. /.WORLD TRADE WT/BFA/37
27 November 1998
ORGANIZATION
(98-4840)
Committee on Budget, Finance and Administration
ANNUAL REPORT (1998)
In accordance with the procedures for an annua l overview of WTO activ ities and for reporting
under the WTO, adopted by the General Council on 15 November 1995 (WT/GC/M/8, item 11), areport on the activities of the WTO Committee on Budge t, Finance and Administ ration in 1998 is hereby
submitted.
1. It will be recalled that the Committee met on a number of occasions and has presented reports to
the General Council on a regular basis.
1  This report will then cover the major areas the Committee has
dealt with in the course of the year to date.
I. ON-GOING RESPONSIBILITIES2. The Committee monitored on a regular basis the financial and budgetary situation of the
Organization, the receipt of contri butions including the implementation of the related schemes and
measures pertaining to receipt of  contributions, and examined the Fi nal Position of the 1997 Budget and
the Director-General's Financial Report on the 1997 Accounts and Report of the External Auditor.  It
also examined the Director-G eneral's budget proposals for 1999
2.
II. MAJOR AREAS OF ACTIVITIES
A. System of Assessment of C ontributions to the WTO budget
3. It is recalled that the General Council approved on 11 July 1995 (WT/GC/M/5) a
recommendation of the Committee on Budget, Fi nance and Administra tion (WT/BFA/5, L/7631,
paragraph 4) that a review of the functioning of  the new contribution syst em should be undertaken by
the WTO Committee on Budget, Finance and Admini stration three years after its introduction.  A
Working Group within the framework of the Committ ee was established in March 1998 to carry out the
review. The Chairman of the Working Group reported that there was a general sense of agreement thatthe present system of the calculation of Members'  contributions was satisf actory, functioning well
and therefore there was no need either for practi cal or legal reasons to modify or change it.
4. On that basis the Chairman of the Working Group introduced a draft decision which was the
following:  "Without prejudice to consultations with regard to the minimum contribution, and
pursuant to the recommendation of the Comm ittee on Budget, Finance and Administration
(WT/BFA/5, L/7631) approved by the General Counc il (WT/GC/M/5) with rega rd to the review of
the functioning of the new system for the asse ssment of contributions to the WTO budget, the
Committee recommends to the General Council that th e present system be continued until such a time
that WTO Members make relevant changes in the areas covered under the Marrakesh Agreement
Establishing the World Trade Organization . 
                                          
1Reports: WT/BFA/35 covering the meeting of 12 March 1998; and WT/BFA/36 covering the meeting
of 21 June 1998.
2At the time of writing the present report, discussions on the 1999 budget proposals, as well as on the
other items contained in WTO/AIR/907, were continuing.WT/BFA/37
Page 2
5. As it was not possible to obtain a consensus at  that time, the Chairman of the Committee
requested the Chairman of the Working Group to pur sue his consultations.  These consultations were
continuing at the time of writing the present report.
6. Discussions were continuing in the context of the regular meetings of the Committee with
regard to the question of the level of the minimum contribution.
B. Utilisation of the 1996 Surplus
7. The Committee formulated recommendations to the General Council on the utilisation of the
1996 Surplus on: (i) facilitating LDC participation in  the Geneva Ministerial Conference and the 50th
Anniversary Commemoration; (ii) activities planned for 1998 in the context of the Three-Year Plan
(1998-2000) of the WTO Programme for Technical Assi stance; and (iii) establishment of a Reserve
Fund to augment Secretariat resources in order to assi st developing countries requesting the services of a
legal expert under Article 27.2 of the Understanding on Rules and Procedures Governing the Settlementof Disputes.  The use of the balance of th e 1996 surplus amounting to CHF 5.9 million would be
decided upon in the context of the examina tion and approval process for the 1999 budget.
C. UN/WTO Co-operation with regard to the In ternational Trade Centre's (ITC) Budgetary
Arrangements
8. The Committee recalled that, following the d ecision of the General Council on 11 July 1997
(WT/GC/M/5) the International Trade Centre UNC TAD/WTO presented its budget in compliance with
the requirements of both the UN and the WTO.  The presentations of budget for two different systems
created considerable technical difficulties and resulted in inefficient use of existing resources.  Informal
contacts by the Chairman of the Committee with the Chairman of the Advisory Committee onAdministrative and Budgetary Questi ons (ACABQ) were made in June .  The Chairman of the ACABQ
hoped that the matter would be resolved towards the end of the year.
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