those meetings.

'It's not well-timed,' said one Middle Eastern trade diplomat, notingGroser's lead role in drafting an initial 'first approximation' text for agriculture which WTO members are due to finalize by the end of July. 'It probably means a slowdown of everything in agriculture, which is thecentral issue in the Doha Round negotiations.'

The first approximation will serve as the basis for an eventualministerial declaration to be issued at the organization's crucial Hong Kong gathering in December, where members are expected to finalize theformula and figures for reducing tariffs on farm imports and cuttingagricultural subsidies.

Nevertheless, Groser appeared likely to remain as chairman at least until the end of July after New Zealand's acting ambassador indicated thegovernment was ready to continue supporting in the run-up to theelections, provided WTO members agreed to keep him on.

Sense of Betrayal

Groser's announcement drew a bitter reaction from New Zealand TradeMinister Jim Sutton. 'I had a strong sense of betrayal,' Sutton told the 'New Zealand Herald' newspaper. 'He has not put his country first.'Groser is believed by some trade diplomats to be seeking the post of New Zealand trade minister should his party emerge on top in the generalelections.

Although sometimes described as abrasive, the New Zealander has won kudos from fellow Geneva trade diplomats for his effective handling of thepolitically sensitive farm trade talks. Groser also garnered praise for preventing the feud over agricultural tariff conversions from boiling over earlier this year and facilitating the compromises which led to the May 4 deal in Paris.

New Zealand's Ministry of Foreign Affairs and Trade said in a statement May 23 that, in accordance with the country's Election Act, Groser hasbeen placed on immediate leave. The Act requires public servants to resign from their duties if they are contesting an election.

'While on leave, Mr. Groser will not carry out any of the duties andresponsibilities of New Zealand's Ambassador to the WTO,' the ministrynoted.

'The Government will therefore be consulting with the WTO leadership as it considers the implications of Mr. Groser's changed status,' the ministry added. 'In the meantime, Mr. Groser is available to continue in this role.'

The ministry added that while Groser could continue to work as a ministry employee after the election if he fails to secure a parliamentary seat, the government has 'decided that at this time it requires a WTO Ambassador in Geneva, and it is therefore not able to keep this specific positionunfilled throughout the pre-election period.' As a result, New Zealand's deputy WTO Ambassador, Tony Lynch, will now serve as acting ambassador.

Officials said Groser's status was expected to be discussed at a May 26-27 meeting of the WTO's ruling General Council.

Looking for Geneva-Based

Under a decision adopted by the WTO's Trade Negotiations Committee inFebruary 2002, the chairs of the various Doha Round negotiating groups'should be selected from among Geneva-based representatives in themajority.' Other qualified individuals nominated by governments may also be considered 'on the understanding that these individuals would beavailable in Geneva as often as needed, and that any related costs would need to be handled in a way which did not disadvantage Members for whom there could be a problem.'In a May 23 letter to General Council chairman Amina Chawahir Mohamed,Lynch said Groser's fate as chairman was a 'matter for the WTO GeneralCouncil itself to determine.'

'In the event that it was the wish of the General Council to retain Tim's services for a time as Chair, the New Zealand Government would wish to be as helpful as possible within the constraints of New Zealand law andconvention,' Lynch said.

'In that regard, I have been instructed to let you know that the NewZealand government would be prepared to consider facilitating Tim'savailability to continue a Chairing role, should that be the wish of the membership, by resourcing him separately for a transitional period' headded.

Lynch warned however that the New Zealand government would only provide support for Groser up to a month before the general election. Although the date of the election has not yet been fixed, it can take place no later than Sept. 24.

'Thus, while we cannot provide complete precision, it is reasonably likely that, as a practical matter, this would see Tim Groser effectivelyresourced through to around the Northern Summer break if that was, in the Council's view, needed and in the overall interest of the Round,' Lynch added.

Michael Mann, spokesman for EU Agriculture Commissioner Mariann FisherBoel, praised Groser's work as chairman and urged the speedy selection of his successor.

'We'd like to thank Tim for his excellent work as Chairman of theagriculture negotiations, which has helped move the talks forward,' Mann said. 'We hope that the WTO members can get together quickly to find areplacement Chairman as we enter this crucial period in the talks.'

WTO spokesman Keith Rockwell said the continuation of Groser as chairman until the organization's August break 'should provide us adequate time to find a replacement.'

'Tim has done a superb job in his role, and finding someone with his level of experience will not be easy,' Rockwell said. Nevertheless, 'there's a deep pool of talent in Geneva, and I'm sure a very fine chairman can be found.'

Could Stay On

Other officials however said it was not a foregone conclusion that Groser would be replaced as chairman and that the New Zealander could stay on if his party loses the elections, even if he is replaced as WTO ambassador. A European official noted that Groser was selected as agriculture chairman by WTO members, not the New Zealand government. 'He was appointed despite being their ambassador, not because of it,' the official said in reference to New Zealand's traditional strong support for liberalizing agricultural trade and reducing subsidies.

'Who else are we going to get for chairman?' the official asked. 'If he wants to stay until the Hong Kong ministerial, we should help him do it.'

Trade diplomats noted that the previous chairman of the agriculturenegotiations, Stuart Harbinson, stayed on as chair even after quitting as Hong Kong's top representative to the WTO to become chief of staff for WTO director-general Supachai Panitchpakdi.

However, the diplomats said Groser would almost certainly have to bereplaced if his party was to win the election and he was to become NewZealand trade minister.