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WT/BFA/205  
 
2 September  2022 
(22-6577) Page: 1/16 
Committee on Budget, Finance and Administration    
 
 
REPORT OF THE MEETING HELD ON 15 JULY 2022 
The Committee on Budget, Finance and Administration (CBFA) met on 15 July  2022. Her Excellency 
Ambassador Bettina Waldmann, German Ambassador to the WTO , welcomed Members to the 
meeting.  
1  ADOPTION OF THE AGENDA  
 
1.1.  The Chair  recalled that  the airgram  and annotated  agenda  for the meeting were released on 
5 July, bearing the reference s WTO/AIR/BFA/ 53 and JOB/BFA/6 2, respectively . 
1.2.  The agenda, as set out in document WTO/AIR/BFA/5 3, was adopted.  
2  ORAL REPORT FROM THE CHAIR ON ONGOING WORK  
2.1.  The Chair noted that the Committee has a significant amount of work to carry out before the 
end of the year . She said this includes  the topic of long-term liabilities  and th e Report of the External 
Auditors on the Financial  Statements for 2021 . She said this report was postponed to the September  
meeting, based on a request from the External Auditors . She further mentioned that t he Secretariat's 
Responses to the External Auditors' Recommendations and the W TO 2021 Financial Performance 
Report will on the agenda for the September meeting. The Chair encourage d the Committee to  
actively engage with the External Auditors  and to pose any relevant questions to the m and the 
Secretariat.  
2.2.  The Chair informed the Committee  that the Annual Report on the Grading Structure  will be on 
the agenda for the September meeting as it was delayed due to staffing issues. She noted that the 
mid-term review of the budget will be considered at a future meeting of the Committee . 
2.3.  The Chair said that, in light of what the Chair of the General Council  said at the HoDs meeting 
on 7 July, it may be relevant  for the CBFA to reflect on possible  implications  of implementation 
matters flowing from MC12. Giving example s, she said the Agreemen t on Fisheries Subsidies 
contemplates additional work  and that there might be future implications for the work of the CBFA 
arising out of post -MC12 talks on WTO reform.  
2.4.  The Chair said that, in the Fall, the Secretariat will be presenting the financial details of the 
voluntary funding mechanism established under the new Agreement on Fisheries Subsidies to 
provide technical assistance and capacity building assistance to developing country Members , in 
accord ance with Financial Regulation 19 . She recalled that  the Concept Note 
(document  TN/C/21/Rev.1, dated 5 June 2022) states that it is anticipated that the costs of the Fund 
would be covered by donations to the Fund.  
2.5.  The Chair stated that the Secretariat tran sformation exercise will continue to be on the 
Committee's agenda after the Summer break , as it moves forward to the second phase of 
implementation , with a focus on the strategic direction of the Secretariat.  
2.6.  The Chair informed the Committee that she had recently met with the General Council Chair  
and that they discussed budgetary questions, including the issue of long -term liabilities  and whether 
there might be ways to provide greater clarity and transparency when reporting at General Council 
meetings about Members subject to administrative measures.  WT/BFA/205  
 
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  2.7.  Having expressed an understanding that the 2021 Financial Performance Report was delayed, 
a Member requested that it be distributed to the Committee as soon as it is ready. He added that 
this is a very important document and Members require ample time to review it in advance of the 
September meeting . He added that as  Members are quite busy and considering what the Chair laid 
out for the Fall in terms of expectations  for additional requests for money in various places, as well 
as the financial liabilities question, Members need to take time and  understand where things stand . 
2.8.  The Member said he had not quite understood the comments that the Chair had made regarding 
the implications of MC12 outcomes on the budget . He said he would follow up with the GC Chair  and 
noted that a side consultation may  be helpful to get a  better understand ing. The Member expressed 
appreciation for the reference to the Fisheries Trust Fund  and stated that i t is unclear to him what 
venue it was being  discuss ed in. He asked if the C BFA is a place where such engagement can take 
place. He said a document  pertaining to the Fund  was circulated but there was no indication as to 
whom to speak with , in a formal way, to better understand how Members who are not donors at this 
point in time can engage in the process. He said his delegation has  given comments in the context 
of the fish eries subsidies negotiations, but the se have not been received. The Member said there are 
systemic issues that are unrelated to the Fisheries Subsidies  Agreement  itself, but rather related to 
trust fund management and governance , that his delegation deem t o be important and need a venue 
for their discussion . 
2.9.  The Chair said she did not mean to suggest that there are implications  from MC12 on the 
budget . She said that, in her opinion, Members  should think about possible implications  and then 
come to a conclus ion on whether or how they want to proceed  and whether this is a topic for the 
CBFA or elsewhere.  
2.10.  In response to the question on the Fish Fund, DDG Ellard said the Secretariat intends to follow 
Financial Regulation  19, which ha s procedures  established for the consideration of trust funds . She 
said this is likely to take place in the Fall. She said that the Secretariat had not received comments 
on the fund or the concept note from the delegation that had made comments as per paragraph 2.8 
above. She said the Secretariat will be submitting a revision to the concept note to reflect the final 
outcome of the agreement , which was a bit different from what  was in the version that had been 
circulated to Members. In this regard,  she said Members shou ld feel free to share their comments.  
2.11.  The same delegation referenced in paragraph 2.8 then said the fish fund  is moving into 
something that is not contemplated in Financial  Regulation 19, that is, a Secretariat established and 
generated trust fund  for whic h the Secretariat itself seeks contributions . He said  Financial Regulation 
19 envisions a Member approaching the Secretariat with voluntary contributions for the purposes  of 
creating a fund . He said that, in such situations, his delegation c ould give comme nts on a proposed 
fund to the donor . The Member said more clarity on the process  is needed . He stated that  in the  
new age of Secretariat -created trust funds , the annex to regulation 19 may not suffice because once 
a trust fund  is established  and Members are notified , the trust fund  is a fait accompli. He said th ere 
is no opportunity for any further engagement . He said, as the trust fund  is not originated by a 
Member making a contribution, this is a new institutional entity being created by the Sec retariat for 
which it then seeks funding . He said Members have to recognize that this is a very different  
institutional set -up that is not envisioned in Financial Regulation 19 . 
2.12.  The Member stated that his delegation can recirculate the comments that it has  on the fish 
fund and said that the process for doing so is unclear . He said there are some questions or comments 
about fisheries management , which are completely separate from Members'  responsibilit ies in terms 
of overall governance . He said that it is important for the Committee to  understand  the way on which  
delegat ions ought to  submit questions and comments to the C BFA in a transparent way . He said he 
would follow up  on this  afterwards . 
2.13.  The representative of the EU delegation  noted that the Fisheries Agreement has some  novel 
elements, including a sunset clause . He said his delegation is committed to try ing to ensure the 
entry into force of the agreement as early as possible. He said that, to his understanding, the 
Fisheries Trust Fund is intended  to ensure the proper implementation of the Fisheries Agreement 
and to help developing countries, notably on the transparency side, because there are significant 
transparency obligations in the agreement . He asked  whether this fund might be availab le to help 
developing countries with  rapid ratification of the agreement . He added that, if so, this  would be a 
different or additional task of th e trust fund and would have timing implications . He asked that an 
enquiry be made with the Fisheries team in t he Secretariat as this is something that came up in the WT/BFA/205  
 
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  past few week s. He said his delegation  would be open to this  because there is a need to preserve 
the momentum of MC12 , both for implementation and for phase II of the agreement . 
2.14.  DDG Ellard said that t he Secretariat is attempting to address these questions  and will be 
getting into more details in the coming weeks. She said she takes note of the comment about the 
timing and how it relates to the question of deposit of  the instruments of acceptance and  whether , 
in that case , funds can be used . She said the Secretariat has a role, through N egotiating Group on 
Rules, which provides assistance to all Members concerning any issues on acceptance and depositing 
of those instruments . She said thi s work is already  beginning in a variety of cont exts and informal 
discussions . She said that this work will proceed more formally  with the Negotiating Group on Rules. 
2.15.  As to the comments  about Financial Regulation 19 and the fish fund , DDG Ellard said the fund 
is the subject of two concept note s that were circulated to Members and discussed in various 
contexts . She emphasized  that, furthermore,  the reference to the trust fund is specifically included 
within the agreement itself , which was agreed to by Members . She said t he idea of the trust fund 
stemmed from requests by developed and developing country Members to provide  assistance to 
developing countries . She said this is  not a Secretariat -driven fund .  Instead , the D irector General 
heard the request from  Member s and, in thinking about how to make the agreement more effective 
and how to address fisheries sustainability and fisheries subsidies more effective ly, the Secretariat 
prepared two drafts of the concept note and present ed it to Members  for their comments .  
2.16.  DDG Ellard said the Secretariat  is looking forward to continuing discussions , both within CBFA  
and the Negotiating Group on Rules. She noted that, under the agreement , there will be a new, 
separate committee established within  the Negotiating Group on Rules to implement the fisheries 
agreement . She noted that the requirement of a new committee  relates to the question raised earlier 
about the impact of MC12 on budgeting . 
2.17.  A Member said his del egation  would support working in parallel on both the ratification and 
the launch of the fish fund and synchroni zing this at a certain moment . The Member said the formal 
introduction of the fund has to be done according to the rules. He noted that many  countries  have 
expressed interest in donating to the fund , including his country, which has not made a formal 
commitment but is working to get the details right . He said his delegation appreciate s the work of 
the Secretariat in opening up the process but said the Committee must consider how to continue 
this process.  
2.18.  The Member said the ratification process itself is part of the implementation  because 
verification means that national laws have to be brought in conformity with the agreement  and that 
each Member must change  or announce its intended change s to its legislation in the ratification 
process . He said Members have to consider how to speed up  the ratification process, the starting 
point to the formal implementation of the agreement . 
2.19.  Speak ing on behalf of the LDC Group, a  Member said that  it is true that the agreement on 
fisheries is a significant agreement, somewhat unprecedented in the WTO, which commits Members 
to eliminat ing overfishing and subsidies that lead to harmful fishing in the unregulated high  seas. 
He noted that  implementation and follow -up are very i mportant , especially for  the most fragile and 
vulnerable Members . He said it is important to take  LDCs into account in the fisheries fund so that 
they can  properly implement the agreement , noting that assistance ought to be provided to countries 
that need it most . 
2.20.  The Member asked the Secretariat whether it could give additional information about  the 
upcoming stages pertaining to the fisheries fund to reassure Members of its  implementation and that 
LDCs can benefit properly from it . 
2.21.  DDG Ellard thanked the Member for his comments  and for the request for additional 
information on upcoming stages . She said the Secretariat would be happy to work with the LDC 
Group  and any Member  to provide more information  about the fund  and its timing a nd how these 
interrelate.  
2.22.  The Member referenced in paragraphs 2.8, 2.11, and 2.12  said that supporting the ratification 
is incredibly important and should be discussed both in the fisheries context  and also in the CTD 
because the Secretariat, through the ITTC, already provides technical assistance. He said  that the WT/BFA/205  
 
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  Secretariat need not wait for the fish fund to begin offering technical assistance. He said the 
Secretariat had provided relevant traini ng whil e awaiting the ratification of the Trade Facilitation 
Agreement, using funds from both the Global Trust Fund and regular budget resources allocated to 
technical assistance. He said that he is providing this clarification so that his earlier comments  are 
not interpreted as not being supportive of allocating resources to technical assistance pending the 
ratification of the Agreement. He said that his delegation would welcome conversations in the 
appropriate forum about how to mobilize Secretariat resou rces to begin the outreach and domestic 
consultations needed for ratification. He said his delegation stands ready to provide support.  
3  UPDATE ON THE SECRETARIAT TRANSFORMATION EXERCISE  – WT/BFA/W/595  
3.1.  The Chair recall ed that DDG Ellard provided information and updates to Members regarding 
the Secretariat transformation exercise  in previous Committee meetings, most recently during the 
meeting on 24 May. 
3.2.  DDG Ellard said that she was pleased to provide the Committee with  an update o n the 
Secretariat's transformation exercise and to hear Members'  comments. She stated that, a s she had  
done before , she would  provide her speaking notes to Members  following the meeting.  She noted 
that Members had requested her to provide regular written u pdates on the status of transformation 
work in the advance of each CBFA meeting. She said the  second of these updates was circulated 
through WT/BFA/W/595 , 15 days in advance of the meeting, as per the practice for the circulation 
of documents  for CBFA meet ings. She said the Secretariat will continue to update and circulate the 
document before CBFA meetings . She further stated that the updates and the transformation work 
will remain on the agenda for discussion at CBFA meetings.  
3.3.  DDG Ellard informed the Commi ttee that, based on a request made by several Members during 
the previous CBFA meeting, a briefing session with the Transformation Office  would be organise d 
very soon. She said Members would be inform ed of the date  once it has been set.  
3.4.  DDG Ellard informed the Committee that s ince 30  May, the ongoing  focus of the transformation 
work has been on the third wave of work, relating to data, technology, and innovation. She said the  
work includes mapping all digital tools currently in use at the Secretaria t to the services that the 
Secretariat  provide s to Members and within the Secretariat and identifying areas for improvement. 
She added that the Secretariat is  seeking to define how it can better serve Members and drive 
operational efficiency through improv ed deployment of digital and data management tools.  
3.5.  DDG Ellard added that, a s with the previous initiatives, this work has involved staff from across 
the Secretariat in an iterative process of collecting information and testing and refining ideas.  She 
stated that the Secretariat is also mindful that Members are the key users of many of the existing 
digital tools  and that it is in the service of their needs that these tools are deployed. She said that  
Members' input is essential to this effort  and that it is for this reason  that all delegations have been 
invited to attend one of two consultations sessions and share their views . She said the first session 
was held on Monday 11  July, during which the Members who attended provided very useful 
perspectives and su ggestions regarding the areas where they are satisfied with the Secretariat's 
digital tools and areas where they see room for improvement. She informed the Committee that the 
second session will be held on Thursday 21  July from 15 h00 to 17h00, in Room S1.  
3.6.  DDG Ellard said, a s previously reported to the Committee , the first two of the three waves of 
design work  - which dealt with staff talent management and ways of working within the Secretariat  
- were completed in May. She recalled that s even specific topics  went through the full cycle of testing 
and refinement  and that at the previous Committee meeting , she had  reported on the outcome of 
the design work on procurement, career pathways, recruitment, staff mobility , and promotions. She 
added that these, t ogeth er with the outcomes on rewards outside promotion and risk management , 
which she had  announced at the meeting  on 5th May, a re summarised in document  bearing the 
reference WT/BFA/W/595.  
3.7.  DDG Ellard informed the Committee that t he design proposals that were approved by the 
Steering Committee can now proceed to the implementation phase. She stated that, a ccordingly, 
the Transformation Office has been preparing draft implementation plans on the first two waves  and 
that, like in the earlier phases of the transformation  process, staff members across the Secretariat  
would be involved . She added that t he launch of , and communication to staff around , the WT/BFA/205  
 
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  implementation phase will occur in the next few weeks. She stated that, as previousl y explained,  
implementation will respect existing processes and requirements that apply when changes are made 
to Secretariat rules and policies, including engagement with Members where implementation of 
proposals would have budgetary implications.  
3.8.  DDG Ella rd reiterate d that the transformation process is designed to strengthen the Secretariat 
to better serve all Members  and that she will continue to keep the Committee  updated about further 
progress , at each CBFA meeting, and will update and circulate the document setting out the state of 
play in advance of the meetings.  
3.9.  DDG Ellard report ed on the recruitment process for candidates for the Director vacancies. She 
announce d that the new Director of the Languages and Documentation Services  Division  had started 
work earlier that week. She informed the Committee that new Director  is Blanc a Pinero  Canovas, a 
Spanish national , who p rior to joining the WTO Secretariat  worked as Head of Documentation, 
Language Technologies, Terminology and references at the Internation al Maritime Organization.  
3.10.  DDG Ellard stated that Director vacancies are open in the following Divisions: Council and 
Trade Negotiations Committee (CTNC), Information and External Relations (IERD), Human 
Resources (HRD) , and Economic Research and Statistics (ERSD). She said v acancy notices have 
closed for each of these four positions and the selection processes are underway.  
3.11.  Several Member s thanked DDG Ellard  for her thorough and useful report  and said that i t is 
very hel pful for Members  to have a written report of the work by the Secretariat on the 
transformation  exercise in advance of Committee meeting s. A few  Members  also said an informal 
working session on the transformation exercise would be useful for Members to obtain a better 
understanding from the transformation unit on some of these issues.  
3.12.  A Member said that it is important to  start w ork on the vision and strategic direction of the 
Organization. He recalled that DDG Ellard had  mentioned that this is a priority issue for the 
Secretariat but  that it  would  be addressed after MC12. The Member said that  it is still a bit unclear 
from the document when the Secretariat would start this work . He stated that it is quite important 
to start  soon because this theme  also relates to the discussion on the mid -term review of the budget 
and possible implications for the budget on a longer -term period as well . He said there is a clear link 
between the strategic orientation of an organization and its long -term budget planning , and how 
that is reflected in  annual budgets . The Member said he has listened to suggestions from the 
Director -General and DDG Ellard  on items that need to be reinforced . He said that the M C12 results, 
such as  setting up a new Fisheries Committee, could be part of a  more structured approach reflected 
in a strategic plan . He added that his delegation is not implying that such a plan has to be established  
before the Committee  is able have a discussion on the budg et, but rather that his delegation would  
like to see these two tracks moving  in parallel.  
3.13.  A Member said that her delegation  really appreciate s consultations  held with Members, 
especially those relating to data technology and innovation.  The Member said their delegation would 
be happy to continue the conversations with the Secretariat . The Member request ed that, during the 
development of the  plan for the third wa ve, the questions and concerns expressed in the previous 
CBFA  meeting be taken  into account . She said they include concerns regarding the  procurement 
process of IT , and how to ensure th at IT can meet the demands of Members  and need for meetings , 
while also  considering  how to save costs given the rapid development of  technology . She recall ed 
that her delegation had  raised  a number of questions and concerns regarding  the IT area  at each 
budget discussion and discussion s of financial expenditure s. 
3.14.  The Member recalled that, during the previous discussion on the transforma tion exercise,  her 
delegation had raised questions about the R isk Officer position. She said that the creation of this 
position was also  recommended in previous audit reports and is part of implementation of those 
recommendations. She asked whether responsibilit ies or terms of reference for the position of Risk 
Officer  have been defined  and asked how th is differs from the responsibilit ies of the Office of Internal 
Oversight  (OIO) . She said the OIO  ought to  also have the responsibility to take care of all risk 
management.  She added that  although  she knows that for a modern organization , it is recommended  
to have both  a Risk Officer and  an OIO, this depend s on the organization  itself and is not  obligatory . 
She added that her delegation is open to discuss  whether it is nece ssary  for an organization like 
WTO, which is  not that big, to have a Risk Officer.  WT/BFA/205  
 
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  3.15.  The Member said her delegation would like to have a clear idea o f the delineation of  
responsibilities between the Risk Officer and the OIO . She added that , from the internal OIO reports, 
her understanding  is that the OIO is more focused  on investigation s. She suggested that the OIO  
could  cover broad issue s and that r isk management could  be part of the OIO's  work. She said her 
delegation is open to further discussions on this matter, including through a  meeting  between the 
Committee and  the Auditor.  
3.16.  The Member said that in previous discussions , her delegation had raised  a number  of points 
about pro curement.  She said she wonder s whether , as a result of the  transformation exercise, 
procurement will become more transparen t and e fficien t. She further recalled that her delegation's 
previous qu estions focussed on transparency . She asked how  Members can be  informed o f 
procurement  through the website o r by other means . She added she does not think the CBFA ever 
got very clear information on the pro curement policies  of the  Organization. She reiterated that her 
delegation's request is that their previous concerns be taken into account during the transformation 
exercise . 
3.17.  With regard to the second wa ve related to  recruitment,  the Member said that Members have 
to take a closer look at  this issue . She recall ed that China , India, South Africa , and other developing 
members had submitted  a proposal  on the issue of recruitment several year s ago . She said that, to 
her recollection, there have been reports in the past on the balance and diversity  of WTO staff. She 
asked how staff who have  dual nationalitie s are reflected in  reports on  diversity . She asked that this 
be reflected in future reports . 
3.18.  The Member  said her delegation fully understand s that the 2nd phase is  in progress . She 
added , however,  that her delegation considers that some issues  may have implication s for the 
budget , such as the s trategic planning unit and the regional and country support unit s. She stated 
that her delegation is  looking forward to hav ing further discussions on the terms of reference  for 
these  units and the possible implications for the budget . 
3.19.  The Member stated that her delegation needs to get a better under standing of concepts of a 
country and regional support unit, noting that in the prior Director -General's Office (DGO) , staff 
possessed specialized regional expertise. She asked  whether  in the current DGO there is a similar 
division of  responsibilit ies and whether this would  overlap with the terms of reference of  the regional 
and the country support units .  She also asked if , at this stage , there is an idea of how big the 
regional support unit will be . She said that some continents are b ig and have many countries, for 
example Africa, and wondered  whether one person will be  able to cover  the whole continent . She 
added that she recognizes that the transformation exercise is at an early stage , and that she just 
wants to register questions  and concerns  and will be happy to have further discussions on this  at a 
later stage . 
3.20.  A Member t hanked DDG Ellard for confirming  that there would be a separate briefing session  
and said his delegation is  looking forward to more information . He sai d he would like to take the 
opportunity to support the point made at the last meeting by some Members that , for transparency 
purpo ses, the CB FA should not only be informed when issues have budgetary implications and 
approval is required but also otherwise.  
3.21.  The Member said , given the successful comp letion of  MC12, his delegation would like to  
support the point that has been repeatedly made in previous meetings and the current meeting  that 
a strategic plan  or vision is essential for completing and guiding the transformation exercise . He said 
this should  happen sooner rather than later and that Members should consistently be included in the 
development of such a plan . He added that it would be great if the S ecretariat could already provide 
some details  regarding how it plans to proceed in this regard . 
3.22.  The Member asked DDG Ellard to  elaborate a bit more on the envisaged more dynamic 
architecture of career pathways . He asked for clarification of the meaning of " dynamic architecture " 
and what concrete changes the Secretariat would like to implement . He also asked at which point 
senior grade s would be split into Expert and Manager tracks and whether such a split would be 
reversible . 
3.23.  Regarding recruitmen t, the Member asked what kind of  concrete measures the Secretariat 
plans to introduce to modernize the recruitment process , how it plans to make it more diverse and WT/BFA/205  
 
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  inclusive , and at  what point Member s would be included in such a conversation . The Member f urther 
asked DDG Ellard to  elaborate on  the expected outcomes of the changes currently being 
implemented , such as non -monetary rewards, bonuses , and the  culture of recognition. He said 
changes to non-monetary rewards are part of the conditions  of service of the WTO and therefore 
have to be set forth in the staff regulations . He said the regular involvement of the Member s is 
necessary . 
3.24.  A Member said, as MC12 has concluded, focus should be on  how Members want to reform the 
Organization , and the strate gic vision and direction in which  the D irector -General  wants to take the 
Secretariat . He said he endorse s and support s the comments made by Members who had taken the 
floor before him  and that he affiliate s himself  with all previously asked  questions . The Member said 
he wants to reiterate the point that he had made before, i.e. that his delegation would like to see a 
clear prioritization of the outstanding audit recommendations and make sure that those are 
addressed before mov ing on to other  matters.  He said these includ e the staffing and hiring 
deficiencies that have created the problem  of the overuse of short -term staff . He said this seems to 
be a perennial issue that auditors continue to acknowledge and recommend  to be fixed. He said i t 
would be useful to see how that is being tackled as part of t he transformation process . 
3.25.  With respect to risk management and wave 1, part 2, t he Member said that he shares the 
view expressed by a Member who had spoken earlier and had requested an update . The Member 
asked if the positions of Head of the OIO and Risk Officer are still vacant . He said there  were a lot 
of very good reports that the Committee  reviewed over the years regarding staffing issues that were 
important and had come from the OIO . He added that his delegation  would like to see where t he 
recommendations  fit in t he new risk management p iece.  
3.26.  The Member said long-term liabilities are an issue that the Committee  has been discussing 
for a long time and that the  crisis brewing within the WTO Pension Plan (WTOPP)  is a considerable 
concern to his delegation . He said that, b efore creating new liabilities , the Organization has to  make 
sure that the existing liabilities are addressed . He asked how this is  specifically  being factored in the 
risk portion of the transformation exercise.  
3.27.  With respect to wave 3, phase 2,  the Member said  that starting with the strategic  vision  and 
understanding what that framework  would  look like would be really  important. He said there does 
not seem to be much clarity in terms of the timing  in light of the fact  that it has already been 
announced that Members ought to  expect  to be asked to consider additional resources through the 
budget review in October . He questioned whet her Members will be able to get additional clarity on 
strategic vision before the October meeting of the Committee. He said he wants to see  a sense of 
realignment between the budgetary process and the timelines for the waves and phases  of the 
transformatio n process . 
3.28.   The Member  said he would like to have a better u nderstanding of why a regional unit would 
be needed given that the Organization is based on agreements and text s. He reiterated the request 
for clarity on the responsibilities within the staff of the DGO in order to enable  Members  to know 
how to  appropriately engage with the DGO.  
3.29.  The Member  also said an  informal working session on the transformation exercise would  be 
useful for Members to get a b etter understanding from the transformation unit on some of these  
issues.  
3.30.  A Member thank ed DDG Ellard for the update on the filling of the vacancies at the 
management level in the WTO Secretariat . The Member emphasize d that the C BFA should be 
informed  of changes  not only when there is a budgetary implication . She also enquired about the 
mandate and implications of a possible planning and strateg y unit or a possible regional and country  
support unit in the Secretariat a nd their value .  
3.31.  A Member said he feels extremely proud that the best  candidate for the directorship of 
languages Division is from his country . Moving on to the content of the reports, the Member said he 
support s the comments made by colleagues who spoke before him on strategic lea dership , and the 
importance and implications of strategic  direction and strategic planning . He said another important 
issue is the management or solution for liabilities for the Organization . He expressed scepticism  
about the establishment of regional units, though he said he is not necessarily against  it. He said  WT/BFA/205  
 
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  that it is difficult to be an expert in each and every country of a region  due to differences between 
the countries.  He said this is something Members  need to dis cuss at some point .  
3.32.  A Member said his delegation appreciate s the engagement that  the Secretariat is  undertaking 
with Members on issues like digital  and tech nology and that his delegation will  endeavour to work 
with the Secretariat  on th ese issues . The Mem ber observ ed that, as the waves  progress , it is not 
surprising that the transformation exercise is  moving away from internal management  issues . He 
expressed agreement  with earlier comments  that there is a link to external audit report findings . He 
noted that the transformation exercise is moving towards more fundamental foundational strategic 
issues for the Secretariat  and asked  how Members  would be engaged in those more difficult systemic 
conversations . He flagged that considering offices for re gional engagement, country support, 
planning a nd strategy may pre -empt the outcomes of an internal consultation process and 
consultation with the Members.  
3.33.  A Member said her delegation supports earlier comments regarding the vision and strategic 
direction o f the Organization. She also echoed previous comments that Members have to be informed 
of changes not only when there are budgetary implications.  
3.34.   Speaking on behalf of the EU delegation, a  Member supported earlier  comment s about short -
term contracts , the vulnerability of the Secretariat over the longer term , and the effects  on staff 
employed in th is manner . He said this issue  needs to be addressed as has been  often highlighted in 
the past . 
3.35.  The Member  asked for clarification of what is meant by formal mechanisms for mobility, 
especially for s enior staff. He asked w hat the  time period would be and if exceptions would apply . 
He added that  his delegation has long identified the lack of mobility as a potential weakness of the 
Organization and something that would benefit from a more granular discussion . 
3.36.  The Member expressed concerns about the question of liabilities  and looming inflation , 
compounded by a  reduced budget , which is leading to the need fo r short -term contracts . He said it 
is important for  more strategic conversation s to be held  in good time so that Members will  not be 
pressed by very short deadlines . He added that the need for the trading system to be more sensitive 
to very technical policy areas that are outside trade  has to be borne in mind  because that is  how 
trade is evolving . He said that there is potential for trade fr iction in  the field of sustainability,  be it 
regarding labour standards or health issues. The Member sa id a certain amount of expertise  is 
needed in these areas. He further mentioned that he recently had a conversation with some 
colleagues who were not certain that the Secretariat ha s the expertise to develop  a note on 
therapeutics and diagnostics  on short notice, citing that the Organization has a six-month deadline . 
He said a certain amount of expertise is required  to look at trade flows, investment flows , and related 
issues.  
3.37.  DDG Ellard thanked Members for their comments and expressed appreciat ion for their  
engagement on th e topic. She stated that t he exercise is not taking place in a vacuum and her 
intention is to work with Members  to meet their needs  and the Secretariat 's needs for the purposes 
of better serving Members and being a ble to address new issues as they emerge.  
3.38.  DDG Ellard recalled there were several questions relating to strategy and the timing for when 
the Secretariat intends to engage in that part  of the transformation exercise.  She said that the 
strategy portion of the transformation exercise – Phase 2 – is still very preliminary , noting that  the 
focus to date has been exclusively on Phase 1 , as shown in the circulated document . She emphasized 
the purpose of  Phase 1 is to launch key initiatives to focus on quick wins  and things that can be done 
within the Secretariat to make it more effective , such as talent management , ways of working , as 
well as  data, technology , and innovations . She said , as Members know, these initiatives are well 
under way,  but they are not completed yet.  
3.39.  DDG Ellard said , as can be seen from the d ocument , setting the strategic direction and the 
foundational structure  is set as Phase 2 . She said the Secretariat realize s how very important this is  
to Members and the Secretariat to make the Secretariat fit for the future  and to better serve 
Members . Accordingly, this is an issue that requires sufficient time to consider and analyse. She 
emphasize d that the Secretariat  very much want s Members' comments about the strategic operation 
of the Secretariat and its strategic  direction , and that the Secretar iat will not do this work  in a WT/BFA/205  
 
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  vacuum without Members'  participation , reassuring Members that the Secretariat will be working 
with them. 
3.40.  With regard to  timing , DDG Ellard stated that, as she had  mentioned at the 24th May meeting, 
the Secretariat had wanted  to get beyond MC12  first, noting that the MC12 outcomes will be part of 
the strategic vision  because they are now part of the  mandate that  Members have given the 
Secretariat . She said she does not have a specific sense of timing right now because the Secretariat 
is still working on the first two wa ves. She acknowledged  that the strategic vision  is related  to the 
budget and the mid -term review coming up this fall. She said she understand s the po int made by 
several delegations to assure that the discussions on strategic direction take place in good time so 
as to enable Members  to express their  views .  
3.41.  Responding to comments and questions pertaining to the role of the Risk Officer and  how it 
relates to the OIO, DDG Ellard informed the Committee that t he new Head of the OIO ha d assumed 
the role a few weeks ago but that the Risk Management Officer position is still vacant . She noted 
that there ha ve been two unsuccessful recruitment proce sses to fill the position, and that the 
Secretariat is still trying.  
3.42.  DDG Ellard explain ed the differences between the two  functions, highlighting the importance 
of each as a separate position . She stated that t he OIO is more focused on investigation s, while the 
Risk Officer will deal with issues that are more systemic, managing , for example , a risk register and 
engaging in a risk taxonomy exercise. She said m ost modern organizations of the WTO's  size have 
a Risk Officer because of the im portance of the function to address crisis management  and assess 
risks at an organization -wide level . She promised that the Secretariat would circulate the vacancy 
notices for the  two positions to the CBFA to provide Members  with more detail.  
3.43.  DDG Ellard then described some of the risk functions , including putting in place an adequate 
reporting system , tracking  variables that might disrupt the work of the Organization or the Members , 
establishing system s for good governance and adher ence to accountability standards and 
obligations , establishing an efficient risk management system in place  including insurance,   
conducting comprehensive risk assessments across the Secretar iat and maintaining the risk register ,  
and preparing annual risk reports for senior management and condense d versions of these  report s 
for the C BFA. She said other aspects include  ensuring compliance with the Organization 's 
regulations, rules , and internal policies about risk management and mitigat ion measures . She 
concluded that the Risk Officer and OIO roles complement each other in some ways but are focused 
on different functions . 
3.44.  In respon se to the questions about recruitment , DDG Ellard said that she did not immediately 
have a response to the question o n dual national ity. She added, however, that when personnel 
applications are evaluat ed, the Secretariat is  made aware of whether someone is a dual national . 
She said the Secretariat would provide more information on the process it uses .  
3.45.  Regarding questions about a regional unit , she informed the Members that a s part of the 
transformation exercise , the Secretariat is  still engaged  in the first two waves, as had been 
described , and has not made any determinations as to a regional unit . She said many of the very 
senior staff within the DG O have regional expertise  because they have been Ambassadors of their 
respective countries. She said that the envisaged purpose of such unit would be  to provide more 
regional support  and information  to the DG, the DDGs , and Members , and to be a point of liaison, if  
necessary, with a particular region . DDG Ellard noted that the Trade Policy Review  Division has some 
expertise in this regard , but it is not sufficient . She said the Secretariat is considering  whether it 
makes sense to create a more formal role within the Secretariat , which could involve re configuration 
of existing staffing or hiring  new staff . She state d the Secretariat  would discuss this with Members 
as the thinking gets more solid . She noted  the Secretariat would appreciate Members'  views , adding 
that she believes that Members would welcome  such an initiative  because it would allow the 
Secretariat to have a deeper understanding of some of the opportunities, challenges , and thinking 
within par ticular regions as the Secretariat  undertakes its work for Members.  
3.46.  Responding to q uestions pertaining to  IT and the procurement process , DDG Ellard said that 
the third wa ve on data, technology , and innovation  overlap s with the first wa ve on procurement in 
general . She said the goal is to make the procurement process as transparent as possible  and to 
make sure that the Organization is getting good value for money. She said the transformation WT/BFA/205  
 
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  exercise is assessing how to map out IT tools and how effective they are . She urged Members not 
to look at this exercise as merely a cost savings , but instead how IT mak es the Secretariat and 
Members more efficient , bringing value to Members. She noted that as such, there may  not 
necessarily be monetary  value  but other efficiencies , such as making  information more readily 
available and using more efficient one-stop shopping using I T as a tool.  
3.47.  DDG Ellard urged those Members that had not already done so to participate in the session 
on IT taking place on 21 July. 
3.48.  DDG Ellard noted that proposals on  non-monetary re wards , promotions , and career pathways 
for staff  are laid out in th e document a s well  as her Speaking Notes from the prior meeting.  She 
said the current work  is aimed at  identify ing specific implementation  steps . She stated that the 
rewards under consideration do not have cost implications  and that non-monetary rewards have 
great value to staff because of the recognition  they bring . She mentioned again rewards such as a 
Director -General's award  for a particular team , which does not cost money  nor create legal liabilities, 
but are very important for r ecognition and retention of staff . 
3.49.  On the question about the split in career pathways  into the E xpert track and the Management 
track, DDG Ellard  said this split has not been defined yet  and is still under consideration. She 
emphasized that any policy recommendation must follow the Secretariat's  procedures and take staff 
views into account . She added that staff have already been extensively involved in  developing these  
policies . She added that the point of this  split is to be tter equip the Secretariat  by assuring that it 
has staff who are  trained Managers  as well as staff who are subject matter experts . She recognized 
that sometimes staff can have both skills, but some times not. She added that staff would have an 
opportunity to  move back and forth while advancing in his or her career.  
3.50.  DDG Ellard said mobility is a useful tool for staff to acquire new skill s, noting that mobility  
can be within the Organization  – either within or across divisions – as well as outside the 
Organization.  The point of mobility, she noted, is for staff to be able to gain new skills  and to 
contribute  in a new way. She said m obility has  not been utilized as much as it should . She said  the 
focus is to determine how to make sure that there are opportunities for mobility and that mobility is 
rewarded  in a staff member's career p ath. 
3.51.  DDG Ellard said the Secretariat is trying to prioritiz e the outstanding audit  recommendations . 
In response to questions about short -term staf f and how th is issue fits into the transformation 
exercise , DDG Ellard said the issue is part of transformation but also the larger structural question , 
such as the need for short -term expertise in a particul ar area , as recognized by Members. She said 
as the Organization grows in terms of knowledge  and as Members request the Secretariat  to provide 
more work on particular issue s, the ability to obtain this expertise becomes particularly vital . She 
stated that s ome of the examples given by Members related to health  and the environment , and the 
Secretariat must be responsive . She also emphasized that the existing staff ceiling limits the 
Secretariat's ability to retain experts, so short -term hires are especially important to meet needs, 
noting that this issue must be discussed . She also noted that short -term needs are not alway s related 
to substantive expertise – for example, the move to a more hybrid approach for meetings  requires  
additional staff support for virtual platforms  and increases the staffing needs of the Organization.  
3.52.  DDG Ellard said that she had not seen the note about recruitment referred to by  a Member . 
She said she would examine that note and comment  further . 
3.53.  DDG Ellard reemphasize d that there would be a n informal briefing for CBFA members with 
the Transformation Unit, which will provide  an opportunity for more discussion on these issues . She 
also committed to keeping the practice  of providing updates during the CBFA meeting , and written 
updates in advance . 
3.54.  A Member thanked  DDG Ellard  for her very comprehensive reply . He said that his delegation 
does not consider the question that had been asked about dual nationals in the Secretariat (see 
paragraph 3.16) to be a priority in asking for the Secretariat to provide  that information . He said if  
such information is provide d, it must fully take into account the preferences and the interests of any 
concerned staff members.  WT/BFA/205  
 
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  3.55.  DDG Ellard said she would look into the practice in place.  She said that she did not consider 
that the Member asking the question was asking for an itemiz ation of dual nationals .  Subsequently, 
the Member asking the question confirmed that the DDG's understanding was correct and that she 
sought to understand how dual nationality was calculated.  
3.56.  A Member clarified that his comment o n mobility  was in relation to mobility  for senior staff, 
noting that several Members have expressed interest in this issue for many years . 
3.57.  DDG Ellard thanked Members for the la st clarifications and comments . She further  clarified 
that the expertise of staff in the DGO is certainly more than regional in nature and covers  other 
subject matter s as well . She said that DGO staff functions are fluid depending on need and special 
projects . She said she would see whether better clarity could be provided . 
3.58.  The Chair  thanked DDG Ellard  for her comment s, explanations , and the insight s she had 
shared with the Committee . 
3.59.  The Chair said she took  note of the statements made and said that the Committee would  
revert to this issue in September . She said that  because the Committee had a very active discussion 
with very detailed questions, she tends to think a meeting or even several in informal mode  could 
be very useful . 
4  FOLLOW -UP DISCUSSIONS ON THE REVISION OF FINANCIAL  REGULATION  19 – 
WT/BFA/W/564/REV.1  
4.1.  The Chair recalled that , during the meeting on 5 May, the Committee had a constructive 
discussion on the revisions to Financial Regulation 19  as proposed by the delegations of India and 
the United States.  
4.2.  The delegate from India stated that his delegation and that of the U nited States had been  
working on the  proposal in close coordination and consultation with Members  and that they had  
brought  several revisions to the Committee, with a view to addressing the concerns they had heard. 
He added that f ollowing the discussions during th e meeting on 5 May , they received further 
comments from Members  and subsequently u ndertook consultations with t hose Members . He 
thanked the delegations for their positive engagement , adding that discussions had been 
constructive and productive.  He then informed the Committee that minimal modifications were made 
to the text to address the concerns, because a large number of Members had already come on board  
with the revision presented on 5 May. 
4.3.  The delegate from the U nited States said that the joint intervention  by him and the delegate 
from India demonstrates a new reform era , and he thanked the delegations they had consulted with 
for their constructive engagement.  
4.4.  He outlined  the recent amendments, adding that the document would be circulated afte r the 
meeting. He said that he and the delegate from India would continue their engagement in 
consultation s with interested Members . He added that their aim is to bring the package of Financial 
Regulations back to the Committee  for the September meeting  and that resolving Financial 
Regulation 19 would move this  goal forward.  
4.5.  He introduced the  two adjustments to the text . The first adjustment relates to clarifying the 
concept of "additional  direct costs " as there were a lot of questions related to  what that means , how 
that is defined , and who is responsible for what aspe cts. He said the second adjustment  clarifies how 
the aspects  would be articulated and  evaluated as part of the process of review  under Financial 
Regulation 19 , where the Administration  and General Services  Division  (AGSD)  makes its 
determination  on whether a fund is subject to review  by the CBFA . He said the proposed  revisions  
to Financial Regulation 19 do not prohibit any activity because the regulation always was based on 
the rationale t hat, if nothing raises concerns , a new Trust Fund would go through , and if something 
raises  concerns , the Committee would  discuss  it. He said the revised text maintain s this  structure . 
4.6.  He gave a metaphor to demonstrate the aim to respond  to the concerns about finding  the right  
balance between language that can be clearly understood and what  could be construed as 
micromanaging and trying to impose overly burdensome legal requirements . He said the aim of the WT/BFA/205  
 
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  revised text is similar to  creating a cross walk  in the road that shows  people the appropriate place 
to cross the street , noting that it is not meant to be a flyover with a fence that would compel people 
to walk only in a certain direction  and that people can step outside the lines . He reiterated that the  
intention of the co -sponsors is not to create the perfect legal text  that has absolute certainty in all 
cases  because Financial Regulation 19 , as written , did provide discretion both to the D irector -General  
and the AGSD . 
4.7.  He then provided  information on the changes that had been made and how the y addressed 
concerns that had been expressed by some Members during previous meetings and during 
consultations with them. He said the  language requires that  additional direct costs  are to be clearly  
identified in any trust fund proposal submitted in conjunction with an offer of a voluntary 
contribution.  He noted that it is the responsibility of the contributor to clearly and transparently 
identify the estimated additional direct cost involved in the activities . He stated that this requirement 
is reasonable because there are plenty of pathways for contributing to ITTC or to the Global Trust 
Fund that would not  require contributors to assess the aspect of additional direct costs. He said this  
requir ement applies only i f a contributor is asking to set up a specific fund for a specific purpose. He 
said that are parallel modification s in Annex  C of Financial Regulation 19, which details the  
information expected to be in the Director -General's notificati on to the C BFA. 
4.8.  The Member also noted that the proposal strikes "weekly" from definition of staff who work 
either fully or partially on trust fund matters, so that staff are covered within direct costs only if their 
work on a trust fund exceeds 20 percent of their normal hours, not their weekly normal hours.  
4.9.  The Member also mentioned other changes to the text. As these are reflected more clearly in 
the document that was distributed after the meeting, reference WT/BFA/W/564/Rev. 2, they are not 
detailed in t his report.  
4.10.  The Member said that it is important for the Committee to remember that Financial Regulation 
19 only applies at the acceptance  of a new Trust Fund and that i t does not speak to what happens 
afterwards . He said input had been provide d to the Working Group  on Trust Funds  regarding how  
Members would like to see the governance of Trust Funds after they are set up . 
4.11.  The Member mentioned that his delegation's original proposal had been a complete rewrite of 
Financial Regulation  19 and tried to prev ent eve ry single possible variation . He said significant 
progress has been made , so the latest proposal is a light touch to get some clarity to the threshold 
question in Financial Regulation 1 9. He added that he and the delegate of India  are interested in 
doing more outreach a nd would really like to move all of the  Financial Regulations forward . He invited 
other Members to  reach out  to them for any explanations after they receiv e the document detailing 
the latest modifications . 
4.12.  A Member thanked the delegate s of India and the United States for their very detailed 
introduction , the background of the revisions to Financial Regulation  19, and the suggest ed changes 
to be circulated after the meeting . The Member said delegates who had been participating in the  
Committee for a long time could fully recognize th at at the very beginning , delegations  were very 
far apart regarding the changes to put in place . She stated that there had been intense debates on 
this issue  and noted that all delegates  have willingness to find a way to  resolve the issue. The 
delegate said her delegation worked very closely on this proposal with the good intention to 
encourage contributions to set up trust fund s to help developing Members in capacity building while 
at the same time ensuring  good and efficient management of trust funds . 
4.13.  The Member said that when the amended document is circulated , Members would see that 
the changes  try to reflect what the Committee had discussed during its  meeting on 5 May. She said 
that in the month  and a half since that meeting , her delegation's focus was on how to reflect  in the 
document the common understanding  from the discussions that had taken place in the meeting,  to 
avoid any misunderstanding in the future , and to try to achieve the best  possible  certainty and 
predictability in Financial Regulation  19. The Member said her delegation supports the document 
that would b e circulated  and hoped the document would be acceptable to all . 
4.14.  With regard to the implementation of a trust fund and its management thereafter, the Member 
said her delegation  fully agree s that Financial Regulation  19 pertains to the  establishment of new 
trust funds and is thus not relevant to existing trust funds . She said the Committee is  also working WT/BFA/205  
 
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  on the management of the already existing trust funds and noted that a report from the Working 
Group on Trust Funds had recently been considered by the CBFA and that the CBFA is  looking forward 
to a follow  up from the Se cretariat . 
4.15.  A Member thanked the delegates of India and the U nited States for their engagement and 
willing ness to find common ground  and for having met with interest ed Members and addressing their 
concern s. She noted that , by establishing a rough calculatio n of cost upfront during the acceptance 
stage of funds for a new trust fund, the amended version un burde ns the Secretariat from monitoring 
the cost of the fund during its implementation . 
4.16.  She s aid she s upport s the goal of putting the full text of the revise d Financial Regulations 
forward and said that the openness and  constructive approach  of the delegates of India and the 
United States gives her confidence that this goal would soon be achieved.  
4.17.  A Member thank ed the delegates that had spoken before him and s aid this ought to be the 
final stage of discussions  on Financial Regulation 19 . He said his delegation had kept track of the 
proposed  changes  and would study them  and aim for a final resolution . The Member said their 
delegation always assum ed that additional voluntary contributions do not stand in isolation . He said 
such contributions are accept ed because they support the work of the Organization . He noted that 
there is always a link with existing  priorities  and the  work that the Secretariat is doing . He called for 
this link to be recognize d and for Members to make sure that it is productive . He added that if the 
link becomes material,  a substantive discussion and decision  by the Committee would be  required . 
4.18.  A Member thanked the delegates of India and the United  States for the amended  proposal 
and welcome d the efforts to take into account the concerns previously expressed by Members . The 
Member said  that after a more in -depth e xamination , his delegation finds  the new wording and the 
explanations to be going in the right direction  and completely acceptable.  
4.19.  The delegate of the United States  expressed appreciat ion of  the comments made and said 
that the document reflecting the amended text would b e circulated shortly . He said that he and the 
delegate of India  would then make some outreach to further clarify  any aspects. He thanked the 
Committee for having been patient  through th e long process . He said he hoped that the issue could 
be closed  soon. 
4.20.  The Chair expressed gratitude , given the progress that has  been made , and said she is  
cautiously optimistic that the Committee  can finalize  and endorse F inancial Regulation 19 during the  
next meeting . 
4.21.  The Committee took note of the statements made.  
5  WTO LONG -TERM LIABILITIES  – WT/BFA/W/370, WT/BFA/W/406/REV.1 AND 
WT/BFA/W/431  
5.1.  The Chair introduced the topic by stating that long -term liabilities are a priority for the 
Committee. She stated that the Secretariat has circulated three documents  originally issue d from 
2015 to 2017 , to provide information on previous work done on long -term liabilities and address 
many fundamental aspects of the After Service Health Insurance (ASHI) . 
5.2.  An Official of the Secretariat recalled that , during the meeting on 5 May, the Com mittee 's focus 
had been on ASHI and that the documents that had been distributed for the meeting of 15 July 
pertain to the same topic.  He said the documents were intended to provide Members with information 
on previous work done on this topic and address the questions that the Committee  Members  have 
posed in previous meetings. He then introduced each paper in turn.  
5.3.  Regarding the paper bearing the reference  WT/BFA/W/370, the Official of the Secretariat said 
a CBFA Working Group had worked for about a year to understand the issue s related to ASHI . He 
noted that the concept of long -term liabilities , including ASHI , had been brought to the attention of 
the Organization after the  adoption of International Public Sec tor Accounting Standards ( IPSAS ) in 
2012.  He explained that the Working Group had  spent considerable time  collecting information from 
within the Secretariat and from external sources , such as actuaries, and  benchmarking against other 
international organiza tions' medical plans. He added that the Working Group consider ed what can WT/BFA/205  
 
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  be done to ensure that the medical plan and the ASHI commitments are sustainable  as they are  an 
important benefit for staff and retirees , while  recognizing cost containment  must be addressed . He 
added that the Working Group realized  that it would be useful to consider alternatives to the pay-
as-you-go funding model  for ASHI . He mentioned that the main recommendation by the Working 
Group  was to ask the Director -General to develop a strategy related to the ASHI liabilit ies and that 
the Working Group also identified several elements that should be considered in developing the 
strategy.  
5.4.  Regarding the paper entitled "WTO Secretariat Strategy for Managing the WTO Medical  Plan 
and its After Service Health Insurance ", bearing the reference WT/BFA/ W/406/Rev.1 , the Official of 
the Secretariat said this document was prepared by a Secretariat Working Group, following a  
recommendation that had been endorsed by the CBFA  for the Secretariat to set up some mechanisms 
aimed at addressing the issue of ASHI and the medical plan. Several  strategies related to cost 
containment were identified . Some were implemented and others we re to be examined further.  
There was also a recommendation to the CBFA to move to  a different funding model  for ASHI, to 
replace the pay-as-you-go model . The idea was that  rather than trying to retroactively fund all the 
pre-existing liabilities, a funding  mechanism would be put in place for new liabilities. The strategy 
also committed the Secretariat to provide regular updates to the CBFA on the status of ASHI. He 
noted that the most recent update  had been made to the CBFA in  early 2022.  
5.5.  The Official of t he Secretariat informed the Committee that developing a strategy with a cost 
containment element was a novel idea at the time and attracted some attention from other 
international organizations . As a result, the Secretariat had been invited to present its ideas to a 
working group of the budget and finance network of international organizations .  
5.6.  He said the development of a strategy had coincided with the procurement of a new service 
provide r to administer the claims process ing and manage ment of  the data related to  the medical 
plan. He added that new  elements were incorporated into the contract with th e selected company 
such as requiring the service provider to collect relevant data to be shared with the Secretariat to 
be able to understand the usage patterns  for the medical plan  and to identify opportunities for cost 
control.  Another key element was that the Secretariat worked closely with the service provider to 
negotiate special discounts with many doctors and specialists and preferential rates in the major 
Geneva hospitals. In addition, incentives were developed to encourage people to seek medical 
treatment in jurisdictions where medical costs are lower than in Switzerland. He said that detaile d 
information  is contained in Annex 1 of the document bearing the reference WT/BFA/ W/406/Rev.1 . 
5.7.  He added that the Secretariat has had a committee for many years  to oversee matters relating 
to the medical plan.  He said the mandate of this committee has been  broadened to ensure that the 
committee also looks at cost consciousness and effectively  communicates relevant information to 
staff and retirees. He informed the Committee that there is a misperception that the medical plan is 
an insurance. He stated that the reality is that the medical plan is funded through a budget allocation 
and contributions from staff and retirees.  
5.8.  The Official of the Secretariat then introduced the document  entitled " Summary Report by the 
Chair of the ASHI Fund Working Group" bearing the reference WT/BFA/W/431 . He recalled that the 
working group was established in 2017 with the objective of  understand ing the implications of ASHI 
liabilities on the budget and the assessing whether there woul d be good reason s to move to  a 
different  funding model  from pay -as-you-go. He stated that the working group covered a lot of 
ground even though it was not able to reach a consensus on how to proceed. He said the report had 
two recommendation s for the CBFA.  The first was the creation of a Special Reserve Account  and for 
any unspent amount on the medical cover budget line to be transferred into this Special Reserve 
Account. There was recognition by the working group that the amounts would be very small , 
compa red to the extent of the ASHI liability.  The second  recommendation was that the CBFA should 
continue to consider other funding models besides the pay -as-you-go model . 
5.9.  He informed the Committee that one area where there was convergence amongst members of 
the working group was  agreement that both the  WTO Members and the Secretariat staff need to 
contribute and bear a reasonable but proportionate share of the costs . He said cur rently  60% of the 
funding of the medical plan comes from Members and 40 % from beneficiaries (staff and retirees) . WT/BFA/205  
 
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  5.10.  A Member thanked the Official of the Secretariat for the presentation and the Secretariat for 
bringing  the topic of ASHI back to the CBFA's attention . He informed the Committee that his capital 
is having useful in ternal conversations on the topic and that their general preference  is for pay -as-
you-go models . He added that cost control is also an important aspect.  
5.11.  A Member said that discussions on this topic began many years back. He said that the  
documents  that had been distributed ahead of the meeting are useful building blocks for the 
discussion that the Committee will  have on ASHI and the WTOPP  after the summer break. He said 
that this topic is an issue for WTO Members and beneficiaries of ASHI  and the WTOPP . He said there 
is a sense of urgency by the Committee , but the solutions are not easy . He asked if staff and retirees 
had a similar  sense of urgency and what their views are on the topic of  long-term liabilities. He 
recalled that during a pr evious meeting , after he had posed a question regarding communication 
with other stakeholders, the  WTOPP  fund manager had said  there is ongoing dialogue with the 
Secretariat staff and retirees. He stated that it is important for the stakeholders to find solutions 
that take into account the sense of urgency on all  sides and recognize that  responsibilities are on all 
sides to solve these issues.  He asked how the necessary dialogue would take place amongst the 
stakeholders  i.e. Members, staff , and re tirees  to ensure a balanced approach to finding solutions . 
5.12.  The Member said it cannot be the case that the matter is resolved only by increasing the 
Members ' share of contributions towards the WTOPP . He said that staff and retirees ought to also 
contribute to the resolution of the issues.  
5.13.  A Member said that the documents and the comprehensive summary  that had been given by 
the Official of the Secretariat were very useful because there was a lot of work already done that 
could save a lot of time for the Committee  because some ideas and possible options were included 
in the documents that had been distributed ahead of the meeting . She suggested  that, as a way 
forward, it would be useful to have an informal discussion  on the topic befo re the next CBFA meeting . 
5.14.  A Member gave an example that his  country had implemented  pension reform s ten years ago , 
which included raising the retirement age from  65 to 67 years of age. He said his country is now 
heading to increasing the retirement age to 69 years of age . He also said that the pension will be 
indexed  to the development s in different stock markets . He s tated that national pension reforms 
could inform adjustments in international organization s because Member States are adjusting . He 
echoed th e call for continued discussion s and working groups on this issue , saying that it has to be 
resolved in the near future.  
5.15.  A Member said it is important for the Committee to take stock of previous conversations  on 
long-term liabilities . He said the Committee  has raised questions about strategic foresight and risk 
management in previous conversations  and added that the Committee must reflect on long-term 
liabilities with a  forward vision  and offer guidance or contribut e to addressing the issues . 
5.16.  The Member said there is value in raising awareness of the issues  and existing liabilities even 
if Members  are unable to find solutions because they must consider these questions alongside other 
important questions relating to Members ' efforts to ref orm a nd revitalize the Organization . These 
include  how Members  view strategic transformation, how they want to retool and  make the 
Organization  fit for purpose, while factor ing in current and future implications on  salaries and 
benefit s, health insurance , and pension  liabilities . 
5.17.  The Member said it is  also important to  bear in mind the very significant looming problems 
with the WTOPP , not just ASHI. He said that if Members are asked to revisit the budget for other 
purposes , they also  have to unde rstand the non-discretionary implications that may be coming 
before they make discretionary choices . He said that reactivating the working group , if there is 
interest , could give some structure to the informal conversation and give those Members that have 
an interest a place to engage in depth . He said this topic ought to be factored into discussions on 
reform because the financial health of the Organization is important to all  Members  and Members 
have to make sure that the Organization  can attract the best talent and can offer attractive packages 
while,  at the same time , being prudent and mak ing sure that it develops systems that share the 
responsibility for the broader economic context.  
5.18.  A Member said that the documents were extremely u seful. He said that additional figures 
pertaining to long-term liabilities  are important because they relate not only to ASHI but also to the WT/BFA/205  
 
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  WTOPP . He said Members ought to  examine different scenarios  and budget implications for different 
solutions , ranging from keeping the current model to moving to other models.  
5.19.  The Member recalled that his delegation has always expressed concern s about long -term 
liabilities  and their significan t amount  in the WTO's balance shee t. He said that his delegat ion would 
like to know what the 20 50-2060 balance sheet would look like  if the current model were maintained 
and what it would look like if the funding model  were to change . He said this complex topic requires 
thorough examination . He said the Special R eserve Account , which was adopted in 2017 , will be 
administered in accordance with the WTO's normal policy for administering funds , adding that such  
funds have been managed  as cashflows. He suggested chang ing the investment profile of the balance 
in the Special Reserve A ccount , with a long-term perspective . 
5.20.  The Member said another suggestion that ca me up  in 2017 involve s linking the pensioners' 
contribution to the system to their total income, instead of to the pension they receive from the 
WTOPP . He asked whether that idea had been considered. He stated that, a ccording to what he had  
read in the document, one has  to work  for five years  to be entitled to ASHI. He said this could create 
certain injustices b etween those who have worked, for instance, for 30 years in the WTO and those 
who have worked for 5 years. He said those  who worked for 30 years would have an income that 
almost exclusively comes from the WTOPP  and would not have any other health coverage whereas 
those who have worked for less time at the WTO  and had contributed to other pension systems  may 
have other health insurance options.  
5.21.  The Official of the Secretariat said that the long -term liabilities include ASHI and the WTOPP . 
He said that, whils t these two aspects are conceptually similar , it is important to understand that 
ASHI is on a pay -as-you-go basis and  the WTOPP  is not . He noted that the documents  that had been 
circulated ahead of the meeting focus on ASHI  and the historical deliberations that had taken place 
in the CBFA.  He said the WTOPP  has a separate management structure  and Management Board .  
He recall ed that the Chair of the WTOPP  Management Board  periodically reports to the Committee 
and that the Ma nagement Board has a regulatory responsibility to govern  the WTOPP . 
5.22.  In response to the question regarding the inve stment of the Special Reserve Account, the 
Official of the Secretariat said the CBFA had  another Working Group that had deliberated upon  a 
possible investment strategy for  the Working Capital Fund. He added that there had not been any  
willingness from Members to tackle the specifics of what that strategy would look like.  
5.23.  On the question of linking contributions to income,  the Official of t he Secretariat  clarified that 
the subsidy for ASHI is based on the number of years served. He said that, therefore, t he variance  
is not as substantial as it might appear on the surface  when just looking at a 5-year versus a 30 -
year career . He also said tha t some  people probably have substantial outside  assets , and maybe 
they do not need quite as much of a subsidy as others, but the reality is that it proved  complicated 
to pursue the idea of linking ASHI to a person' s income because it  would require people to disclose 
their net  worth, other pension  income , and other post -retirement benefits.  
5.24.  The Official of the Secretariat said consultation with all stakeholders has been, and is,  an 
important part of the process of keeping them aware of the on going situation with ASHI and the 
WTOPP .  He gave the example that  presentation s of the actuarial report from the WTOPP were made 
to the CBFA, staff , and retirees in March 2022.  
5.25.  The Chair thanked the Secretariat for the presentation and Members for their active 
participation in the discussion s. She said that she had taken  note of some Members' proposals  for 
either an informal  meeting  or the establishment of a working group focussing on this topic . 
5.26.   The Committee took note of the statements made.  
6  CLOSING REMARKS  
6.1.  The Chair  bid farewell to Ryder  Thomas (United Kingdom) and Sonja Hürlimann as they would 
be leaving Geneva . She thanked them for thei r cooperation  and contribution to the CBFA  and wish ed 
them success in their future  endeavours.  
6.2.  The Chair then closed the meeting and said that the next meeting will be on September 22 . 
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