RESTRICTED  
  
WT/BFA/W/494  
 
10 September  2019 
(19-5767) Page: 1/3 
Committee on Budget, Finance and Administration    
 
 
REVIEW OF SELECTED FINANCIAL REGULATION S OF THE  
WORLD TRADE ORGANIZA TION  
1  BACKGROUND  
1.1.  Financial Regulation 4 stipulates that the Financial Regulations of the World Trade Organization 
shall be reviewed by the Committee on Budget, Finance and Administration (CBFA) at least every 
four years.  
1.2.  Financial Regulation 4 further  states that the General Council has the exclusive authority to 
amend the  Financial Regulations , on recommendation by the CBFA . 
1.3.  The Financial Regulations of the World Trade Organization that are currently in force are 
contained in document WT/L/156/Rev.3, dated 27 February 2015.  Therefore, a revi ew is due.  
2  FINANCIAL REGULATION S PROPOSED FOR REVIEW 
2.1.  During its meeting s on 30 April and 17 June 2019  the CBFA  considered reformulated text for 
Financial Regulations 4, 17, 19, 23, 26, 27, 28, 29, 37, 38 and 42 , presented through document s 
WT/BFA/W/478  and WT/BFA/W/4 85.  
2.2.  The CBFA endorsed the revised text for Financial Regulations 4, 17 , 19, 26,  27, 37, 38 and 42 . 
Regarding Financial Regulation 19, the title of Annex C was to be further modified  by adding "From 
Members and Observers" in order to be specific. Therefore, the revised title of Annex C is,  "WTO 
Secretariat's Guidelines for the Receipt and Notification of Voluntary Fund Contributions from 
Members and Observers ."  
2.3.  Consensus was not reached regarding the text proposed for Financial Regulations 23, 28  and 
29. It was agreed that these would be deferred to the Committee meeting scheduled to take place 
in September 2019.   
2.4.  TABLE  1 of this document WT/BFA/W/ 494 presents  the updated reformulation of F inancial 
Regulations 23, 28  and 29.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  WT/BFA/W/494  
 
- 2 - TABLE  1 – FINANCIAL REGULATION S PROPOSED FOR REFORM ULATION  
FINANCIAL 
REGULATION  PROPOSED REFORMULATION OF SELECTED REGULATIONS  
23 a) The budgetary result is defined as the sum of assessed contributions and projected miscellaneous income, less , the sum of actual 
expenditure and actual miscellaneous income.  
 
b) The actual expenditure does not take into account the va riations in the actuarial provisions for the long -term liabilities associated 
with staff pensions and After Service Health Insurance if they have not been included in the approved budget.  
 
c) Assets are defined as r esources controlled by an entity as a result  of past events and from which future economic benefits or 
service potential are expected to flow to the entity.  
 
d) Liabilities are defined as p resent obligations of the entity arising from past events, the settlement of which is expected to result in 
an out flow from the entity of resources embodying economic benefits or service potential.  
 
e) Equity  is defined  as the residual interest in the assets of the entity after deducting all its liabilities.  
 
f) The annual budgetary result  shall be reported in the WTO Financial Performance Report. The Director -General shall make specific 
recommendations to the General Council, through the Committee, for the redistribution of the annual budgetary savings  to a 
specific part of the WTO's equit y, which may be:  
 
i) The Working Capital Fund; or  
ii) Reserves.  
 
g) The sum  of the budgetary result for the period and IPSAS adjustments, including the actuarial provisions for pension and After 
Service Health Insurance, determine the WTO year -end financial result.  
 
h) If at the end of a financial period the financial result  shows a positive balance , the Director -General shall make proposals to the 
Committee with regard to its use, which may be:    
i) application as income against the budget for the next applicable financial period following that in which the surplus occurs, 
thereby reducing Members' contributions;  
ii) transfer to the Working Capital Fund;  or 
iii) use for any other purpose decided upon by the Ge neral Council.  
  
i) If at the end of a financial period the financial result shows a negative balance , it shall be transferred to the Surplus/Deficit Account.   
  WT/BFA/W/494  
 
- 3 - FINANCIAL 
REGULATION  PROPOSED REFORMULATION OF SELECTED REGULATIONS  
28 
 a) The General Council may return all or part of the sums constituting the Working Capital Fund, i f the WTO equity has a positive 
balance. Such funds will be returned in proportion to the respective share that each Member has in the Working Capital Fund. The 
proportion will be based on the contribution of each Member to the Working Capital Fund as per Financial Regulation 24 (a).  
 
29 Subject to a decision by the General Council, and if the  WTO equity has a positive balance, countries or separate customs territories 
which for any reason cease to be Members of the WTO shall be entitled to the reimbursement of the total amount of their share s in 
the Working Capital Fund under Financial R egulation 24(a)  provided that they have ho noured all liabilities attributable to them . 
3  RECOMMENDATION  
3.1 The Committee invites the General Council to approve the revised Financial Regulations of the World Trade Organization, to be contained in 
document WT/L/156/Rev.4, with specific revisions to Financial Regulations 4, 17, 19, 23, 26, 27, 28, 29 , 37, 38 and 4 2. 
 
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