RESTRICTED  
  
WT/BFA/W/569  
 
12 August  2021 
(21-6195) Page: 1/5 
Committee on Budget, Finance and Administration  Original: English  
 
 
PROGRESS REPORT FROM THE CHAIR OF THE WORKING GROUP ON COHERENCE  
IN THE ESTABLISHMENT AND MANAGEMENT OF WTO TRUST FUNDS  
The Working Group (WG) on Voluntary Contribution/Trust Funds has met eight times since it first 
convened on 26 April 2021. A written update (WT/BFA/W/551) was submitted to the CBFA at its 
meeting on 25 May and the Chair of the WG has provided subsequent or al updates to the Committee 
on 1 July (continuation of 22 June meeting) and 12 July. The WG met for the last time before the 
summer break on 23 July and following report is based on progress through that meeting.  
The Members who have been following  and par ticipating in the WG include : 
Delegations  
AUSTRALIA  
BRAZIL  
CANADA  
CHILE  
CHINA  
CZECH REPUBLIC  
EUROPEAN UNION  
FINLAND  
FRANCE  
GERMANY  
INDIA  
IRELAND  
JAPAN  
KOREA  
MEXICO  
NEPAL  
NETHERLANDS  
NIGERIA  
NORWAY  
SINGAPORE  
SWITZERLAND  
CHINESE TAIPEI  
UNITED KINGDOM  
UNITED STATES  
 
1  SUMMARY OF MEETINGS  
1.1.  The meeting s of the WG can be broken into two stages. The first five meeting s (26 April, 4  May, 
19 May, 2 June, and 8 June) were mostly about getting organized, collecting information, 
understanding the current context in which WTO trust funds operate, and exploring the questions 
the WG had identified in its terms of reference.  WT/BFA/W/569  
 
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  1.2.  The second stage of WG meetings  (23 June, 6 July and 23 July)  have focused on synthesizing 
points of concern an d pivoting to formulating potential recommendations to be brought back to the 
CBFA.  
1.3.  A brief description of the work focused on at each meeting can be found below.  
1.1  First Meeting - 26 April 2021  
1.4.  Members expressed some preliminary views and expectations for t he working group in the first 
part of the meeting.  For example, the idea that the objectives and impact of voluntary contributions 
must be kept in mind in addition to focusing on  administrative processes and management.  It was 
also observed that the views of beneficiaries should be considered given there was limited 
participation of beneficiaries in the WG.  The Secretariat  was asked to  assemble  a matrix of existing 
funds and how they operate. The Chair shared some draft elements and questions that could be 
developed into a Terms of Reference ( ToR)1 for the group.  Members shared some initial reactions.  
1.2  Second Meeting - 4 May 2021  
1.5.  The WG review ed a draft structure for a matrix to collect summary information about existing 
trust funds. Members shared comments and further ideas. Next, t he WG turned to the draft ToR . It 
was agreed that the order of the questions did not imply priority or sequence wit h the understanding 
that they are inter -related and would likely be explored in different ways.  The group agreed that the 
draft ToR, following some clarifications, were an acceptable basis for guiding its work.  
1.3  Third  Meeting - 19 May 2021  
1.6.  The WG  took up qu estions from the TOR related to consolidation of funds and the driving factors 
behind earmarking. The discussions touched on  domestic stakeholders , visibility , the potential of 
voluntary contributions to dist ract from the WTO 's regular budget  funded activi ties and the 
appropriate role of the  WTO in development aid.  It was agreed that inviting Secretariat staff from 
the Institute for Training and Technical Cooperation ( ITTC) to present their planning process to the 
group would be useful.  
1.4  Fourth  Meeting – 2 June 2021  
1.7.  The ITTC presented their processes for managing the TA Plan, activities and monitoring and 
evaluation (and its associated sources of funding).  In general, Members view this as a good process  
and generally have trust in its integrity. Importantly , it includes consultations with Members, a 
written plan, oversight from WTO committees, annual reporting and a formal monitoring and 
evaluation mechanism.  
1.5  Fifth  Meeting – 8 June  2021  
1.8.  The WG discussed furt her suggestions for the Matrix and continued discussions based on our 
guiding questions  from the TOR . The Group also exchanged some views on the importance of a clear 
vision for new trust funds and discussed what  the appropriate scope of new funds could be . 
1.6  Sixth  Meeting – 23 June  2021  
1.9.  Follow several sessions of collecting information and view s, the WG began to pivot towards 
finding a way to move forward.  While  recognizing that  there is not consensus on all points, the group 
agree d that they agree about mor e than they disagree. In advance of the meeting, the chair 
distributed  to the WG  a high -level synthesis of what she understood to be the issues and possible 
solutions expressed by Members . This summary was discussed during the meeting and the Chair 
gathere d more comments.  
 
1 The agreed Terms of Reference are attached as an Annex to this report.  WT/BFA/W/569  
 
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  1.7  Seventh Meeting – 6 July 2021  
1.10.   The Chair shared a broad outline of some principles/elements that could form the basis of an 
eventual set of recommendations. The Chair assured the  WG that the ideas were for discussion and 
feedback following the meeting and reported that s he was actively  engaging in consultations with 
Members and staff of the Secretariat . She asked for Members to review the ideas presented and get 
back to her with any comments or questions. Then she would draft some  preliminar y text based on 
the feedback that would be shared before a subsequent meeting . The Chair also indicated that there 
remained the expectation that a written progress report would be shared with the CBFA before the 
summer break.  
1.8  Eighth  Meeting – 23 July  2021  
1.11.   A draft outline of key elements to be considered when formulating potential recommendations 
was circulated to the WG on 19 July and formed the basis for discussions. Most Members indicated 
they were still reviewing the document but expressed support for th e general approach. Several 
indicated that they would like clarification of specific phrases or concepts contained in the outline. 
The Chair invited Members to submit written comments and questions as well as potential text for 
further elaborating on the e lements identified . She also reiterated her willingness to meet bilaterally 
with interested Members. The WG was encouraged to continue to engage over the summer so that 
a further elaborated text can be circulated for early consideration in September.  
1.12.   The Chair outlined the elements of a progress report to be shared with the CBFA over the 
summer and committed to circulating her draft early the following week  so that she can finalize the 
report before 30 July.  
2  PROPOSED TIMELINE FOR FUTURE WORK  
• 6 August  2021, text of a progress report is agreed and subsequently sent to the CBFA  over 
the summer  (deadline extended at request of a Member) . 
 
• August 2021 , opportunity for members of WG to further reflect on elements for 
recommendations to the Secretariat , seek c larification on concepts  and provide further input 
on preliminary text.  
 
• Early September  2021,  WG reconvenes to continue work with the target of submitting 
recommendations to CBFA in October.  
 
• October  2021, Secretariat to develop proposals in response to r ecommendations. Regular 
updates from the Secretariat to the CBFA through end of year.  
 
• Early 2022, Secretariat provides progress report with specific targets for implementation of 
new guidelines and processes. CBFA can provide further guidance on direction  and areas of 
emphasis.  
 
2.1  Proposed approach to developing recommendations  
2.1.  The WG is approaching the development of recommendations by using a lifecycle framework  
to think about the role of voluntary contributions in the WTO. By considering various stages through 
which a voluntary contribution evolves the WG seeks to develop high level principles for governance, 
administration, and coordination of trust funds. It will also identify potential gaps in existing practices 
that can be addressed.  The WG will consider the widest range of possible policies relevant to the 
lifecycle framework of trust funds when considering possible recommendations . 
2.2.  The next step will be to organiz e and structure any resulting  recommendations  into a report 
for the CBFA . The intention is to stay high -level and focus on principles rather than try to develop 
detailed or prescriptive process or policies.  However, the WG will endeavor to provide 
recommendations that are sufficiently precise and detailed to provide the Secretariat with a clear 
understanding of Member 's views and priorities. Once a report has been submitted to the CBFA and 
agreed, the Secret ariat would be invited to consider the recommendations, consult internally with WT/BFA/W/569  
 
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  concerned divisions and staff , and develop plans to operationalize recommendations and implement 
appropriate processes and policies.  
2.3.  The WG recognizes the importance of engagin g with the Secretariat leveraging the expertise 
that already exists. Already consultations with various units within the Secretariat have proven 
valuable to the WG.  
2.4.  To facilitate further consultations and anticipate eventual recommendations from the CBFA, the 
WG recommends that the Secretariat  consider  establish ing a mechanism for cross -functional 
consultation and coordination. However, any mechanism established  (such as a n internal  steering 
committee)  should not prejudge the outcomes of the WG or premature ly attempt to implement new 
processes. Once the CBFA has endorsed any recommendations of the WG , the existence of such a 
mechanism can transition into an implementation phase and this will help to avoid delays in this 
important work.  
 
  WT/BFA/W/569  
 
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  ANNEX 1  
WORKING GRO UP CONCERNING  COHERENCE IN THE MANAGEMENT AND 
ADMINISTRATION OF VOLUNTARY CONTRIBUTIONS  
TERMS OF REFERENCE AGREED BY WORKING GROUP  
1. The Working Group is open to all Members.  
2. Members have engaged over many months in deliberations and exchanges regarding the role 
of voluntary contributions and the trust funds that result from those contributions at the WTO. In 
order to constructively  advance those discussions,  it has been decide d to establish a working group 
that can serve as an informal format for Members to freely exchange ideas and develop convergence 
around how the WTO Secretariat manages and administers trust funds on behalf of Members (both 
contributors and beneficiaries). Additionally, the most recent external auditor report recommended 
that the WTO review its trust fund landscape to consolidate small and similar funds and harmonize 
main processes to ensure consistency and transparency.  
3. The aim of the Working Group is to ex amine financial and administrative aspects of the 
changing landscape for voluntary contributions, bearing in mind objectives and impact of those 
contributions on beneficiaries and the WTO. The Working Group will consider whether to make 
recommendations int ended to improved management/governance and administration both within 
the WTO Secretariat and among the Members.  
4. Questions the Working Group may wish to consider include (but are not limited to):  
a. What role should written plans (like the Biennial Technical  Assistance Plan) play in 
voluntary contributions and trust fund activities?  
b. Under what circumstances should there be committee oversight of trust fund plans and 
activities?  
c. What factors have led to the increasing number of dedicated funds and earmarking?  
d. When are earmarks or dedicated trust funds appropriate and effective?  
e. Under what circumstances would it be appropriate to encourage more consolidation of 
activities under the Global Trust Fund or similar vehicles?  
f. What kinds of administrative harmonization  would increase consistency and transparency?  
g. Are there ways to improve how overhead and cost recovery are implemented to better 
mitigate potential direct or indirect impacts on the Secretariat staff and other resources?  
h. What are the roles and responsibilities of Members, contributors, beneficiaries, and the 
Secretariat?  
5. The WTO Secretariat  will be available to support the Working Group . 
6. The Working Group will keep the CBFA and other stakeholders informed on the status of its 
work.  
7. The target da te for the Working Group  to submit a report  to the CBFA will be 30 June 2021.  
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