RESTRICTED  
  
WT/BFA/W/337  
8 September 2014  
(14-5063)  Page: 1/5  
Committee on Budget, Finance and Administration   
 
  WTO BUDGET AND FINANCE REPORT - 2nd QUARTER 2014 
 
1  CONTRIBUTIONS FROM MEMBERS AND OBSERVERS 
1.1.  The receipts of contributions from Members as at the end of June 2014 are almost at the 
level of June 2013. As at the end of the second quarter 2014, 51% of the Members have no outstanding balance. With respect to the a ssessed amount of CHF 195 million, 69% has been 
received. 
Figure 1 Total Annual Receipts in MCHF as at 30 June 2014 
 
 
1.2.  The receipts of contributions for the 2nd quarter of 2014 from Observers amounted to some 
CHF 382,000, representing 52% of the assessed  amount. 52% of the Observers have no 
outstanding balance. 
Table 1 Status of contributions 30 June 2014 
 159 Members 25 Observers 
Total net assessment for 2014   195,375,288   733,125  
Payment received for 2014 (% of total assessment) (69%) 134,632,192  (52%) 381,787  
Payment received for prior years  13,804,774   225,835  
No outstanding balance (% of total) (51%) 81 (52%) 13 
 
2  CASH SITUATION 
2.1.  The cash situation at the end of the second quar ter of 2014 is satisfactory and slightly higher 
than the situation in June 2013. The situation is partly distorted by the funds received for the Building Project, as well as fo r the Global Trust Fund and the Enhanced Integrated Framework. WT/BFA/W/337 
 
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  Figure 2 Cash Situation as at 30 June 2014 
 
 
3  MEMBERS AND OBSERVERS UNDER ADMINISTRATIVE MEASURES 
3.1.  On 1st of January 2013, the new Administrative Measures have been introduced, reducing the 
number of categories from four to three. Member s in Category III (three or more full years of 
outstanding contributions) are now considered inactive. 
3.2.  At the end of June 2014, four Members are subj ect to Category I (more than one, but less 
than two years outstanding) of the new Administ rative Measures, three Members to Category II 
(more than two, but less than three years ou tstanding) and six Members are subject to 
Category III (from three years outstanding = Inactive). Since the last report in March, Paraguay made a payment and came out of Category I and Senegal came out of Category II. Côte d'Ivoire 
made a payment in compliance with its paymen t plan terms and has been put back under 
Members with a Payment Plan. The Dominican Repub lic, previously subject to Category III, settled 
its long term pre-1988-arrears and has also been taken off the list of Administrative Measures. 
Table 2 Members and Observers under Admini strative Measures as at 30 June 2014 
Cat. I (4) Cat. II (3) Cat. III (6)   
Benin Antigua and Barbuda Central African Republic* 
Cameroon Saint Vincent and the Grenadines Dominica 
Tanzania The former Republic  of Macedonia Grenada   
Vanuatu  Guinea-Bissau 
   Mauritania*   
    Sierra Leone* 
* Members not compliant with Payment Plan terms. 
3.3.  Only one Observer is left on the Administrative Measures list at the end of June. This means 
that the accession working groups do not meet anymore and that the WTO suspends the request 
for annual contributions from them. Since the March report in December, Iran (previously in 
Category I) and Syrian Arab Republic (previously in Category II) settled their arrears and came 
out of the Administrative Measures.  WT/BFA/W/337 
 
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  Table 3 Observers under Administrati ve Measures as at 30 June 2014 
Cat. I (0) Cat. II (0) Cat. III (1) 
  Sao Tomé and Principe 
 
3.4.  As at the end of June, seven Members are subjec t to a Payment Plan. Since the last report in 
March, Côte d'Ivoire, previously not compliant with the Plan, made a payment and came back 
under the terms of Members under Payment Plan. 
Table 4 Members following a Payment Plan as at 30 June 2014 (in CHF) 
Member Plan 
duration 
in years End of 
plan Last 
payment  
received Amount 
Outstanding  
for 2013 Amount 
Outstanding 
for 2014 Advance  
Burundi 20 31/12/2030 18-Apr-13 0  0  91,203 
Chad 15 31/12/2026 28-Sep-12 0 0  68,762 
Côte d'Ivoire 10 31/12/2019 20-May-14 0  0   0 
Djibouti 10 31/12/2019 12-Feb-14 0  76,217 0  
The Gambia 10 31/12/2019 04-Mar-14 0  15,985 0  
Niger 15 31/12/2024 04-Feb-14 0 59,001  0 
Togo 5 31/12/2014 16-Jan-14 42 115,980 0  
Total      42 267,183 159,965  
 
3.5.  The three Members indicated in the table belo w are still not compliant with their Payment 
Plan terms. 
Table 5 Members not compliant with Pa yment Plan and therefore back to 
Category III (Inactive) as  at 30 June 2014 (in CHF) 
Member Plan 
duratio
n 
in years End of 
plan Last 
payment  
received Amount 
Outstanding  
for 2012 Amount 
Outstanding 
for 2013 Amount 
Outstanding  
for 2014 
Central African 
Republic 30 31/12/2039 24-Jul-13 0 53,180 55,982 
Mauritania 25 31/12/2034 02-Jan-14 2,049 66,959 66,959 
Sierra Leone 15 31/12/2025 18-Sep-13 - 31,411 93,866 
Total      2,049  151,550 216,807  
 
 
 
  
 WT/BFA/W/337 
 
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  4  2014 BUDGETARY EXPENDITURE 
Table 6 Consolidated Statement of Budge tary Expenditure as at 30 June 2014  
(in kCHF) 
Part Section Budget Expenditure 
and 
Commitments Balance 
30 June 
2014 % of 
Expenditure 
A Staffing 
Resources 1. Staff Expenditure 131,415 59,212 72,203 45% 
  2. Temporary Assistance 17,167 9,813 7,354 57% 
A Staffing Resources Total 148,582  69,025  79,557 46%  
B Other 
Resources 3. General Services 15,801 10,891 4,910 69% 
  4. Travel & Hospitality 7,481 4,454 3,027 60% 
  5. Implementing Partners 273 75 198 28% 
  6. Capital Expenditure 2,967 893 2,073 30% 
  7. Financial Expenditure 1,230 12 1,218 1% 
B Other Resources Total 27,751  16,325  11,426 59%  
C Operating 
Funds and 
ITC 8. Contributions to ITC & 
Special Reserves 20,870 11,635 9,235 56% 
C Operating Funds and ITC Total 20,870  11,635  9,235 56%  
Grand Total 197,204  96,986  100,218 49%  
4.1.  As at the end of June 2014, the overall budgetary expenditure is on track with an expenditure 
rate of 49% or CHF 100 million Swiss Francs. 
Part A - Staffing Resources 4.2.  Part A of the budget comprises expenditure for re gular staff related to salary, pension, health 
insurance, death and invalidity insurance, staff be nefits and expenditure related to travel, removal 
and installation. It also includes expenditure related to short term staff, consultants, panellists and Appellate Body Member fees. 
4.3.  The slight over-expenditure under Temporary A ssistance is mainly due to the salaries and 
common staff costs for the dispute settlement lawyers with two year contracts working on dispute settlement panels and appeals. It also includes the replacement of staff on leave without pay or on 
long term sick leave. Additionally, panellist fees related to dispute settlement are gradually 
increasing. This over-expenditure is compensate d by savings under regular staff expenditure due 
to the number of vacant posts in the process of being filled. 
Part B - Other Resources 
4.4.  Part B of the budget relates to expenditure for general services, travel and hospitality, 
activities jointly funded by the WTO and third parties, as well as capital and financial expenditure. 
4.5.  Under General Services, the overall expenditure rate of 69% includes the commitments for 
several annual contracts such as the cleaning contract (CHF 0.9 million) and the security 
outsourcing contract (CHF 3.4 million). Under Build ing Maintenance, an overspending is expected 
due to the maintenance of the new facilities of the Secretariat. This overspending will be 
compensated by savings under telecommunications and postal charges. 
4.6.  Under Section 'Travel and Hospitality' the fund s for the major trade policy courses have also 
been committed until year-end. 
4.7.  The Section 'Capital Expenditure' includes the procurement of fixed assets such as computing 
hardware and software, office furniture and security equipment. The expenditure is low under 
these items, as the WTO premises have recently been equipped with new items following the construction and renovation project. WT/BFA/W/337 
 
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  4.8.  The Section 'Financial Expenditure' includes the reimbursement for the 50-year interest-free 
loan for the new premises of CHF 1.2 million, which has to be paid at the end of the year. This Section also includes the bank charges for the WTO bank operations. 
Part C - Operating Funds and ITC 
4.9.  Part C of the budget relates to the contributions to the International Trade Centre as well as 
the two operating funds. 
4.10.  Under Part C, the Appellate Body Operating Fund (CHF 1.8 million) and the Ministerial 
Operating Fund (CHF 0.6 million) have been replenished. The contribution for ITC is booked on a 
monthly basis and shows the expenditure as at the end of June. 
5  PROGRESS REPORT ON DISPUTE SETTLEMENT 
5.1  Dispute Settlement Activity 
5.1.  In the area of Legal Affairs, there are currently  9 formal consultation requests under Article 4 
of the DSU and 2 panel requests pending before the DSB. Furthermore, there are five established panels awaiting composition, eleven active original panels, and three active compliance panels 
under Article 21.5 of the DSU. 
5.2.  In the area of Rules, there are currently 6 form al consultation requests under Article 4 of the 
DSU and 1 panel request pending before the DSB. Furthermore, there are four established panels 
awaiting composition, seven active original panels, and four active compliance panels under 
Article 21.5 of the DSU. 
5.3.  On the appeals side, 3 appeals in 6 distinct disputes have been filed in the first half of 2014. 
In the second semester of 2014, up to five appeals in eight distinct disputes are expected. For 
2015, the level of dispute settlement activity will  remain extremely high, as on average 66% of 
the panel reports are appealed. 
5.2  Staffing 
5.4.  During the year 2013, staffing has been gradually increased in the dispute settlement area. 
By November 2013, 16 project-based dispute settlement lawyers with limited contracts up to a maximum of two years, as well as one temporary dispute settlement lawyer, had been hired. In 
December 2013, one project-based lawyer won a co mpetition for a fixed-term post and therefore 
became fixed-term staff. At the end of 2013, the WTO employed 15 project-based lawyers and one temporary dispute-settlement lawyer. 
5.5.  Up to the end of the second quarter 2014, three of the project-based lawyers won a 
competition for a fixed-term vacancy and became regular staff. One new project-based lawyer has 
been hired at the beginning of the year. One proj ect-based lawyer has not been extended at the 
end of his contract at the end of June. As at end of June, the WTO employed 13 project-based 
lawyers and one temporary dispute settlement lawyer. 
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