WORLD TRADE WT/BFA/33
28November 1997
ORGANIZATION
(97-5328)
Committee onBudget, Finance andAdministration
REPORT OFTHE MEETINGS HELD ON21AND 27NOVEMBER 1997
Introduction
1. TheWTOCommitteeonBudget,FinanceandAdministrationmeton21and27November1997
under thechairmanship ofAmbassador K.Morjane ofTunisia, andadopted theAgenda contained in
document WTO/AIR/732. Theterms ofreference andcomposition oftheCommittee aresetoutin
document WT/L/44/Rev.1.
I. ADMINISTRATIVE UPDATES AND PROGRESS REPORTS
A. Cashsituation andstatement ofoutstanding contributions asat31October 1997 (CRP(97)25,
WT/BFA/SPEC/14)
B. Instalment payments forcountries inarrears (contributions from 1987 andearlier years) -
Progress report asat31October 1997 (CRP(97)26)
C. Contributions ofobserver countries towards thecostofservices provided bytheSecretariat -
Progress report asat31October 1997 (CRP(97)27)
2. TheSecretariatpresentedreportsonthecashsituationandstatementofoutstandingcontributions
asat31October1997,theinstalmentpaymentsforcountriesinarrears,andthecontributionsofObserver
countries towards thecostofservices provided bytheSecretariat. Thetotalcontributions received
amounted toCHF 96,959,101, andtheWorking Capital Fund stood atCHF 7,272,532. Since the
meeting oftheCommittee inOctober 1997, Malawi hadmade contributions, andwastherefore no
longer listed under Category IVoranyothercategory oftheadministrative measures. Another Member,
Senegal alsomade contribution, andwasnolonger listed under Category IIoftheadministrative
measures. Since 31October 1997, Brunei Darussalam, Chile, Ecuador, Nicaragua, Pakistan, and
Saint Vincent andtheGrenadines hadmade contributions. Inthecontext oftheinstalment payments
scheme forcountries inarrears (contributions for1987 andearlier years), there wasnochange inthe
situation ofWTO Members since thelastmeeting oftheCommittee. Neither werethere anychanges
since thelastmeeting inthesituation ofoutstanding contributions ofWTO Observers.
3. Inreply toaquery, theSecretariat clarified thatthefinalbalances ofTrust Funds werehandled
onacasebycasebasis. Consultations areundertaken withthedonor country concerned. Thebalance
iseither returned tothelatter orusedtofundanother activity.
4. TheCommittee tooknoteofthereports.
II. UTILIZATION OF1996 SURPLUS
5. TheCommittee examined document CRP(97)24 andthedraftrecommendation prepared by
theSecretariat ontheuseof1996 surplus. Discussion centred ontheallocation offunds under the
following possible items: (i)correction ofoverstatement inthe1996 account; (ii)readjustment of
theleveloftheWorkingCapitalFund;(iii)financingfutureMinisterialConferences;(iv)replenishment
oftheAppellate Body Operating Fund for1998; (v)financing anactuarial study inrelation withtheWT/BFA/33
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proposal regarding theconditions ofservice forWTO staff; (vi)financing oftechnical assistance
activities; and(vii)financing ofthefollow-up oftheHigh-Level Meeting ontheLeast Developed
Countries. Most members considered itimportant toincrease theleveloftheWorking Capital Fund.
However, onemember indicated thatatthatstagehecould notjoininaconsensus inthatrespect. Some
members considered thatonlythe1998 Ministerial Conference should befinanced atthisstage and
notthe1999/2000 Ministerial Conference. Withregard totheAppellate Body Operating Fund, some
Members questioned theamount required forthe1998 replenishment while others feltthatthelevel
should beincreased totakeaccount offuture years'requirements. Other Members insisted onthe
needtoincrease thetechnical assistance ofWTO todeveloping Countries. Itwasalsoproposed that
some partofthe1996 surplus should bereturned toMembers.
6. Takingintoaccountthevariouspointsofviewandpositionsexpressed,theChairmanformulated
acompromise draftrecommendation. Inthelightoftheproposal, theCommittee recommends tothe
General Council thatthe1996 Surplus ofCHF 10,127,456 beutilized inthefollowing manner:
(i) CHF 195,000 tocorrect anoverstatement inthe1996accounts (c.f.WT/BFA/W/19,
paragraphs 4and5oftheReport oftheExternal Auditor);
(ii) CHF 982,000 tofinance the1998 Ministerial Conference and50thAnniversary
Celebration inGeneva;
(iii) CHF 1,500,000 toreplenish theAppellate Body Operating Fund;
(iv) CHF 450,000 tofinance anactuarial study1;
(v) theuseofthebalance ofCHF 7,000,456 tobeexamined intheCommittee onBudget,
Finance andAdministration which willmake arecommendation totheGeneral Council
in1998. Therecommendation could include: (a)readjusting theleveloftheWorking
Capital Fund; (b)financing the1999/2000 Ministerial Conference; (c)financing
activities inthecontext ofthefollow-up totheHigh-Level Meeting ontheLeast
Developed Countries; (d)financing technical assistance activities fordeveloping
countries and/or; (e)anyother purposes asmaybedeemed appropriate.
7. Members oftheCommittee agreed thattherecommendation referred toinparagraph 6(v)above
should bemade asearly aspossible in1998 sothatitcould besubmitted atthefirstmeeting ofthe
General Council. Itwasnoted thatMembers would remain freetoraiseunder point6(v)(e) anymatters,
including those previously discussed inthiscontext, butnotspecifically mentioned inthe
recommendation. TheSecretariat wasrequested toprepare relevant papers onthevarious issues
contained inparagraph 6(v)including thelegalassistance withregard tothewhole dispute settlement
process.
III. POSSIBLE MEASURES INFAVOUR OFLEAST DEVELOPED COUNTRIES
8. TheCommittee examined thedocument CRP(97)21/Rev.1. Members agreed thatmeasures
toencourage theleastdeveloped countries toparticipate more intheactivities oftheWTO should be
identified. Inprinciple, thefinancing ofschemes intheframework oftheactivities oftheWTO through
voluntary contributions metwithagreement. TheChairman nevertheless indicated thatthelevelof
theminimum contribution would bepartofthediscussions in1998 inthecontext ofthereview of
thefunctioning ofthesystem regarding thebasis fortheassessment ofcontributions tothebudget of
1Onthecondition that(i)theforthcoming meeting oftheGeneral Council accepts theproposal regarding
theconditions ofservice forWTO staffand(ii)thattheneed forthestudy isconfirmed.WT/BFA/33
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theWTO, asdecided bytheGeneral Council (WT/BFA/6, WT/GC/M/8). TheCommittee agreed
toexaminethepossibilityofassessingcontributionstotheWTObudgetmorecloselybasedonMembers'
share intrade inthecourse above-mentioned review.
IV. UN/WTO COOPERATION WITH REGARD TOITCBUDGETARY ARRANGEMENTS
9. Amember oftheSecretariat presented thedocument CRP(97)22 onthesituation oftheITC's
budgetary arrangement withregard totheWTO andtheUN. Heindicated thattheITCwasobliged
topresent itsbudget incompliance withtherequirements ofboththeUNandtheWTO, which created
considerable technical difficulties andresulted ininefficient useofexisting resources. Itwasnoted
thatasolution totheproblem could onlybefound through theacceptance byboththeUNandthe
WTO Governing Bodies ofonesingle budgetary format.
10. TheCommittee noted thatthequestion wasnolonger aWTO Secretariat -UNSecretariat matter
butrather something which should betaken upbetween thegoverning bodies ofthetwoorganizations.
Thiswould include (i)discussions between theChairman oftheWTO Committee onBudget, Finance
andAdministration andChairpersons oftheFifth Committee andtheAdvisory Committee on
Administrative andBudgetary Questions attheUnited Nations and(ii)coordination ofapproach by
WTO Members 'representatives inGeneva andNewYork onthisissue.
V. PROPOSED SCHEDULE OFMEETINGS FOR 1998
11. TheCommittee tooknotetheproposed schedule ofmeetings for1998 (CRP(97)23), noting
thatif,inthecourse of1998, more meetings arerequired, oradditional issues necessitate discussions
orreview, theywould beadded totheproposed schedule. Inthiscontext, theChairman indicated
thathewould consult withtheChairman oftheGeneral Council withregard tothepossibility ofan
additional meeting oftheGeneral Council inMarch todealwitharecommendation onthefurther use
ofthe1996 surplus (seeparagraph 6above).
VI. OTHER BUSINESS
12. OneMember oftheCommittee presented twopapers, oneonthesubject ofclassification of
WTO documents (useofjobnumbers) andtheother onoverhead costsforactivities financed bytrust
funds. Hesaidthathewasintroducing thesematters atthattimeinthehopethattheywould beincluded
asagenda items atafuture meeting oftheCommittee. TheCommittee agreed toreturn tothem in
thenearfuture.
13. Some Members suggested thatitwould beuseful tohaveamore systematic discussion with
regardtothecostsoftheAppellateBody.TheSecretariatwasrequestedtopreparevariouscostscenarios
onthispoint.
14. Attheconclusion ofthemeeting, theChairman thanked theMembers oftheCommittee for
theiractive participation inthecourse ofthepastyear. Hesaidthattheresults ofthemeetings would
havebeenlesssatisfying ifthere hadnotbeensuchafruitful cooperation among theMembers.
POINT FOR DECISION: Paragraph 6