RESTRICTED  
  
WT/BFA/W/ 530 
4 September 2020 
(20-6027) Page: 1/5 
Committee on Budget, Finance and Administration   
 
  
WTO BUDGET AND FINANCE REPORT – 2ND QUARTER 2020  
1  CONTRIBUTIONS FROM MEMBERS AND OBSERVERS  
1.1.  The receipts of contributions from Members as at the end of June 2020 is 21%  lower  than in 
June 2019.  This is likely due to the COVID -19 pandemic . 
Figure 1 Total Annual Receipts in MCHF as at 30 June 20 20 
 
 
1.2.  At the end of June 20 20, 49% of the WTO Members had no outstanding balance. With respect 
to the assessed amount of CHF 195.5  million, 65% has been received.  
1.3.  The receipts of contributions from Observers during the 2nd quarter of 20 20 amounted to 
CHF 260,937  representing 37% of the as sessed amount.  The amount received during the 
comparable period in 2019 was CHF 296,744 . 
Table 1 Status of contributions as at 30 June  2020 (in CHF)  
CONTRIBUTIONS  164 Members  24 Observers  
Total net assessment for 2020    195,500,000    698,899  
Payment received for 2020 (% of total assessment)  (65%)  127,769,747  (37%)  260,937  
Payment received for prior years    1,401,436    177,477  
No outstanding balance (% of total)  (49%)  80 (35%)  8 
 
2  CASH SITUATION  
2.1.  In line with the receipts of contributions, th e cash situation at the end of June 2020 is lower  
than at the end of  June 2019. 147.2160.2151.5 148.1
131.7 132.6 135.4145.0155.8
129.2
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020WT/BFA/W/ 530 
 
- 2 - 
 
  Figure 2 Cash Situation as at 30 June  2020 
 
 
3  MEMBERS AND OBSERVERS UNDER ADMINISTRATIVE MEASURES  
3.1.  At the end of the second  quarter of 2020,  six Members were subject to  Category I (more than 
one, but less than two years outstanding) of the Administrative Measures ; three  Member s were 
subject to Category II (more than two, but less than three years outstanding) ; and eight Members 
were subject to Category  III (three  or more  years outstanding = Inactive) .  
Table 2 Members under Administrative Measures as at 30 June  2020 
Cat. I (6)  Cat. II (3)  Cat. III (8)   
Bolivia, Plurinational State of  Democratic Republic of the Congo  Antigua and Barbuda  
Cuba Senegal  Burundi*   
Ghana  Yemen  Central African Republic*  
Guinea    Congo   
Tonga    Guinea -Bissau*  
Zambia    Niger   
    Sierra Leone*  
    Venezuela, Bolivarian Republic of  
*  Members not compliant with Payment Plan terms.  
3.2.  At the end of June 2020, two Observer s were subject to Category I of the Administrative 
Measures ; one Observer was subject to Category II ; and three  Observer s were subject to 
Category  III (Inactive) .  
Table 3 Observers under Administrative Measures as at 30 June  2020 
Cat. I (2)  Cat. II (1)  Cat. III (3)  
Iran Comoros  Libya   
Syrian Arab Republic   Sao Tomé and Principe  
    Somalia   
 
 
 
  -18 -15 -16 -16 -16 -1446
322310314175192 198 192
164179
-50050100150200
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DECMillions CHF
Projected Expenditures Actual Expenditures Projected Receipts
Actual Receipts Cash Rolling Balance 2019 Cash Rolling Balance 2020 WT/BFA/W/ 530 
 
- 3 - 
 
  3.3.  Table 4 shows the Member subject to a Payment Plan  as at 30 June 2020. 
Table 4 Member following a Payment Plan as at 30 June  2020 (in CHF)  
Member   GC 
approval 
date Plan 
duration  
in years  End of 
plan Last 
payment  
received  Amount 
Outstanding  
for 2020  Total Outstanding 
Contributions  
Chad 2012 15 2026 13-Feb-20 116,651  581,961  
Total          581,961  
 
3.4.  The four Members listed  in the table below are not compliant with their Payment Plan terms  
and have thus reverted to Category III of the Administrative Measures.  
Table 5 Members not compliant with their Payment Plan  as at 30 June  2020 (in CHF)  
Member  GC 
appro -
val 
date End 
of 
plan Last 
pay- 
ment  
recei -
ved Amount 
Outstan -
ding prior 
to 2017  Amount 
Outstan -
ding 
for 2017  Amount 
Outstan -
ding 
for 2018  Amount 
Outstan -
ding 
for 2019  Amount 
Outstan -
ding 
for 2020  Total 
Outstan -
ding 
Contri -
butions  
Burundi  2011 2030 2017 375,791  65,785  65,785  65,785  65,785  638,931  
Central 
African 
Republic  2018 2047 2019 828,058  -  -  28,256  57,472  913,786  
Guinea -
Bissau  2017 2046 2017 582,156  134 51,716  51,716  51,716  737,438  
Sierra 
Leone  2012 2025 2016 352,032  93,866  93,866  93,866  93,866  727,496  
Total        2,138,037  159,785  211,367  239,623  268,839  3,017,651  
 
4  2020 BUDGETARY EXPENDITURE  
Table 6 Consolidated Statement of Budgetary Expenditure  as at 30 June  2020  
(in kCHF)  
Part Section  Budget  Expenditure  Commitment  Balance  % Exp  
A Staffing 
Resources  1. Staff Expenditure  131,415  56,828  22 74,565  43% 
  2. Temporary 
Assistance  17,275  7,987  4,819  4,469  74% 
A Staffing Resources Total   148,690  64,815  4,841  79,034  47%  
B Other 
Resources  3. General Services  15,376  5,459  8,041  1,876  88% 
  4. Travel & 
Hospitality  7,607  1,210  855 5,542  27% 
  5. Implementing 
Partners  213 55 0 158 26% 
  6. Capital 
Expenditure  2,095  865 1,914  -684 133%  
  7. Financial 
Expenditure  1,780  1,344  0 436 76% 
B Other Resources Total   27,071  8,933  10,810  7,328  73%  
C Operating 
Funds and 
ITC 8. Contributions to 
ITC & Special 
Reserves  21,443  12,322  0 9,122  57% 
C Operating Funds and ITC Total  21,443  12,322  0 9,122  57%  
Grand Total    197,204  86,070  15,651  95,483  52%  
4.1.  The expenditure as at 30 June  2020 is on track with an overall expenditure rate  (including 
commitments)  of CHF  102 million , representing 5 2% of the budget.  Compared to the budget 
situation in June 2019, the expenditure rate was 53% or CHF 105 million.  WT/BFA/W/ 530 
 
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  Part A - Staffing Resources  
4.2.  Part A of the budget includes  expenditure for regular staff related to salary, pension, health 
insurance, death and invalidity insurance, staff benefits , travel, removal and installation. It also 
includes expenditure related to short term staff, consultant s and panelists . 
4.3.  Under the Section Staff Expenditure, the underspending is due to the high number of vacant 
posts during the first half of the year . This is partly offset by a higher expenditure rate  under 
Temporary Assistance  and under Panelists' Fees. Compared to the situation for the 6 months ended 
30 June 2019, the expenditure under translation and interpretation as well as Panelists'  Fees is 
lower, which is mostly due to the number of cancelled meetings following the COVID -19 pandemic.  
Part B - Other Resources  
4.4.  Part B of the budget relates to expenditure for general services, travel and hospitality, activities 
jointly funded by the WTO and third parties, as well as capital and financial expenditure.  
4.5.  Under General Services , the commitments for several contracts are recorded for the full year. 
These include the outsourced security contract (CHF 3. 6 million), the cleaning contract 
(CHF 1 million), the International Computing Centre (CHF 1.7 million), the Service Desk 
(CHF 1.1 million) as well as the annual commitments  for utilities such as heating, water and 
electricity.  The overall actual expenditure rate under General Services was reduced by approximately 
3% (CHF 0.7 million ) compared to prior years, mostly due to the COV ID-19 pandemic . The areas of 
lower spend were  mainly utilities and the external security provider. This was partly offset by the 
purchase of sanitary supplies such as masks, plexiglass separations and higher expenditure on office 
cleaning  and disinfection . 
4.6.  Under the Section "Travel and Hospitality ", the expenditure went down significantly due to the 
COVID -19 pandemic, as many  activities were cancelled  or deferred  since March. In this regard, for 
the activities  where bookings for travel were already made e.g. some TA activities and MC12 , the 
Secretariat is still awaiting various actions, including  reimbursement of funds, from the airline 
carrie rs. This is being negotiated through the official travel agency  of the WTO . 
4.7.  The Section "Capital Expenditure " includes the procurement of fixed assets such as computing 
hardware and software, office furniture and security equipment.  The expenditure under this section 
has increased significantly which is mainly due to the purchase of software to hold virtual meeti ngs 
through various platforms .  
4.8.  The Section "Financial Expenditure " comprises of part repayment of the interest -free loan from 
the Swiss Government, bank charges and negative interest. The Swiss Government lent 
CHF 60 million to the WTO, payable over 50 ye ars at an annual amortization of CHF 1.2 million . 
Part C - Operating Funds and ITC  
4.9.  Part C of the budget relates to the contributions to the International Trade Centre (ITC) as well 
as the Building Renovation Fund, the Ministerial Conference Operating Fund and Appellate Body 
Operating Fund .  
4.10.   Under Part C,  the Ministerial Conference Operating Fund (CHF 0.6 million) and the Building 
Renovation Fund ( CHF 0.6 million ) have been replenished  with amounts for the full year . The 
CHF 2 million for the Appellate Body Operating Fund has been allocated.  The contribution for the ITC 
has been recorded  for the first six months . 
4.11.   Table 7 shows the movement and balance in the Appellate Body Operating Fund for the 
six months ended 30 June 2020.  
   WT/BFA/W/ 530 
 
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  Table 7 Appellate Body Operating Fund as at 30 June 2020  
Statement of Appellate Body Operating Fund Expenditure  kCHF  
Opening Balance as at 1  January  2020  0 
Allocation from the regular budget to the Appellate Body and its 
Secretariat  2,000  
Sub-Total  2,000  
Expenditure in 2020:    
Appellate Body Members' daily fees  -661 
Appellate Body Members' air tickets  -92 
Appellate Body Members' DSA  -63 
Appellate Body Members' Rental Subsidy  -16 
Postage  0 
Total expenditure  -97 
Closing balance as at 30 June 2020  1,903  
 
Expenditure and Savings related to the COVID -19 Pandemic  
4.12.   Due to the COVID -19 Pandemic, the biggest drop in expenditure can be observed under 
Travel. The actual expenditure rate in June 2020 amounts to 15% (CHF 1.1 million ) compared to an 
expenditure rate of 49% (CHF 3.4 million ) at the same time in 2019. Conside rable savings have also 
been realized under the external security provider (CHF 0.3 million)  because of a significative 
reduction of staff working on site, no visitors/delegations, the closure of all access points except the 
main entrance and almost no del iveries.  Furthermore, savings have been realized under translation  
(7% or CHF 0.19 million)  and interpretation ( 29% or CHF 0.17 million ) compared to June 2019,  as 
well as utilities (between 40% on water, 20% on electricity and 3% on heating).  These savings were 
reallocated to needs which were not foreseen and were driven by the responses to the COVID -19 
pandemic.  These include the implementation of software to hold virtual meetings (CHF 1.4 million), 
the purchase of sanitary supplies and other costs related to protection measures ( masks, plexiglass 
partitions, signaling etc.  amounting to CHF 0.08 million ) and the increase d payments under  the 
cleaning contract (7%  or CHF 0.06 million ). 
_______ ___ 
 
1 Daily fees for January to March 2020.  
2 This amount excludes air ticket cancellations due to COVID -19. The expectation is that some of the  amount s 
will be reimbursed by the concerned airline carrier s. Frequent follow up is undertaken through the official WTO 
travel agent.  
3 DSA from 16 -27 March 2020.