RESTRICTEDWORLD TRADE
ORGANIZATIONWT/BFA/56
18 December 2001
(01-6389)
Committee on Budget, Finance and Administration
REPORT OF THE MEETINGS HELD ON 18 OCTOBER, 23 AND 29 NOVEMBER,
AND 4, 6, 10, 14 AND 18 DECEMBER 2001
1. The WTO Committee on Budget, Finance and Administration met formally and informally on
18 October, 23 and 29 November, and 4, 6, 10, 14 and 18 December 2001 under the chairmanship ofAmbassador Mr. M. Supperamaniam of Malaysia.  The terms of reference and composition of the
Committee are set out in document WT/L/44/Rev.1.  The Agenda contained in documents
WTO/AIR/1645, and WTO/AIR/1645 Cor .1 and 2 were adopted.  Under the item “Other Business,”
the Secretariat brought up the following: (i) the accession of the People’s Republic of China,
(ii) parking at the WTO, and (iii) communication from the Permanent Mission of Switzerland.
I. FINANCIAL MATTERS: DIRECTOR-GENERAL’S BUDGETARY AND
FINANCIAL REPORT FOR 2000 AND REPORT OF THE EXTERNAL AUDITOR
THEREON; DIVISIONAL REPORTING ON OBJECTIVES AND EXPENDITURES
FOR 2000 AND REPORT ON EXTRA-BUDGETARY FUNDS FOR 2000
2. A member of the Secretariat presented: (i) the Director-General’s Budgetary and Financial
Report for 2000 and Report of the Auditors Thereon (WT/BFA/W/57), (ii) the Divisional Reporting
on Objectives and Expenditure in 2000 (WT/BFA/W/58), and (iii) Report on Extra-budgetary Funds
for 2000 (WT/BFA/W/59).  He informed the Members that it was the second year that the information
normally presented in the Final Position Paper and the Director-General’s Financial Report had been
combined into one report.  The information contained in the Divisional Reporting on Objectives and
Expenditures, and the Report on Extra-Budgetary Funds was a further step in the direction of results-based budgeting.
3. The Secretariat highlighted the positive balance of CHF 3,400,497 in the Surplus Account as
at 31 December 2000.  With regard to the expenditures, it was noted that, under the WTO, over-
expenditures had occurred under sections 2, 3, 6 and 8, while savings had occurred under sectionsrelating to administrative and other costs.  As to the expenditures of the Appellate Body, over-
expenditures had occurred under sections 2, 4, 8 and 9, while savings took place under sections 3, 5,
6, 7 and 12.  The Secretariat drew the attention of the Members to paragraphs 25 and 37 of document
WT/BFA/W/57 which contained the recommendations for transfers for the WTO and the Appellate
Body respectively, which were necessary to cover over-expenditures by savings in the relevantbudgetary sections.
4. The Secretariat drew the attention of the Members to the report of the External Auditor on the
following: (i) the need to review the procedures rela tive to the sale of publications, (ii) the recording
of operating costs of the Pension Plan, (iii) the importance of receiving extra-budgetary funds prior toany expenditure, (iv) internal auditing, (v) the investigation of a time registration system in the
Secretariat, (vi) the need for Information Technology audits and (vii) the importance of monitoring
data related to personnel costs.WT/BFA/56
Page 2
5. The Secretariat agreed that future reports would provide an estimation of the Pension Fund
support costs, which were covered by the WTO.
6. With regard to the question of creating a post of internal auditor, a few Members supported
the proposal while others expressed their view that it was not appropriate adding another level of
bureaucracy to the organization.
7. With regard to losses on sales of publications, the Secretariat recalled the policy of free
distribution of a limited number of copies of WTO publications to Least Developed and Developing
Countries, and indicated that publications required for Technical Cooperation financed from the Trust
Funds had not yet been charged to the Trust Funds; however, the Secretariat would develop the
procedures to do so in the future.
8. With regard to the time registration system, Members of the Committee expressed that, in
principle, they were not opposed to the suggestion of the External Auditor provided that it would be
cost effective and would not impose additional bureaucratic activities to the Organization.  The matter
will be taken up at a future meeting.
9. The Committee took note of the reports and  recommends to the General Council to
approve the transfer between WTO budgetary sections as mentioned in paragraph 25 of
documents WT/BFA/W/57 amounting to CHF 3,406,783, and between Appellate Body
budgetary sections as mentioned in paragraph 37 amounting to CHF 30,437, which are
necessary in order to cover excess expenditure over approved appropriations .
10. The Committee further recommends that the General Council approves the audited
accounts for 2000 and conveys to the external a uditor their thanks for the valuable assistance
provided in the audit of these accounts.
II. WTO SECRETARIAT AND THE APPELLATE BODY AND ITS SECRETARIAT
WTO PERFORMANCE AGAINST BUDGET FOR 2001 AS AT 30 SEPTEMBER 2001.
11. A member of the Secretariat presented the Performance Against Budget Report as at
30 September 2001 ( CRP(01)19).  With regard to the WTO performance, it was projected that there
would be a budgetary over-expenditure of some CHF 496,000.  Excess expenditures were foreseenmainly under (i) temporary assistance, (ii) postal cost s, and (iii) contribution to the International Trade
Centre.  The Secretariat informed that there was a 36 per cent increase in the number of words
translated for the first eight months of 2001, while there was a 24 per cent increase in the number of
meetings held.  In the course of the year, the translation backlog had been significantly reduced.  The
over-expenditure in postal costs was due to the increased volume of documentation produced as well
as increase in both Swiss and international postal ra tes.  With regard to the Appellate Body, savings of
some CHF 85,000 were foreseen.
12. The Committee took note of the report.
DOHA DEVELOPMENT AGENDA GLOBAL TRUST FUND
13. The Deputy Director-General in charge of Administration presented to the Committee the
plan of the Director-General to create the Doha Development Agenda (DDA) Global Trust Fund,
which would finance a comprehensive programme of activities which would focus on implementing
decisions taken by Ministers at the 4th WTO Ministerial Conference (document
WT/MIN/(01)/DEC/1).  This could be done through ways and means as detailed in Attachment 2 of
document CRP(01)22.  A buffer account would be created for the operation of the new trust fund,WT/BFA/56
Page 3
which would ensure that programme execution would not be disrupted by any temporary shortage of
pledged contributions.  The new trust fund would operate with specified targets tied to identified
benchmarks and would be closely supervised jointly by the Committee on Trade and Development
(CTD) and the Budget Committee.  The Secretariat provided to the Members a draft Memorandum of
Understanding governing the management of contri butions to the DDA Global Trust Fund (document
CRP(01)28).
14. Some Members indicated that a wide participation in the DDA Global Trust Fund was
important in order to ensure effective burden sharing.  Several Members, suggested that a pledging
conference be held early next year to secure funds for the beginning of the activities foreseen in the
new trust fund.  Some Members were of the opinion that, due to different national budgeting cycles, a
pledging conference at the beginning of the year might be either too early or too late and some
Members might consequently not be in a position to make pledges at that time.  Some Membersemphasized the voluntary character of the Trust Fund which should be borne in mind when
elaborating and accepting of the Annual Technical Assistance Plan.
15. Some Members expressed the concern that they might have difficulties in contributing to un-
earmarked trust funds.  Other Members suggest ed a 2-window system where Members could make
earmarked and un-earmarked contributions. One Memb er queried the overhead charge on trust funds.
16. The Deputy Director-General indicated that where earmarked contributions could be used to
satisfy activities covered by the Plan, the funds would more or less automatically be transferred over
to the Global Trust Fund for those purposes.  He also clarified that the 13 percent overhead chargewas in accordance with the decision of the General Council (WT/GC/M/32).  The Director of the
Technical Co-operation Division then gave detailed clarification on the implementation of the
technical co-operation and capacity building mandate built into the Doha Declaration. He indicated
that the WTO annual technical activities plan was being drafted and would be presented to the CTD.
17. Some Members were of the opinion that the target figure of CHF 15 million for the DDAGTF
was too modest.  Others considered that the target figure should be maintained as the implementation
of the fund would be reviewed next year.  After detailed discussions, the Committee agreed that the
proposed figure for the DDAGTF should remain at CHF  15 million as a floor, and the use of the fund
should be precisely targeted so as to allow the optimum use of the monies.
18. Subsequently, the Secretariat provided documents CRP(01) 31 and Rev. 1 and 2 on the Draft
Recommendation of the Doha Development Global Trust Fund (DDAGTF).
19. Pursuant to paragraph 40 of the Ministerial Declaration adopted at the Fourth Session
of the WTO Ministerial Conference1, the Committee recommends to the General Council that :
a) The Doha Development Agenda Global Trust Fund (DDAGTF) be established;
b) The purpose of the DDAGTF is to finance technical assistance to developing
countries and/or economies in transition and especially least developed countries
in accordance with the commitments made in the Declaration of the Doha
Ministerial Conference and the agreed New WTO Strategy for Technical Co-
operation and the Co-ordinated WTO Secretariat Annual Technical Assistance
Plan;
                                                     
1 “40. We agree that there is a need for technical assi stance to benefit from secure and predictable funding.
We therefore instruct the Committee on Budget, Finance and Administration to develop a plan for adoption bythe General Council in December 2001 that will ensure long-term funding for WTO technical assistance at anoverall level no lower than that of the current year and commensurate with the activities outlined above.”(WT/MIN(01)/DEC/1)WT/BFA/56
Page 4
c) Governments are urged to make financial contributions in a manner which
would preserve the global nature of the programme and facilitate the
management and reporting with a view to greater transparency (i.e. making un-
earmarked contributions and limiting the degree of constraints in earmarked
contributions); in this context, Governments could consider following the
approach suggested in the draft model Memorandum of Understanding attached
hereto as Annex A;
d) The DDAGTF would function in the manner described in Annex B2.
e) While approving overall parameters of the fund, the General Council recognises
that Annexes A and B may require some adjustments prior to the first pledging
conference.
20. It was agreed that the DDAGTF should provide funds to finance at a level not exceeding
CHF 480,000 a NGO Symposium along the lines contained in paragraphs 22 and 23 of
WT/BFA/SPEC/63.
USE OF 2000 SURPLUS
21. A representative of the Secretariat introduced the document CRP(01)24 and informed the
Committee that the Director-General proposed to  use the overall 2000 surplus of CHF 3,400,497 for
(i) the replenishment of the Appellate Body Operating Fund, (ii) the establishment of the Doha
Development Agenda Global Trust Fund Buffer Account, and (iii) the unforeseen expenditure relating
to the new WTO annex and for installation of a security back up switchboard.
22. The Committee recommends to the General Council that the credit balance in the 2000
Surplus Account amounting to CHF 3,400,497 be utilized as follows:
CHF 1,800,000 to replenish the Appellate Body Operating Fund;
CHF 1,000,000  to establish the Doha Development Agenda Global Trust Fund
Buffer Account; and
CHF   600,497 to meet unforeseen expenditure related to the new WTO annex
and for installation of a security back up switchboard.
BUDGET ESTIMATES FOR 2002
23. In his presentation, the Deputy Director-General highlighted two points: (i) the Director-
General reserved the right to revert to the Committee if decisions having budgetary implications were
taken at the Ministerial Conference, and (ii) the possibility of reverting to the Committee after the
Ministerial Conference with regard to questions of security in light of further developments and a re-
examination of procedures in the WTO.  Th e proposed budget (document WT/BFA/SPEC/63)
reflected almost entirely the continuation of the current activities of the WTO, with two exceptions,
namely (i) essential infrastructure: up-grading of the simultaneous interpretation, and (ii) two
transparency initiatives: the annual Non-Govern mental Organization (NGO) Symposium and the
annual Geneva Week for Non-Resident Delegations , which the Director-General proposed to fund
from the regular budget henceforth.  The overall proposals for continuing the current activities
showed a growth of 2.73 per cent.  Of this amount, 0.12 per cent was due to the effects of inflation
and 2.32 per cent reflect statutory and other unavoidable increases, which led to a total real increase of
                                                     
2  A pledging conference will be organised early in 2002 to give sufficient political visibility to the
fund raising exercise for the implementation of the Doha Development Agenda.  Annual pledging conferencesmay also be organised in subsequent years.  The basis for the pledging conference will be the Co-ordinated
WTO Secretariat Annual Technical Assistance Plan endorsed by the CTD.WT/BFA/56
Page 5
0.29 per cent.  The upgrading of the simultaneous interpretation equipment in meeting rooms was
estimated at CHF 422,000, while the NGO Symposium was estimated at CHF 600,000 and the
Geneva Week at CHF 900,000.  Further, the Deputy Director-General drew the attention of the
Members to the proposal to use CHF 1.8 million from the 2000 surplus to replenish the Appellate
Body Operating Fund.
24. Subsequent to the Ministerial Declaration (document WT/MIN(01)DEC/1), the Director-
General presented a Supplemental Submission to the Committee with regard to budgetary
implications resulting from the Ministerial Declaration in the area of technical assistance and capacity
building (documents CRP(01)22 and 23).  This included the proposal of the DDAGTF and a limited
number of additional posts to deal with specifically identified resource needs connected with the work
programme of the WTO, including the newly agreed negotiations.
25. The Committee, noting the provisions of Annex B, understand the importance of ensuring that
contribution to the Trust Funds for Technical Cooperation should be adequate to meet the funding
requirements for Technical Assistance as approved by the CTD and the CBFA on the basis of the
“Coordinated WTO Annual Technical Assistance Plan.”  As stated in Annex B, “where contribution
receipt targets are manifestly not met, the General Council shall meet on an urgent basis to discuss thematter” and take urgent action to redress the situation.
26. Some Members expressed the wish to see a larger amount of technical assistance and capacity
building incorporated into the regular budget. Others indicated that the WTO should continue tocoordinate technical assistance efforts with other organizations. One Member enquired on the
possibility of some participants of the regular Trade Policy Courses assuming their own expenses.
27. Subsequently, the Secretariat provided documents CRP(01)25 on the revised budget proposals
for 2002.  The Committee then had a detailed examination of the revised budget proposals underheading: (i) training, (ii) Geneva Week and NGO Symposium, and (iii) translation.  At the request of
Members, the Secretariat prepared further documents providing the breakdown of the costs of the
Geneva Week and the NGO Symposium (documents CRP(01)32 and 34) as well as details on the
additional staff required to support the WTO Work Programme (document CRP(01)33).  The Report
of the Management and Human Resources Consultant was distributed to the Committee. Membersstressed the importance of having sufficient time to examine the report of the Human Resources
Consultant and its implications early in 2002.  Future discussions, as requested and agreed by the
Committee, on the personnel policy should be held in the light of the report in early 2002.
28. With regard to additional staff requirements, some Members enquired on the possibility of
outsourcing the web site development and utilizing temporary assistance to meet additional needs
pending a thorough review of the structure of the organization.    Some Members emphasized theimportance of Geneva Week in helping non-resident delegations to understand the functioning of the
organization.  One Member expressed the view that the duration of the NGO Symposium could be
reduced and the money made available could be used to contribute to the financing of a second shorter
Geneva Week.   One Member indicated that too many important budget documents were circulated as
Conference Room Papers in English only, which posed serious problems in capitals. The Secretariatagreed to examine measures which would resolve the problem.
29. The Committee undertook a section-by-section examination of the budget estimates.  In
respect of cost saving, one Member proposed to use CD-ROMs for treating documents.  Some
Members requested the Secretariat to look into the possibilities using available resources for TradePolicy Courses to reach the largest number of  LDC and Developing Country participants.WT/BFA/56
Page 6
30. The committee agreed to undertake a comprehensive review of the WTO Secretariat with a
view to ensuring that it can fully and adequately discharge its growing and multifaceted
responsibilities, as decided by Members, including for technical assistance and capacity building for
developing countries with higher standards of functional efficiency, and review the  application of
recruitment policy under Regulation 3.1 of the WTO Staff Regulations to ensure equal opportunity for
all qualified candidates, regardless of gender, nationality, race or religion, with the objective ofreflecting the broadest possible membership of the WTO in the Secretariat.  The Committee looks
forward to a report from the Director General to this end by March 2002.
31. One Member requested that the Committee should discuss the following in 2002 (i) the
outsourcing of the WTO web site, (ii) further alignment of volume 2 of the document
WT/BFA/SPEC/63 on functional budget and programme s to result-based budgeting, and (iii) ideas
that could be drawn from the report of the Human Resources Consultant for staffing needs in 2002.The Committee agreed to the requests made by this Member.
32. In response to concerns raised by Members, the Committee agreed to recommend to the
General Council that (a) budgetary resources approved for the funding of Geneva Week should not be
used to defray the costs of participation by regional organizations; and, (b) consultations withMembers should precede any decisions relative to participation in, and the programme of, the NGO
Symposium to be financed through the regular budget.
33. Further to various formal and informal meetings, the Secretariat ultimately presented revised
budget proposals in document WT/BFA/W/65, whic h reflected the concerns and comments made by
the Members.  These revised proposals took into account (i) the possibilities of redeployment of staff,
and the number of new posts requested was reduced from 15 to eight  (three positions in the Training
Institute, one in the Economic Research and Analysis Division, one in the Statistics Division, one in
the Human Resources Section, one in the Trade Policies Review Division, and one position to be
determined), (ii) the intensive recourse to outsourc ing with regard to translation while maintaining the
level of services expected by the Members, (iii) the postponement of the up-grading of the
interpretation system, it being understood that if the equipment was facing a major technical problem,
recourse to the Working Capital Fund would take place, (iv) the reassessment and downward revision
of the needs of the NGO Symposium and the Geneva Week, and (v) various other reductions with
regard to office automation, utilities, postage, perm anent equipment, public information activities, etc.
34. One Member questioned the possibility of doubling the Training Institute capacity with the
additional of only three posts.
35. During the discussions regarding the creation of new posts, one Member stated the view that
these posts should above all serve the mandate given by the Ministers in Doha, without any sectoral
exclusion.  Accordingly, while the Secretariat should be provided with the necessary resources fortechnical assistance, it should also be in a position to address, in proper conditions, all of the subjects
on which it had been decided, in Doha, to hold negotiations.  The Member stressed, inter alia, the
need to attend to the Secretariat’s request concerning the creation of a post in the Trade and
Environment Division.
36. Some Members indicated their view that in accordance to paragraph 10 of the Doha
Declaration, the NGO Symposium should be included in the regular budget. The acceptance of the
revised budget proposal for 2002 should be viewed as a single decision and should not constitute
prejudice to future budgets.  In their opinion, the NGOs  affect the general public, which in turn affect
the decisions of governments’ policies.  Other Members were of the opinion that the paragraph 10 ofthe Doha Declaration did not endor se the view that the NGO Symposium should be funded from the
regular budget and that the NGO Symposium should be continued to be funded from trust fund.WT/BFA/56
Page 7
37.  With regard to the recruitment policy, several Members indicated that two elements should
be taken into account: (i) merit-based, and (ii) preserving the Membership balance.  The Secretariat
further indicated that it was not the intention of the Director-General to create a new post for the
performance analysis function.
38. The assessed contribution of the Separate Customs Territory of Taiwan, Penghu, Kinmen and
Mastu in view of its accession to the WTO on 1  January 2002 will be credited to the Surplus Account
of 2002.WT/BFA/56
Page 8
Budget estimates for 2002
39. The Committee submits to the General Council for consideration and approval the
following draft resolution on the expenditure of the World Trade Organization in 2002 and the
ways and means to meet such expenditure.
DRAFT RESOLUTION ON THE REVISED EXPENDITURE OF THE
WORLD TRADE ORGANIZATION IN 2002 AND THE WAYS
AND MEANS TO MEET SUCH EXPENDITURE
The General Council,
HAVING CONSIDERED,
the Estimates of expenditure of Secretariat of the World Trade Organization for 2002
(CHF 140,313,850 ), and for the Appellate Body and its Secretariat for 2002 (CHF 2,816,000 )
amounting to a total of CHF 143,129,850 as set forth in the schedules annexed to this Resolution.
RESOLVE that,
1. The financing of the amount of CHF 143,129,850 with regard to the Secretariat of the
WTO and the Appellate Body and its Secretariat referred to above shall be as follows:
(a) by contributions from Members, on the basis of an minimum contribution of
0.015 per cent, in the amount of CHF 142,100,000 (Schedule II);  and
(b) by miscellaneous income estimated at CHF 1,029,850 (Schedule III).
2. The contributions of the Members shall be assessed in accordance with the attached
scale of contributions.  Contributions from Members in respect of the 2002 budget are
considered as due and payable in full as at 1 January 2002.WT/BFA/56
Page 9
SCHEDULE I – A
2002 PROPOSED REVISED BUDGET FOR THE WTO SECRETARIAT
PO r i g i n a l
A 2002 Additional Revised
R Estimates Requirements Proposal
T CRP(01)25
A1 -                  
(a) Salary 62,209,700 980,900          63,190,600      (403,900)         62,786,700         
(b) Pensions 12,273,600 193,800          12,467,400      (79,800)           12,387,600         
(c) Other Common Staff costs 10,163,500 773,400          10,936,900      (344,400)         10,592,500         
2 11,927,100 1,430,000      13,357,100      -                          (450,000) 12,907,100        
-                  -                  -                      
B3 -                  -                  -                  -                      
(a) Telecommunications 637,000 -                  637,000           -                  637,000              
(b) Postage charges 1,327,000 250,000          1,577,000        -                            (50,000) 1,527,000           
4 1,000,000      1,000,000        -                  1,000,000           
(a) Rental 249,600 -                  249,600           -                  249,600              
(b) Utilities 1,696,500 -                  1,696,500        -                            (50,000) 1,646,500           
(c) Maintenance and Insurance 923,000 -                  923,000           -                  923,000              
5 3,690,800 112,500          3,803,300        (52,500)                     (50,000) 3,700,800           
6 1,343,700 -                  1,343,700        -                  1,343,700           
7 -                  -                  -                  -                      
(a) Reproduction 1,421,000 -                  1,421,000        -                  1,421,000           
(b) Office Automation / Informatics 2,206,800 90,000            2,296,800        (7,000)                       (50,000) 2,239,800           
(c) Other 244,000 -                  244,000           -                  244,000              
-                  -                  -                      
C8 -                  -                  -                      
(a) Training 430,000 -                  430,000           -                  430,000              
(b) Insurance 1,112,500 3,400              1,115,900        (1,400)             1,114,500           
(c) Joint Services 542,000 -                  542,000           -                  542,000              
(d) Miscellaneous 46,500 15,000            61,500             (7,000)             54,500                
9 -                  -                  -                  -                      
(a) Official 1,241,100 -                  1,241,100        -                  1,241,100           
(b) Technical Co-operation 1,198,200 -                  1,198,200        -                  1,198,200           
10 1,542,000 954,000          2,496,000        -                  2,496,000           
11 15,113,850 -                  15,113,850      -                  15,113,850         
12 -                  -                  -                  -                      
(a) Representation and Hospitality 258,000 -                  258,000           -                  258,000              
(b) Dispute Settlement Panels 1,337,000 -                  1,337,000        -                  1,337,000           
(c) Permanent Group of Experts/ 30,000 -                  30,000             -                  30,000                
(d) Appellate Body -                  -                  -                  -                      
(e) Library 583,500 -                  583,500           -                  583,500              
(f) Publications 203,000 -                  203,000           -                            (10,000) 193,000              
(g) Public Information Activities 260,000 -                  260,000           -                            (50,000) 210,000              
(h) External Auditors 70,000 -                  70,000             -                            (20,000) 50,000                
(i) Ministerial Meeting 400,000 -                  400,000           -                  400,000              
(j) ISO 58,900 -                  58,900             -                  58,900                
(k) Other 73,000 -                  73,000             -                  73,000                
13 100,000 -                  100,000           -                  100,000              
-                  -                  -                      
Sub-total 134,912,850 5,803,000 140, 715,850 (896,000) (730,000) 139,089,850
Infrastructure 422,000 -                  422,000           (422,000) -                      
Geneva Week / Short Trade Policy 
Courses for LDCs 1,500,000 -                  1,500,000        (276,000) 1,224,000           
Total 136,834,850 5,803,000 142,637,850 (896,000)        (1,428,000)      140,313,850       Post Doha
Revised 2002 
Estimates
Contribution to ITCCommunications
Building Facilities
Permanent Equipment
Expendable EquipmentSECTION
Staff (Work/years)
Temporary Assistance
Various
Unforeseen ExpenditureContractual Services
Staff Overhead Costs
Missions
Trade Policy Training Courses
(2,324,000)Proposed Reductions
Reduced New 
Posts  Other cost WT/BFA/56
Page 10
SCHEDULE I – B
2002 PROPOSED REVISED BUDGET FOR THE APPELLATE BODY AND ITS SECRETARIAT
P
A 2002
R SECTION Estimates
T
A 1 Staff(Work/years)
(a) Salary 1,500,200
(b) Pensions 296,400
(c) Other Common Staff costs 244,400
2 Temporary Assistance 36,000
B 3 Communications
(a) Telecommunications 6,500
(b) Postage charges
4 Building Facilities
(a) Rental
(b) Utilities 13,000
(c) Maintenance and Insurance 0
5 Permanent Equipment 47,200
6 Expendable Equipment 17,700
7 Contractual Services
(a) Reproduction 15,000
(b) Office Automation / Informatics 0
(c) Other
C 8 Staff Overhead Costs
(a) Training
(b) Insurance 5,000
(c) Joint Services
(d) Miscellaneous 2,000
9 Missions
(a) Official 10,000
(b) Technical Co-operation
10 Trade Policy Training Courses
11 Contribution to ITC
12 Various
(a) Representation and Hospitality 1,000
(b) Dispute Settlement Panels
(c) Permanent Group of Experts/ Arbitration under GATS
(d) Appellate Body Members 618,200
(e) Library 3,400
(f) Publications
(g) Public Information Activities
(h) External Auditors
(i) Ministerial Meeting
(j) ISO
(k) Other
13 Unforeseen Expenditure
TOTAL 2,816,000WT/BFA/56
Page 11
SCHEDULE II
PROPOSED REVISED SCALE OF CONTRIBUTIONS FOR 2002
 (Minimum contribution of 0.015 per cent)
2001 2002 INTEREST 2002 NET
MEMBERS CONTRIBUTION CONTRIBUTION EARNED  1CONTRIBUTION
CHF % CHF CHF CHF
Albania 19,935 0.015 21,315 21,315
Angola 81,069 0.057 80,997 (241) 80,756
Antigua and Barbuda 19,935 0.015 21,315 21,315
Argentina 709,686 0.510 724,710 724,710
Australia 1,717,068 1.218 1,730,778 (10,422) 1,720,356
Austria 2,022,738 1.438 2,043,398 (11,763) 2,031,635
Bahrain 99,675 0.068 96,628 (582) 96,046
Bangladesh 136,887 0.105 149,205 149,205
Barbados 26,580 0.020 28,420 (68) 28,352
Belgium 3,686,646 2.683 3,812,543 (17,216) 3,795,327
Belize 19,935 0.015 21,315 (90) 21,225
Benin 19,935 0.015 21,315 (87) 21,228
Bolivia 35,883 0.026 36,946 (168) 36,778
Botswana 51,831 0.041 58,261 58,261
Brazil 1,391,463 0.988 1,403,948 (1,141) 1,402,807
Brunei Darussalam 61,134 0.044 62,524 (335) 62,189
Bulgaria 131,571 0.094 133,574 (177) 133,397
Burkina Faso 19,935 0.015 21,315 21,315
Burundi 19,935 0.015 21,315 21,315
Cameroon 38,541 0.027 38,367 (243) 38,124
Canada 5,172,468 3.914 5,561,794 (29,044) 5,532,750
Central African Republic 19,935 0.015 21,315 21,315
Chad 19,935 0.015 21,315 21,315
Chile 445,215 0.311 441,931 (1,209) 440,722
China, People’s Rep. of 2.973 4,224,633 4,224,633
Colombia 337,566 0.233 331,093 (456) 330,637
Congo 34,554 0.024 34,104 34,104
Costa Rica 126,255 0.104 147,784 (577) 147,207
Côte d’Ivoire 98,346 0.068 96,628 (18) 96,610
Croatia 205,995 0.147 208,887 208,887
Cuba 71,766 0.064 90,944 (438) 90,506
Cyprus 91,701 0.064 90,944 (452) 90,492
Czech Republic 707,028 0.511 726,131 (4,344) 721,787
Democratic Republic of the Congo 33,225 0.024 34,104 34,104
Denmark 1,330,329 0.948 1,347,108 (8,013) 1,339,095
Djibouti 19,935 0.015 21,315 21,315
Dominica 19,935 0.015 21,315 (78) 21,237
Dominican Republic 159,480 0.125 177,625 177,625
Ecuador 122,268 0.085 120,785 120,785
Egypt 360,159 0.266 377,986 (2,243) 375,743
El Salvador 69,108 0.058 82,418 (234) 82,184
Estonia 82,398 0.063 89,523 (346) 89,177
European Communities 0 0.000 0 0
Fiji 23,922 0.016 22,736 (140) 22,596
                                                     
1 Interest earned in 2000 under the Early Payment Encouragement Scheme (L/6384) and to be deducted from the 2002
contribution.WT/BFA/56
Page 12
2001 2002 INTEREST 2002 NET
MEMBERS CONTRIBUTION CONTRIBUTION EARNED  1CONTRIBUTION
CHF % CHF CHF CHF
Finland 944,919 0.672 954,912 (5,242) 949,670
France 7,663,014 5.541 7,873,761 (408) 7,873,353
Gabon 47,844 0.034 48,314 (319) 47,995
Gambia 19,935 0.015 21,315 21,315
Georgia 21,264 0.015 21,315 21,315
Germany 12,912,564 9.291 13,202,511 (47,398) 13,155,113
Ghana 46,515 0.042 59,682 (234) 59,448
Greece 437,241 0.311 441,931 (1,785) 440,146
Grenada 19,935 0.015 21,315 (69) 21,246
Guatemala 79,740 0.063 89,523 (396) 89,127
Guinea 19,935 0.015 21,315 21,315
Guinea-Bissau 19,935 0.015 21,315 21,315
Guyana 19,935 0.015 21,315 (79) 21,236
Haiti 19,935 0.015 21,315 21,315
Honduras 50,502 0.039 55,419 (209) 55,210
Hong Kong, China 4,791,045 3.345 4,753,245 (30,793) 4,722,452
Hungary 526,284 0.413 586,873 (3,180) 583,693
Iceland 59,805 0.045 63,945 (351) 63,594
India 1,100,412 0.830 1,179,430 (1,777) 1,177,653
Indonesia 1,234,641 0.831 1,180,851 (286) 1,180,565
Ireland 1,265,208 1.141 1,621,361 (8,246) 1,613,115
Israel 736,266 0.548 778,708 (4,314) 774,394
Italy 6,244,971 4.407 6,262,347 (21,284) 6,241,063
Jamaica 79,740 0.057 80,997 (400) 80,597
Japan 9,519,627 6.629 9,419,809 (42,322) 9,377,487
Jordan 94,359 0.066 93,786 (87) 93,699
Kenya 69,108 0.047 66,787 (304) 66,483
Korea, Republic of 3,387,621 2.381 3,383,401 (13,182) 3,370,219
Kuwait 287,064 0.194 275,674 (518) 275,156
Kyrgyz Republic 19,935 0.015 21,315 21,315
Latvia 67,779 0.051 72,471 (382) 72,089
Lesotho 19,935 0.015 21,315 21,315
Liechtenstein 37,212 0.027 38,367 (236) 38,131
Lithuania 0.083 117,943 117,943
Luxembourg 394,713 0.297 422,037 (2,005) 420,032
Macao, China 85,056 0.062 88,102 (460) 87,642
Madagascar 19,935 0.015 21,315 (129) 21,186
Malawi 19,935 0.015 21,315 21,315
Malaysia 1,946,985 1.313 1,865,773 (8,090) 1,857,683
Maldives 19,935 0.015 21,315 (74) 21,241
Mali 19,935 0.015 21,315 21,315
Malta 66,450 0.048 68,208 (397) 67,811
Mauritania 19,935 0.015 21,315 21,315
Mauritius 58,476 0.041 58,261 (339) 57,922
Mexico 2,607,498 2.106 2,992,626 (3,761) 2,988,865
Moldova 0.015 21,315 21,315
Mongolia 19,935 0.015 21,315 21,315
Morocco 216,627 0.160 227,360 (1,079) 226,281
Mozambique 19,935 0.015 21,315 21,315
Myanmar, Union of 43,857 0.032 45,472 (61) 45,411
Namibia 41,199 0.029 41,209 (209) 41,000WT/BFA/56
Page 13
2001 2002 INTEREST 2002 NET
MEMBERS CONTRIBUTION CONTRIBUTION EARNED  1CONTRIBUTION
CHF % CHF CHF CHF
Netherlands, Kingdom of the 4,571,760 3.625 5,151,125 (27,140) 5,123,985
New Zealand 385,410 0.266 377,986 (2,310) 375,676
Nicaragua 23,922 0.020 28,420 (44) 28,376
Niger 19,935 0.015 21,315 21,315
Nigeria 295,038 0.204 289,884 289,884
Norway 1,231,983 0.859 1,220,639 (7,460) 1,213,179
Oman 139,545 0.099 140,679 140,679
Pakistan 260,484 0.185 262,885 262,885
Panama 175,428 0.124 176,204 (272) 175,932
Papua New Guinea 51,831 0.033 46,893 (279) 46,614
Paraguay 99,675 0.064 90,944 90,944
Peru 196,692 0.137 194,677 (497) 194,180
Philippines 881,127 0.628 892,388 892,388
Poland 944,919 0.703 998,963 (5,179) 993,784
Portugal 826,638 0.609 865,389 (583) 864,806
Qatar 83,727 0.076 107,996 (289) 107,707
Romania 241,878 0.170 241,570 (1,083) 240,487
Rwanda 19,935 0.015 21,315 21,315
Saint Lucia 19,935 0.015 21,315 (27) 21,288
Senegal 31,896 0.023 32,683 (197) 32,486
Sierra Leone 19,935 0.015 21,315 21,315
Singapore 3,059,358 2.080 2,955,680 (13,511) 2,942,169
Slovak Republic 283,077 0.205 291,305 (1,650) 289,655
Slovenia 235,233 0.169 240,149 (1,215) 238,934
Solomon Islands 19,935 0.015 21,315 21,315
South Africa 749,556 0.521 740,341 (3,902) 736,439
Spain 3,291,933 2.468 3,507,028 (16,747) 3,490,281
Sri Lanka 127,584 0.095 134,995 (599) 134,396
St. Kitts and Nevis 19,935 0.015 21,315 (120) 21,195
St. Vincent and the Grenadines 19,935 0.015 21,315 (23) 21,292
Suriname 19,935 0.015 21,315 21,315
Swaziland 23,922 0.018 25,578 (147) 25,431
Sweden 2,049,318 1.497 2,127,237 (12,588) 2,114,649
Switzerland 2,154,309 1.536 2,182,656 (7,533) 2,175,123
Tanzania 35,883 0.025 35,525 35,525
Thailand 1,503,099 0.999 1,419,579 (8,335) 1,411,244
Togo 19,935 0.015 21,315 21,315
Trinidad and Tobago 62,463 0.045 63,945 (199) 63,746
Tunisia 183,402 0.134 190,414 (644) 189,770
Turkey 1,113,702 0.792 1,125,432 (1,951) 1,123,481
Uganda 25,251 0.020 28,420 (98) 28,322
United Arab Emirates 708,357 0.519 737,499 (2,189) 735,310
United Kingdom of Great Britain
  and Northern Ireland7,962,039 5.862 8,329,902 (49,194) 8,280,708
United States of America20,773,599 15.723 22,342,383 (18,783) 22,323,600
Uruguay 90,372 0.064 90,944 90,944
Venezuela 445,215 0.315 447,615 (1,449) 446,166
Zambia 29,238 0.021 29,841 29,841
Zimbabwe 45,186 0.034 48,314 (88) 48,226
TOTAL 132,900,000 100.00 142,100,000 (476,855) 141,623,145WT/BFA/56
Page 14
SCHEDULE III
REVISED ESTIMATES OF MISCELLANEOUS INCOME FOR 2002
ORIGINAL
ESTIMATES
CHFREVISED
ESTIMATES
CHF
Sale of publications 94,100 94,100
Savings on previous year's outstanding obligations 91,000 91,000
Rental of meeting rooms, office space and parking
  at Centre William Rappard to others140,000 140,000
Contributions of Observer Countries 630,000 630,000
Other:
 - Interest on Current Account25,750 40,750
- Various 30,000 34,000
TOTAL 1,010,850 1,029,850WT/BFA/56
Page 15
III. INTERNATIONAL TRADE CENTRE UNCTAD/WTO
A. PERFORMANCE AGAINST BUDGET AS AT 30 SEPTEMBER  2001
40. The Deputy Executive Director of the International Trade Centre UNCTAD/WTO (ITC)
introduced the document ITC/BUD/41.  He indicated that the projected expenditure to the total budget
foresaw an over-expenditure of CHF 479,200, which represented a 101.6 per cent of the originally
approved budget. He noted that this is the first time that ITC is projecting expenditures which exceedthe appropriations approved. He then explained the statutory factors, which contributed to the over-
expenditure in staff costs, namely (i) the result of  the review by the United Nations, of the after
service health insurance (ASHI) scheme, applicable to retired ITC staff members, ITC was required to
contribute to its financing as of 1 January 2001, and (ii) the increase in post adjustment multiplier for
Professional staff in Geneva which increased by 4.3 points effective 1 July 2001.  With regard to the
over-expenditure in the telecommunications section, it was mainly due to the upgrading of the cabling
infrastructure within the ITC building to bring it in line with current and foreseeable requirements
imposed by technology and expanded E-activities as well as in anticipation of implementation of
IMIS, the United Nations’ Integrated Management Information System which was planned for early
2002.  In addition, he indicated that the expenditure with regard to the item “Contributions to joint
activities” concerned the services being provided by the United Nations Office of Internal Oversight
Services on a reimbursement basis.
41. In reply to query, a representative of the WTO Secretariat indicated that the over-expenditure
of the ITC in 2001 formed part of the WTO overall expenditure and had been already taken into
consideration in the WTO Performance Agai nst Budget for 2001 as at 30 September 2001.
42. The Committee took note of the report.
PROPOSED REGULAR PROGRAMME BUDGET OF THE ITC FOR 2002
43. The Deputy Executive Director of the ITC introduced the document ITC/BUD/40 on the
proposed budget for 2002 with preliminary estimates for 2003.  He recalled that an outline of the 2002proposed budget amounting to CHF 30,221,800 was presented to the Committee in January and in
May 2001.  Since the preparation of the outline, a revision of the outline was necessary due to the
changes in statutory staff costs as had been presented in the Performance Report for 2001.  Therefore,
the proposed budget for 2002 amounted to CHF 30,632,700 and would reflect an increase of
CHF 7,700 compared to the 2001 budget adjusted for the unavoidable statutory costs costed on a fullyear basis.  The WTO share of the budget after deducting the anticipated miscellaneous income was
estimated at CHF 15,113,850 or a CHF 3,850 increase over the adjusted WTO share for 2001 of
CHF 15,110,000.
44. The Deputy Executive Director then explained in detail that the main areas of increase
referred to (i) the mainstreaming into the regula r programme of the core activities of the Executive
Forum for National Export Strategies, (ii) the strengthening of the in-house capacity in the ElectronicTrade sector, the implementation of the Integrated Management Information System (IMIS), (iii) the
information and communication technology expenditures, (iv) the improvement of the security
coverage, and (v) the regradings of 3 posts.  He stressed that the increase requested related to the
strategy of ITC to contribute to the efforts by deve loping and transition countries to bridge the digital
divide, and concerned a new area of activity, which will supplement and not replace the traditionalmeans of delivery of technical assistance.  The proposed budget would, therefore, enable ITC to
strengthen the activities dealing with the enhancemen t of the business sector capacity in developing
countries, particularly the Least-Developed Countries (LDCs), and countries with economies in
transition, to better understand and take advantage of the evolving multilateral trading system, thus
avoiding further marginalization.WT/BFA/56
Page 16
45. One Member complimented the ITC’s activities and indicated that the work of the ITC in
Senegal yielded outstanding results.  Another Member indicated ITC’s activities were complementary
to that of the WTO especially in the area in the private sector and expressed his pleasure of learning
the importance that ITC attached to the LDCs.
46. The Committee then had a detailed study of the document ITC/BUD/40.  One Member
enquired on the basis for the  decision to propose moving the funding  of the Executive Forum on
national export strategies from extra-budgetary funding to regular budget funding, and the possibility
of re-allocating existing resources to cover additional needs in the electronic trade.  The ITC indicated
that the Swiss authorities funded the activities of the Executive Forum on National Export Strategies
in 2000 and 2001.  Given the importance of these activities, similar programmes were developed in
the field.  The Executive Forum has proven to be an innovative and effective way of building
awareness of trade’s contribution to development at the highest level of government and industry andof reinforcing the national approach to export strategy design and management.  Therefore, given the
importance and profile for the Executive Forum in relation to ITC’s mandate, it was decided to
propose to mainstream the Executive Forum and to finance a part of the related activities through the
regular budget.  Extra-budgetary fundi ng would be used in a complementary fashion, especially for
follow-on activities at the national and regional levels.  With regard to the additional resources for theelectronic trade, the ITC had analysed all possibilities of re-allocating existing resources, but could
not identify any.  Moreover, it was expected that  the external labour market would provide candidates
with the special profile required.
47. At the request from a Member, the ITC provided an extract of a draft document prepared by
the ITC for the United Nations showing the performance indicators and targets and advised that the
United Nations budget document would be made av ailable through the WTO Secretariat once it has
been finalised by the United Nations Secretariat.
48. The Committee recommends to the Genera l Council that the budget for 2002 of the
International Trade Centre UNCTAD/WTO be approved in the amount of CHF 30,632,700.
With miscellaneous income being estimated at CHF 405,000, the amount to be provided to the
Centre in 2002 budget of the WTO represents CHF 15,113,850.
IV. OTHER ITEMS
A. ADMINISTRATIVE UP -DATES AND PROGRESS REPORTS
49. A member of the Secretariat presented the cash situation, the statement of outstanding
contributions as at 30 September 2001, the progress report of instalments for countries in arrears, the
contributions of Observer countries towards the cost of services provided by the Secretariat, and
report on the scheme to facilitate the payment of pre-1988 arrears.  As of 30 September 2001, the total
contributions received from Members amounted to CHF 102,752,940.  With regard to the
contributions received from the Observers to the WT O towards the cost of services provided by the
Secretariat, it stood at CHF 544,884.  The Working Capital Fund stood at  CHF 8,188,783. As at
30 September 2001, there was one Member in Category I and four in Category II, while in Category
III there were two and in Category IV, eighteen.
50. A member of the Secretariat provided a progress report in the field of human resources.  Since
the last report, a further 4 candidates had been selected for the 13 new posts created in the 2001
budget.  As requested, the Secretariat provided tables on the breakdown of the total staff by Division,
grade, occupational grouping and contractual status, as well as by nationality, grade and occupational
grouping as at 1 October 2001.  Copy of the Administrative Memorandum No. 934, entitled
“Personnel Management and Career Development Policies in the WTO Secretariat” was alsoprovided.WT/BFA/56
Page 17
51. The WTO Pension Plan of the Management Board met once since the last report in July 2001
to discuss (i) the annual report for 2000, (ii) the finalization of a transfer agreement with the OECD
and (iii) consideration of the need for a stop-loss insurance to protect the Plan against claims for death
and disability benefits arising from major incidents.
52. Members expressed appreciation for the written progress report on Human Resources and
requested that, in the future, the Secretariat provides  the report well in advance to enable the Members
to study the document so that discussions could be undertaken on the subject.  One Member,
requested that the Secretariat provide further information with regard to paragraph 2 (e) Annex 3 of
CRP(01)20.  In reply to queries the Secretariat indicated that only nationals of Member countries
would be recruited and that, in the case of dual nationalities, only one nationality would be recognised
at the time of recruitment.
53. The Committee took note of the reports and of comments of the Members.
A. REPORT OF THE WORKING GROUP ON THE SELECTION OF EXTERNAL AUDITOR
54. The Chairman of the Working Group presented the report of the Working Group on the
selection of the External Auditor for the WTO accounts and the WTO Pension Plan accounts,document WT/BFA/W/63.  He highlighted the fact  that the Working Group examined the various
tenders received in light of the terms contained in  the letter calling for tenders.  The Working Group
noted that all candidates possessed very high auditing quality and any one of the candidates could
fulfil the auditing needs of both the WTO and the WTO Pension Plan.  It considered that a 5-year
mandate would be preferable in to order to avoi d the possibility of cost increase at the time of
extension of a 3-year contract and felt that a provision allowing either party to terminate the
arrangement with a one-year notice should be included in the contract.  Based on the above, the
Working Group proposed that the Committee recommend the nomination of the Austrian Court of
Audit as External Auditor effective as from the au dit of the 2002 accounts for a period of five years.
55. Some Members questioned the criteria for the selection of External Auditor is based on
competitive prices.  Others cautioned the move away from the criteria of policy and price selection to
a political one.  One Member requested that the annual total cost of the auditing be indicated in the
letter of appointment of the External Auditors.
56. The Committee took note of the comments of the Members.  Considering the above, and
given the fact that the Austrian Court of Audit quoted the most competitive bid, the Committee
recommends the nomination of the Austrian Court of Audit as External Auditor of the WTO
accounts and the WTO Pension Plan accounts effective as from the audit of the 2002 accounts
for a period of five years at an estimated annual cost of CHF 50,000 .
B. WORK PLAN FOR 2002
57. The Chairman referred to document CRP(01)15 which proposed a list of items to be discussed
in 2002.  No dates were scheduled, as the date of the General Council had not yet been fixed.  He
indicated that, if in the course of the year, more meetings were required, or additional issues
necessitate discussion or review, they would be added to the proposed schedule.  The Work Plan
would be reviewed again early next year with proposed dates.
58. The Committee took note of the work plan for 2002.WT/BFA/56
Page 18
C. ASSESSMENT OF ADDITIONAL CONTRIBUTION TO THE 2001 BUDGET AND ADVANCE TO THE
WORKING CAPITAL FUND :  ACCESSION OF THE PEOPLE ’S REPUBLIC OF CHINA
59. Consequent to the accession to the WTO of China on 11 December 2001 (document
WT/BFA/W/64), the Committee recommends to the General Council that a pro rata
contribution to the 2001 budget amounting to CHF 216,467 be assessed on this Government.
This assessment, calculated as from 11 December 2001, is based on an annual contribution
of 2.831 per cent, taking into account the intern ational trade figures (imports plus exports in
goods, services and intellectual property rights) of China for the years 1996-1998.  Furthermore,
on the basis of the level of the Working Capital Fund of CHF 8,188,783 the Committee
recommends to the General Council to assess an amount of CHF 231,824 on the Government of
China as an advance to the Fund .
D. PARKING AT THE WTO
60. The Secretariat informed the Committee of that the parking situation at the WTO would
improve in 2002, as some WTO staff would be moving to the annex situated at rue Rothschild.  In
addition, the possibility of redesigning the parking pattern at the Chemin des Mines with a view to
increasing parking capacity would be looked into.
E. COMMUNICATION FROM THE PERMANENT MISSION OF SWITZERLAND
61. The Secretariat recalled the need to provide for future additional office space, which would
accommodate the WTO Secretariat in one annex. The Swiss Authorities proposed that the WTO
should construct a building on a plot of land located along the Avenue de France (document
WT/BFA/SPEC/67).
62. Subsequently, the Secretariat provided document CRP(01)26 and highlighted the aspect of
cost-effectiveness in having a single new building annex for the WTO located within a ten minute
walk from the Centre William Rappard (CWR) rather than a multiplication of annexes.  The
construction of the new building should be viewed in terms of development of the organization overan approximate period of 15-20 years at a minimum.  Should some of the space not be required when
the proposed new building was completed, it would be possible to rent space to another organization.
63.  A delegate of Switzerland drew the attention of the Committee to the fact that repayment of
the interest-free loan re-payable over 50 years to finance the studies and the construction of the
building would begin only at the end of the year  following the completion of the construction.  In
addition, the Canton of Geneva would place the necessary land at the disposal of the WTO free of
charge until 2059.  The project included a car park under the building.  The plot of land was the only
available spot in the near vicinity of the Centre William Rappard, and, as such, was highly sought
after.
64. The conditions stipulated the present proposal were in line with the Confederation’s policy
towards international organizations established on its territory.  He also stressed that the construction
cost was an estimate.
65. The Committee recommends to the Genera l Council that the Director General be
authorized to notify to the Swiss authorities the Members’ agreement in principle with the new
building project and the funding arrangements as set out in document WT/BFA/SPEC/67.  The
Committee also recommends that the Director Ge neral be authorized to launch, in cooperation
with the Swiss authorities, a draft project study – which is part of the total estimated cost of
CHF 50 million – aimed at producing a building pl an and putting together the financial packageWT/BFA/56
Page 19
needed for its implementation.  This process should then put the WTO General Council and the
Swiss authorities in a position to make a final  decision.
POINTS FOR DECISION: Paragraphs 9, 10, 19, 22, 39, 48, 56, 59, and 65.
_WT/BFA/56
Page 20
ANNEX A
V. DRAFT MODEL MEMORANDUM OF UNDERSTANDING
between [Member] and the World Trade Organization,
regarding a contribution of [ Member's ministry, other department or foundation…]
to the WTO Doha Development Agenda Global Trust Fund
The [Member/Government of Member], represented by [ Minister, Permanent Representative…]
(hereinafter the "Donor"); and
The World Trade Organization, represented by its Director-General (hereinafter the "WTO")
Having regard  to the Ministerial Declaration adopted by the 4th WTO Ministerial Conference on 14
November 2001, and in particular to its paragraphs 38 to 41;3
Having regard  to the new strategy for WTO technical co-operation as endorsed by Members at the 4th
WTO Ministerial Conference;4
Having regard  to the Co-ordinated WTO Secretariat Annual Technical Assistance Plan;5
Having regard  to the WTO Financial Regulations and Financial Rules;6
Have agreed as follows :
1. Contribution
(a) The Donor makes available to the WTO Doha Development Agenda Global Trust Fund a
contribution of [… [ currency]] for the year[s]  [ …] (hereinafter, the "Contribution") in order to
finance WTO technical assistance activities targeted especially at the needs of least-developed
countries, other developing countries and/or economies in transition.7
[(b) [If payment by instalments:] Payment of the Contribution shall be divided in instalments as
follows:
[…]
2. Utilisation – General conditions
(a) The Contribution shall be used only for technical assistance activities either proposed and
implemented within the framework of the Co-ordinated WTO Secretariat Annual TechnicalAssistance Plan, or responding to the criteria specified in the New WTO Strategy for Technical Co-
                                                     
3  WT/MIN(01)/DEC/1 of 20 November 2001
4  See paragraph 38 of the Ministerial Declaration and document WT/COMTD/W/90 of 21 September
2001
5 WT/COMTD/W/
6 Contained in WT/L/156 and WT/L/157 of 5 August 1996.
7 For the purpose of this Memorandum of Understanding, the term "country" shall be understood to
cover both States and separate customs territories posse ssing full autonomy in the conduct of their external
commercial relations and of the other matters provided for in the WTO Agreement, within the meaning ofArticle XII:1 of the Marrakech Agreement Establishing the World Trade Organization. The term "country" shallalso be deemed to apply to States and separate cust oms territories which are WTO Members and to those which
are not yet WTO Members.WT/BFA/56
Page 21
operation in case such activities have been endors ed by the joint meeting of the Committees on Trade
and Development and Budget, Finance and Administration.
(b) Should the New WTO Strategy for Technical Co-operation or the Co-ordinated WTO
Secretariat Annual Technical Assistance Plan be amended during the application of this Memorandum
of Understanding, references to the New WTO Strategy for Technical Co-operation or the Co-ordinated WTO Secretariat Annual Technical Assistance Plan in paragraph (a) above shall be deemed
to refer to the New WTO Strategy for Technical Co-operation or the Co-ordinated WTO Secretariat
Annual Technical Assistance Plan as amended.
3. Visibility
The WTO shall ensure appropriate visibility of the Donor's participation in the programme
covered by the Contribution.  Any action dedicated to promoting visibility and agreed upon by the
parties shall form part of the direct costs of the programme concerned.
4. Financial conditions and WTO Financial Rules and Regulations
The WTO Financial Rules and Regulations, together with the financial conditions contained
in Annex I to this Memorandum of Understanding, sh all apply to the utilisation of the Contribution by
the WTO.
5. Reporting and Information
(a) The WTO shall submit each year a factual and financial report to the Donors with regard to
the activities undertaken or under way with the fina ncial support of the Contribution.  The report shall
be submitted in March of each year and shall contain the following information:
- Date, type, location, beneficiaries and subject of events.
- Financial information in accordance with the provisions of Annex I.(b) This provision is without prejudice to the right of the Donor to seek information in other fora.
6. Period of application - Extension
(a) This Memorandum of Understanding shall apply for a period of [
…] years.
(b) If, at the expiry of that period, projects remain to be completed and/or funds remain available,
this Memorandum of Understanding shall be tacitly extended for a period of one year, unless a partynotifies the other in writing, at least ninety days before the end of the period referred in paragraph (a)
above, of its intention not to extend this Memorandum of Understanding.
7. Amendments
This Memorandum of Understanding may be amended by agreement of the parties in writing.
Amendments may not apply to pending projects unless both parties expressly agree to it in writing.
8. Communication - Representation
All communications with the Donor concerning  the present Memorandum of Understanding
shall be addressed to the Permanent Mission of the Donor in Geneva, which shall be deemed to
represent the Donor for all matters relating to the application of this Memorandum of Understanding.WT/BFA/56
Page 22
All communications with the WTO concerning this Memorandum of Understanding shall be
addressed to the Director of the Administration and General Services Division, who shall be deemed
to represent the WTO for all matters relating to the application of this Memorandum of
Understanding.
9. Annexes
Annexes to this Memorandum of Understanding are an integral part thereof.
10. Arbitration
In case of dispute as to the interpretation or application of this Memorandum of
Understanding, parties shall first seek to reach an amicable solution.  Any dispute which cannot besolved amicably shall be brought before the Permanent Court of Arbitration, The Hague, Netherlands,
in conformity with the arbitration clause contained in Annex II to this Memorandum of
Understanding.
11. Entry into force
This Memorandum of Understanding shall enter into force on the date of its signature by both
parties.
Done at Geneva, on [
date], in two originals, one for the Donor, one for the WTO.
For the Donor   For the WTO
[…]   [ …]
Annex I: Financial Conditions
Annex II: Protocol of arbitrationWT/BFA/56
Page 23
ANNEX I
Financial Conditions
1. Financial and accounting records concerning the financing of the activities conducted under
this Memorandum of Understanding shall be kept in conformity with the WTO Financial Rules and
Regulations.
2. The accounts shall be kept in Swiss Francs. Wherever applicable, conversion of currencies
shall be made in conformity with WTO practices.
3. Except as otherwise specified in this Memorandum of Understanding, the WTO may only
supply information relating to the Contribution the communication of which is compatible with theWTO Financial Regulations and Financial Rules, as well as with the privileges and immunities of the
WTO.
4. The WTO will charge overhead cost equivalent to 13 per cent of the direct cost of the activity
financed with the support of the Donor.
8
5. The WTO shall be free to subcontract any activity and use the services of outside experts if itdeems it necessary.  The WTO shall be fully responsible for the co-ordination and execution of all
sub-contracted activities.
6. (a) The Contribution shall be transferred on the following bank account number: No.
240-CO199320-1, UBS, P.O. Box 2600, 1211 Genève 2, Switzerland (Swift code:
UBSWCHZH12A).  Each Transfer shal l mention the following reference [
specific reference to be
provided in each case].
(b) In case a request for payment is required by the Donor prior to the transfer of the
Contribution, payments shall be made within sixty days of receipt of the request for payment from the
WTO.  When no such request is required by the Donor, payment shall intervene within sixty days of
the signing of this Memorandum of Understanding.  In cases where instalments have been provided
for, payments shall be made in accordance with the agreed timetable.
(c) Upon expiry of the time limits set in the previous paragraph, the WTO may, within
two months of receiving the late payment, claim in terest at the rate applied by UBS for short term
lending at the time the payment was due plus one and a half percentage point.
7. Subject to paragraph 3 above, the WTO will make available to the Donor all relevant factual
and financial information, including a yearly statement of accounts, concerning the execution of thisMemorandum of Understanding.  The accounting period of reference will be calendar year.
8. All declared expenses in the yearly statement of accounts will be supported in the WTO
bookkeeping records by original documents (invoices, vouchers, contracts, order forms, tickets, etc.).
9. Interest earned on the Donor's contribution shall be identified as such and shown in the
financial reports and statements of accounts.
                                                     
8 See Decision of the General Council reported in WT/GC/M/32.WT/BFA/56
Page 24
10. Financial transactions and financial statements shall be subject to internal and external
auditing procedures laid down in the WTO Financial Rules and Regulations.  A copy of the audited
statements shall be submitted to the Donor by the WTO.
11. The Donor may decide to give a specific manda te to the external auditor of the WTO for the
control of the expenses incurred under this Memorandum of Understanding.  In such a case, theDonor shall bear the cost of the audit.
12. Normally, any unexpended contribution at the end of a WTO financial year should remain
available in the global trust fund in order to finance the Co-ordinated WTO Secretariat Annual
Technical Assistance Plan for the following year.
13. Upon expiration or termination of this Memo randum of Understanding for any reason, the
WTO undertakes to reimburse to the Donor any unus ed balance of the Contribution in Swiss Francs
within three months, unless otherwise agreed with the Donor.WT/BFA/56
Page 25
ANNEX II
Arbitration clause
to be used together with the Permanent Court of Arbitration Optional Rules
for Arbitration Involving International Organizations and States
1. Any dispute, controversy or claim arising out of or relating to the interpretation, application
or performance of this Memorandum of Understanding, including its existence, validity or
termination, which was not solved amicably in accordance with Article 10 of this Memorandum of
Understanding, shall be settled by final and binding arbitration in accordance with the Permanent
Court of Arbitration Optional Rules for Arbitration Involving International Organizations and States,as in effect on the date of this Memorandum of Understanding.
2. The number of arbitrators shall be three.3. The language to be used in the arbitral proceedings shall be English.4. The appointing Authority shall be the Secretar y-General of the International Bureau of the
Permanent Court of Arbitration, The Hague, The Netherlands.WT/BFA/56
Page 26
ANNEX B
Doha Development Agenda Global Trust Fund (DDAGTF)
Proposed Operation of the Fund
1. Target Amount and Disbursement
1. Beginning in 2002, technical cooperation activities under the Co-ordinated WTO Secretariat
Annual Technical Assistance Plan (hereinafter referr ed to as the “Plan”) shall be financed through a
new global trust fund9.  The Plan is part of the New Strategy for WTO Technical Co-operation for
Capacity Building, Growth and Integration which has been endorsed by the Committee on Trade and
Development and by Ministers in paragraph 38 of the Doha Ministerial Declaration10.  For each year,
the Committee on Budget, Finance and Administration (CBFA) and the Committee on Trade and
Development (CTD) – meeting jointly – will be responsible for a process whereby (a) the CTD should
consider and endorse the Plan; (b) the CTD and CBFA jointly cost the Plan and recommend an annual
target level for the DDAGTF to the General Council; and (c) the CTD and CBFA jointly keep the
execution of the Plan and spending commitments unde r periodic review.  In this connection, the
Director of Technical Co-operation Audit will provide the CTD/CBFA with regular reports.   At the
start of the new fund's operation the target for 2002 will be set at CHF 15 million.
2. A pledging conference will be organised early in 2002 to give sufficient political visibility to
the fund raising exercise for the implementation of  the Doha Development Agenda.  Annual pledging
conferences may also be organised in subsequent years.  The basis for the pledging conference will be
the Plan endorsed by the CTD.
3. The global trust fund will be operated against periodic benchmarks and closely supervised by
the CBFA and CTD.  By 31 December of the year preceding the fund's revolving annual target period,
actual contributions (not only pledges) amounting to 25 percent of the annual total should be
recorded.  For 2002, this means we would require contributions of CHF 3.75 million by the end of this
year toward next year's fund spending.  By 31 March, another 50 percent should be in hand for an
overall 75 percent of the total estimated expenditures for the year.  By 30 June, 100 percent of the
funds needed should be received.   Where contribution receipt targets are manifestly not met, theGeneral Council shall meet on an urgent basis to discuss the matter.  Proper account will be taken of
multi-year contributions.
2. Buffer Account
4. Associated with the operation of the global trust fund will be a related CHF 1 million buffer
account.  The buffer account will be funded initially by allocating CHF 1 million from the 2000
surplus account.  The purpose of the buffer account would be to cover temporary shortfalls in theglobal trust fund in case contributions do not keep pace with activities’ expenses and should
contribute to stability in a funding environment based largely on voluntary contributions.
5. If spending commitments need to be met before adequate funds are contributed, and where
there is a reasonable expectation that funds are on the way, recourse can be made to resources in the
                                                     
9  The Plan contains certain elements which will nevertheless be financed by the regular budget, such
as technical co-operation missions by WTO staff, the NGO Symposium and the Geneva Week activity.
10  It is recalled that this Strategy places great emphasis on the coordination between the WTO and
other intergovernmental agencies, as well as bilateral donors, in delivering trade-related technical assistance.WT/BFA/56
Page 27
buffer account.  Once sufficient contributions are in hand, the buffer account should be replenished to
the level of CHF 1 million.  The buffer account would rollover at the end of each year.
3. Balances
6. Contributions received but not spent at the end of a year shall be carried over to the next year
of the fund's operation and count toward meeting the initial benchmark target referred to above.
7. With the approval of the respective donors, existing trust funds would be rolled into the new
fund at the end of 2001 and count towards meeting the fund’s targets for 2002.  The new fund would
be independent of the Integrated Framework Trust Fund.
4. Overheads
8. The 13% overheads charged on direct project costs for the administration of the trust fund
would be accumulated in the Programme Support Fund, according to the decision1 of the General
Council, where they would be used principally to  fund temporary staff involved in technical
assistance provision.  In keeping with past practi ce, no regular contract staff would be funded through
trust fund-generated resources.
5. Functioning
9. Because the DDAGTF will function most efficiently if Governments provide financial
contributions the use of which is not conditioned beyond specifying support of the Plan, Governments
will be urged to make contributions which would preserve the global nature of the programme.
Activities which are covered by the Plan and which respect specific conditions identified by donorsmaking earmarked contributions will occasion the transfer into the DDAGTF of financial
contributions sufficient for that purpose.
__________
                                                     
1  WT/GC/M/32.