Australia formula may end WTO rivalry

Australia has put forward compromise proposals aimed at resolving the deadlock over leadership of the World Trade Organisation.

It could end the rivalry in the WTO between supporters of Mr Mike Moore, a former New Zealand prime minister, and Mr Supachai Panitchpakdi, Thailand's deputy premier, by allowing the two to hold the job consecutively.

The normal four-year term for a WTO director-general would be extended to allow each to serve for at least three years.

The suggestion, floated informally at an Asia-Pacific Economic Co-operation trade ministers' forum in Auckland, appears to be gaining support from Pacific Rim governments.

Members of the organisation have been deadlocked over the leadership since Mr Renato Ruggiero retired two months ago.

Officials from the US, Japan and members of the Association of Southeast Asian Nations are understood to have given the proposal a cautious welcome.

Mr Supachai said he would go along with it if it was acceptable to WTO members.

Mr Moore is said by officials to have signalled a willingness to share the leadership, provided he serves his term first.

His supporters claim he has gained a bigger lead in the contest. But WTO members, which decide by consensus, have failed to unite behind either candidate.

APEC's 21 members account for roughly half of world trade.

If the 17 which belong to the WTO backed the compromise proposal, that could prove decisive.

A European Commission official said the idea could appeal to the European Union, whose members are split between the two candidates.

Washington has been accused of trying to steamroller a decision in Mr Moore's favour, while most of east Asia and Australia back Mr Supachai.

Some trade officials said splitting the term could cause complications by requiring a change of leadership at a sensitive moment.