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WT/BFA/190  
 
4 Novemb er 2020 
(20-7813) Page: 1/13 
Committee on Budget, Finance and Administration    
 
 
REPORT OF THE MEETING HELD ON 22 OCTOB ER 2020 
The Committee on Budget, Finance and Administration (CBFA) met on 22 Octob er. His 
Excellency  Ambassador Manuel Teehankee  (Permanent Representative of Philippines  to the WTO ), 
welcomed Members .  
 
The agenda for the meeting was released on 9 October, with reference WTO/AIR/BFA/40 , together 
with an annotated agenda, JOB/BFA/46.  
 
In response to an invitation to Members to suggest items under "Other Business", the following 
requests were ma de: A Member  made a request  to discuss an issue related to the SDGTRADE.org 
website created by the WTO  and pose a clarification question regarding the Committee  meeting  that 
had taken place on 5 O ctober , as paragraph s 1.3 and 1.4  of the report of the meeting stated that 
there consultations would take place  on some aspects . He said his delegation would like to follow -
up to see if there is a report on either the discussions related to the textual suggestions made 
regarding  the budge t and consultations with the  ITC.  
 
Noting the addition of the first item requested under "Other Business " the Chairman said the second 
clarificatory questions would be part of his  concluding remarks at the end of the meeting.  
 
The agenda was adopted  as amended for "Other Business ". 
 
DDG Brauner welcome d Members to the meeting. He said the Secretariat is  has put measures in 
place to make the WTO premises  one of the safest places in Geneva. He said that the Secretariat 
had recently shared a  notice that was sent to the Secretariat  staff, with Members , aligning to 
decisions from the Swiss  Authorities  on pandemic -related issues. DDG Brauner  said the Secretariat 
had actually re -established an obligation to work on the premises and, in view of the increased 
number of COVID cases, the Swiss  Authorities have decided that the recommendation to work from 
home is the preferred option  in order to limit the interaction of people on the way to work , using  
public transport , and intensive meet ings of people in crowded places.  
 
A Member  said that he had  raised his hand when the Chairman asked  if any Member wants to suggest 
any item under "Other Business ". He said that he would like to make a statement suggesting  a 
voluntary cut in the WTO budge t. 
 
The Chairman said that the request was n oted. 
 
1   REPORT FROM THE OFFICE OF INTERNAL OVERSIGHT (OIO)  – WT/BFA/W/ 532 
1.1.  The Head of the Office of Internal Oversight (OIO) presented a summary of the activities 
conducted by the OIO between July 2019 and June 2020 and the priorities for the coming year.  
1.2.  In compliance with the Institute of Internal Auditors, he confirmed the organizational 
independence of the OIO and said no circumstances had affected this independence, be it in fact or 
appearance. He added  that the operational annual budget of the OIO has remained unchanged since 
the creation of the OIO in 2016 and that the expenditure rate for 2019 was 88% the budget and 
41% for the first six months of 2020.  
1.3.  The Head of the OIO announced that Ms. Nathalie Iniguez, a Lawyer with extensive experience 
handling cases of alleged misconduct before the Administrative Tribunal of the ILO, assumed the 
post of Investigator in May.  WT/BFA/190  
 
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  1.4.  He provided a detailed account of the activities that had been conducted by the OIO, i ncluding 
the continued reinforcement of the internal controls and the internal justice mechanisms at the WTO. 
The OIO had participated in the implementation of the Respect&Harmony@WTO programme 
conducted by the Human Resources Division (HRD), aimed at prom oting a more harmonious and 
safe work environment at the WTO, free from discrimination, harassment and abuse of authority. 
He indicated that almost every WTO staff member has completed this mandatory training. Other 
activities were participation in the Wor king Group in charge of refreshing the WTO Standards of 
Conduct and preparing an Ethics related training, co -organizing the 20th conference of International 
Investigators with other Geneva -based international organisations, as well as trainings on IT 
forensics and interviewing techniques for traumatised people.     
1.5.  Between July 2019 and June 2020, the OIO had received 20 reports of alleged misconduct and, 
after in -depth analysis, the OIO decided to open six investigations – all of which were considered 
closed by the OIO at the date of this report.  
1.6.  Two investigations were related to moral harassment allegations and sanctions were applied; 
the Investigator concluded that there was misconduct but no fraud in one case and the Director -
General applied sanction ju st before his departure; an alleged breach of confidentiality was 
substantiated and the case is now awaiting a decision from the four DDGs regarding the disciplinary 
sanction to be applied; an investigation on alleged retaliation was concluded as being 
unsubstantiated; and finally, an alleged case of conflict of interest was closed since the concerned 
staff member left the organization.  
1.7.  The OIO was unable to complete some of the assignments included in its 2019 -2020 audit plan 
due to resource limitations, c hanging priorities and the COVID -19 crisis. The monitoring of the 
implementation of internal audit recommendations, as well as the recommendations made in the 
Trade Related Technical Assistance (TRTA) evaluation report, continued. In addition, support and 
advice was provided to Senior Management, staff and stakeholders, as needed. Also, the OIO worked 
closely with the External Auditors and kept abreast of good practices implemented in other 
international organizations.  
1.8.  The priorities for the next year are: review of the procedure of administrative investigations; 
updating the internal audit charter; further development of the Quality Assurance and Improvement 
program at the WTO; organization of outreach activities, focussing on how to deal with ethical 
dilem mas and how to protect staff against potential retaliation; conduct of investigations; and 
support to management and staff, as needed. In terms of internal audit, the aim is to complete the 
assignment included in the 2020 -2021 risk -based audit plan.  
1.9.  Referr ing to Table 1 of the document, a Member said that the budget for the OIO is shown as  
CHF 410,900 whereas the document bearing the reference WT/BFA/INF/13, which is the breakdown 
of the budget of the Secretariat by Division, shows a budget of CHF 383,000 for the OIO. The Member 
asked if the variance is due to the inclusion of pension in Table 1. The Member said there is 
expenditure attributed to special service agreements and asked for clarification of this amount as it 
was not reflected in the bud get. The Member said paragraph 4.16 mentioned external investigators 
and asked how these were contracted. Referring to a footnote in Annex 2, the Member asked when 
the Governance and Risk Officer would be recruited and if such a person would be on a regula r post 
or be a short -term staff member. The Member then asked who would approve the work plan.  
1.10.   A Member said his delegation appreciates the independent position and role of the OIO in the 
WTO and encourages the OIO to continue not only to respond properly and timely to signals in the 
organization but to act upon its own initiative. He commended the transparency provided regarding 
allegations, the procedures that were followed and the conclusions reached.  
1.11.   The Head of the OIO said special service agreements are related to the use of external 
investigators for some specific investigations where special expertise was required or where the OIO 
had a perceived conflict of interest. Such agreements were managed by HRD and pursuant to the 
approval of the Director -General. The Head of the OIO said the position of Governance and Risk 
Officer is within the Administration and General Services Division and would be filled in due time.   
 WT/BFA/190  
 
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  1.12.   The Head of the OIO said the workplan was submitted to the Director -General for revie w 
before its finalisation and submission to the CBFA.  
1.13.   An Official of the Secretariat said the budget indicated in WT/BFA/W/532 includes pension 
elements whereas only salaries are reflected in WT/BFA/INF/13.  
1.14.   A Member said his delegation finds the report ve ry useful and well detailed. The inclusion of 
focus areas and the audit plan contributed to understanding of the internal auditor's work and 
priorities. The Member welcomed the addition of an Investigator to the team. Noting that the report 
cited 20 intake s during the period under review he asked how this number of intakes compares with 
numbers in previous years. He said 75% of the intakes fall into one broad category - related to 
abuse of authority, conflict of interest, and violations to the standards of conduct - and asked if it 
would be possible to separate the types of cases out into the relevant sub -categories in order to help 
Members identify if there are particular areas where a management response should be targeted to 
possibly pre -empt the occurren ce of actions that trigger these complaints. The Member asked what 
steps the Secretariat has taken to address and prevent misconduct in this area, given the high 
incidence of complaints.  
1.15.   The Member said paragraph 4.11 states that 20 intakes were recorded between June 2019 
and June 2020, while paragraph 4.14 states that six investigations were conducted during this time -
period and asked if the numbers listed in the first column on Table 2 reflect intakes or identification 
numbers. The Member asked how it ca me about that 75% of the intake complaints fell into the 
category of abuse of authority, conflict of interest and violations of standards of conduct yet none of 
the six investigations carried out during this timeframe fell into that category.  
1.16.   The Member a dded that his delegation takes instances of misconduct seriously and urged 
management to take steps to address these transparently by holding those found to be in violation 
of WTO rules and policies accountable.  
1.17.   With reference to paragraph 4.20 the Member  asked which audit engagements were not 
completed and if they will be completed in 2021 and how the OIO will mitigate this risk going forward. 
Regarding Annex 1 the Member asked if it is possible to obtain a specific document reference number 
for the TRTA evaluation report referred to therein.  
1.18.   A Member said training, the raising of awareness of the OIO within the organization and the 
engagement with other international organizations are valuable. She said that comparison with other 
organizations and trends  in any of the areas which the Committee might want to focus on would 
enhance the report. Referring to paragraph 4.10, the Member asked for precision as to what is meant 
by "a WTO norm".  
1.19.   The Member said paragraph 4.23 makes mention of progress on internal  audit 
recommendations and said it would be useful for the Committee to get the Head of the OIO's 
perception of how the organization is doing in implementing those recommendations. The Member 
asked if the Head of the OIO sees any risk areas change as a res ult of COVID and the move to online 
work in many areas, and whether that will have any impact on the OIO's priorities going forward.  
1.20.   The Head of the OIO thanked Members for their valuable comments and questions. He said 
14 intakes had been received betwee n July 2017 and June 2018, 30 between July 2018 and June 
2019, and 20 between July 2019 and June 2020. He said the decrease in 2020 is likely due to the 
current sanitary situation. He said staff working from home resulted in less interpersonal conflicts. 
He added that a similar trend has been observed in other international organizations. However, he 
expected the number of intakes to rise in the near future.  
1.21.   The Head of the OIO said the OIO has become more and more trusted by staff members and 
management an d seen as a partner.  
1.22.   The Head of the OIO said the broad category entitled "abuse of authority, conflict of interest 
and violation of standards of conduct" would be further fine -tuned and the types of intake categories 
extended. He added that when designing the intake register the expectation had been that 
procurement fraud, other fraud and corruption, moral and sexual harassment and retaliation would 
be as high as 75% of total cases but actually the opposite was experienced, 75% of the intakes fall WT/BFA/190  
 
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  under the category ''other vi olations of the WTO Standards of Conduct'', which is an opaque bucket. 
He added that the OIO is currently working on expanding the number of categories.  
1.23.   He said that not all allegations of misconduct resulted in an investigation as some were related 
to interpersonal conflicts or performance issues, which are not related to alleged misconduct, and 
the staff members were hence redirected to the appropriate channels at the WTO to deal with these 
kinds of grievances. These include the internal or external medi ators, HRD, the Staff Counsellor and 
the Staff Council. He added that for the other intakes the OIO always conducts a preliminary 
assessment of the allegations to determine if they are credible, material and verifiable before 
reaching a decision on whether  an investigation is warranted.  
1.24.   The Head of the OIO clarified that the numbers listed on the first column of Table 2 are 
identifiers. He said that no trend concerning instances of abuse of authority had been observed that 
could suggest this as being a sys temic issue.  
1.25.   In terms of the internal audit plan the Head of the OIO said the internal audit assignments 
that were not completed in 2019 have been included in the audit plan of 2020. He said the audit of 
special service agreements and short -term contracts  had been removed from the planned activities 
as this was covered by the External Auditors. He also said that the audit on Information Security 
Governance had been replaced by an audit on crisis management and contingency planning.  
1.26.   He said the TRTA evalua tion report he had mentioned is WT/COMTD/89, which is available on 
the WTO website.  
1.27.   The Head of the OIO said the selection process for the Internal Investigator had taken long 
as there are many steps to be followed in the recruitment process including expr essions of interest,  
internal job vacancy announcements and external vacancy announcement, if no people are found 
within the WTO Secretariat.  
1.28.   He said 83% of the internal audit recommendations have been fully implemented, 14% are 
work-in-progress and 3% re main open. He said this rate is satisfactory. He informed the Committee 
that all recommendations from the evaluation of the TRTA have been implemented, except one 
(pending implementation by HRD).  
1.29.   The Chairman thanked Members for their questions and comment s and the Head of the OIO 
for his responses.  
1.30.   The Committee took note of the report.  
2   2019 ANNUAL REPORT ON DIVERSITY IN THE WTO SECRETARIAT  – WT/BFA/W/5 33 
2.1.  An Official of the Secret ariat informed the Committee that  it is the 11th time that the annual 
divers ity report has been submitt ed to the Committee, after an original request by India, 
South  Africa, Brazil , China, Ecuador, Egypt and Pakistan. He said  the recruitment policy of the WTO 
seeks to attract and retain staff members offering the highest standards  of competence, efficiency 
and integrity as well as having full regard to merit and diversity.  
2.2.  The Official of the Secretariat said the t rend s hows an increase in the number of staff members  
from developing and Least Developing Countrie s, with s taff by region pointing to growth for Africa 
and Asia whilst Eur ope and North America present a slight decline.  
2.3.  There is an i mprovement in the percentage of women for 2005 and 2019 , relative to 1995 , 
though p rogress is uneven with more female staff  members  in Gra des 6 and 9. The c hallenge is to 
attract more females at Grade 10 and Director levels.  
2.4.  The d istribution of applicants and short -listed candidates per  region  were presented. A t the 
end of 2019, w omen candidates represented 49% of Grade 6 applicants whereas  60% of women 
were shortlisted  at this grade , relative to 40% being men.  The region with the highest Directors i s 
Asia, followed by Europe and North America.  WT/BFA/190  
 
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  2.5.  A Member thanked the Secretariat for the report. While acknowledging the need for the highest 
standard of competence  he said diversification should be the  key aim. He said these  two aspects are 
not mutually exclusive  and that mo re work can be done. He indicated that f ive countries, 
representing  only 3% of the Membership , account for almost 50% of the total staff. He emphasized  
that i n 1995 the ratio was 54%  and that all the countries in this group are devel oped countries . He 
added that the s taff numbers for some countries ha ve remained stagnant.  
2.6.  The Member said that, i n the professional staff category , the number of staff from his and 
many other countries has declined. The Member indicated that his country has highly qualified 
people. He further said that 70% of staff  come  from developed countries yet  these countries are 
only 40% of the Membership . The Member said there  seems to be special and differential treatment 
in the recruitment of staff. He stated that t he WTO deserves diversity . The Member c omplimented 
the progress made in the improved trends in female representati on amo ngst staff members , adding 
that f urther improvement is expected with the appointment of the first ever female D irector General . 
2.7.  A Member complimented the response of the Secretariat to the r equest made by developing 
country members  many years back. R eferring to Paragraph 6.12, she said that the information about 
gender  has clarity and transparency. The Member asked for similar detail to be provided for the 
future equivalent of p aragraph 6.11 so that Members can see how many people from developing 
and developed countr ies applied for vacancies.  
2.8.  A Member asked whether all vacancies come from separations or if some vac ancies were newly 
opened. If the latter, the Member asked what the procedure  for this  is. 
2.9.  A Member said the graph showing applicants and shortlisting is interesting and that at the 
shortlisting  stage  there seems to be a strong preference for Europeans. He said that nationality is 
changeable,  and that diversity ought to be reflected in the universities t hat recruits attended .  
2.10.   Referencing Section 8 , on the Young Professionals Programme  (YPP)  and internship 
programmes beginning on page 10, A Member expressed the view that seven separate programmes 
for young professionals and interns is unusual  and perhaps indicative of some institutional 
redundancy. He asked which of these are funded from the regular budget and which from trust 
funds.  
2.11.   Regarding Annex 11, on page 39, the Member asked why there is a parenthetical insertion on 
line 3 indicating that the China LDC and Accessions Programme is sponsored by the Government of 
China yet other program mes which also  contain a national name – such as the Netherlands Trainee 
Programme, and the French Irish Mission program – do not have a similar parenthetical reference.  
He asked if the distinction of "sponsorship by a Government " signif ies that there is a separate 
management and oversight regime that applies to programmes defined in this manner.  The Member 
said the note below Annex 11  specifies that administration and coo rdination for the YPP and 
internships are managed by the HRD. 
2.12.   The Member asked if the three programmes listed in Annex 11 which do not use the terms 
"young professional " or "internship " i.e. the China LDC and Accessions Programme, WTO Support 
Programme for Doctoral Studies and Netherlands Trainee Programme  are not managed by  the HRD, 
and if not, who is responsible for managing these programmes with respect to hiring processes and 
decision making . He asked whether selection and hiring are merit -based for these programmes as 
well or if other non -merit -based criteria are used.  
2.13.   The Member said there is a possible discrepancy between Annex 11 and Annex 12. The 
explanatory text for the China LDC and Ac cessions Programme indicates in Annex 11 that four 
positions are available for 10 -month periods  whilst Annex 12 indicates that more than four 
individuals were supported by this program every year since 2015. He said that it  appears that there 
are between 7  and 8 individuals per year in recent years. He said his delegation understand s that 
the 10 -month window may allow for some overlap  but is unclear as to  how such overlap could 
account for double the number of individuals provided for under the M emorandum o f Understanding 
(MoU). He asked if the terms of the M oU have been modified  and if so whether  Members were 
informed of this change .  WT/BFA/190  
 
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  2.14.   An Official of the Secret ariat welcomed the suggestion by a Member  to assist in  enhancing 
diversity. He encourage d Members t o submit names of suitable candidates for job openings.  The 
Official of the Secretariat there is no conscious preference for any region during the recruitment 
process  and that  there is a concerted a im to gain gender balance  at all grades . He added that peo ple 
from countries that primarily speak the three official languages make up a large percentage of 
linguistic staff and that people from countries close to Geneva are many as local staff members are 
often recruited from the vicinity  of any , this being the case for other international organizations 
elsewhere.  
2.15.   The Official of the Secretariat said the future equivalent of paragraph 6.11 will p resent 
breakdown by country. The Official of the Secretariat said s ome vacant posts are kept for staff who 
are on Special Leave Without Pay since the organization is legally required to retain posts for such 
people  in the event they return .  
2.16.   The Official of the Secretariat said o nly the WTO internship pr ogram is funded fr om the regular 
budget  whilst all other internship programs are financed from trust funds.  He said that A nnex 1 
would be updated by either deleting the names of contributors or showing all contributors for each 
trust fund, to ensure a consistent presentatio n of information .  
2.17.   An Official of the Secretariat said the Netherlands Trainee Programme, F rench -Irish Mission 
Internship Programme  and the Regional Coordinator Programme are managed by the ITTC. The YPP 
is co-manged by the HRD and ITTC. He said there is n o change in the MoUs and that  the difference 
in positions in Annexes 11 and 12 is due to the overlap in years.   
2.18.   A Member asked whether COVID -19 is affecting the ability of Interns to participate in 
internship programmes. The Member expressed the importance  of enabling the continuation of such 
programmes saying that yo ung people, being tech savvy, can participate in such programmes from 
any location . 
2.19.   A Member reiterated earlier comments from developing country Members  adding that it has 
been a decade since the data was com piled yet an overwhelming number of st aff still come from 
developed countries. The Member said that the diversity an d plurality of the WTO's Membership 
must be  represented in the staff composition. The Memb er said that his delegation  is willing to work 
with the Secretariat  on this . He acknowledged that some people may apply for jobs in spite of not 
meeting the criteria. He said that the trend of shortlisted c andidates , and those finally selected , 
shows a high proportion of people from Europe. He stated that though hiring local staff from the 
vicinity, it was still evident that even at professional level there is a skewing to Eur ope and developed 
nations.  The Member said that his delegation would like to see improvements at Director and higher 
levels. He said Africa remains under -represented at all categories of staff  and he expressed hope 
that the incoming D irector -General will address this . 
2.20.   A Member emphasized the importance of gender balance in the workplace. She said their 
country , being small, would like to see qualified people regardless of where they come from. The 
Member said that diversity is a mix of education and experience. He said that if people come mainly 
from a certain category of  universities then the pursuit of diversity is minimised. She said that it 
would be important to get more detailed information e.g. sub -categories of study areas such as 
Economists, Lawyers etc.  
2.21.   Seeking further clarification , a Member asked if the  China LDC Accession Programme, WTO 
Support Programme  for Doctoral Studies and the Netherlands Trainee Programme  are merit -based. 
He said  how could  eight people be hired on 10 -month contracts consecutively.  
2.22.   A Member echoed earlier comments on diversity. She thanked the Secretariat for movement 
in the right direction on diversity and said that her country ha s benefited fr om the YPP. She noted 
that the Arab and Gulf Region s are unrepresented in the Secretariat . She called for an increase in 
the number of people from her country that can participate in th e YPP and that the same  could  be 
applied to other countries that are not represented in the Secret ariat. 
2.23.   An Official of the Secret ariat said that the YPP and internship programmes for 2020 proceeded  
without much hindrance and that discussions are currentl y taking place as whether to postpone the WT/BFA/190  
 
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  programmes for 2021, given the sanitary conditions. He said i nternships are intended to be 
participated in physically in order  for the Interns  to gain experience and live the organization.  
2.24.   An Official of the Secret ariat stated that many of the recruitment  procedures are conducted 
anonymously. He said that there is an asymmetry in the universities that people studied at and  
added that it is difficult to attract nationals of certain countries as the remuneration at th e WTO may 
be deemed as non -competitive , from the perspective of nationals of those countries.  The Official of 
the Secretariat said that he would contact some of the delegations that made comments regarding 
enhancing the report  to get specific suggestions . He thanked Members for their encouraging 
comments on the  YPP.  
2.25.   An Official of the Secretariat added that there is an increase d in interest in participating in  
internships  and that some interns were not able to travel to Geneva because they could not get vi sas 
due to the pandemic. Flights for current int erns are affected on the return leg. The S ecretariat has 
scheduled a meeting with the contributors to the internship programmes to discuss these issues.  
2.26.   The Official of the Secretariat said a ll internships are merit -based and the criteria is indicated 
in the announcement of the programmes . She added that  the selection is undertaken by a Committee  
comprising of officials from  ITTC, HRD and the Development Division for all internsh ip programmes  
except for the  PhD programme , wherein ITTC  is replaced  by ERSD and other relevant Divisions.  
2.27.   The Chairman t hanked the Secret ariat their presentation and Members  for their comments.  
2.28.   The Committee took note of the report.    
3  ORAL UPDATE FROM THE CHAIRMAN OF THE WTO PENSION PLAN MANAGEMENT BOARD   
3.1.  The Chairman of the W orld Trade Organization Pension Plan (W TOPP) Managemen t Board 
recalled that h e had  presented the 2019 Audited Financial Statements and Annual Report of the 
WTOPP  to the General Council  on 13 October . 
3.2.  He explained that the  reports were issued unusually late  due to travel restrictions associated 
with the COVID -19 pandemic, which delayed completion of the work of the external auditors.   
3.3.  The Chairman of the WTOPP Management Board said that in  2019 financial markets were 
unexpectedly strong  this being  reflected in the return of the WTOPP  investment portfolio.  The 
Management Board's investment strategy delivered a nominal return of 12.6%, significantly above 
the 3.5% target rate of return.  
3.4.  The Chairman of the WTOPP Management Board said that o ver the last 5 years  the WTOPP's  
portfolio generated an average annu al return of 4.7% in nominal terms. He underline d that variations 
in returns, with some years above and some years below the target, are normal.  He said as  2019 
has brought strong returns, 2020 will be challenging for investors, with the Covid -19 global pa ndemic 
affecting economic activity and weighing on the performance of the financial markets.  It will not be 
a surprise if markets struggle and that the WTOPP  experiences some below average returns in the 
future.  
3.5.  Turning to the actuarial situation , the Cha irman said that a triennial full actuarial valuation 
based on 2019 data is ongoing  and that the WTOPP Management Board has launched a 
comprehensive review of the assumptions to be used for projecting the future liabilities of the 
WTOPP . These include exter nally determined assumptions about inflation and market returns and 
internally driven assumptions linked to employment practices, demographic trends and behavioural 
factors.  
3.6.  He said the Management Board recently learnt that the lead actuary  who was respons ible for 
the ongoing  valuation had separated from the actuarial company thus hamper ing the complet ion of 
the full periodic actuarial review on schedule.  Consequently, the Management Board will be launching 
a competitive procurement exercise for a new consulting actuary  to continue the periodic full 
actuarial valuation and to issue an actuarial valuation report.  WT/BFA/190  
 
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  3.7.  The Chairman of the WTOPP Management Board said that near term economic conditions are 
expected to be challenging, a situation that can result  in sustained below -average returns. Combined 
with unprecedentedly low (and even negative) interest rates and a shifting staff demographic, this 
is likely to lead to a n actuarial imbalance in the future.  
3.8.  The investment guidelines were updated to include r ecommendations from a working group 
that had done an in -depth assessment of the Environmental, Social and Governance aspects of 
investments in 2019 .  
3.9.  In conclusion, the Chairman  of the WTOPP Management Board stated that the Management 
Board remains committ ed to full engagement in ensuring the continued good governance and 
sustainability of the WT OPP. 
3.10.   The Committee took note of the update.  
4   Q3 2020 BUDGET AND FINANCE REPORT  – WT/BFA/W/5 35 
4.1.  The Chairman  recalled that the discussions on the Q2 report , during a previous Committee 
meeting, were  informative.  
4.2.  An Official of the Secretariat informed Members  that cont ributions received as at the end of 
September 2020 were CHF  170 million showing 2% increase relative to September 2019. 80% of 
assessed contributions were received from M embers. 
4.3.  45% of Observers' assessed contribut ions were received . 
4.4.  All in all, 98 Members and 10 Observers have no outstanding contributions . 
4.5.  Regarding administ rative measures, the Official of the Secretariat said that six Members are 
under Category I, four under Category II and six under Category III.  
4.6.  She said that since the report was distributed, a dditional contributions had been received from 
Congo hence mov ing it from Category III to Category II of administrative measures. She added that 
Niger 's payment plan had also been approved , thus  taking it off the list as the administrative 
measures levied on this country are suspended.  
4.7.  Two Observers were under Catego ry I, one under Category II and three  under Category III.  
4.8.  The overall e xpenditure rate was on track at 72% , compared to 76% at the end of 
September  2019.  
4.9.  Under Staffing Resources , staff costs were lower than budget and this was compensated by a 
higher sp end for temporary assistance  and consultants,  whilst translation and panellists' costs were  
lower due to the pandemic.  
4.10.   Under General Services, the commitments for several contracts are recorded for the full year. 
These include the outsourced security cont ract, the cleaning contract, the International Computing 
Centre and the Service Desk. The overall actual expenditure rate under General Services was 
reduced by approximately 3% (CHF 0.7 million) compared to  the previous  year.  
4.11.   The expenditure for Travel and Hospitality decreased significantly due to the COVID -19 
pandemic (15% expenditure rate in September 2020 compared to 71% in September  2019), as 
many activities were cancelled or deferred since March. Bookings for travel were already made for 
some T echnical Assistance  activities and MC12 . The Secretariat is in the process of following up on  
and/or receiving reimbursements for these .  
4.12.   Interest expenses comprise  of the mortgage for the loan for buildings and negative interest.  
4.13.   The Appellate Body Operating Fund expenditure amounted to CHF  100,000  and the ITC 
allocation paid up to the end of Septem ber. WT/BFA/190  
 
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  4.14.   Regarding the impact of the COVID -19 pandemic on expenditure, the Official of the Secretariat 
said the significant decrease in expe nditure under Travel and security, translation, interpretation 
and panellists' fees, postal expenditure and utilities were reallocated to needs which were not 
foreseen and were driven by the responses to the COVID -19 pandemic. These include the 
implementat ion of software to hold virtual meeting s, the purchase of various software licences , 
expenditure for the IT consultants implementing the software, the purchase of audio -visual 
equipment and licenses and the purchase of sanitary supplies and other costs rel ated to protective 
measures (masks, plexiglass partitions and signage) and the increased payments under the cleaning 
contract.  
4.15.   A Member asked that each  agenda  item be treated individually  instead of clustering them into 
one broad discussion .  
4.16.   A Member said  that in the previous meeting DDG Brauner had indicated that the costs of the 
current virtual platform are high and that a competitive process was ongoing. The Member asked if 
there was a possibility that the platform  could be changed . She asked if the inv estments made for 
the current platform would still be relevant were a change to take place . 
4.17.   DDG Brauner said that the initial investment of implementing the capital equipment of the 
platform is not material  and that the user fee s for running meetings are  high. He said that th e 
Secretariat would be having a S enior Management M eeting in the afternoon and that one of the 
items for discussion would be the  IT strategy . He said there is a possibility that the platform would 
be changed , depending on the results of the procurement process.  
4.18.   The Chairman thanked the Committee for its endorsement of the suspension of admin istrative  
measures applicable to Niger. He noted that there are now fewer Members under admin istrative 
measures. He asked how many paym ent plans are currently in effect , the response given being that 
there are two, Chad and Niger.  
4.19.   The Committee took note of the report.  
5   Q3 2020 EXTRA -BUDGETARY FUNDS REPORT  – WT/BFA/W/5 34 
5.1.  An Official of the Secretariat said that due to disruptions fr om COV ID-19 there was not much 
of an update since Q2. He noted that E -learning is used more. He indicated that the situation of the 
Global Trust Fund has stabilized as there  have been fewer activities in 2020. He encouraged Members 
that support TA activ ities to continue making contributions so to ensure the fund will be  in a 
sustainable position when activit ies restart  in earnest post the pandemic . 
5.2.  The Official of the Secretariat said the STDF had a slower implementation  rate and that its  
committee continues to approve programmes that it deem s as doable.  He said c ontributions to 
various trust funds are still coming through and thanked contributors.  
5.3.  A Member r eiterated concerns about the proliferat ion of trust funds and slow disbursements  
for some . He said that the Committee ought to continue discussions on trust funds at a later stage . 
The Member asked if there are rules and re gulations  that govern the utilization of donor funds to 
protect a Member or the Secretariat from  using the money  in a trust fund  for activities that deviate 
from what the original contributions were intended for. He asked w hat recourse exists for any donor 
if it finds that a trust fund has deviated from its initial intention.  
5.4.  A Member said discussions regarding the management  of trust funds  must come back to the 
centre of Committee discussions, taking onboard the external auditor 's report. The Member t hanked 
the Secretariat for having included a p aragraph  on Covid -19, noting that at the three -quarter mark 
for the year only one -third of the planned expenditure had been incurred, signifying the  complexity 
of the  current situation. The Member asked w hat donors  have agreed regarding rescheduling their 
budget commitment to carryin g on activities in 2021 .  
5.5.  The Member said it is good that E-learning remains  in full force  and observed that t he pandemic 
provides an enha ncement in offering remote learning. He asked if there are  more opportunities for 
those who followed and completed  Train-the-Trainer programmes to train others.  WT/BFA/190  
 
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  5.6.  A Member lauded  the management and outcomes of the FIMIP and its value to individuals and  
the missions they represent. He acknowledged the present challenges and said his delegation looks 
forward to  engaging , with the Secret ariat, on how t he programme can continue. The Member 
referred to the next agenda item about planning  and said the FIMIP is a microcosm of that as it has 
a very clear mission and objectives and the resources attributed to it are linked to those objectives 
and so are the  outcomes.  He concluded by saying the programme is a good example of the 
contributory effect of planning to a well -run programme with good outcomes.  
5.7.  Several Members echoed the need to bring the subject of extra-budgetary funds back on the 
agenda  of a future  CBFA meeting .  
5.8.  A Member said that his delegation is interested in ensuring the good governance of trust fund s. 
He said that , to date , they have not yet seen clear  improvement in this regard. He s aid that Members  
are still to receive a reply on cost recovery mechanisms.  
5.9.  A Member commented on the Training -for-Trainers programme  and expressed her delegation's 
interest in participating in fu ture such training adding that  local trainers can convey training in Arabic 
and understand local culture in the re gion. 
5.10.   A Member asked whether the Secretariat will be catching up with activit ies that were not done 
in 2020 or whether the level of activit ies will be increased.  
5.11.   The Chairman thanked M embers and encouraged them to submit any elements they wish to 
add to t he discussion on trust funds in preparation for future discussions on this topic.  
5.12.   An Official of the Secretariat said that the Secretariat welcomes the intention to discuss trust 
funds  in a fut ure setting, be  it formal or informal.  
5.13.   An Official of the Secre tariat said the ITTC is in consultations with contributors on issues 
related to trust funds and that t here is an intention to carry out  additional activit ies in 2021. He said 
that the r egulat ions and ru les for trust funds allow for remaining funds to be rolled over, unlike the 
regular budget where any unused funds are part of the annual surplus, which cannot be carried 
forward.  
5.14.   He said s ome contributions for trust funds have expiration dates and these are respe cted by 
the Secretariat . He added that t here have been situations where the Secret ariat had gone back to 
Members to ask for different dispensation s. He said that narrative and financial reporting  are 
prepared for all trust funds . He said that i f there are concerns on the direction of implementa tion 
consultations , discussions striving for amicable resolution are encouraged , and if unsuccessful , any 
Member can ask for its funds  to be returned.  
5.15.   Another Official of the Secret ariat said that the volume of techni cal assistance that can be 
provided for 2021 will be affected by similar restrictions as those ongoing this year, especially at the 
beginning of 2021. He said that w hen things start to ea se back to normal activit ies can be increased, 
depending on when trav el restrictions are lifted in dif ferent parts of the world where technical 
assistance  activit ies can be organized. Another option is to increase the number of participants in 
given activit ies. This is something that would be considered next year to allow M embers to benefit  
by having the  maximum possible number of beneficia ries. He added that v irtual activities are ongoing  
and that though l ow cost , they are labour -intensive  and cannot cover the same ground as physical 
activities.  
5.16.   A Member said that all M embers hold funds in tru st and the Secretariat should earn that trust. 
He said s omething cannot be created under one set of rules and then change only for the Secretariat 
to then suggest that M embers can take their money if not in agreement  with such change s. 
5.17.   The Chairman asked the Secretariat to provide an update of the external audit findings  on 
trust funds  at a future meeting.  
5.18.   The Committee took note of the report.  WT/BFA/190  
 
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  6  ENHANCING STRATEGIC PLANNING AND HORIZONTAL COORDINATION IN THE WTO  
6.1.  The Chairman  introduced  this topic by stating that it was foreshadowed in the Committee's  
2020 work plan  and some aspects covered in documents  WT/BFA/INF/7 and WT/BFA/INF/12 . He 
said that there are Members that have ideas  and experience on this. He added  that the strategic 
plans  of some international organizations  are available.  These include the  WIPO strategic plan for 
2016 to 2021 , the ILO strategic plan for 2018 to 2021 and the OCHA strategic plan for 2018 to 2021.  
6.2.  The Chairman said that another interesting academic report , which will be availed to Members, 
is Strategic Foresight Analysis regarding  the WTO.  
6.3.  DDG Brauner said three Directors had undertaken training in Strategic Foresight and that if 
Members would like to engage with them the Secretariat could facilitate  this. 
6.4.  A Member said their delegation see s the importance of this topic. He indicated that each of the 
strategic plans referred to cover s four or so years and that they use different approaches. He asked 
the Chairman to continue small group discussions and  informal broader discussions before bringing 
this subject to the full formal plenary of the Committee.  
6.5.  The Chairman invited M embers to share their experiences on this subject at the national level.  
6.6.  A Member said that it is 25 years since their country in troduced strategic planning. He cited 
important elements such as t hat in a nd across Government there is a diverse range of activities, 
some in the economic sphere, some in the cultural sphere, in foreign affairs, language,  etc. He said 
the strategic plans  were a jo int endeavour between elected officials and civil servants, taking a vision 
and distilling into a r ange of goals, activities and objectives. He said that t he process has served his 
country well.  
6.7.  The Member said Strategic Planning  would be more beneficial to the WTO than Foresight 
Planning  or Business Planni ng. He added that this subject needs to be demystif ied and that  Outputs 
at the Secret ariat can serve as a building block. He added that the Committee would have a plan 
against w hich to measure activities rather than digging into budget lines. He recommended that this 
be tried as it could benefi t the organization. He advocated for a cautious and measured approach , 
over time.  
6.8.  A Member said that the size of the WTO is similar to tha t of a Min istry in her country. She said 
the WTO has agreements and a Ministry has laws and regulations. The WTO has M embership and 
the Ministry has leadership. The WTO has a Director -General  where a  Ministry has a Permanent 
Secretary . She said p reambles a nd agreements at the  General Council  and M inisterial Conference  
decisions are similar to  a Government's political declarations when it comes into office. The difference 
is that the Ministry  will have its own objectives based on administrative long -term obj ectives which 
are then broken into annual plans and the budget is based on how to d eliver the plans.  
6.9.  The Member said i nclusiven ess of having all staff members  of the Secret ariat involved in the 
planning of the strategy is crucial in order to get ownership . This is also important for budget 
allocation and analysing the outcomes of the budget. She said it is important  to further explore this 
subject and that her delegation s upports discussions in smaller groups and informal meetings.  
6.10.   A Member said the WTO should, in line with other international organisations , prepare a 
strategic plan. He said that there can be concise strategic plans that could also envisage coherence 
and a multi -year perspective. She added that strategic planning is o ften aligned with the Office of 
the Director -General, noting that this does n ot necessarily  have to always be the case.  
6.11.   A Member said there has to be an im pact on managing resources in terms of inspirat ion rather 
than dictation  and that t he approach to bu dget decisions must not be overruled by the strategic 
plan. The Member men tioned that the WIPO strategic plans are aligned with the D irector -General 's 
term and brok en down into three  biennial budget s. He said the WIPO s trategic plan was presented 
to Member s for them to  take note of, not for them to approv e it. He said WIPO is willing to give a 
general introduction of their approach to Members, if invited to do so.  WT/BFA/190  
 
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  6.12.   A Member thanked previous speakers for sharing their experiences and noted that this is a 
topic that would require more discussion. The Member suggested that a separate meeting, on only 
this topic, be arranged in an open -ended and informal manner. She said that a related and equally 
important subject is horizontal coordination. She encouraged Membe rs to share their experiences 
with this latter subject as well to contribute to discussions on how this can be enhanced in the WTO 
Secretariat. She said that in her Ministry, the heads of all the divisions meet every morning, though 
she is not advocating f or this to be introduced at the WTO.  
6.13.   A Member said that his delegation is  interested in continuing these discussions and asked that 
documentation  that was referred to  be shared.  
6.14.   A Member cautioned against going into the practices of individual countries.   
6.15.   The Chairman thanked Members for their  contribut ions and said that he p lans to convene an 
informal open -ended meeting on this topic.  
7  OTHER BUSIN ESS 
7.1.  A Member posed a question regarding the mandate for the WTO to create a website, along with 
ITC and UNCTAD, to track SDGs.  SDGTRADE.org. He asked how or why this could be undertaken 
without discussion or agreement by Members.  He informed the Committee that UN outcomes are 
not consensus and that his delegation  does not agree with all the SDGs and had stated so  at the 
time. He asked for assistance by the CBFA Secretariat in helping understand the decision -making 
process that took place, the expected budgetary implications, and the responsible staff time 
allocated. He explained that his delegation's spe cific concerns relate to the fact that the SDG 
conversation and the debate in the UN was detailed and complex. In particular, his delegation had 
concerns regarding decisions made in one organization being applied to members of another 
organization with a d ifferent decision -making process. He also recalled that his delegation had 
expressed, at the time, a certain level of discomfort with the way that the WTO was referenced in 
the SDG process, and that not all SDGs were individually agreed to. He found it unf ortunate therefore 
that the WTO would undermine such concerns and queried whether any thought had been given to 
the implications of the initiative, and where it came from. His delegation had the same concerns 
regarding the ITC's involvement and how the ini tiative fits into their mandate. He further noted that 
the new website is a partnership between the WTO, ITC and UNCTAD to monitor and track 
compliance with SDG goals by members, adding that this ought to alarm all delegations because the 
relevant statements and UN documentation clearly show that it is up to national implementation for 
these matters, and not something that was agreed to in the UN system.  
7.2.  The Chairman  said he would look into this with the Secretariat  and that the Secretariat would 
provide  a response . 
7.3.  A Member read out a statement  that spoke to his delegation's comments at the recent General 
Council Meeting suggesting that the WTO Secretariat consider a voluntary short -term cut in its 
annual budget for 2021 or 2022, in solidarity with Members who are battling a grave economic 
situation brought about by COVID -19. He provided the following rationale for this suggestion: the 
global economy is battling a significant recession and WTO Members across the developed and 
developing world are exp eriencing significant budgetary constraints. These are the  kinds of 
circumstances where national Governments or international organisations apply economy measures. 
He said that his delegation's view is that austerity begins at home and for them the WTO is their 
home; though it appears that Member contributions have remained the same over the years due to 
the WTO’s zero nominal growth budget, the currency depreciation has in fact increased the nominal 
contributions for many Members; It may also be noted that  the WTO budget is by and large the 
budget of the Secretariat. A major proportion of the budgetary expenditure is on the salaries of the 
staff and establishment charges ; the budget does not constitute any significant program me-related 
expenditures for welf are or developmental projects, as in case of many UN bodies , therefore, $200 
million budget, more or less just to run the Secretariat needs considerable justification, especially 
during the times of economic hardship and austerity.  
7.4.  The Member expressed th e view that  developing countries and LDCs need not fear that the 
technical assistance  programmes are going to be impacted by the suggested measure s as this is not 
his delegation's intention . Further, the savings resulting from the COVID -19 pandemic, for in stance, WT/BFA/190  
 
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  as detailed in the Q3  report  could  be reallocated in such a way that TA programmes continue to 
receive  the funding they deserve . The Member their statement  is only a suggestion to the 
Secretariat.  
7.5.  The Committee took note of the  statement.  
7.6.  By way of update, the Chairman informed Members that he has scheduled a meeting with the 
ITC in the  coming week. On the 2021 WTO budget he said that on 6 th October a non -paper 
containing amendments that were suggested by some delegations were c irculated to M embers. He 
said that he  will be consulting with some M embers on these and will accordingly keep all Members 
updated.  
7.7.  The meeting was adjourned.  
__________