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WT/BFA/212  
 
 
27 June 2023 
(23-3992) Page: 1/23 
Committee on Budget, Finance and Administration    
 
 
REPORT OF THE MEETING HELD ON 16 MAY 2023  
The Committee on Budget, Finance and Administration (CBFA) met on 16 May 2023. Her  Excellency 
Ambassador Dr. Bettina Waldmann, German Ambassador to the WTO , welcomed Members to the 
meetings.  
1  ADOPTION OF THE AGENDA  
1.1.  The Chair stated that  the agenda for the m eeting was released on 5 May, with the reference 
WTO/AIR/BFA/59, together with an annotated agenda bearing the reference JOB/BFA/78. The 
agenda , as set out in document WTO/AIR/BFA/59 , was adopted.  
2  ORAL REPORT FROM THE CHAIR ON ONGOING WORK  
2.1.  The Chair report ed that the Secretariat had organized an informal technical meeting on HR 
matters and budget procedures. She highlighted that the HR items presented related to recruitment, 
promotions, short-term staff recruitment  procedures , and mobility , and that those related to the  
budgeting process  included the budget structure, operating funds , and output reporting. The Chair 
thanked the Secretariat for the presentation s and said that the meeting helped  inform the 
forthcoming substantive budget discussions.  
2.2.  The Chair  recalled that the External Auditor had made a request to participate in all meetings 
of the CBFA that he deemed necessary , on a permanent basis. She said that, after consultations 
with Members, there was no consensus to respond favourably to that request and that she would 
reply along those lines to the External Auditor.  
2.3.  The Chair recalled that  an informal session had been he ld on 25 April regarding the vision 
statement and strategic focus pillars of the Secretariat , and that Ambassador Castillo had offered to 
meet again with Members  as part of his engagement . 
2.4.  Regarding the WTOPP , the Chair reported that the  WTOPP  Management B oard had consulted 
extensively with Members and stakeholders over many months prior to submitting its proposal to 
the CBFA . She said the proposal  would be presented by the Chairman of the WTOPPP Management 
Board during the meeting. She also highlighted tha t the aim was to take a decision on that matter 
before the summer break in order to focus on the timely passage of the 2024-2025 budget proposal , 
and to provide a positive momentum for MC 13.  
3  REFORM PROPOSAL FOR ADDRESSING THE PENSION PLAN'S FUNDING GAP – 
WT/BFA/W/633  
3.1.  The Chair thanked Mr. Jean -Marc Van Dril, Chair of the WTOPP Management Board ( the WTOPP 
Chair),  and the members of the WTO PP Management Board  (the Board)  for their commitment to the 
process. She also thank ed Mr. Darryl  Leong (Singapore DPR), who served as Facilitator  and reported 
back to the CBFA . 
3.2.  The Chair said the WTOPP Chair would  present the Management Board's proposal to eliminate 
the current funding gap in the WTOPP  (the pension plan) , adding that  this is the focus of the mandate  
Members had given  to the Board.  She said t he aim is not to take a decision on the proposal  during 
the meeting but to open the floor to any further comments delegations may have following the 
constructive exchanges and meetings that had taken place  in 2022 and in the beginning of 2023. WT/BFA/212  
 
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  3.3.  The WTOPP Chair presented the reform proposal for addressing the pension plan's  funding gap 
as laid out  in document WT /BFA/W/633. He said he would be presenting the proposal and providing 
elements necessary to assess the context in which the Board is operating and in which the proposal 
is made. He thanked delegations for having engage d in a series of informal CBFA meetings and 
informal c ontacts  to deepen their understanding of the pension plan, the actuarial gap, and the 
measures envisaged to close that gap. He further thanked the delegations that had already started 
providing feedback  to the Board . He noted that  the latest jurisprudence of the International Labour 
Organization Administrative Tribunal (ILOAT) had been taken into consideration in the legal 
assessment . He said the consultations had also assisted in identif ying expectation s that some 
delegates have regarding assessing  alternative designs of the pension plan to further de -risk it.  
3.4.   The WTOPP Chair drew Members' attention to some founding principles  of the WTOPP , 
specifically that the General Council establish ed a defined ben efit plan , to be adjusted for cost -of-
living. He noted that the possibility of an actuarial deficit was foreseen and that any measures to 
address the imbalances should respect acquired rights. He said that the WTOPP Regulations stipulate 
that, in case of a n actuarial deficit , the Board is required to make a proposal  to address  it through 
an adjustment of the contribution rate and other  benefits , or any other measures it deems 
appropriate .  
3.5.  The WTOPP Chair said the Board constitutes of a Chair elected by the General Council , 
four members and fo ur alternates elected by the General Council, and four members appointed by 
the Director -General (of whom two are elected from a list drawn up by the staff and two are selected 
by the administration ). He highlighted that the Board oversees  the governance of the pension plan 
and is constituted in a different manner from all the other Committees and Councils of the WTO.  
3.6.  He recalled that the actuarial gap is 10.5%. H e highlighted that in the long term, the  revenue 
will not be able to cover the expenditures . He said the assets of the pension plan would at some 
point have to be used to cover the growing expenditure s and declining revenue . He said the reform  
is aimed at having the revenue to cover expenditures.  
3.7.  He noted that the main factors  contributing to  the actuarial gap are the interest rate 
environment and  the increase in life expectancy.  He added that w ith the reform , the pension  plan 
will be come  less risk y. He specifically noted that risk will be mitigated now that life expectancy is 
built into the assumptions for the pension plan. 
3.8.  The WTOPP Chair further  said the reform is structural in nature and cannot be characterized 
as temporary or superfic ial given that measures include changing some of the benefits and the 
amount of the capital in the pension plan. He recalled that the pension plan's Investment Advisor 
and Consulting Actuary expressed confidence that the proposed measures would make the pe nsion 
plan less risky than at any other time in its history. He highlighted that among the elements that 
would contribute  to de-risking the pension plan are more targeted WTO -specific assumptions due to 
the experience the WTO has gained in operating the plan, as well as  the plan's relative maturity.  
3.9.  The WTOPP Chair highlighted  that the principle of burden -sharing has been accepted by the 
Board and staff from the beginning of the process . He added that a strict view of burden -sharing 
envisages  a one-third to two-thirds  ratio for staff and Members, respectively . However, he noted 
that if staff were to accept more of the reform burden through a 50 :50 approach , it would show a 
good fa ith effort to quickly and efficiently address the actua rial gap. 
3.10.  The WTOPP Chair recall ed that there are seven elements to the reform proposal : (i) an 
adjustment of the contribution rate ; (ii) increasing  the normal retirement age ; (iii) reducing the 
accumulation rate ; (iv) extending the vesting period for eligib ility for a pension ; (v) adjusting  the 
calculation of the final average remuneration ; (vi) reducing the cost-of-living  adjustment for 
retirees ; and (vii) an  infusion of capital  into the pension plan . 
3.11.  The WTOPP Chair said the Board decided to substitute the measure on final average 
remuneration  with a modif ication of the early retirement reduction factor in an effort to reduce and 
spread the burden among staff  more evenly , while reducing the  legal risk related to acquired rights.  
3.12.  The WTOPP Chair said that, based on his informal consultations , Members  seem to have many 
questions on the issue of acquired rights . He said that how acquired rights  are interprete d may be WT/BFA/212  
 
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  different from how they are understood in many national pension schemes, bear ing in mind ILO AT 
rulings . He said the Board has tried to  strike a balance between measures affecting  current staff and 
the risk of not being able to successfully defend measures should a challenge be brought to the 
ILOAT. He said each situation is evaluat ed in light of  the specific context and circumstances of the 
case, and that while there are no formulas to calculate such risk, there are questions the ILOAT will 
ask in considering the challenge . He added that the reasons for the proposed change s to the pension 
plan are very clear  because there is a significant deficit that makes reform necessary . Regarding the 
consequence of changes, he said the ILOAT considers the  compound effect of  different measures.  
3.13.  The WTOPP Chair mentioned the impact of some of the measures  on the different categories 
of stakeholders . He said  in case of current staff , there are two measures – an increase  in the 
contribution rate , which would reduce  salaries between 2.1 % and 2.6% , and the final average 
remuneration , in which the period would be  extended  from the last three years to the last five year s 
of service . He said the overall expected impact for staff is between 2.1% and 5.6%. He noted that 
existing ILOAT jurisprudence has accepte d changes to other pension plans with an impact of 3% and 
refused changes to a pension  plan where the  compounded impact on  staff was 8%. He said 5.6%  is 
already above the 3%  mark and noted that the proposed reforms are already testing the limit s of 
the system . 
3.14.  The WTOPP Chair said the la test version of the reform  proposal explicitly suggests that 
Members consider the Working Capital Fund as a source for capital infusion into the pension plan . 
He said that use of the Fund would mean that Members d o not need to secure  new funding  because 
the funds are already in the WTO's accounts  and could be specifically reallocated to the pension 
plan. 
3.15.  The WTOPP Chair said that contrary to the national pension schemes under the jurisdiction of 
national courts , the relevant jurisdiction for pension plans of international organization s is the ILOAT. 
He said when elaborating the reform proposal , the Board , with the support of the Office of the Legal 
Counsel, assessed  the flexibilities as well as the boundaries provided  by the ILOAT jurisprudence . 
He said following the assessment, the Board is of the view that its proposal does not put the WTO 
at significant risk of challenge  before  the ILO AT, while recognizing that jurisprudence merely 
provides guidance and not exact threshold s. He said the Board advises against pursuing a reform  
that would put the Organization at risk of facing significant challenges without reasonabl e assur ance 
of success . He noted that such a situation would entail double financial risk arising both from the 
cost of defending the Organization and from the payment of compensation to successful claimants. 
The WTOPP Chair said the  Board is responsible for proposing correct ive measures to put the pension 
plan, as currently designed , back on a susta inable footing . He said  that should Members want the 
Board to explore and present options for further de-risking the pension plan, he would invite the 
CBFA to  provide the Board with a mandate to do so . He said  such an exploration could entail a 
defined contribution pension scheme  or a hybrid scheme . He added that cost-benefit analys es could 
be conducted , with an assessment of the conditions required to merge with other pension plans , 
such as the UN JSPF. The WTO PP Chair urged Members to address the current deficit within the  next 
budget cycle and to consider deeper reform in the next cycle . 
3.16.  The WTOPP Chair said  that assessing, discussing , and eventually  agreeing to implement a 
deeper reform will take resources an d time . He said waiting to close the gap comes with additional 
cost for the pension plan's stakeholders as the gap is likely to  widen  with every year it remains 
unaddressed . He said  whichever deeper reform Members may decide  upon, the liability arising  from 
the current actuarial gap will not go away and must be addressed . 
3.17.  Speaking on behalf of the EU and its 27 Member States , the Permanent Representative of 
Sweden to the WTO made the statement in paragraphs  3.18. to 3.2 4. below.  
3.18.  First of all, the  EU 27 would like to thank the Board of the pension plan for its work. We concur 
with the Board 's view that it is important  to address the funding shortfall in the WT OPP because the 
longer th e wait the larger the shortfall becomes. We also welcome the exte nsive information 
provided to WTO Members in recent months, which enables us now to have an informed exchange 
of views. It is good to start an open discussion in the Committee now and everybody should share 
their delegation 's official position.  WT/BFA/212  
 
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  3.19.  Reform of t he WTO PP is important. The aim of the reform must be to find a sustainable, fair, 
and long -lasting solution to the problems faced by the pension p lan. 
3.20.  While the pension plan reform cannot be seen in isolation from the broader discussion on WTO 
reform and t he overall budget discussion, we agree that we should work along the timeline that has 
been proposed and aim to finish this process before the summer break. This would have the 
advantage that a solution could be integrated into the 2024 -2025 WTO budget.  
3.21.  In order for our efforts to have the highest chance of success, we would invite the Chair to 
take further steps to facilitate the process, to consider the viability of those adjustments, to the 
package that would allow us to be in a position to reach an agre ement by July. You have our 
commitment that we will contribute positively to this process.  
3.22.  A guiding principle for this exercise should be burden -sharing among all stakeholders. We 
confirm our willingness as Members to contribute a fair share to the reform. However, in the 
proposed package, current staff contribute significantly less to the collective effort than taxpayers 
and future staff, especial ly regarding the extension of the pensionable age and the terms of early 
retirement. We hope there can be scope to moderately increase this parameter, thereby making the 
adjustments more balanced and in line with reforms widely adopted elsewhere. This woul d also 
reduce the need for capital infusion.  
3.23.  We further wonder whether the pension p lan includes the appropriate flexibility in case modest 
dynamic adjustments are considered necessary in light of evolving actuarial assessments.  
3.24.  Finally, we should make sur e that the package will be sustainable in the long run and that no 
capital infusions will be required from Members in the future. In this regard, we hope that the Board 's 
proposal goes far enough to reach a financially sustainable solution for the coming y ears. However, 
we might consider also examining the case for deeper reform of the pension p lan, for example other 
adjustments of the contribution key, the contribution rates or even to return to the UN pension fund, 
or to examine the merits of a hybrid or fixed benefits approach. While we acknowledge that it would 
not be realistic to address these options for deeper reform of the pension plan by the summer, we 
would support starting an in -depth analysis of deeper reforms recognizing that any process needs a  
clear direction and parameters.  
3.25.  A Member expressed appreciation for the discussion and all the work done so far , saying that 
the engagement on this issue  has been exemplary . He acknowledged the role the DPR of Singapore 
has played in facilitating discussi ons amongst Members. The Member said his delegation is pleased 
to see some of the changes in the thinking going into the proposal. He said some practical things 
have been done, but the proposal still  appear s to be limited . He said his delegation still has some 
concerns, including the need for longer term sustainability , so that Members are not in a situation 
of having to make more capital infusions.  
3.26.  The Member said it is important for Members to think of the  longer term as well . He said , in 
this regard , he encourage s the WTO to produce different options for Members to consider , relating 
to different risks , preferences , and policy outcomes . He said when his government reformed its civil 
service pensions , rather than just three existing sys tems, it also created a new one with a better 
foundation capable of handling demographic pressures. He said his delegation  recognize s the 
discussion around acquired  rights . He said his delegation  would be thinking about options that move 
away from the 50 :50 ratio between participants and Members , and would welcome options that 
focus on reducing the financial b urden  for Members.  
3.27.  A Member thanked the Board for undertaking th e substantive  work and for the consultations  
with Members . He said his delegation understand s the issue , as well as the need to find solutions 
quickly to bridge the gap so that  it does  not widen further while Members look for deeper reforms.  
He said the direction of reform is very important in deciding the course  of action because , in the 
view of the actuarial and investment advisors, the solution take s care of the funding for the longer 
duration . He asked at what point, if that is the case , that Members  talk of broader reform . 
3.28.  The Member said a ny solution t o brid ge the actua rial gap or fund the pension plan has to 
include a proposal for structural or deeper reforms . He added that his delegation know s that th is will 
take time and may not be possible before the summer break . He said it is important to have a WT/BFA/212  
 
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  resilie nt pension  fund that can take care of future shocks  as well . He added that Members  require a 
better understanding  of acquired right s, as most of the debate in the context of existing employee s 
has been around protecting the rights they have acquired  through the services they have provided. 
He said, in his delegation' s understanding, these rights are based on contributory services provided. 
He said the acquired rights may not be interpreted to m ean a right to a pension that may accrue on 
the basis of remaining contribut ory service that has not been provided . He said Members also have 
to examine these  flexibilities as they relate to the burden on existing employee s for the remaining 
part of the ir service . 
3.29.  The Member said  it is natural that a regulation must envisage  exigencies in the form of 
corrective action in the case of deterioration the health of the pension plan . He said while Members 
are looking for solutions, they should consider further  exigencies  beyond the immediate solutions 
sought for bridging the actuarial gap. He said in the process the issue of acquired rights ought to be 
addressed.  
3.30.  The Member said  the issues regarding the heavy design of defined contribution  funds , 
investment strate gies, and looking into the option of the re-joining  the UNJSPF  are all important for 
deeper reforms. The Member said suggestions , such as increasing the retirement age or withdrawing 
money from the Working Capital Fund, have their own implications and require careful consideration 
for a decision by the Committee . He said if finding solution s requires giving a wider  mandate to the 
Board, this should be done by the Committee so that the Board  can find a solution.  
3.31.  A Member said his delegation acknowledge s the importance of a sustainable and balanced 
pension plan  within the WTO. He said  that, as an active Member committed to fostering multilateral 
cooperation , his delegation  believes that the reform of the WTO PP is necessary to ensure its long -
term sustainability. He thanked the Board for exploring  innovative solutions and best practices to 
draft the pension plan reforms effective ly, includ ing implementing measures to plan financial 
sustainability , such as a djusting the  contri bution rate  and extending the retirement age . He said his 
delegation believe s that the reform process should continue to be conducted in a transparent and 
inclusive manner. He said the Chair has  had many consultations  with Member s and other 
stake holders so that Members can  aim to finish the process  before the summer break . He said his 
delegation stands ready to contribute  constructively to the discussions of the reform of the WTO PP, 
ensuring its  alignment with the Organization's overarching object ives. 
3.32.  A Member thanked the Board  and the WTOPP  Chair for his hard work in navigating this 
complex reform process  among diverse stakeholders , while trying to protect the Organization from 
legal risks . He said his delegation is still studying the proposal  and is aware of the Chair's time. He 
said his delegation  share s the frustration regarding the  significant amounts of capital that are 
required to help bridge the actuarial  gap. He said Members  have to find a way to avoid this problem 
in the future . He added that his delegation know s that this outcome is quite difficult with a defined 
benefit plan . He said it would be a good idea to consider  a deeper reform and keep diverse options 
on the table in parallel to addressing the current crisis.  
3.33.  A Member said his de legation fully supports the positive spirit in addressing the undeniable 
challenges that the WTO PP is facing . 
3.34.  The Member said that most important ly, his delegation is committed to ensuring both  the 
stability of the pension plan  and peace of mind for the WTO's current and future staff. He said his 
delegation appreciate s the document as a basis for discussion  and looks forward to discussing the 
options provided in detail . 
3.35.  The Member said the proposed changes go in the right direct ion. He said t he proposed  
measures constitute a serious answer to the  newly identified funding gap . He said that, because  a 
fundamental reform of the WTO PP is necessary , his delegation wonders  if the measures suggested 
go far enough to ensure financial sus tainability in the long run . He said the  measures seem to not 
be balanced because the main part of the burden is shifted to future staff and Membe rs, while 
existing staff is marginally involved . He said his delegation would prefer  a more far -reaching 
appro ach that w ould make sure that the pension plan  is sustainably financed and ready  to tackle 
future challenges. He said it is of the utmost importance to further consider a significant increase of 
the pension contribution rate to address the current funding gap . He said  this measure would affect WT/BFA/212  
 
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  both existing staff and future staff equally , and that an increased burden on e xisting staff in this 
case does not constitute an unreasonable encroachment  on acquired rights.  
3.36.  The Member said , if necessary,  a further  gradual  increase in the normal retirement  age, 
depending on the year of birth, ought to considered for existing staff, considering demographic 
changes . He said another measure could be to change the contrib ution key . He noted that the  Board 
has proposed that the contri bution key  should be maintained at one-third to two-thirds . He said his 
delegation is of the view that such an outcome is not mandatory . He stated that there are reform ed 
pension plans  that have changed the contribution key due to financing problems, for example 
40%:60% for OECD,  and 45%:55% for the Council  of Europe, both of which  are part of the WTO's 
comparator  for salaries . 
3.37.  The Member  asked for an elaboration of the  proposed capital infusion, and specifically how 
Members can be assured that only one capital infusion will be needed to make the pension plan more 
sustainable . He noted that this is a sensitive issue.  
3.38.  He said his delegation is ready to provide its comments regarding the proposal in writing and 
to contribute to  clear guidance for continuing the Board's work on the proposal . He said some steps 
are possible now. He assure d the Committee of his delegation's full support to further facilitat ing the 
process . He said quick and good solutions are desirable  and that his delegation considers the 
budgetary impact of any decision.  
3.39.  A Member said her delegation s upport s the statement  made in paragraphs 3.18. to 3.2 4. 
above  on behalf of all  EU Member States.  She said her delegation would lik e to look at some of the 
elements that were mentioned in that statement . She thank ed the Board for its assistance , which 
has been essential to full y understand the situation of the pension plan.  
3.40.  The Member said h er delegation  is interested in knowing about the deficit in the pension plan 
as well as the problems in solving  it. She said th e current situation has occurred  because of  an 
increase in life expectancy in recent years in several countries. She said although the increase in life 
expectancy is good , it has implications for current and future beneficiar ies of the pension plan , which  
need to be taken into consider ation. She sa id the cause -and-effect  relationship between higher 
quality of life and the actuarial deficit reinforces the connection between measures to be introduced 
and the obtention of benefit.  She said that, i n this case, the need for funding cannot be deferred to 
future contributors  as this would break the intergenerational solidarity principle, one of the key 
principles underlying the pension plan. She added that, similarly, Members cannot avoid the current 
imbalance by leaving the solution of the growing deficit to future generations, nor can they shift an 
excessive burden of contributions to future employees.  
3.41.  The Member said, i n line with the principles laid down by the Board (such as  balanced 
distribution among all those involved  in a c ollective effort to correct the deficit ; legality, mainly 
framed by the Rules of Procedure and the jurisprudence of the ILOAT;  and intergenerational 
distribution ), and c onsidering that there is room lef t for flexibility  within the package of measures 
proposed by the Board in application of the above -mentioned principles,  additional measures to be 
borne by current employees  ought to be established . 
3.42.  The Member said  it is possible to  balanc e the distributio n of contributions between current 
and future employees on the one hand and contributors on the other , without prejudicing the 
acquired rights of current employees given the evolution of case law in this respect (as exemplified 
in the recent Judgement 4580 of 16 November 2022, published in February 2023 ). Therefore,  her 
delegation requests the Board to  consider  a gradual increase of the retirement age of current 
employees up to 67 years of age  (e.g., the increase could be  carried out by increasing the retir ement 
age by 2 months for each year remaining before the employee turns 65 ). She said this system was 
established in her country. She said her delegation's preference for this measure is based on the 
fact that its efficiency is high, due to its significant  impact on the actuarial result . In addition, she 
asked the Board to consider a modification  to discourage early voluntary retirement, as well as 
extension of the age at which it is established, in parallel with the increase of the retirement age.  
Furthermore, she said the Board should consider  any other measures it deems  appropriate to balance 
the contributions among all interested parties in accordance with ILOAT jurisprudence and its broad 
conception of acquired rights, considering the financial needs of the pension plan  that are intrinsically 
related to the causes of the actuarial imbalance . Finally, she called on the Board to  consider  WT/BFA/212  
 
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  measures to significantly reduce or completely eliminate the proposed capital infusion  by Members, 
such as the utilization  of the Working Capital Fund . 
3.43.  A Member thanked the Board and the WTOPP Chair  for the proposal , which he said is the 
result of labour -intensive  processes and thorough consultations. He said that the  difficult situation 
of the pension plan is well -known  and does not require further  discussion. He added that it is also 
well known that the actuarial  gap will increase steadily in the future if Members do not  take action.  
3.44.  The Member said the  Board's proposal is based on a number of guiding principles th at the 
Committee has discuss ed on various occasions , including the principle of burden -sharing between 
Members and different groups of beneficiaries . He said this  principle includes the protection of 
acquired  rights. The Member said that to address the actuaria l gap, the report propos es a mix of 
different structural measures that, when  taken together , would remedy  the situation . The Member 
said his delegation is  of the opinion that the proposed mix of measures is balanced and respects the 
guiding principles . He said , in light of this , his delegation supports the Board's proposal in general 
terms, as well as the aim of agreeing on the solution before the summer break . 
3.45.  The Member added that his delegation notes that some Members suggest chang ing the 
balance of the burden between Members and beneficiaries by increasing the burden on the latter . 
He said that  because ILOAT jurisprudence  sets quite narrow limitations, his delegation caution s 
against a change in balance  that goes too far . He said such an approach risks increased costs for 
Members at the end, paying a settlement after losing a  case as well as legal expenses. He said 
Members must make sure that any action they take is within the limits of the ILO AT jurisprudence.  
3.46.  A Member said his delegation  agree s to the discuss ion of  fundamental  change s to the pension 
plan, for example from a defined benefit to a defined contribution system , as this corresponds to an 
international trend for national pension systems . He said that such a change , however,  may take 
some years to examine, discuss , and decide . He added that given the cost of waiting, Members 
should not wait to decide on a more short -term and limited reform, such as the one proposed by the 
Board . He said his delegation suggest s that Members adopt the limited short -term reform quickly , 
and at the same time give the Board the mandate to start examining the possibilities of a system 
change. He said his delegation agree s to have further discussions  in which it would engage 
constructively.  
3.47.  A Member thanked the WTOPP Chair and the Board for the proposal and stated that h is 
delegation s upport s the statement made in paragraphs  3.18. to 3.24. above  on behalf of all  EU 
Member States.  He said , on one hand , his delegation  believe s that the approach and underlying 
philosophy followed by the Board  of seeking burden -sharing among all stakeholders is correct. He 
said nevertheless his delegation believe s that Members  have not fully explored the means that could 
allow for curren t staff to contribute sufficiently without  overburden ing future staff or Members.  He 
said there is an ongoing debate in his country  related to retirement reform , which  involves 
progressively increasing the retirement  age, including for current staff, beyon d voluntary . The 
Member said , in contrast to several Members that spoke before him , his delegation  would like to see 
a confirmation and an explanation by the Board o f the viability of the long-term regime after taking 
the proposed  set of measures . He said his delegation is willing to, perhaps i n a subsequent debate, 
explore the feasibility of turning to the W orking Capital  Fund to partially recapitalize the pension 
plan. He said his delegation is willing to continue engaging  on this topic . 
3.48.  A Member  said his delegation has noted the difficulties with the present system , particularly 
regarding its viability. He said the most important element is that there ought to be a system that 
is viable in the future, that it is sustainable , and that will provide certainty to staff and to Membe rs. 
He said that, in this respect, it is important for Members to look into a deeper reform of the system . 
He said the WTO used to be part of the UN pension fund, and when it left that fund, the thinking 
was that the WTO woul d grow much more than it actually did . He said the premise for leaving the 
UN pension fund did not materialize , and the WTO did not grow exponentially as had been  foreseen . 
He said  his delegation has  serious concerns about the sustainability of the pension  plan as it s tands  
now and  added a return to the UN pension fund should be explored . 
3.49.  A Member said Members  must address the issue soon. He said his delegation is of the view 
that the proposal on the table represents a good balance of proposals and consideration . He said his 
delegation  also support s the timeline , as proposed by the Chair , for the discussions to be completed WT/BFA/212  
 
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  before summer. He said it is necessary to have a more detailed look into  whether and  how to embark 
on a fundamental reform that would set the Organization on a firmer footing in future . 
3.50.  The WTOPP Chair thanked Members for their interventions . Regarding the comment in  
paragraph  3.37. above  the possibility of re assuring Members that only one capital infusion will be 
required to make the pension plan sustainable , the WTOPP Chair said this cannot be  guarantee d. He 
said the actuarial position is linked to a burden -sharing  system , with risk shared between participants 
and sponsors . He said that in define d benefit schemes, the pension plan must be balance d each time 
a material  deficit is identified . 
3.51.  The WTOPP Chair recalled that in the  two previous reforms , most of the measures were borne 
by staff . He said the contribution rate had been increased for both Members and staff. He underline d 
that both of the previous  reforms increased the retirement age,  initially from 60 years to 62 years,  
and then to 65  years. He said the Board's reform  proposal would certainly de -risk the pension plan 
with regard to the current situation . He said there are  two elements . First, if Members  look into the 
assumptions that the Board has  been working on with the Lead Actuary, the assumption o f increased 
life expectancy  for the first time includes dynamic elements  that not only take the latest actuarial 
tables into account , but also assume that life expectancy will continue to grow, as it has since the 
inception of the pension plan. He said at a certain point , there is a limit to life expectancy.  Second, 
he pointed  to internal demographics , noting that the pension plan has been in existence  for more 
than 20 years  but that it is not yet a mature pension plan and has not reached  the ceiling  of retirees 
versus current staff . He said the fact that the pension plan now has 20 years of data ha s allowed 
the Actuary to  have more precise data w ith regard to certain trends , such as when people take their 
retirement  and the  age at which they join the pension plan. He said these qualitative element s 
contrib ute to de-risking the pension plan and are now reflected in the Board's assumptions . 
3.52.  The WTOPP Chair said he has touched upon a deeper reform and looking into the design of 
the pension plan. He said  a defined contribution scheme  is, for example, a way to s hift the risk  from 
sponsors to participants, as has been seen in many countries  in which such a reform was put in 
place.  
3.53.  The WTOPP Chair s aid the Board would have to receive a mandate from Members to explore 
the options  and the costs relating to moving to another scheme . He added that such a move would 
come with a cost. Referring to the comments at paragraph 3.48., the WTOPP Chair said  that indeed 
the WTO pension  plan had been  separated from the UN JSPF. He noted that  althoug h in the past , 
there was an expectation that the Secretariat would grow , the pension  plan was designed  based  on 
a headcount of 700 staff . He said it was not designed with an expectation of a  larger population . He 
said the deficit comes  from different sourc es that are identified in the actuarial valuation . He said in 
a sense  the pension plan had bad luck in its early years when it faced two major financial cris es that 
limited the growth of its assets . 
3.54.  Regarding comparison with national  schemes , the Chair said the Board is a technical body 
that comment s or make s observations according to its mandate . He said one of the elements it is 
considering in terms of risk is the legal assessment of any reform. He said, in this regard, there are 
certain acquired rights . He said the difficulty is that the jurisprudence establishes a floor of 3% and 
a ceiling of 8%. He said somewhere in between this range , there is a zone in which it is possible to 
put additional burden on current staff without violatin g acqui red rights. He said the Board  does not 
know exactly where the limit would lie . He said such a limit w ould be when the ILO AT renders 
judgment . He said the Board has  made its proposal  based on  its analysis of the risk. He said he 
would like to hear Members' expectations  on adapting the Board's package versus  a brand -new 
approach . He said there is no magic and that there are boundaries at a certain point. He said it 
would be very difficult to consider an increase in retirement age , plus a major increase in the 
contribution  rate, plus other measures, while respecting  acquired rights. He said the Board would 
be happy to be granted a mandate to explore a deeper reform , which is not  currently in the Board's 
mandate . 
3.55.  Regarding the comment in paragraph  3.36. regarding chang ing the allocation of one-third to 
two-thirds , the WTOPP Chair said this is one option that could be  explore d, noting that should there 
be a decision to change the burden -sharing , it would affect acquired rights.  WT/BFA/212  
 
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  3.56.  Referring to the WTOP P Chair's comments in paragraph 3.13. above , a Member  said that in 
paragraph 10 of ILOAT ruling , the ILOAT rejected claims that accumulated measures improperly 
reduced claimant's income by 11.05 % in one case a nd by 7.14% in another case. The ILOAT stated  
that, even if all of these increases  were taken into account , it would  not constitute a violation of 
acquired rights of the claimants . The Member said that there are limits set by acquired rights. He 
said his delegation does not want to infringe  those rights  but that it is not clear where those limits 
lie and  that measures can go a little further than the Board's proposal . 
3.57.  In response to the comments in paragraph 3.56. above , the WTOPP Chair said the Board  had 
consulted the Legal Counsel, who advised  that it would be difficult to use this case as guidance for 
the WTO because  there are some fundamental differences between the measures taken by the 
Bureau for Weights and Measures  and those proposed for the WTO Pension Plan , and that what was  
challenged  is not a package . He said the Board's proposed reforms are instead a package with 
different measures , but only one measure was challenge d in the Bureau for Weights and Measures  
case.  He said that from the legal point of view , it is very difficult to draw  conclusions to apply to the 
Board's broad set of measures  from a ruling that examined  one single measure . Second, he noted 
that the Bureau for Weights and Measures  management board had not under taken any previous 
reforms , but that WTOPP  had already implem ented two reforms.  
3.58.  He said the third consideration was that the Bureau of Weights and Measure s is about 10% 
of the size of the WTO Secretariat , with a mature pension  fund, thus affecting the room for 
manoeuvre  and the type of measures that can be envisaged when reforming the pension  plan. He 
said this fact explains why the above -mentioned jurisprudence , in the view of legal counsel, does 
not adequately assess the legal risk that the WTO would fac e concerning acquired right s. He added 
that he  agree d that there is , per definition, no fixed target  that defines acquired rights, noting that 
the jurisprudence  gives a ceiling and a floor. While there are  indications that there may be some 
room for manoeuvre , he conclud ed that it may not be significant.  
3.59.  A Member  said that as Members h ear the call to respect the rule of law in this Committee, 
which his delegation  respect s, he noted that it sounds like there is  strong legal protection  in Geneva, 
while it is not the case in national legislation s. He acknowledged that this impression could be wrong. 
He said that pensioners are protected by law  in his country, and the government cannot just simply 
jump in and do what it wants if it has  financial problems . He said this is a  sensitive issue for 
pensioners , the government , and  for every one. He said Members should carefully analyse  what is 
possible , and a working group could be established if it helps the process . He said it is not clear what 
mandate would be given  to such a wo rking group , and what its scope of discussion would be. He 
said Members cannot  establish a working group or  give it a mandate to conduct a  deep analysis of 
everything . He said this is to o vague  and does not lead Members to where they want to go.  
3.60.  The Member  said his delegation was a bit surprised that  the second  version of the proposal 
was almost the same  as the first version, with the only change being a sentence suggesti ng that the 
Working Capital Fund can be considered as a source of capital infusion. He said it is unclear where 
this change came from, what it means, and w hat the details of the suggestion  are. He said Members 
do not have necessary information to have a serious discussion. He asked the Board to provide 
further information and a clear proposa l on what is being suggested and how this would work. He 
said this would help in the ir decision -making process.  
3.61.  A Member asked  whether any existing regulation s, document , or provisions envisage an action 
plan in case exigencies  were to arise in which the pension plan's situation  could deteriorate or 
become underfund ed. 
3.62.  The WTOPP Chair said it c ould be interesting  for the Committee  to have an exchange with the 
Legal Counsel . Regarding the s pecific jurisprudence  under discussion, the WTOPP Chair  said there 
was one measure that was challenged , and accordingly the ILO AT gave a judgment on the one 
measure that was challenged . He said the increase in the retirement age in that organization  had 
not been challenged. He said the ILOAT did n ot pronounce on the other measures. He reiterated 
that it is very difficult  for the Board  to base its judgment on that specific case . He said the Committee 
could consider consulting the Legal Counsel  as he is better placed to guide Members through this 
type of reasoning.  WT/BFA/212  
 
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  3.63.  Regarding the comments made in paragraph 3.62. the WTOPP Chair said  that the pension 
plan is underfunded . He said the Actuary is calculating the actuarial gap using IPSAS. He said the 
metric used is the cont ribution rate, and the deficit is expressed as a percentage of the contribution 
rate, which could be  translate d into long-term funding.  
3.64.  The Chair thanked the WTOPP Chair for his additional explanations  and Members for their 
input into the process . Before s uggesting a way forward, t he Chair summarized the discussions as 
follows . First,  Members broadly find that the proposal goes a long way in the right direction and 
some Members support it in its current form . However, Members would like to explore what the 
options are for a modest shift in burden -sharing . Second, there  is broad support to explore whether 
and how a more fundamental redesign of the WTO PP could serve the interests of the Organization 
and the Members . 
3.65.  The Chair said it is important to ensure that all stakeholders and the staff in particular are 
kept informed , and that the Committee ought to continue to conduct a transparent exercise  against 
this background , going forward . 
3.66.  The Chair proposed to carry out informal consultations with interested Members  to help 
identify a l anding zone that will enable the Committee  to take a decision on the current funding gap 
before the summer break . She said this action will also allow the Committee  to focus on ensuring 
the timely passage of the WTO 202 3-2025 budget proposal, giving Members  a positive momentum 
ahead  of MC13 . The Chair informed Members that the Secretary of the WTO PP Management Board 
has offered to provide technical support in the context of the consultations .  
3.67.  The Committee took note of the discussion.  
4  WTO SECRETARIAT TRANSFORMATION EXERCISE AS OF 1 MAY 2023 – WT/BFA/W/635  
4.1.  DDG Ellard delivered the statement contained in JOB/BFA/79, as follows:  
4.2.  I am pleased to provide you with an update on the Secretariat's transformation exercise and 
to hear your comments.  
4.3.  As always, I will provide my speaking notes to you in writing following this meeting. The 
transformation work will remain on the age nda for discussion at our meetings , and I will provide 
additional updates if needed.  In addition, as Members requested at our last CBFA meeting, I am 
integrating success stories into my update.  
4.4.  As you know, the work on Vision and Strategy for the Secretari at kicked off on 27 March. We 
are aiming to have a Secretariat Vision Statement and elements for high -level strategic focus pillars 
ready by the end of the month, as well as a plan for next steps. This work on Secretariat vision and 
strategy, which has alw ays been part of the planned second phase of transformation work, was to 
begin in late 2022, but we were not able to begin until recently. This step represents a very early 
stage in this second phase and will lead eventually to the development of a fully -fledged vision and 
strategy for the organization, completed by revised organizational values.  
4.5.  We are engaging the entire Secretariat and the WTO Membership in this work. I would like to 
recognise and thank Ambassador Dacio Castillo, who has been instrumenta l in collecting your input 
through Member Information Sessions and consultations. His factual report on the consultations held 
at the end of March and beginning of April was circulated as document WT/INF/234, and I invite all 
Members to read it. As you wil l know, the Transformation Office sent a status update on this work 
to all Members on 11 May, and Ambassador Castillo is holding additional consultations this week for 
interested Members.  
4.6.  Willy Alfaro, the former Director of the Trade Policy Review Divisio n, became Director for 
Secretariat Vision and Strategy on 1 May. This was done within our existing budgets. He is working 
closely with the Transformation Office to deliver on this important aspect of our reforms. Willy will 
also bring his extensive experie nce to, and lead, the further work that will then be needed to develop 
the strategy and to ensure that Secretariat operations and planning are aligned with that strategy. 
Willy will ensure continued engagement with Members throughout the next phases of wor k. WT/BFA/212  
 
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  4.7.  I would also like to thank the Members of this Committee who attended and provided helpful 
input during the informal CBFA focus group meeting that was held on 25 April.  
4.8.  In addition to the work on Vision and Strategy, we are continuing implementation of the 
outcomes approved by the Transformation Steering Committee across all transformation 
workstreams . 
4.9.  Rewards and Procurement remain the most advanced workstreams. Work in both areas is 
focused on embedding the reforms through communicati ons to raise awareness, alongside the 
elaboration of detailed forms, templates, and operational guides. We expect to complete most 
reforms in these two workstreams by the summer.  
4.10.  As I have previously informed you, the policy setting out the new "Recognitio n and Rewards 
Programme" took effect in early 2023. This policy introduces new awards designed to acknowledge 
and incentivize staff for their teamwork, innovation, management excellence, and collegiality. We 
recently shared details on the criteria, nominat ion and selection process, and timeframes for the 
2023 awards with all staff, and a dedicated intranet page on Rewards will soon be launched. I know 
that Members are interested in success stories, so in that context, I will restate that since last year, 
staff reaching five -year service milestones automatically receive digital badges, and supervisors are 
encouraged to recognize their contributions and service.  
4.11.  The various initiatives within this workstream are key elements of our efforts to foster a 
workplac e culture of appreciation and recognition. The Transformation Office has received positive 
feedback on the changes, and the first annual end -of-year celebration of staff event held last 
December was particularly favourably received.  
4.12.  As I previously reporte d to you, our revised internal Procurement Policy has been in effect 
since January. Since then, we have revised or created templates, forms, samples, and training 
materials for the Secretariat. These materials will guide staff in understanding the procurem ent 
function and in the preparation of the necessary documentation when procurement is needed. They 
will also save time and effort, ensure consistency, improve accuracy and completeness, and enable 
customization for specific audiences or purposes.  
4.13.  Since ou r last meeting, we created a new network of Procurement Divisional Focal Points to 
further promote best practices and provide more targeted training to the main users of procurement 
in the Secretariat. Through this network, we aim to improve communication and collaboration, 
enhance compliance, and increase the overall performance and success of procurement within the 
Secretariat.  
4.14.  We have also revamped a dedicated intranet site that consolidates all information related to 
procurement. This site provides staf f with improved access to all procurement -related information, 
increasing awareness of the entire procurement cycle, as well as providing more objective insights 
on the various procurement methods and their appropriate uses, while strengthening a responsib le 
public procurement culture among users.  
4.15.  An updated procurement policy, a more comprehensive and user -friendly intranet presence, 
and more focused community of procurement users are important milestones representing the 
success of our efforts to moderniz e administrative crosscutting functions of the Secretariat. In 
addition, we continue to explore ways to make better use of digitization in our procurement 
processes, to the extent that we have budgetary resources available.  
4.16.  Our initiatives to encourage mob ility within the Secretariat have also progressed. At present, 
we are concentrating efforts on a pilot project to encourage greater compliance with an existing 
requirement for entry -level staff to undertake a temporary secondment to another Division within  
the first seven years of their employment in the Secretariat. We compiled a list of potential 
opportunities for temporary secondments, in consultation with divisions, and shared the list with 
staff subject to the requirement. Several staff have expressed interest in undertaking a temporary 
secondment. The Transformation Office and our Human Resources team are working with the 
relevant divisions to define the feasibility and timing for the desired moves. To raise the visibility of 
mobility success stories, the Secretariat recently held an event with a retiring staff member who had WT/BFA/212  
 
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  worked in multiple divisions over the course of his career, and we published an intranet story of a 
different staff member recounting her experience of mobility within the Secretar iat. 
4.17.  Our Human Resources Division continues to liaise with other international organizations to 
establish exchange programs to increase external mobility. Following requests to exchange specific 
expertise, a staff member from the Secretariat has been secon ded to an international organization 
in Geneva, and a second staff member will soon be seconded to a different Geneva -based 
international organization. The WTO Secretariat will receive two seconded staff members from those 
organizations. Similar exchanges are being considered with other international organizations.  
4.18.  On risk management, we are in the process of recruiting a new Chief Risk and Compliance 
Officer. The Vacancy Notice has now closed and has attracted good interest. We aim to fill this 
important p osition within the next few months. Once recruited, the new CRCO will build on work 
already done by the volunteer implementation team to update and develop the Secretariat's risk 
management policy and process, risk taxonomy, and risk appetite. Finalising t hese tools and 
increasing communication will enable us to raise risk awareness and reporting across the Secretariat, 
manage uncertainties more proactively, and ensure that we are prepared when risks materialise.  
4.19.  We continue to work on promotions. The Trans formation Office very recently shared its fifth 
Information Note to staff – on promotions and the reforms planned in that area. I will circulate that 
Note to you along with my Speaking Notes from today. Work on revising the existing promotions 
policy is ad vanced. Key elements are being tested with Directors, senior management, and staff, 
and we plan to submit the new policy to the Joint Advisory Committee in the near future. The 
promotions exercise currently underway will incorporate improvements to the con sistency and 
transparency of the process where this can be achieved within the scope of the existing policy.  
4.20.  We are also in the early stages of drafting a recruitment policy. HRD and the transformation 
implementation team have been undertaking a detailed a nalysis of the current process and best 
practices in other entities to inform this effort. The recruitment policy will set out clearly how 
selection to vacant positions is governed and the skills and experience required of applicants. As 
such, it will comp lement ongoing mobility and diversity initiatives.  
4.21.  To better understand the resources and expertise we have, the gaps we are experiencing, 
and our potential to reallocate resources within the Secretariat, the Secretariat has embarked over 
the last few mont hs on a comprehensive workforce planning exercise, now that we have a Human 
Resources Director. The first step of this undertaking has entailed the development by the HR 
division of a detailed mapping of current positions, including their distribution by d ivision, grade 
level, and incumbency status to understand exactly how many positions are dedicated to the 
different areas of work of the Secretariat.  
4.22.  In June, work will commence, with the assistance of an experienced consultant, to update the 
Secretariat's  competency framework. The framework will set out the behavioural competencies that 
should be displayed by all staff members (such as effective communication, results orientation, 
collaborative teamwork) and the specific technical skills needed by staff me mbers in the Secretariat 
now and in the future to realise each element of the strategy and better serve Members now and in 
the future.  
4.23.  The next step of the strategic workforce planning exercise will be a skills mapping and gap 
analysis. We will provide mor e information on this step of the exercise to Members in the early fall.  
4.24.  All of this work will help us better implement the approved transformation outcomes across 
the career pathways, promotions, recruitment, and mobility workstreams, as well as to ultima tely 
help the Secretariat deploy its staff more strategically and efficiently, in line with the work on Vision 
& Strategy.  
4.25.  Work is progressing on multiple digital transformation initiatives. Current budgetary 
constraints have necessitated further considera tion and adjustment of the sequencing, scope, 
prioritization, and timing of these initiatives, alongside other existing or planned work. For now, 
implementation is focusing on areas that rely most heavily on in -house resources, low -cost near -
shore solution s, and reforms to the digital tools available to Members to benefit the working of 
Committees. Work on enhancing IT governance mechanisms is ongoing.  WT/BFA/212  
 
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  4.26.  Thank you for your continuing interest in and support for our transformation work.  
4.27.  I now invite any commen ts or questions that you would like to share.  
4.28.  With respect to the Director vacancies, DDG Ellard reported that the selection process for the 
Director of the Legal Affairs Division was under way  with an internal recruitment , and that the former 
Director of the Trade Policy Review Division ha s become Director of Vision and Strategy, which  
opened a vacancy in the Trade Policy Review Division. She said the position for the Director of  the 
Development  Division  had been  advertised in the previous week.  
4.29.  A Member asked  to clarify  whether the strategy is being developed for the Secretariat or for 
the Organization.  
4.30.  A Member requested more information regarding internal and external mobility , as well as  
the skills mapping and skills gap exercise . The Member also asked DDG Ellard to provide examples 
of external mobilities to and from other international organizations. In addition, the Member asked 
how the Secretariat was planning to measure the impact of mobility efforts. Finally, the Member 
expre ssed support for the efforts to develop a vision statement for the Secretariat.  
4.31.  A Member inquired about the impact of the transformation exercise on the Human Resources 
Division as well as on new positions , new recruitments , and the Secretariat's resources . In addition, 
the Member  inquired about the procurement method  used in the Secretariat. The Member also asked 
about the impact of the revised approaches to recruitment and mobility on gender equality.  
4.32.  A Member asked about the  Secretariat's  strategy to achieve  more gender equity.  
4.33.  A Member said that  it is for the Secretariat to develop its  own vision and mission statement 
so that it could serve Members better. In this regard, the Member also noted that the exercise should 
be proportionate, an d the resources should be used wisely. In addition, the Member referred to a 
note in document WT/BFA/W/635, which reads: " Approved proposals will proceed to implementation 
in accordance with existing rules, regulations, and procedures. " The Member wondered  about the  
reason for including this wording because, in his view, it is quite obvious that this is how propo sal 
implementation should proceed.  
4.34.  A Member asked about the timeline for the recruitment of the Chief R isk and Compliance 
Officer and expressed concern that the transformation exercise  has progressed slower  than 
expected . The Member added  that he was disappointed to hear that senior management was 
struggling with internal mobility because the exercise only encouraged compliance with the existing 
requirements. The Member further requested more detail on the revised promotions policy and asked 
what is meant by testing a policy that has not yet been approved for use in the Organization. With 
regard to technology and innovation, the Member requested more detail on how work is divided and 
what coordination mechanisms are in place given that IT hardware - and software -related issues are 
being discussed. The Member also expressed concern that the update left out initiatives that are 
being discussed outside the  transformation exercise . He also said that there is a contradiction 
between citing  budgetary constraints for work requested by Members and the implementation of 
external partnerships and new IT platforms that Members had not requested. Finally, the Member  
expressed concern  over the cost implication of the move of the former Director of Trade Policies 
Review Division , which, in his view, would add  a new senior level grade to the structure.  
4.35.  A Member highlighted that a clear strategic priority was needed for the Organi zation, and that 
this was also very important for the budget discussions.  
4.36.  A Member asked  about the regional diversity in the Secretariat. In addition, the Member 
underscored the importance of focusing on the effective use of IT tools t o be as productive as 
possible.  
4.37.  In response to the question in paragraph 4.29. , DDG Ellard said the strategy and vision are 
being  developed for the Secretariat and not for the Organization, and that the key function  of the 
Secretariat i s to serve Members.  WT/BFA/212  
 
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  4.38.  Regarding  the question about mobility in paragraph 4.30., DDG Ellard noted  that the 
Secretariat has in place a pilot project to facilitate internal mobility for staff who had joined the 
Secretariat within the last seven years , noting that they are obliged to undertake mobility as part of 
their contract . She added that  the essential functions of the Organization must be performed as well  
as possible , and th erefore  sometimes  it takes  time for mobility occur . She noted  that, in terms of 
promotion opportunities , staff might have an incentive to stay within their Division s because  the 
probability of a promotion increase s with the number of years spent in one Division . She said the 
Secretariat is trying to change  the attitude to mobility . She further  noted that staff satisfaction is 
measured through staff satisfaction surveys.  
4.39.  Regarding external mobility, DDG Ellard said that the WTO had recently signed  a 
Memorandum of Understanding  with the World Bank and that this was the third  arrangement  on 
extern al mobility.  She also noted that sometimes staff members explore possibilities for external 
mobility on their own initiative.  
4.40.  Regarding comments in paragraph  4.34.  about the budgetary impact of the move of the  
former  TPRD Director, DDG Ellard  emphasized that the Director -General has the authority to 
reallocate staff  within the existing  staff ceiling and budget.  She further explained that Mr. Alfaro 
works on vision an d strategy with the Transformation Office and that additional staff has not been 
allocate d for this work.  
4.41.  With respect to the Member's question  in paragraph 4.31.  regarding the procurement system, 
DDG Ellard said  that the Secretariat follows the UN system.  She noted that all the Secretariat's 
procurement requests are published online and that established norms and best practices are 
followed very strictly. With regard to the question about the implications of the transformation 
process on human resources  and why the divisions did not handle these matters for themselves , 
DDG Ellard recalled that the transformation office works with relevant teams to submit proposals to 
the Steering Committee, which includes the four DDGs, the Chief of Staff, and t he DG. She 
underscored the importance of having a rather independent source of transformation rather than 
expecting divisions to transform themselves. She noted that after ideas achieve a certain level of 
maturity, relevant divisions then step in to implem ent the outcomes. As an example, she referred 
to the work of the Procurement Unit in implementing the outcomes of the transformation exercise 
on procurement.  
4.42.  In response to questions about diversity and gender equity , DDG Ellard said that  the 
Human  Resourc es Division under the leadership of the new Director is seeking to develop a new 
recruitment polity that would take those considerations into account. She noted that the Secretariat 
is committed to diversity, reflect ing the diversity of the Organization's membership. She added that  
a Gender and Diversity Officer was about to be recruited , which would help to set up a firmer policy 
and goals in this regard . In addition, DDG Ellard noted that a few months ago the Secretariat had 
adopted a Gender Policy, which  guides not only recruitment, but also how the Secretariat carries out 
its work.  
4.43.  With regard to the timeframes of the transformation exercise, DDG Ellard said that the 
implementation phase has never been subject to particular deadlines because it is imposs ible to 
envision how long the implementation of new practices and regulations would take .  She noted that 
the Secretariat has deliberately followed a bottom -up approach , with engagement from staff 
encouraged. She further noted that sometimes things take lo nger than expected. As an example, 
she referred to the position of the Risk Officer, which had to be re -advertised at a higher grade 
because it was not possible to find a suitable candidate at a lower grade.  
4.44.  Referring to the second wave of the transformati on exercise, DDG Ellard  said more details 
would be provided on promotions and reassured Members that the Secretariat was doing this within 
the existing budget constraints. She further noted that one way of testing new policies is to share 
proposed changes with staff to make sure they are effective.  
4.45.  With respect to  the comments in paragraph  4.34.   regarding IT platforms, DDG Ellard said 
there is a  link between IT projects and budget constraints . She said that there were some projects 
that had to be implemented to ensure day -to-day operations,  such as the interpretation tool for 
hybrid meetings , which has been absorbed by the Zero Nominal Growth budget. She added that the 
Secretariat would like to explore other new types of technology, but it has to be  mindful of the WT/BFA/212  
 
- 15 - 
 
  budgetary constraints.  Regarding Documents Online, she said there is work the Secretariat has been 
able to do within the budgetary cons traints, as well as work the Secretariat has not able to do.  
4.46.  Regarding the comments in paragraph  4.35.  DDG Ellard said that the senior management 
strongly believ es in a strategy for the Organi zation. She added that, according to the Financial 
Regulations, the Budget Proposal need s to be presented  to the CBFA  8 weeks before the last General 
Council  meeting of the year . She noted, however, that the Secretariat under stood  that Members 
would like to be presented with a budget proposal before the summer, especially given that the 
pension  situation is still being discussed. As a result, she noted that  there is a trade-off between 
how much advance time Members get with th e budget and advancing  the work on strategy . 
4.47.  In response to the comments in paragraph 4.30. regarding skills mapping, DDG Ellard said  
that the competency framework and the skills mapping exercise are still ongoing, and that the 
Secretariat will provid e Members with an update when possible.  
4.48.  The Committee took note of the update  and the comments made.  
5  OFFICE OF INTERNAL OVERSIGHT (OIO) – AUDIT AND EVALUATION PLAN 2023 -2024 
AND LAUNCH OF INTERNAL CONTROL  FRAMEWORK – WT/BFA/W/626  
5.1.  The Head of the Office of Internal Oversight (OIO) reported that the OIO is making meaningful 
progress in prevention, detection, an d investigation of integrity risks as well as other strands of 
assurance work.  
5.2.  She summarised the key principles, components , and structure of the system of internal control  
– the Internal Control Framework (ICF)  – that was introduced to staff on 19 April 2023. She described 
the ICF as an evolving document, which draws together and b uilds on existing policies, guidelines , 
and processes across the Secretariat. She said the k ey pillars of the ICF are the Staff Regulations 
(including the WTO Standards of Conduct), Staff Rules, Financial Regulations , and Financial Rules.  
5.3.  The Head of the O IO provided the definition of internal controls as "the processes executed by 
the senior management, oversight bodies, management, and other personnel of the WTO, designed 
to provide reasonable assurance regarding the achievement of objectives relating to operations, 
reporting, and compliance.'' She explained that the purpose of internal controls is to help the WTO 
achieve its strategic and operational objectives in an ethical, efficient, and effective manner,  and to 
provide reasonable assurance in line wit h established industry standards.  
5.4.  The Head of the OIO informed Members that the ICF is based on the established Committee of 
Sponsoring Organisations  (COSO ) model, widely used in international organisations and across other 
sectors, and that the WTO's gove rnance of the ICF is based on the Three Lines of Defense  Model , 
promulgated by the Institute of Internal Auditors (IIA).  
5.5.  The Head of the OIO described the three lines of defence model, explaining that (i) the first 
line of defence are staff members who design and implement controls to manage risks in their 
activities, with the Director -General and senior managers having overall responsib ility; (ii) the 
second line of defence is the Chief Risk and Compliance Officer (CRCO) and the Office of the Legal 
Counsel (OLC), supporting the first line by providing expertise and monitoring to ensure risks are 
effectively managed; and (iii ) in the third line  is the OIO as an independent unit  assess ing the 
effectiveness of controls.  
5.6.  The Head of the OIO also acknowledged the roles of the  External Auditors, the General Council 
(and Member committees) , and the Committee on Budget, Finance and A dministration (CBFA) in 
overseeing  internal control, risk , and financial reporting.  
5.7.  The Head of the OIO presented the OIO's audit and evaluation plan for 2023 and 2024. She 
explained that the plan was put together by assessing current risks and receiving i nputs from the 
Director -General and the Secretariat on risk areas. She emphasised the importance of evaluating 
the extent to which the Secretariat has good environmental and social governance. She stressed 
that the OIO needs to be flexible to respond to em erging risks through ad hoc work , while  recognising 
the resourcing constraints of a two -person team.  WT/BFA/212  
 
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  5.8.  A Member asked  a few  questions relating to the ICF, and in particular , whether it is mandatory 
for managers to take its provisions on board, and if so, how  managers were being sensitised as to 
their responsibilities. The Member also asked who is currently fulfilling the second line of defence 
functions in the absence of a Chief Risk and Compliance Officer.  Moreover, the Member asked if the 
OIO could share th e recommendations to strengthen specific controls with Members, and clarify 
which body they had been addressed to and if they have been implemented. Given the increase in 
virtual and remote access to IT systems, the Member underlined the importance of over sight of IT 
security. Finally, the Member stressed the importance of making sure the OIO has sufficient 
resources to plan and undertake audits in a timely and efficient manner  and asked whether a staffing 
plan has been submitted to the Director -General . 
5.9.  A Member asked to clarify what was meant by "Outside activities" in the OIO report.  
5.10.  A Member asked if WTO rules contain a definition of "misconduct" and what are the 
consequences situations where misconduct occurs.  The Member also wondered whether there is a  
process to seek views and get approval of members to implement recommendations of the external 
audit.  
5.11.  In response to the question in paragraph 5.8. , the Head of the OIO said that  all staff have 
existing responsibilities under the Standards of Conduct that  are reinforced by the ICF, and that 
more need s to be done to sensitise staff through adequate training. She explained that to that end, 
the OIO will deliver ethical leadership sessions to senior management and work with the Director of 
HR to explore embed ding ethics into performance management.  
5.12.  With regard to the second line of defence, t he Head of the OIO  explained that , to a limited 
extent, some second -line functions are shared between  HR, OLC, and other units of the Secretariat. 
She explained that the OIO has stepped in to bridge the gap in certain areas (e.g. , ethical leadership 
training and aspects of compliance) while attempting to maintain adequate resourcing and 
independence.  
5.13.  In response to q uestions relating to specific  recommendations , the He ad of the OIO explained 
that some recommendations following on from investigations and inspections are granular in nature 
in that the y relate to detailed improvements to policies and protocols. She reported that thus far, 
the Divisions tasked with implemen ting such recommendations have done so promptly and 
effectively. She said that she would summarise the recommendations and progress against their 
implementation in the annual report to the Members. The Head of the OIO also explained that 
internal audit rec ommendations are already summarised and shared with Members in a similar way.  
The Head of the OIO  also confirmed that the OIO had submitted a staffing plan  to the Director -
General . 
5.14.  In response to the question regarding  "Outside Activities"  in paragraph 5.9.  , the Head of the 
OIO explained that it is an audit to assess compliance with policies on staff carrying out additional 
activities external to their work at the W TO in a way that  such activities do not interfere or conflict 
with their employment duties.  
5.15.  In response the question about the definition of "misconduct" in paragraph 5.10.  , the Head 
of the OIO confirmed that within the WTO's existing policies, there is a definition of "misconduct" , 
as well as a policy in place for investigation of misconduct and a separate procedure for the 
application of disciplinary measures follo wing a confirmed finding of misconduct.  
5.16.  The Head of the OIO thanked Members for their continued support and invited them to contact 
her directly for additional explanations or discussions.  
5.17.  The Committee took note of the report and the comments made.  
6  ORAL UPDATE ON IMPROVING COHERENCE IN TRUST FUND MANAGEMENT  
6.1.  An Official of the Secretariat recalled that the External Auditor had provided his report at the 
last meeting and that many of the recommendations overlapped with the recommendations of the 
Working Gro up on Trust Funds . He added that the Secretariat ha s started the internal consultation WT/BFA/212  
 
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  process with key Secretariat stakeholders on developing guidelines requested by the Working Group 
and that this effort also included engagement at the DDG level.  
6.2.  The Off icial of the Secretariat noted that periodic updates to the CBFA would be made. He 
added that the external audit recommendations would be folded into the process and that the 
External A uditors ha s expressed satisfaction with the progress made. He also said  that the 
recommendations are being addressed systematically but that some would require  input from 
Members, such as recommendations 5 and 6.  
6.3.  A Member enquired about the timeline for the guidelines to be implemented.  
6.4.  A Member  said that, according to the audit report, earmarking is becoming more common and 
non-earmarked funds are in an uncertain state . He noted that the report appears to request Members 
not to earmark their funds  and instead to allow resources to be moved more freely to address a 
variety of needs. He also noted that there is a concern that single -issue trust funds are diverting 
resources from the Global Trust Fund, and that sometimes they are unable to disperse the funds. 
He further observed that many of the current donors to single -issue tru st funds have not contributed 
lately to the Global Trust Fund. He inquired about a management tool to help Members understand 
how effectively resources are being spent.  
6.5.  The Secretariat  Official replied that it is important to assess some of the  patterns an d that this 
is part of the process undertaken to address concerns. He said that one of the clear recommendations 
of the Working Group  on Trust Funds i s to try to establish coordination on resource mobilisation.  
6.6.  The Committee took note of the update  and the comments made.  
7  2022 ANNUAL REPORT ON GRADING STRUCTURE IN THE WTO SECRETARIAT - 
WT/BFA/W/631  
7.1.  An Official of the Secretariat took the floor and mentioned that the slides of the presentation 
would cover the content of previously circulated document WT/BFA/ W/631 , and would show post -
related statistics , such as post and staffing allocation, positions advertised, appoint ments , 
separations , promotions, and gender breakdown by grades.  
7.2.   The Official  of the Secretariat informed  the Committee  that the presentation would be brief 
and similar in content to the one circulated in September 2022. The first slide showed the staff 
distribution as of 31 December 2022, highlighting the peak number of staff per grade since 1995. 
The Official of the Secretariat  stated that the professional category ranges from Grade 6 to Grade 
10 while the support service category  ranges  from Grades 1 to Grade 7,  and that Director -level 
positions are all at Grade 11. 
7.3.   The Official  of the Secretariat highlighted the following key statistics:  
a. 63% of WTO staff are in the professional category and 37% in the support staff category. 
Within  the Professional Category as of 31.12.2022, only one staff member remains at 
Grade 12, while the largest reduction in staff numbers from peak levels is register ed in 
Grades 11,10 , and 9. Within  the Support Service category, Grade 5 remains the most 
populated category, while Grades 2 and 3 show a  substantive  reduction from peak levels.  
b. Regarding gender breakdown by grades: 55% are female staff members, and 45% are  
male staff members. In the professional category, males slightly outnumber females, 
whereas females significantly outnumber males in the support category. There has been 
no significant change in gender distribution per grade in the last year.  
c. Regarding the evolution of each grade since 1992 : in the professional category,  the 
number of staff in  Grades 10 and 9 ha s decreased, while  the number of staff in  Grades 
6,7, and 8 ha s increased. The trend was less pronounced in the support staff category, 
although th ere was a clear reduction in Grade 7 and Grade 3  staff over the last several 
years.  WT/BFA/212  
 
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  d. Regarding  the staff breakdown between regular and extra -budgetary trust funds: The WTO 
employed 658 staff, of which 620 are funded from the regular budget and 38  from extra -
budgetary funds. Of the 620 staff funded from the regular budget, 615 are on regular and 
fixed-term contracts, and 5 are on time -bound project post contracts, which are limited to 
three years. Temporary  staff and interns are not reflected  in these statist ics. Moreover, 
the most populous division is the Language and Documentation Services division, followed 
by the Administration and General Services division.  
e. Regarding  internal staff mobility by division : Internal staff mobility is important and 
encouraged in the Organization  because it allows staff to move l aterally at the same grade, 
either for a temporary period or on a long -term basis, to gain and share knowledge , and 
to enhance  their career opportunities. In 2022 , there were 49 internal moves.  
f. With respect to recruitment and separation : In 2022, 40 positions were advertised, of 
which 77% were at the professional level . Since 2007, a total of 457 staff have left the 
Secretariat at a similar rate each year . In 2022, 34 staff members separated from the 
Secretariat, at a rate spread relatively evenly across the grades, which is consistent with 
other international organizations. In 2022 , there were 49 appointments, 18  of which were 
filled by internal and 31 by external c andidates.  
g. With respect to  promotions : Since 1996, there had been 939 staff promotions through the 
annual promotion exercise. Between 2012 and 2015, there was a freeze on promotions , 
and therefore, there is no data for these years. The Secretariat  Official  further noted  that 
the 2022 promotions exercise is under  way, and the relevant data will appear  in the next 
annual report on the grading structure. The Member of the Secretariat concluded with a 
final slide showing promotions through competitive selection  processes from 2007 to 2022. 
These promotions occur when a staff member is selected to fill a job at a higher grade 
through a competitive recruitment exercise for which a vacancy notice has been issued. 
In 2022, 18 staff members were promoted on a competi tive basis.  
7.4.  A Member thanked the Secretariat for the presentation  and said he had a few questions on 
resource allocation. The Member cited paragraph 2.7  of document WT/BFA/W/631 pertaining to staff 
funding from regular budget and trust funds and asked if i t would be possible to get a total number 
that includes temporary staff, interns, and young professionals, which were excluded from the 
presentation, to have a complete picture of the total staffing resources available to carry out the 
Secretariat's work.  
7.5.  Referencing Chart No. 5, the Member asked  how the Secretariat oversees resource allocation 
across the Organization. He said he would like to  better understand the staffing breakdown and the 
number of staff across divisions . 
7.6.  The Member proceeded to ask if it would be possible to have a background note on staffing 
breakdown  and responsibilities in the Information and External Relations Division, Information 
Technology Solutions Division, and the Knowledge and Information Management Division, because 
three Directors and three separate Divisions  seem to be working on "information" . In particular, the 
Member asked  how the responsibilities are delineated  and how resources are allocated. He gave an 
example  that the Knowledge and Information Management Division has  19 staff , which makes  it 
larger than the Trade  in Services Division,  Trade and  Environment Division, and the Intellectual 
Property Division, and  almost the same si ze as the Development, Agriculture, and Market Access 
Divisions, which are all responsible f or several Committees.  
7.7.  The Member recalled  that the Knowledge  and Information Management Division was created 
only a few years ago, and wonder ed how it had grown to be one of the largest divisions and what it 
does because when the Division was presented to  CBFA as a new Division, it had fewer than five 
staff. The Member also asked if, by  replacing the  Director of the  Trade Polic ies Review  Division , the 
Secretariat will add one additional Director position.  
7.8.  The Member posed questions about expenditures on L-Posts that are exclusively budgeted for 
the Global Trust Fund but not for other trust funds, asking whether Chart 6 in document 
WT/BFA/W/631 and Table 7  in document WT/BFA/W/6 29 are complete. The Member em phasized  
that there is  a lack of clarity on the status of the EIF and its Secretariat and added that in other  WT/BFA/212  
 
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  CBFA  discussions, the EIF was described as a n entity separate from the WTO . He further added  that 
the EIF does not appear as a trust fund in the r eporting provided to the CBFA. In this regard, the 
Member asked whether the Global Trust Fund is paying for the EIF Secretariat . He further asked the 
Secretariat to provide information on wh ich trust funds finance the L -Post positions in the  Intellectual 
Property  and Trade Polic ies Review Divisions.  
7.9.  A Member congratulated the Organization for having a well -balanced distribution, at least from 
a gender perspective, among staff.  The Member said that th e 48% male: 52% female ratio is very 
laudable, especially in the context of budget that has been frozen for 12 years, which limit s the 
Organization's ability to fill posts.  
7.10.  An Official of the Secretariat thanked Members for their questions . She said the Secretariat 
has indeed made progress in terms of gender balance  and is well advanced compared to other 
entities . She added that there is still work to be done, noting that  there is less gender balance at 
lower grade levels.  
7.11.  In response to the questions in paragraph 7.8. regarding L -Posts, an Official of the Secretariat 
said that th e Global Trust Fund is not the only source of funding for L -Posts . He said  that a significant 
portion of L-Posts are funded from the STDF , at least one L-Post is funded from the Trade Facilitation 
Agreement Facility , and that another source of funding for L -Posts is the Program Support Fund. He 
explained that the Programme Support Fund is the mechanism whereby a trust fund is charged a 
13% overhead, and that money is then funnelled into the Program Support Fu nd. He said 10% of 
the 13% is transferred to th e regular budget , and the rest remains as a balance in the Programme 
Support Fund.  
7.12.  In responses to questions pertaining to the EIF, in paragraph 7.8., the  Official of the 
Secretariat stated that the EIF is a s eparate entity . He noted , however, that administratively the EIF 
staff are part of the Organization  and are  included in its processes. He added that the EIF uses 
Secretariat rules and regulations, as well the payroll system . He clarified that the expenses on almost 
all EIF staff are covered by the EIF funds, but as a practical matter, there is a budget that is approved 
for the Secretariat of the EIF, which  includes staffing costs and  a payment for the estimated cost of 
rent and other resources of the Secret ariat.  
7.13.  The Chair proposed that  the Committee takes note of the report and the comments made.  
7.14.  A Member said his delegation  still ha d questions  and did not want to leave an impression that 
those questions had all been answered.  In particular , the Member asked why the CHF 6.8 million  is 
deducted from Global Trust Fund if the GTF  is only funding ten L -Posts.  The Member said he would 
follow up separately on the remaining questions.  
8  UPDATE ON THE REPLACEMENT OF DOCUMENTS ONLINE (DOL) - WT/BFA/W/634  
8.1.  The Chair introduced the agenda item by stating that Documents Online (DOL) is the 
Secretariat's online document repository for  accessing WTO official document s, and by noting  that 
the system is outdated.  
8.2.  An Official of the Secretariat said that the Secretariat has been engaging with Members to 
determine  their needs. He said t he Secretariat is now focusing on the Common Business Vocabulary 
(CBV) development to facilitate a future intuitive search and inform ation discovery.  He said  that to 
manage this CBV, a group of key stakeholders across the Secretariat has been established , and the  
Secretariat is planning to have an official launch of the CBV group at the end of May/beginning of 
June.  
8.3.  The Official of the Secretariat said the next step in the DOL replacement project will be to 
acquire technical components, subject to availability of resources, as detailed in WT/BFA/W/634. He 
recalled that as part of the proposed utilization of the 2021 budgetary surplus, the Secretariat had 
requested additional funding to acquire the components necessary for completing the DOL 
replacement project.  
8.4.  A Member commented that DOL is a useful tool, and that he uses it on a daily basis to prepar e 
for meetings. The Member mentioned that currently, under documents for meeting, the documents WT/BFA/212  
 
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  are uploaded only 10 days before the meeting, even though some document s are published much 
earlier. The Member requested to have the documents linked to meetings as soon as they are 
published.  
8.5.  In response to the comment in paragraph 8.4. above, t he Official of the Secretariat said that 
this will be discussed with the Committ ee Secretaries to encourage them to link the documents to 
meetings as early as possible.  
8.6.  A Member requested the Secretariat to provide a breakdown of costs required to  make  progress 
on this initiative as well as  the acquisition plan for the components.  
8.7.  In response to the request in paragraph 8.6., an Official of the Secretariat said that the 
Secretariat is currently exploring all options,  adding that the project will,  however, require additional 
resources. She said the Secretariat will present a detailed co st breakdown of the proposed solution 
at a future CBFA meeting.  
8.8.  The Official of the Secretariat then referred to the paper distribution of Official Documents, as 
set out in section 5 of WT/BFA/W/634. She indicated that E -Subscriptions service is progressin g 
well, and  that there are  now more than 1,000 delegates subscribed. She said t o further reduce costs 
associated with paper distribution , the Secretariat intends to stop this practice (except  for some 
special series documents)  as of 15 June 2023.  
8.9.  A Member expressed appreciat ion for  the Secretariat 's efforts and requested on -demand 
training for Documents Online and E -Subscriptions to assist delegates in transitioning to electronic 
subscriptions.  
8.10.  In response to the comments in paragraph 8.9., t he Official of the  Secretariat  said that an E-
Learning course is being developed and will be provided around  the end of the year, and that the 
Secretariat will also be available to provid e individual training/technical assistance on demand to 
facilitate a smo oth transition to electronic subscriptions.  
8.11.  The Committee took note of the report.  
9  UPDATE ON WTO MEDICAL INSURANCE PLAN AND ASHI – WT/BFA/W/627  
9.1.  An Official of the Secretariat recalled that an  update regarding the WTO medical insurance plan 
and ASHI is prov ided annually to the CBFA. He said the update focuses on the after -service health 
insurance component and why it is considered a long -term liability.  
9.2.  The Official  of the Secretariat said that the ASHI liability needs to be reported in accordance 
with the international public sector accounting standards. He highlighted that at the end of 2022 , 
ASHI liabilities were estimated  at approximate ly CHF 240 million, representing a stable general 
estimate of those liabilities over the years.  
9.3.  The Official of the Secretariat said that as part of the discussions and study of ASHI in 2017 , 
the Committee established a Special Reserve Account  (SRA)  for the medical plan , funded by savings 
on medical plan budget line. He said t he SRA is also financed partially by a charge to extra -budgetary 
funds when and where ASHI liabilities could arise. He stated that the SRA now has a balance of 
approximately CHF  10 million , corresponding to about 4% of the total ASHI liability.  
9.4.  The Official of the Secretariat sai d that, for the moment, all Members  have agreed to keep a 
pay-as-you-go approach for the medical plan. He said, in  that regard, the ASHI liability is an 
important figure to pay attention to. He observed  that fr om the budget point of view , it is important 
to consider the budget implications of the pay -as-you-go approach.  
9.5.  He further added that, as expected, the amount is gradually increasing  over time, and it has 
been measured as a percentage of the medical plan in the budget. He said the re are two drivers of 
such growth: (i) the number of people involved in the medical plan will increase as the retirees ' 
population increase s; and (ii)  medical inflation has been higher than regular inflation, which causes 
upward pressure on t he medical insura nce budget.  WT/BFA/212  
 
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  9.6.  A Member asked if the CHF 240 million liability could vary due to changes in the discount rate , 
the interest rate, and other factors. He asked how this figure could be compared with the one in the 
WTO financial statements . He noted that in Table 18 of document WT/BFA/W/588, the ASHI liability 
was estimated to be CHF 293 million as at 31  December  31 2021.  
9.7.  In response to the question in paragraph 9.6., t he Official of the Secretariat said that  in 2021 , 
the Secretariat reported a liability of CHF 293 million, while in 2022  the liability was CHF  240 million. 
He explained that  the decline is not due to a change in methodology but to increased interest rates. 
He noted that the interest rate determine s the volatility of the liabilities . 
9.8.  A Member asked at what point the ASHI gap will cause a problem in the years to come.  
9.9.  The Official of the Secretariat answered that Members have decided to manage ASHI and the 
medical plan on a pay -as-you-go basis. He sai d this  means that there is not per se a funding gap to 
be addressed . He noted that the gap  is just an indication that over the actuarial horizon of more 
than 100 years, this is the expected cost that will come up. The Official of the Secretariat stated tha t 
the unfunded liability is something that the Auditors will continue to look at . He said their preference 
would not be a pay -as-you-go basis for unfunded liabilities.  
9.10.  The Committee took note of the report and the comments made.  
10  WTO BUDGET AND FINANCE REPORT – 1ST QUARTER 2023 – WT/BFA/W/628  
10.1.  An Official of  the Secretariat stated  that at the end of March 2023 , the contributions received 
were lower than those received in earlier years. She said the principal reason for this is that some 
top contri butors paid their 2022 contributions in early 2023, while others in the top 30 deferred their  
contributions . 
10.2.  She said 50% of Members had paid their assessed contributions for 2023.  
10.3.  The Official of the  Secretariat said there were 17 Members under administrative measures  - 
four in Category I, five in Category II, and eight in Category III.  
10.4.  With regard to  the budgetary situation, the Official of the Secretariat said that at the end of 
the first quarter, the overall ex penditure was 31% of the 2023 budget . 
10.5.  She said u nder staff expenditure , the slight under -spending was due to a high number of staff 
departures since the beginning of the year.  
10.6.  The Official of the Secretariat  noted that  the General Expenses category  of the budget includes 
commitments for several annual contracts , such as the security contract , the cleaning contract, and 
the United Nations I nternational Computing Center. She said u nder travel and hospitality, the 
expenditure rate amounts to 36%, mainly due to the increase in  travel activity after the pandemic 
and a cost increase in air fare s and hotel  accommodation,  due to the increas e in inflation.  
10.7.  The Official of the Secretariat s aid capital expenditure includes the procurement of fixed 
assets , such as computing hardware and software , furniture , and security equipment. She said that 
the relatively high expenditure under this category  is related to expenditure and commitments for 
computing software and for rental and leasing of equipment.  
10.8.  The Official of the Secretariat explained  the financial expenditure category in cludes the annual 
reimbursement of the 50 -year interest free loan for the Extra-Muros building, amounting to 
CHF 1.2 million per year.  
10.9.  The Official of the Secretariat added that  Part C of the budget relates to the contribution to 
the International Trade Centre for the first quarter , and the annual allocation to the Ministerial 
Conference Operating Fund and to the Building Renovation Fund, respectively.  
10.10.   A Member thanked  the Secretariat for the report and said that the budget seem s to be under 
control.  WT/BFA/212  
 
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  10.11.   A Member suggested that in cases like those in Table 6  of document WT/BFA/W/628 , a few 
other columns showing how the percentage expenditure looked like in the past could be added.  
10.12.   In response to the comment in paragraph 10.11. above, the Official of the Secretariat said  
the report show s relatively comparable expenditure levels, highlighting that there are budget areas 
where the Secretariat had higher expenditure than for the comparable period in 2022.  
10.13.   A Member asked whether the Secretariat has considered  using alternative sources of 
electricity , like solar panels. The Member stated that one has to consider whether all tra vel is 
necessary because , in many cases, IT tools could be used to work with people abroad.  
10.14.   In response to the questions in paragraph 10.13. above, the Official of the Secretariat said 
that several ideas are under considerat ion. She said travel is being as sessed as well, given the 
budgetary constraints.  
10.15.   DDG Ellard  said nowadays more tools are available to perform online activities that do not 
require travel. She noted that  Directors have been instruct ed to monitor travel whenever possible , 
but that Members want the Secretariat to be present in many technical assistance activities. She 
added that she personally check s many of the travel requests to see if they were being carried out 
economically . 
10.16.   The Chair proposed that the Committee take note of the report and comments.  
11  QUARTER 1 2023 EXTRA BUDGETARY FUNDS REPORT – WT/BFA/W/629  
11.1.  An Official of the  Secretariat took the floor and said that extrabudgetary contributions received 
for the current year are quite low. In particular, he said t his does not mean that Members have 
reduced interest in the Global Trust Fund  but simply that even during the pandemic , the amount of 
money in the  fund exceeded the projected expenditures for that year. He said , as a result , some 
Members decided they would not provide more funding.  
11.2.  The Official of the Secretariat emphasized that since activities started resuming  after the end 
of the pandemic, expenditures are expected to increase in the coming months . He said although the 
funding status is stable for now, it is not sustainab le if the Secretariat does not obtain additional 
contributions.  
11.3.  The Official of the Secretariat referenced a previous question about earmarking, saying that 
the portion of the Global Trust Fund going into earmarked funds has tended to be for activities  that 
are not heavily impacted by  pandemic factors and could continue to operate. He said the balance 
between earmarked and non -earmarked contributions to trust funds  will be assessed . 
11.4.  The Official of the Secretariat said that the Ministerial Conference is app roaching , and that 
the Secretariat has a small amount of money remaining from  in the Trust Fund for LDC Participation 
in Ministerial Conferences. He informed Members that they would be receiving a letter to encourage  
support  for this Trust F und. 
11.5.  The Chair suggested that the Committee take note of the report and the comments.  
12  STRATEGIC FACILITIES PLAN – WT/BFA/W/630  
12.1.  An Official of the Secretariat presented the Strategic Facilities Plan and said that the aim of 
the document is to serve as a guide to plan  short, medium, and long -term capital projects, to ensure 
efficient use of the WTO facilities.  
12.2.  He stated that the WTO facilities consist of seven buildings and the Chinese Gu su garden. He 
added that the Extra -Muros building, the CWR , and the Welcome Pavili on, as well as the garden , are 
owned by the WTO, whil e Room CR is owned by the FIPOI, and the Villas des Chenes 1&2 and the 
Villa Rappard are owned by the Republic and Canton of Geneva.  WT/BFA/212  
 
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  12.3.  The Official of the Secretariat highlighted the measures taken in 2022  to contain costs and 
reduce energy consumption, as well as to promote environmental awareness and reduce barriers for 
individuals with disabilities.  
12.4.  He stated that the audio -visual equipment in the conference rooms has exceeded its 
recommended lifespan, a nd that the Secretariat is evaluating options to replace t he equipment.  
12.5.  The Official of the Secretariat briefed the Committee on the upcoming capital projects to be 
undertaken in the next five years, pertaining to infrastructure upgrades, fit -outs and renovations, 
as well as enhancement of the safety and security installations.  
12.6.  He also stated that the planned capital renovation projects in the next  10 to 15 (medium -
term) and from 25 to 50 years (long -term) will be financed from the Building Renovation F und, as 
well as from the CHF 1.1 million  annually  made available by the Swiss authorities to the WTO for 
capital expenditures pertaining to the major renovations of CWR building.  
12.7.  The Official of the Secretariat stated that the Building Renovation Fund tota lled 
CHF 25.1 million as at 31 December 2022. He indicated that since 2013 , the Swiss authorities have 
financed CHF 8,691,000 worth of projects pertaining to the CWR building.  
12.8.  A Member complimented the Secretariat for its efforts to follow the Host Country's 
recommendations to reduc e consumption and prepar e for energy shortage.  
12.9.  A Member thanked the Secretariat for the presentation and inquired whether the Secretariat 
plans to re quest the use of  the Building Renovation Fund to update  the audio-visual equipment in 
conference rooms.  
12.10.   In response to the question in paragraph 12.9, the Official of the Secretariat  said that as 
part of the proposed utilization of the 2021 budgetary surplus, the Secretariat requested funding to 
replace the audio -visual system. He said because  this request was not approved , the Secretariat will 
submit a proposal to allocate part of the Building Renovation Fund for this purpose.  
12.11.   The Chair thanked  the Secreta riat for the report . 
12.12.   The Committee took note of the Strategic Facilities Plan.  
13  CLOSING REMARKS  
13.1.  The Chair thanked the CBFA and the Secretariat and closed the meeting. She said that the 
next formal meeting of the CB FA is scheduled to take place on 27 June.  
 
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