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WT/BFA/198  
 
11 October 2021 
(21-7724) Page: 1/23 
Committee on Budget, Finance and Administration    
 
REPORT OF THE MEETING HELD ON 23 SEPTEMBER  2021  
The Committee on Budget, Finance and Administration (CBFA) met on 23 September 2021. Her 
Excellency Ambassador Bettina Waldmann, German Ambassador to the WTO , welcomed Members 
to the meeting.  
1  ADOPTION OF THE AGENDA  
Referring to the lengthy agenda, the Chai r encouraged Members to take a pragmatic and 
solutions -oriented approach so as to conclude on some of the topics. She emphasized the desirability 
of getting the budget approved before the Ministerial Conference.  
Turning to the agenda, the Chair noted that it was released on 13 September, with the 
reference WTO/AIR/BFA/47, together with an annotated agenda bearing the reference JOB/BFA/55.  
She mentioned that the Secretariat would provid e an oral update regarding the Structural Review of 
the WTO Secretariat u nder "Other Business".  
The agenda as set out in document WTO/AIR/BFA/47 , with the additional item under "Other 
Business" , was adopted . 
2  ORAL REPORT FROM THE CHAIR OF THE CBFA ON ONGOING WORK  
The Chair reiterated that a key priority is to ensure passage of t he 2022 -2023 WTO and ITC 
budget proposals. She added that both had been formally presented to the Committee on 
22 June 2021.  
Another priority cited by the Chair is the management of WTO Trust Funds. She said the Chair 
of the related Working Group would be providing an update under agenda item C. The Chair 
encouraged the Working Group to continue its good work and said it ought to aim to report back to 
the CBFA, with recommendations , by the end of October.  
The Chair mentioned the endorsement of the revisions to Financial Regulations 4, 17, 26, 27, 
29, 37, 38 and 42 that were agreed in 2019 as a priority for endorsement in 2021. She added that, 
if agreement can be reached on revisions to Financial Regulations  19 and 23, they could be included 
in the package of Financial Regulations the CBFA would  present to the General Council for approval.  
As a separate matter, the Chair recalled the conversations currently underway in the context 
of the Negotiating Group on Rules, regarding the creation of a funding mechanism to support the 
targeted implementation of new fisheries subsidies disciplines. She observed that the conversations 
are still at an early stage  and added that the Director General is committed to bringing  the subject 
to the CBFA, at the appropriate time.  
The Chair informed the Committee that she had recently met with the Chair of the General 
Council to inform him about the state of play o f the CBFA's discussions regarding the 2022 -2023 
budget, the proposed utilization of the 2020 budgetary surplus and the related question of assessed 
contributions.  
The Chair informed the Committee that she intends, as necessary, to hold informal 
consultatio ns with delegations to gather further information and help move key issues forward, in 
particular, the WTO 2022 -2023 budget proposal.  WT/BFA/198  
 
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  3  REPORT FROM THE CHAIR OF THE WORKING GROUP ON COHERENCE IN THE 
ESTABLISHMENT AND MANAGEMENT OF WTO TRUST FUNDS  – WT/BFA/W/ 569 
The Chair of the Working Group referred the Committee to the report (WT/BFA/W/569) issued 
in mid -August. She updated the Committee with the information that the Working Group had met 
on 14 September. At that meeting the Working Group considered a furth er elaborated set of 
principles that members intend to be the basis for recommendations to be brought to the Committee.  
The Chair said the  report for the CBFA will include recommendations for the senior management 
of the WTO Secretariat.  The intention is t o stay high -level and focus on principles rather than try to 
develop detailed or prescriptive processes or policies. However, the Working Group will endeavor to 
provide recommendations that are sufficiently precise and detailed to provide the Secretariat w ith a 
clear understanding of Members' views and priorities.  
A Member expressed the view that the Working Group should engage more directly on the 
proposed amendments to Financial Regulation 19. Another Member emphasized the need for 
consultation and input from beneficiary Members before any recommendations are finalized. The 
Member encouraged the Secretariat to reach out to  beneficiaries and seek their views. Other 
Members expressed support for the importance of engaging beneficiaries in the process, perhaps 
with dedicated consultations.  
A Member expressed appreciation for the leadership of the Chair of the Working Group and the 
evolution of the work being undertaken. However, he expressed the view that while they are related, 
financial regula tion 19 is under the control of Members whereas the Working Group is focusing on 
elements that would be under the control of the WTO Secretariat. Therefore, he would not link the 
two processes. He also expressed the hope that senior management of the WTO S ecretariat will 
focus on addressing the concerns raised by Members in the Working Group and at the CBFA.  
The Committee took note of the report.  
4  ENDORSEMENT OF THE TRANSFERS BETWEEN BUDGETARY SECTIONS AND THE 2020 
AUDITED FINANCIAL STATEMENTS  – WT/BFA/W/5 60/REV.1  
The Chair said during the meeting  on 12 July  the Committee had considered the 2020 WTO 
Financial Performance Report , which comprises of budgetary performance, trust fund performance 
and the financial statements. She said the External Auditors  had placed an unqualified audit opinion 
on the WTO's 2020 F inancial Statements . 
The Chair said the Secretariat  had subsequently circulated a revis ed version of the 2020 WTO 
Financial Performance Report,  addressing suggestions and comments that had been raised by  
delegations during the meeting  on 12 July . 
 The Chair propose d that the Committee make the recommendation  in paragraph  4.4. below 
to the General Council  and the Committee approved the proposal . 
The Committee recommends that the General Council approve the transfers between 
budgetary sections as outlined in paragraph 2.33 of the document 
WT/BFA/W/560/Rev.1. The Committee further recommends that the General Council 
approve the WTO Audited Financial Statements for the year ended 31 December 2020.  
5  PROPOSED UTILIZATION OF THE 2020 BUDGETARY SURPLUS – WT/BFA/W/565  
The Chair said that DDG Ellard had introduced the paper CBFA meeting  on 12 July. She then 
opened the floor for further comments or questions by Members . 
A Member s tated that their delegation  supports the proposal by the D irector General  to pass 
on the savings realised during 2020 to the Members by way of reduced contributions for next year. 
The Member said the proposal is a win -win solution as the concerned  savings were realised without 
the Se cretariat having to cut corners. The Member said p assing on that benefit to Members to reduce 
their burden , even if it is not significant , sends a positive message to the membership and to the 
World that the WTO is sensitive to the Members' current economi c situation brought on by the WT/BFA/198  
 
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  pandemic. The Member added that t his is precisely what their delegation's  intention had been  when 
they made the ir suggestion for a budget cut or reduction in contributions, through their interventions  
in the budget discussions  in 2020.  
The Member continued that since the propos ed amount meets the 5% voluntary cut that their 
delegation had suggest ed in 2020, their delegation would be in a position  to support the proposed 
budget, at z ero nominal growth , for 2022 -2023. The Member said their delegation had heard the 
views of other delegations during the meeting  of 12 July and hopes the other delegations had had 
the time to reflect upon this proposal during the Summer break . The Member said their delegation 
hopes that the Committee could adopt th e proposal in the present meeting  so that this matter can 
be settle d as this would  enable the Committee to move forward on to the 2022 -2023 budget . 
A Member said that, at a previous Committee meeting, their delegation had asked whether 
Members could allow themselves to do this given the accelerated accumulation of net liabilities on 
the balance sheet of the Organizatio n. The Member  read out the following extract from the report of 
the External Auditors , "if one day at once everyo ne retires at the same time and the Organization 
were closed down, pensions would have to continue being paid. "  
The Member said w hat ought to be of interest to Members is the annual financing of the 
liabilities of the WTO Pension Plan. He said t his should  be of concern in the short term  as on several 
occasions  the Committee had been informed that staff members would be increasingly retiring and 
that greater pressure would be put on the pension plan  due to the  increase d funding requirements 
of the liabiliti es, overtime . He said the budget has remained constant in nominal terms for a number 
years and that if every year the liabilities increase, it is logical that the budget to be allocated to the 
pension plan has to increase.  
The Member reiterated his earlier question as to whether the organization can afford to reduce 
Members' contribution by using a portion of the budgetary surplus at this stage and asked for an 
answer to this question.  
A Member express ed strong appreciation for the proposal in itself a s it is linked to the dire 
circumstances that many Governments are facing , including in financial terms , to cope with the 
crisis. He said it is critical to discuss the proposal  intensively and make sure that it is linked to the 
pandemic and  that this is a unique situation linked to substantive saving s by the organization. The 
Member said  his delegation had expressed serious concerns with the proposal given the structural 
obligation for Members to find a solution for the liabiliti es and shortcomings in covering the health 
insurance system and pension plans. He said Members tend to underestimate how big this problem 
is. 
A Member observed that there are huge inadequately funded long -term liabilities and said that 
the budgetary surplu s could be used to reduce the extent of this. The Member said, nonetheless, 
their delegation is w illing to set aside concerns that they had voiced in the meeting on 12 July in 
order to not complicate the discussion . The Member said the organization is at the brink of a 
Ministerial Conference , which hopefully will come up with an ambitious set of recommendations and 
ambitions for the work plan.  
The Member held out hope that next year the organization  will be able to recover part of the 
lag it had experienced  in its work program of the previous two years . For example , by increas ing 
technical assistance to developing economies, via the regular budget . He said the savings might be 
very useful for next year.  The Member said  their delegation has difficulties in fi nding the coherence 
in the Director -General's proposal and her having earlier on indicated that she might come up with 
requests for additional resources following the consultancy on the structural review of the WTO 
Secretariat.  
Going back to the fundamenta l discussion of structural obligations, the Member said  it is 
important for Members to include these elements in their deliberations . The Member added that, if 
the Director -General, having considered these concerns, in the end decides to maintain the proposal 
the paper ought to be enhanced in order to incorporate  the suggestions of some Members . These 
could include the serious responsibilities Members have regarding the  liabilities for the health 
insurance system and the pension fund and for this aspec t to be included in the recommendation to 
be made to the General Council.  WT/BFA/198  
 
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The Member said that, at the technical level, the language of the recommendation as 
contained in bold in the document states that the contribution will be applied against Members' 
contributions for 2022. He said, whatever comes out of this, it is critical that this does not get seen 
by delegates or by their Ministers of Finance as a de facto lowering of assessed contributions.  
Several Members said that they understand the challenges behind the proposal and that they 
still have question marks, given the liabilities of the Organization and possible future additional 
needs for resources.  In this regard, they said more time could be useful to consider th e proposa l. 
A Member said that their delegation concurs with the concerns raised, given the extent of 
long-term liabilities. The Member said, nevertheless, as  the allocation of the surplus to contributions 
is important for some countries, her delegation is willing to have flexibility and not oppose the 
proposal . 
A Member  expressed support for the comments made by  European Union Member States . He 
suggest ed that a dedicated session be held, in 2022, on the pension modalities of the Organization 
and on the question of the WTO Pension Plan reporting directly to the General Council , and not 
through  the CBFA . He said i t seems more appropriate to have the Committee also to be able to look 
at the current pension structure  so as to better understand the potential liabilities of the 
Organization.  
A Member said the  organization will have significant demands and said these resources could 
be focussed on issues like technical assistance and supporting developing Members  as this would  
have more consideration  than this one -off approach. No netheless, the Member stated that if there 
is broad support for the recommendation their delegation could support it. 
A Member said Financial Regulation 23 gives discretion to Director -General and she has made 
a proposal  that is consistent with  that regulation. The Member asked what has been communicated 
to the D irector -General  regarding  conversations that have come from the Committee , both in the 
July meeting and since . The Member said  conveying the prudential concerns ought to  be weighed 
along side the valid concerns that another Member had raised about the current situation. Whilst 
recognizing that Members could convey their views, the  Member said it up to the Director -General  
to make a proposal . The Member said he thinks the Director -General  fully recognizes the long-term 
sustainability  issues  of the Organization and added that she may be able to provide an articulation 
that may contribute to moving the discussion forward.  
In responding to the question regarding the extent of long -term liabilit ies, an Official of the 
Secretariat referred Members to the 2020 Financial Performance Report, which was under agenda 
item D, bearing the reference WT/BFA/WC/560 Rev .1. Specifically, she made mention of  the WTO 
Pension Assets of CHF 664.496 million on page 29 and Pension Benefits of CHF 1.379 billion and 
After Service Health Insurance Benefits of CHF 295.5 million on page 30  as depicted on the 
Statement of Financial Position . She emphasized the significa nt gap in the long -term assets and the 
related long -term liabilities for benefits payable to staff members during their retirement years, 
approximately CHF 715 million for the pension fund. And the fact that no assets existed as yet to 
cover the A fter Service Health Insurance of CHF 295.5 million.  
 The Official of the Secretariat recalled that, during a long period several years  ago, the 
Committee had set up three working groups which had been tasked with looking at the issue of After 
Service Health Insuran ce, including  the fact that there are no assets to cover the amount that would 
be involved over time . This culminated in the Secretariat , in 201 8, making a proposal for the  for the 
allocation of an accumulated budgetary surplus of CHF 52 million (for the years 2011 to 201 7) to be 
allocated in such a manner that a portion could  establish assets for A fter Service  Health Insurance . 
The Committee had not been able to receive consensus on this proposal.  In the end, the Committee 
had recommended that the Ge neral Council approve the allocation of the amount of CHF 52 million  
to the Working Capital Fund.  
The Official of the Secretariat said she was mentioning the historical aspects in order to 
highlight that the budgetary surplus of CHF 9.8 million, under disc ussion, is significantly less than 
the amount of the funding gap between ASHI and pension assets and liabilities. She added that in 
order for the concerns regarding the long -term liabilities to be adequately addressed Members ought WT/BFA/198  
 
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  to, at some point,  have extensive discussions and give consideration to using the Working Capital 
Fund to create assets for ASHI.  
The Official of the Secretariat appreciated the  comment made by a delegation that had 
suggested a revisiting of the reporting process  of the WTO Pensi on Plan Management Board  and said 
this would be a positive step.  
Responding to a question about the prospect of the Secretariat requesting an upward revision 
of the budget, during the mid -term review and the current proposed allocation of the 2020 budgetar y 
surplus, the Official of the Secretariat said there is a strong likelihood for a budgetary surplus for 
2021, which could be used in this regard, given that the circumstances induced by the pandemic in 
2020 are still ongoing in 2021. She added that this w ould have to be explored by her principals as 
she was just stating an accounting view.  
On whether the Director -General had been apprised of the discussions that had gone on at 
the Committee meeting, the Official of the Secretariat said this had no t yet bee n done a s discussions 
during the previous Committee meeting had been at a preliminary stage . He said that the Director -
Generally would be briefed after the current  meeting.  
A Member reiterated the suggestion to enhance the written proposal in order to move  the 
issue forward to conclusion. In this regard, he suggested that the Secretariat could prepare a revision 
of the document WT/BFA/W/565  because this is the paper that will be communicate d to Capitals and 
financial authorities.  
A Member asked for clarific ation of the options that had been discussed in the past  which had 
included the suggestion to allocate a portion of the then accumulated budgetary surplus to set up 
an ASHI asset base within the balance sheet . The Member s tated that the effect on the balance 
sheet would  differ between if the budgetary surplus is allocated to contributions or if it is allocated 
to either the Working Capital Fund or to new assets to respond to the needs of ASHI. 
An Official of the Secretariat responded that any money that is applied to contributions would  
increase the overall financial deficit  in the balance sheet . She said that CHF 9 .8 million would not go 
very far in r educing the overall financial deficit of approximate ly CHF 836 million in the Statement 
of Financial Position . She said more would have to be done, including the revival of discussion s 
regarding the need to fund  ASHI. She recalled that discussions of this subject a few years prior had 
culminat ed in the establishment of a S pecial Reserve Account funded by annual differences between 
the budget and actual expenditure on health insurance  and added that the closing balance of this 
Special Reserve Account as at 31 December 2020 was CHF 5.8 million , which is significantly less 
than the C HF 295.5 million  ASHI liabilities . 
An Official of the Secretariat explained how the assessed contribution s would be presented . 
She said the full assessed contributions would be reflected on  the statement and then there would 
be a second line indicating the credit from the budgetary surplus , followed by a line stating the 
amount to be transferred by Members for the 2022 budget . Thus, the assessment would be the total 
amount and the payment of the Members would then be the amount less the credit.  
A Member thanked the Secretariat for its responses and said that it is true that assets 
generally do not always respond to specific lines on the liabilit ies side. He said the major problem is 
the net liabil ities of CHF 836 million as per the last Statement of Financial Position. The Member said 
if the Committee  wants to give itself a certain flexibility, some funds  could be put into the Working 
Capital and then a decision could always be made  to reassign them to deal with the liabilities 
connected with ASHI or pensions. He said that w hichever option would be taken may  be a secondary 
issue at this stage  and that w hat is important is how many more liabilities exist compared to the 
assets. The Member repeated th at their delegation is not going to oppose the proposal on the 
utilization of the budgetary surplus even though it would like the concerns raised reflected in the 
report for the meeting, irrespective of the decision that will finally be taken on this item.  He said the  
organization must work on the basis of consensus , which does not necessarily mean unanimity. He 
said if he had the opportunity, he would pose the same question s to the External Auditors.  
A Member said their delegation had listened very careful ly to the intervention s and that the  
issue may  need further clarification through discussions among the Members and the Secretariat.  WT/BFA/198  
 
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  She said one question repeated several times over a considerable period is the large liabilities of the 
Organization. She said this issue is not new to Members as this was known s ince the adoption of 
IPSAS . She added that, from previous discussions with External A uditor s, their delegation  
understand s that these liabilities could be there for quite a long time  and that no clear answer was  
received regarding when they would disappear. She said this is an issue that Members should always 
bear in mind when considering  the budgetary surplus and the WTO budget. The Member said, on 
the other hand, their delegation sees the value of the  proposal  as it would address the difficulties in 
some countries from the pandemic hence the response from the WTO, in some way , to address  this. 
The Member said this is a very exceptional case. She said the Committee needs a way to addr ess 
the long-term liabilities  but this does not mean that  nothing can be done regarding exceptional 
cases. 
The Member acknowledged the concerns from Members that the proposal may change the 
contributions of the Members  and said that, to her delegation's un derstanding, the proposal is very 
clear. Nonetheless it can be made c learer, through a revision, to indicate that it is an exceptional 
case, and that it is not  setting a precedent and that M embers' contributions  are not being changed . 
She said an accounting sheet pertaining to the assessed contributions would be helpful for Members 
to ensure that this is just a  once-off approach. She said that in addition to the need to make decisions 
on a consensus bas is, the Committee  should also reflect on the i ssue with the  spirit of sympathy, 
solidarity and flexibility.  
The Chair thank ed Members for their engagement in the discussion and their profound 
arguments. She said the discussion has shown that there are different aspects and concerns that 
have to be tak en into account.  She said since  the deliberations could not be conclude d during the 
current meeting of the Committee, she  would  consult with Members on how to move this item 
forward to arrive at  a conclusion . 
6  Q2 2021 BUDGET AND FINANCE REPORT – WT/BFA/W/57 0 
An Official of the Secretariat introduced the second quarter financial report pertaining to the 
regular budget and pointed out that the contributions received as at the end of June were slightly 
higher than for the comparable period  in 2020 . 
The percenta ge of actual 2021 receipts relative to assessed contributions for Members was 
66% and that for Observers was 38%.  
The Official  of the Secretariat proceeded to read the Members and Observers under each 
category of administrative measures, as at 30 June 2021 , highlighting that these had remained 
unchanged  as at 23 September  2021.  
She further presented the actual expenditure as at the end of June, which amounted to 45% 
and explained that the expenditure was still heavily impacted by the COVID -19 pandemic. This  was 
reflected mainly under travel expenditure, hospitality, utilities, the expenditure for the outsourced 
security provider, as well as Home Leave, office supplies and publications. She added that this was 
partly offset by over -expenditure under IT consul tants, interpretation, virtual meeting tools and 
audio -visual equipment.  
The Committee took note of the report.  
7  Q2 2021 EXTRA -BUDGETARY FUNDS REPORT – WT/BFA/W/571  
A representative of the Secretariat introduced the second quarter report and noted, that except 
for a few categories such as internship programmes and certain projects under the STDF, most trust 
fund activities continued to be seriously constrained by the on -going pandemic. He indicated that 
the next agenda item , the Biennial Technical Assista nce Plan , would shed more light on adaptations 
being developed by the Secretariat in response to remote and hybrid training scenarios.  
A Member questioned if there would be ways to increase the diversity of Members contributing 
to the Global Trust Fund (GT F) by reaching out to more advanced developing countries who have 
benefited from the WTO's TA. He also observed that effective implementation of new trust funds can 
be challenging in spite of there also being successes. He expressed support for the more de tailed WT/BFA/198  
 
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  reporting on expenditures related to the STDF and offered additional comments on where he thought 
aspects of reporting could be more consistent across trust funds.  
The Committee took note of the report.  
8  BIENNIAL TECHNICAL ASSISTANCE AND TRAINING PLA N FOR 2022 -2023 – 
WT/COMTD/W/260  
An Official of the Secretariat presented the Technical Assistance and Training Plan for the years 
2022 to 2023 to the Committee, noting that a few typographical errors had been detected, and a 
corrigendum issued on 22 Septe mber. The main corrections were the amounts on paragraphs  167 
and 190 and changes in the definition of Key Result 3 to maintain consistency and facilitate 
comparability with previous plans.  
He said the  TA Plan is a policy framework that defines the strateg y to be followed by the WTO 
Secretariat with respect to training. It sets priorities; anticipates the expected results; and identifies 
mechanisms for implementation and sources of funding for the activities.  
The TA Plan is traditionally submitted every two  years by the Secretariat to the Committee on 
Trade and Development for its adoption. It is also presented to the CBFA , which consider s its 
budgetary implications. Due to the fact that the meeting of the Committee on Trade and 
Development is scheduled to t ake place on 10 November,  the document is being presented to the 
CBFA first and will be discussed by the CTD later on . 
The Official of the Secretariat covered the background on which this TA Plan is being presented , 
encompassing the strategic approach and the budgetary context.  The TA Plan builds on the 
experience gained and lessons learned from the implementation of previous plans. At the same time, 
it takes into account the steep learning curve in recent months to adapt training activities to the 
current reality.  Due to the COVID -19 pandemic, face -to-face activities (which constitute the bulk of 
the Secretariat's TA activities) have been suspended since March 2020. Initially, only e -learning 
activities and internship programs were able to continue , relativ ely unaffected.  
After some months, organizers, trainers and beneficiaries better  understand the opportunities 
offered by remote delivery of training  as well as the limitations , when compared to face -to-face 
training. Surveys  have shown that b eneficiaries a re generally reluctant to replace face -to-face 
activities with virtual events. To maximize the impact of virtual activities, some conditions have 
proven necessary, including participants being able to dedicate sufficient time to the activity, taking 
into a ccount work and family constraints . Access to strong and reliable internet connection and 
adequate computing equipment are essential and cannot be always taken for granted.  
The TA  Plan is prepared at a time of considerable uncertainty. It rests on the assumption that 
the current limitations on face -to-face TA activities will be gradually overcome in the course of the 
period 2022 -23. 
With respect to the strategic approach  and with t he consideration of how COVID -19-related 
restrictions could be lifted at a national or regional level, t he TA Plan under consideration is 
structured according to the same overall philosophy and broad operational modalities as previous 
TA Plans.  
The TA Plan  is designed on the basis of the Secretariat's strategy of managing for results, 
endorsed by Members since 2013. This strategy reflects an approach which focuses on achieving 
measurable results through planning, decision -making, transparency and accountabi lity. It reflects 
the respective contribution of different result levels, such as expected outputs and key results, using 
a logical framework matrix. The Secretariat has also updated its monitoring and evaluation plan. 
This Plan provides an overall structu re for the monitoring and evaluation of TA activities. It describes 
the strategic information to be gathered and used for decision making that will ultimately lead to 
improved trade capacities for TA beneficiaries.  
Under the Progressive Learning Strategy ( PLS), endorsed by Members in 2011 , TA activities 
are defined by two criteria: level (introductory , intermediate or advanced) ; and target audience 
(generalists or specialists).  The PLS allows for a more efficient use of TA resources by building on WT/BFA/198  
 
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  the knowl edge and experience previously acquired by participants, and progressively taking 
participants to a higher level of training.  
The Secretariat is committed to fully inclusive TA activities that respond to the needs of 
beneficiaries , especially LDCs.  LDCs' participation in TA  activities, which was particularly affected in 
2020 and 2021, will remain a priority.  
With a view to addressing gender imbalances, which appear to have been affected because 
of the pandemic, the Secretariat intends to continue to monitor  and report on participation in TA 
activities  according gender, continue developing its trade and gender training modules in TA 
activities  and integrate issues of gender equality and the empowerment of women into TA 
programmes and training material.  Langua ge diversity and the use of all WTO working languages in 
TA delivery are other tools to achieve inclusion.  
The Secretariat will continue to focus on the areas in which partners can add value to the TA 
provided by the WTO . These are through s ubstance , cost-sharing , field support , logistics and 
outreach.  
The TA Plan prioritiz es activities with the highest potential to produce results for beneficiaries. 
This requires, among other things, to resume face -to-face training as soon as conditions allow, 
taking into account regional and local circumstances, as well as the preferences an d constraints 
expressed by beneficiaries.  
The TA Plan's proposed sources of funding continue to be the same, namely the Secretariat's 
regular budget and the extra budgetary funds from voluntary contributions by Members. These 
voluntary contributions are es pecially appreciated, given the current  challenging economic 
environment.  
With respect to the regular budget, in anticipation that face -to-face training activities  may be 
resumed  and be required to address pent up demand, a slight increase of the TA budget  is proposed 
for 2022, from CHF 4.5 million  to CHF 4.8 million . The 2023 budget will return to the previous 
amount of CHF 4.5 million.  As in previous years , the main proportion of the implementation of the 
TA Plan will be funded through extra -budgetary fun ds during the 2022 -23 biennium. The TA Plan 
has been prepared on the premise that extra budgetary resources will continue during this biennium 
at a slightly higher level than in the most recent TA Plan. This would allow the Secretariat to 
accommodate any i ncreases in the volume of TA as a result of a resumption in face -to-face activities, 
and the possibility of MC12 outcomes.  
Key Result 1 aims to enhance Members' capacity to better c omply with their obligations under 
the WTO Agreements and to make full use of their rights. The bulk of TA will correspond to the 
attainment of this Key Result. The amount proposed represents about 74% and 73% of the total TA 
funding in 2022 and 2023, respectively, compared to 77% in the 2020 -21 TA Plan.  
Key Result 2 aims to ensu re that acceding Governments are participating effectively in 
accession negotiations, in line with WTO accession processes and procedures. This corresponds to 
the 23 governments at various stages of the accession process. The cost is equivalent to about 4  % 
of the total TA funding, similar to the 2020 -21 TA Plan.  
Key Result 3 aims at enhancing academic institutions ' expertise on WTO work and issues, 
improving research, teaching, as well as outreach to policy makers. This w ill represent about 7% of 
the total  TA funding, an increase compared to 1% in the 2020 -21 TA Plan.  
Key Result 4 seeks to ensure that non -governmental stakeholders are knowledgeable about 
WTO work and issues. The amount proposed would be equivalent to about 6% to 7  % of the total 
TA funding,  similar to the 2020 -21 TA Plan.  
A Member expressed his delegation's  appreciat ion for  the work of the Secretariat and the 
strong commitment of participants in technical assistance training during the pandemic. He noted 
that it is also good to use this difficult period to make improvements and develop new ways of 
working , such as remote tra ining.  WT/BFA/198  
 
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The Member  expressed his delegation's support  for the n ew TA Plan , citing its  coherent 
approach for all activities, financed from both the regular budget and voluntary contributions. He 
concur red that technical assistance training should primarily be driven by needs and requests from 
beneficiaries, within the context of strategic priorities of the WTO membership. He said that the 
donors and the Secretariat  have to be guided by these demands and ana lysis and continue to work 
on this demand -driven approach in technical assistance.  
Referring to Section  4.1 of the TA Plan, the Member said strong signals requiring the need for 
further debate on the Medium -Term Strategy beyond this technical assistance pl an, both on the 
items and the areas of work, as well as on methodology used , are evident.  He said his delegation 
agrees  that, where t he TA Plan  is quite a strong response on methodological demands, it is less so 
on the priorities identified for areas of wo rk and themes through the need s assessment.  
The Member said it is not for the CBFA to d elve into the TA Plan , although he does not see its 
role being limited to the budget  as the C ommittee has an "A" for administration . He said the CTD 
has the responsibili ty of looking at the TA Plan  in a wider context . 
The Member said his delegation fully support s a program on  Training of Trainers, in particular 
for long -standing courses on what one might call classical WTO obligations. He suggested that, as 
these issues a re also being taught at  universit ies and private sector institutions, these entities can 
be relied upon e ven more and options for the  training of trainers broadened . He said his delegation 
is pleased to see the positive impact of the different internship p rogrammes to which their country 
has been a major contributor since 2005.  
 The Member stated that T able 1 , in Annex 2 , introduced earmarked funds in line with the 
discussions that had been held in the Working Group on Trust Funds. Nonetheless, he expressed a 
preference for this term to not be used to categorize funds. In this regard, he requested the 
Secretariat to revert  to the chapeau and the methodology used in the previous  TA Plan. He added 
that the WTO Chairs' Programme  (WCP)  would, by implication,  be moved back into the GTF column 
as it is part of the GTF administration.  
Another Member reiterated  that the WCP ought to be reflected under  the GTF and requested 
the Secretariat to  amend that par t of the text.  
Speaking on behalf of the LDC Group, a Member thank ed the Secretariat for the presentation 
of the TA Plan for  2022-2023. He said that technical assistance is very important and that the LDC 
Group would have the  opportunity to consider the TA  Plan by the next meeting of the CTD.  He 
expressed appreciation for the continuing support to LDCs in the context of technical assistance and 
training. He stated that t he health crisis has negatively impacted the implementation of the 2020 -
2021 TA Plan  and expressed hope  that the situation can improve and that face -to-face activities can 
resume. He added that the best formula is a blend between face -to-face and remote activities. 
However, he noted the limitations in terms of telecommunications, poor band width  and poor Internet 
connections.  
The Member recalled that there are national activities in-country and asked that financial 
support continue as they reach a wider public. He said though T raining of Trainers is important, 
internship programmes are also important. He added that TA strengthen s trade capacit y, export 
capacity and human resources.  
A Member requested the Secretariat  to resume technical support  for new officials that are 
posted to  Geneva  so that they can be thoroughly trained on aspects such a s access to WTO 
documents.  
An Official of the Secretariat thanked Members for the supportive comments they had made. 
He mentioned that the training offer has evolved over time. He gave the example of the trade policy 
course which has been in place for over  65 years and said that it has been updated and more recently 
has been delivered remotely to address current restrictions. On the Training of Trainers, he said the 
Secretariat is permanently engaged with other institutions that also provide training on WTO  topics.  
On the comments that had been made regarding face -to-face activities, the Official of the 
Secretariat said recent surveys in training activities had indicated limitations such as some WT/BFA/198  
 
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  participants not having access to a device for the full time o f the activity, issues with internet 
connectivity and power blackouts.  
In response  to an earlier comment regarding revisiting of Table 1, an Official of Secretariat 
said references to "earmarked funds" would be replaced with " other trust funds " and that th e WCP 
would  appear un der the Global Trust Fund.  
A Member said that the deliberations that had just taken place ought to have been had at a 
CTD meeting. He said the annotated agenda  of the CBFA meeting clearly states that the CBFA should 
be discussing the budgetary aspects .  He said that it is regrettabl e that  the CTD has not been able 
to hold a meeting for a  core piece of its business this year.  He asked that the CBFA use its time 
efficiently given the long agenda and ask ed that focus be on those elements that were included in 
the annotated agenda.  
A Me mber said t he TA Plan  was prepared through a consultative process in which his 
delegation participated , and he thanked the Director of ITTC  for this . He said the TA Plan had covered 
much of the aspects which incorporated various modalities in the form of t raining which has become 
valuable for the adopt ion of  proper policy measures , not only to comply with the WTO laws , but also 
to take needful reform to domestic governance mechanisms to fully support trade and investment.  
Several delegations expressed their  support for the TA Plan as presented.  
The Committee approve d the budgetary aspects of the Biennial Technical Assistance Plan for 
2022-2023, as set out in document WT/COMTD/W/260.  
The Chair said  some Members had mentioned the need for the CTD to discuss th e substantive 
aspects  of the TA Plan . She requested Members to encourage the CTD to improve its organizational 
skills with regard to this topic for the next time  such that the sequencing of the discussions of the 
TA Plan is done early at the CTD, before pr ogressing to the CBFA.  
9  ITC 2022 -2023 BUDGET PROPOSAL – JOB/BFA/52  
The Chair introduced the agenda item by stating that the budget of the ITC is a distinct line in 
the budget of the WTO Secretariat.  She recall ed that the Executive Director of the ITC, Ms Pamela 
Coke-Hamilton, had presented the ITC 2022 -2023 budget proposal to the  CBFA on 1 July.  The Chair 
added that the  ITC had also responded to questions posed by delegations at that time.  
The Chair proposed that  the Committee approve the ITC budget, contingent upon the approval 
of the WTO budget.  She then read out the proposal to make the recommendation in paragraph 9. 3. 
below  to the General Council. The Committee approved  the proposal . 
The Committee recommends to the General Council that the budget for 2022 -2023 of 
the International Trade Centre UNCTAD/WTO be approved in the amount of CHF 
36,686,250. With miscellaneous income being estimated at CHF 200,000, the amount to 
be provided by the WTO to the International Trade Centre, UNCTAD/WTO budget for 2022 
and 2023, shall be CHF 18,243,125 per year.  
A Member thanked the ITC for their participation in the meeting and for previous discussions 
and said his delegation welcome s the partnership that the Commit tee had  with the ITC  throughout 
the year . The Member said his delegation would certainly like to continue in this vein. He added that 
the ITC manages trust funds very well and said this could be a topic for discussion with them, at a 
later stage, in a bid to build better linkages between WTO Members' interest in supporting Technical 
Assistance and the ITC . 
10  WTO 2022 -2023 BUDGET PROPOSAL – WT/BFA/W/556  
The Chair recall ed the Committee had discussed the WTO 2022 -2023 Budget Proposal at 
length during its m eeting its on 1 July  and that related questions that were posed had been  
addressed by the Secretariat. She asked if Members had any follow -up questions . WT/BFA/198  
 
- 11 - 
 
  
As there were no questions, t he Chair  proceeded to read the recommendation  to be made to 
the General Council . 
A Member said her delegation had misunderstood the Chair's introductio n. She added that , 
as her delegation had no new question s, she had thought that there were some responses, and 
maybe further presentation from the Secretariat. The Member said, in the Committee meeting on 
12 July, their delegation had  sought further information from , and had had follow up discussions 
with, the Secretariat. She said it was regrettable that to date her delegation has  not received a clear 
response from the Secretariat on the issues it had raised. Therefore, at this moment, her delegation 
is not  in a position to have the budget endorsed . She said her delegation is  looking forward for 
further information from the Secretariat.  
The Chair requested the Member to be more specific about the concerned question  so that 
the Committee can help in resolving  the matter  or providing the answer s. 
The Member said that, in the pre vious Committee meeting where the budget was discussed, 
her delegation had asked for documents or information on the research work carried out by the 
Secretariat to see whether there are some guidelines which can help her delegation to better 
understand the budget  pertaining to  research. She said they had subsequently had some 
conversations , with the Secretariat, but they had still not received any document or clear response 
from the Secretariat.  
An Official of the Secretariat said that she presumed that th e delegation's discussions with 
other colleagues in the Secretariat  had gone in the right direction. She said it is helpful that the 
delegation had made their request concrete  and that she would  provide feedback to relevant 
colleagues in the Secretariat.  
A Member asked  whether  the issue can be resolve d because it is important to see whether 
the Committee  can endorse the  budget. He then asked the Member that had expressed her 
delegation's lack of readiness to endorse the budget during the current meeting, w hich part of the 
budget does the issue actually  relate to . He said his delegation would also be interested in looking 
into the research strategy of this Organization but at the same time they do not believe that will 
actually change the budget lines that h ave been reserved in quite generic terms. He said he could 
not even find the specific reference, so perhaps the Committee could look into which paragraphs 
this refers to . 
The Member said that he has certitude that whatever comes out of the discussion on th e 
research strategy can be accommodated by the budget as presented , more so that  some of the 
research work is related to activities that are financed from the regular budget in terms of the 
Technical Assistance and Training Plan. 
The Member that had stated  that her delegation is not ready to endorse the budget said she 
can understand the importance to have t he budget endorsed as early as possible. She said that her 
delegation has  no intention to challenge the current  budget allocation s and that her delegation's  
interest is in better understand ing why approve such kind of budget  on research .   
The Member said her delegation  support s and appreciates the WTO Secretariat doing  
research work within its competency  and said valuable research reports  had bee n prepared by the 
Secretariat, especially on m acro-economic  issues , trade related  analytical report s and technical 
assistance work that helps developing countries to be better integrated into the organization , as 
these are the competences of the Secretaria t. 
The Member said her delegation would like to have a much clearer understanding of all other 
research work done in the Secretariat  and whether there are any clear guidelines . The aim being to 
have a clear understanding as to whether the Secretariat under takes research beyond its 
competency, without any direction or consensus from the Member s. She added that t here would a 
problem with such kind of research .  
A Member said t his is a very important topic which is worth more attention. However, he 
expressed concern at the implied  level of involvement of Members in adopting a research strategy 
and perhaps even at the level of individual research. He said his delegation would likely not  support WT/BFA/198  
 
- 12 - 
 
  that approach . He said a related  discussion could be rele vant based on more information from the 
Secretariat.  
The Member added that the Director -General has  openly spoken about her surprise and 
initial notion of  the limited extent of research capacity in the WTO , at least compared to the World 
Bank and others . This leads to the question as to what is the independent role of the WTO  and to 
what extent it can rely on others to do research ? He cautioned that though this is a very important 
topic, it is quite broad and that if related information is conditional to ad opting this budget, most 
likely the discussion will make it even more conditional and the Committee could get into a wait and 
see kind of approach.  
The Member asked the Member that was not yet in a position to endorse the budget if the 
Committee  could put the issue on the agenda and indeed ask relevant Secretariat Officials to come 
to the Committee  and address  the issue of the  kind of guidelines in place for research and how to 
deal with this  matter . He added that pe rhaps that would be sufficient enough for  the Member that 
had raised the question to endorse the budget or have it endorsed  ad-referendum , to allow the 
Member to consult its Capital  in the coming day or two . He voiced concern that the Committee will 
lose a full month  if it waited for its meeting in late October. He said his delegation does not want to 
make the staff members , the O rganization and Capitals nervous , yet again,  about whether there is 
a stable future for the Organization.  
A Member explicitly stated support for the gavelling of the budget and said his delegation  
would like that reflected in the report of the meeting . He said it seems that there is only one voice 
of opposition , at this point in time , and said his delegation would like to find a way for ward.  
The Member said his delegation understand s that another Member  has some sensitivity 
regarding some issues being examined by the Secretariat and indeed may have some difficulty in  
adjusting to the new world order of the new D irector -General  and where she wants to take the 
institution. He said his delegation is  also adjusting to the new world order and has questioned 
whether the WTO should be doing work on  peace, pollution, plastics and other topic s which his 
delegation deems as not necessarily being WTO trade issue s. He said Members are  feeling their way 
forward in terms of engaging in a way that finds relevance for the Organization and makes space 
for issues that are important to others . In this regard, he asked the Member that had raised the 
subject o f research  to be open -minded in allowing the Organization to become relevant by finding 
new avenues . He added that the sensitivity relates to old issues, not new issues , and said it is an 
important conversation that Members ought to have in the context of reforming the organization 
and in their  engagement with the D irector -General . 
The Member said this is not  something for which the budget  should be used  to try to address. 
He then asked the concerned Member to  consider some openness to some new ideas and engage 
with the Secretariat as his delegation does when it finds areas that touch upon issues that are 
sensitive to it. 
Another Member also asked that his delegation's endorsement of the budget, as presented, 
be put on the record . He support ed a suggestion that had been made by another Member towards 
a resolution of the matter and added that his delegation had shown  flexibility and solidarity by 
refraining from blocking the decision on the use of the 2020 budget ary surplus. He called on other 
Members to show flexibility and said his delegation would support any solution enabling the 
resolution of  the outstanding issue.  
The Member that had raised the issues on research said her delegation finds the discussion 
very interesting because she could hear that some Members are worried about the  budget  yet this 
is September and the Committee still has another meeting in October . She said that if the issues 
raised by her delegation  can be address ed her delegation  would endo rse the budget as early as 
possible.   
She said that her delegation's question happens to be the last to be answered by the 
Secretariat and said she did not know whether the Secretariat had responded satisfactorily to the 
questions that had been raised by other Members. She added that the Secre tariat had addressed all 
the other questions that her delegation had raised in the previous meeting where the budget was 
discussed.  WT/BFA/198  
 
- 13 - 
 
  
A number of other Members expressed their readiness to endorse the budget as soon as 
possible given the need to focus on preparations for MC12 preparations.  
An Official of the Secretariat thanked the delegation that had raised the issue of research 
for being clearer as to the nature of the issue. She said she is aware that there have been meetings 
between the delegation and other Officials of the Secretariat. She said w hat is new to is the linkage 
of the issue to the endorsement of the budget. She added that she would refer the issue to  relevant 
colleagues and DDG Ellard, who was away on official travel  during the meeting, and request that a 
response be sent to the delegation  as soon as possible.  
On an earlier question as to whether the topic of research ought to be put on the agenda of 
the Committee, the Member that had raised the issue said this is not her delegation's intention as 
she had already stated that her delegation  appreciate s the WTO Secretariat 's research up to date  as 
it reflected a common understanding o f the research work carried out in th e Organization. S he said 
that is why her delegation never raised any concerns before . She said her delegation sees that  the 
Secretariat is thinking about doing something that her delegation does  not think is within its 
competence , hence her delegation's request for c larification on this. She said her delegation cannot 
accept that money from its taxpayers  be used  to do something that her delegation does  not think is 
appropriate in this Organization. Her delegation needs to ensure their contributions to the 
organization serve  the purpose of the organization and are within its competence. She restated her 
cautionary comments about adding more and more items to the agenda of CBFA meetings and said  
that this topic need not be put on the agenda.  
Speaking on behalf of the LDC Group , a Member said the question of the adoption of the 
WTO's budget is an important one.  He noted that certain delegations stated the ir support for the 
endorsement of the budget in the current Committee meeting, during their interventions. He said 
he understa nds this as well the concern expressed by one Member. He said adopti on of the budget 
is extremely important because the Ministerial Conference is just a few months away and the 
Secretariat needs to organize this conference , with a lot of pressure to bear. He said that approving 
the budget would put the Secretariat under less pressure because it could carry out its activities 
under more or less normal circumstances.  
The Chair thanked Members for their comments and contributions. She said that i t appears 
that the Committee is not yet in a place where the budget can be recommended to the General 
Council. However, much progress has been made and this was also mentioned by some delegations 
in view of the fact that Members will be focusing on other crucial meeting s in the buil d up to the 
Ministerial Conference.  
The Chair then encourage d the Committee to aim to endorse the budget at the CB FA meeting 
scheduled for 22  October , as this would allow sufficient time for the General Council to approve the 
budget in Novembe r before MC12.  
11  PROPOSED CHANGES TO THE TEXT OF FINANCIAL REGULATIONS 19 THAT WAS 
AGREED IN JUNE 2019 – BY INDIA – WT/BFA/W/564  
The Chair recalled that the Committee had discussed the proposal during  its meeting on 
12 July, as summarized in paragraphs 12.1 to 12.23 of document WT/BFA/197. She invited Members 
to take the floor to raise further questions or make any comments.  
On behalf of her delegation, as lead sponsor of the revised text, and on behalf of the co -
sponsor, the delegate of India thanked Members  for the constructive discussions that had taken 
place during the previous Committee meeting. She said her delegation had carefully listened to the 
Members who had taken the floor then  and thank ed those Members that had  expressed support for 
the proposal as well as  those who  had sought clari fication of  some of the elements.  
She said her delegation had, subsequent to the CBFA meeting on 12 July, reached out to 
some of the key Members to discuss the proposal and understand their concerns with a view to 
accommodating them. She thank ed them for their engagement and conveyed the message that her 
delegation is ready to resume those discussion s. She exp ressed the hope that Members had had 
time to reflect on the proposal during the Summer break and would share their thoughts during the 
current meeting . WT/BFA/198  
 
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The Member summarized the proposed revisions as follows: the  proposal  that was presented 
on 1 July  is a compromise vis -à-vis that which her delegation had proposed in  November 2019 ; the 
WTO is built on working through consensus and , keeping that principle in mind, her delegation had  
changed the proposal in a way that is able to gather consensus of Members ; for the same reason , 
her delegation has made minimal  changes ; the proposal does not alter the manner in which trust 
funds are approved ; the decision -making authority to receive the voluntary contributions will still be 
with the D irector -General  when such co ntributions do not create direct or indirect financial costs to 
the WTO regular budget ; only when such voluntary contributions create additional costs to the WTO 
regular budget will there be a n eed to bring this  to the Committee for consideration ; it is on ly fair 
that when trust fund activities involve use of resources from the regular budget, which is paid for by 
all the Members, that the Committee's consent ought to be required ; the delegation has tried to 
clarify what indirect costs and liabilities imply . 
She said M embers should be aware that , in the past, resources paid  for from the WTO regular 
budget have been diverted and used for trust fund activities  and that some  Members have raised 
serious concerns with t he practice. She stated that, i n an organization where  trust is already at 
prime among Members, everyone  (Members, the Secretariat and the Donors ) bears the responsibility 
of ensur ing that their actions do not widen the mistrust between Members. She said her delegation 
is not saying tha t expenditures  paid for from regular budget cannot be used for trust fund activities. 
What they are  saying is that if there is a need to do so, then the CBFA  needs to be aware of that 
and provide its concurrence.  
If any voluntary contribution does not enta il costs to the regular  budget , then what her 
delegation is seeking is only prior information and intimation about such contributions and the 
opportunity for Members to flag any concerns. In such instance s, the Secretariat and the donors 
could address the concern of the Member . This does not mean that any Member can block the receipt 
of such  voluntary contributions.  
As Members had expressed concerns about the politicization of voluntary contributions were 
the Committee to decide on all voluntary contributio ns, something that her delegation had proposed 
in November 2019, her delegation had c hanged its approach in the current proposal as it fully 
understand s the risk involved in going down that path.  
She said that in  terms of the notification by the Secretariat and approval by the CBFA of the 
voluntary contributions, the delegation's  proposal is even handed as it stipulates 60 days for both 
the Secretariat to notify the Committee of the voluntary contribution and impos es a similar time on 
the Committee to approve or give views on the proposals that come before it. This has been done 
to fix the responsibility of the Committee as well to ensure that Members do not delay  considering 
proposals whilst  at the same time provid ing proper checks and balances.  
She said her delegation understand s the importance of technical assistance  to developing and 
LDC Members  and has  always  been support ive of technical assistance given to Members that need 
it, be it through the regular budget or through voluntary contributions. She said the proposal is not 
aimed at curtailing TA activities  but rather that by improving transparency in the financing of TA 
activities, the proposal will, in fact, ensure long -term sustainability of TA activities thr ough multiple 
sources of funding.  
A Member t hanked India for submitting the proposal and presenting it. He said his delegation  
believe s good progress  has been made in the Working Group on Trust Funds , which has prepared a 
good working document in its last meeting . The Member said, to ensure coherence in th e process it 
is important to allow the work of the Working Group on Trust Funds to come to a conclusion before 
considering any alternative or complementary measures in this regard.  
A Member thanked India f or its introductory remarks. She said her delegation has concerns 
with the addition of the word "cost" in the footnote and "indirect cost". She said i ndirect cost cannot 
be traced unequivocally to specific activities, projects or programmes, making it almo st impossible 
to determine or disprove. Therefore, these specifications would practically make every single trust 
fund require the consent of the Committee , effectively changing the decision -making structure.  
The Member said  technical assistance and capacity building helped countries develop more 
effective institutions and legal frameworks, as well as implement essential policies to take full WT/BFA/198  
 
- 15 - 
 
  advantage of the  multilateral trading system. Therefore, they are crucial and consequential feature s 
of this Organization. Having the Committee approve every single trust fund may politicise the 
process  by allowing delegations to hold up the approval of some trust funds u ntil some other issues 
are resolved. That risks paralyzing important technical assistance projects . She noted that India ha d 
made it clear that changing the decision -making structure in having the CBFA approve every trust 
fund is not its intention . She sai d that, however, the proposed change  would have the opposite 
effect . She then said this  is why Members  need time to discuss a way that would  avoid this 
unintended consequence.  
The Co -sponsor (the United States) said the intention of the proposal is to put down some 
clear suggestions to actually focus the conversation less on the abstract and more on the concrete. 
He said, a s the delegation of India had indicated, there are a couple of elements that are important 
to consider as discuss ions and work on the pr oposal  continue . 
First, given the recent history and given the problems that his delegation  has expressed in  
the Committee  over many years , there needs to be something more specific in Financial R egulation 
19 than the vague reference to  the terminology  "financial liability ". He said that this is almost  non-
existent as it is for what can and cannot be brought through the committee. He stated that a 
conversation is necessary to refine this terminology . 
He said the sponsors of the revision would welcome other contributions to addressing the 
permissiveness of the first paragraph , in a way that would  address his delegation's  concerns. He 
stated that additional costs or financial liability such as Secretariat staff time or use of websites 
ought  to be included  and considered as part of the cost to be covered by  trust funds.  
The Member said another important element of the proposal is the suggestions made for 
changes to Annex C regarding  the issue of transparency and the timing of that transparenc y. He 
said that under  the current procedures  the Secretariat could accept funds, establish a trust fund and 
notify the Committee  later when it was too late to actually voice a concern or engage in the process. 
He said  that important elements of the suggest ed changes to Annex C  create a preferred pathway, 
which is that t rust funds should not have an impact, and if they do not have an impact, there is a 
smooth transition  and an obligation for transparency . He said another  sufficient trigger ought to be 
to set a threshold  that is sufficiently clear that it actually captures some trust funds and not no trust 
funds as it is currently the case. Hence, the setting up of  a notice and comment process that would  
be familiar to all WTO Members in terms of a timeline  for notification and a timeline for comments.  
The co -sponsor said he recognizes many  of the concerns that were expressed in the current 
meeting, so far, and said the Committee ought to work through avoiding the issues that were 
flagged. He asked  Members t o think about and explore the following questions , which could be 
helpful for progress to be made: Why can trust funds not commit to offsetting the costs upfront that 
they are imposing on Members and thus creating the easy pathway?  Why can trust funds not be 
designed specifically to avoid issues i n their initiation and not just be handed to Members? Why is 
the only option  that is given to Members is for them  to be both permissive and to shoulder the 
financial costs of trust funds ? He said a balance has to b e found between permissiveness and 
responsibility  as well as the responsibility for the costs.  
The Member said there  is no reason why trust funds cannot be conceived of and developed 
in a way that move s through the easy path where there is a notification, which was the  original 
intent of Financial Regulation 19, noting however that the interpretation of financial liability is 
unknown and that the  bar for this was so high there has never been a trust fund that trigger ed it. 
He said that, clearly, this question  needs to be revisit ed since there are t rust funds that draw upon 
regular bu dget resources in a way that raises questions about impartiality.  The Member asked the 
Committee to approach the proposal with a problem -solving orientation . 
A Member said , from his delegation's perspective , it is quite obvious that the costs of 
additional  activities directly related to a trust fund should be covered by the trust fund . He said  the 
problem relates to the generic or encompassing definition of costs, including indirect costs . He 
recalled that this proposal is not only about establishing trust funds  but encompasses accepting 
voluntary gift s, so it is a generic statement that when there is whatever cost it has to go with consent 
of the Committee.  WT/BFA/198  
 
- 16 - 
 
  
He gave the example that if a country donates money to the LDC participation trust funds 
this would a llow Ministers from the LDCs to come to  a Ministerial Conference  and that this  would 
involve additional work from the Secretariat to receive the Ministers and to take care of the 
administration of the ir travel  and facilitation of the ir engagement. He asked if, in such cases, the 
time the Director -General spent on receiving the Ministers  is directly related to the additional gift of 
the trust fund  and has to be paid for by the donors. He said that Members ought to be careful in 
defining cost and ensure that this is not overdone.  
The Member said the Working Group on Trust Fund is important because a distinction 
between direct costs and two categories of indirect costs  had been discussed during one of its 
meetings . He said that d irect costs  are obvious  as they are triggered because of the existence of the 
trust fund and they have to be covered by the trust fund. Indirect cost s are also clear and thus the 
13% programme support costs paid by trust funds.  He added that the  working group could l ook into 
the aspects covered by the programme support costs . He said it is obvious that variable indirect 
costs triggered by the existence of a trust fund are also to be covered by the trust fund  and this is 
common practice in the WTO.  
He said the category, which the Secretariat refers to a s fixed indirect costs, is exactly the 
kind of activities that are described, and ought to be  exclude d from the discipline that is being 
proposed. He suggest ed that only in case contributions involve a dditional costs beyond those fixed 
indirect costs which are not covered by the regular budget, should  the consent of the Committee  be 
sought . He said the exact wording for this would have to be agreed and that this category of costs 
ought to be exclude d from the definition of indirect costs, to avoid complicat ing matters.  
The Member said the term, "financial liability " is rather unclear in th e proposal.  He asked  
whether it is still necessary to retain this terminology in the text or  whether, were a solution  on what 
is meant in terms of cost  to be found , the phrase could be completely  dropped  as it adding to the 
ambiguity and creating suspicion and thereby actually not help ing Members  to build more trust. He 
suggested that the footnote be replaced or deleted.  
The Member said the proposed 60-day periods are very long . He said as soon as the 
Secretariat has identified the needs of potential beneficiaries and the donors have contributed to the 
establishment of a fund, it is important not to lose too much time in getting the process going  and 
establishing the trust fund . He suggested that the period be reduced to hal f or even  a shorter period 
than that.  
A Member said the language in t he proposal is quite vague and that there could be a lot of 
problems for actual implementation. She said trust funds are voluntary contributions premised on 
good intentions from Members to help th ose who need assistance to integrate into the Organization, 
especially the developing Members and LDCs. She said the objectives of trust funds are part of the 
WTO's objectives. In that case, voluntary contributions should not be regarded as a competitor fo r 
the regular budget.  
She said the Committee had debated on this issue for a very long time. She said at the 
beginning , the debate was helpful for Members to better understand each other but if the same 
arguments are  always repeat that is not  helpful. The Member suggested that the Secretariat could  
look at the accounting o f specific projects to see whether  the assessment that  there would be no 
liabilities, made at the time when the trust fund was created, holds after it has financed activities.   
She said w ith current language, it would be very difficult to judge whether the trust fund s 
should go through CBFA for consensus or just go through notification for the purpose of 
transparency. The Member underlined the importance of transparency  and stressed that the 
principles or guidelines of trust funds should encourage voluntary contributions.  She recognized the 
need for Members to consider the trust funds  but noted  that the proposed 60 -day periods are not 
that convincing . 
The Member said it is a  well-known fact that a  fisheries' trust fund is under consideration . 
She said that she hopes that the current discussion s, debates and divergences on the proposal 
pertaining to Financial Regulation 19 will not affect the establishment of any new trust fun d, if it is 
really needed.  WT/BFA/198  
 
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A Member asked for clarification of two points : the reason for the deletion of the phrase, 
"…up to…" before the 13% ; and if the suggested period of 60 day s for the CBFA 's views , as reflected 
in Annex C , has any relationship to th e duration between formal meetings of the CBFA . 
The co -sponsor thank ed Members f or engaging. He said the topic had initially come up 
because trust funds have a significant implication on the work of the WTO  as they use the WTO's 
name and so Members believe that it is important to have some transparency about what is being 
done. He said a key  principle is that a trust fund ought to not speak or act on beha lf of an 
Organization as this would be including all Members in things that they may not be in support of.  
The co -sponsor said follow up conversations could be held with Members that had raised 
concerns related to the definition  of costs.  He said Financial  Regulation 19 was created at a time 
when Members  did not envision a lot of trust funds. He said the current version of Financial 
Regulation 19 suggests that any financial voluntary contribution becomes a trust fund . He said that 
if the right framework is put in place, and if a trust fund is set up correctly, there would not be a 
problem for contributions to it. 
Responding to a question, the co -sponsor said it does not appear that the WTO ha s a variable 
rate for p rogramme support cost s. He said his delegati on had asked a lot of questions on the 
Programme Support Fund and an Official of the Secretariat had explain ed what it is and what it is 
not. 
The co-sponsor said that the  fisheries fund that was mentioned by another Member is a good 
example  as it has been in the works for months and there has been no transparency for Members. 
He said a process could be run on a shorter time frame if Members are consulted along the way. He 
said the planned fisheries fund and another  that was previously mooted , a TBT trust fund, were to 
have contributions ranging from CHF  20 to 5 0 million and CHF 20 to 35 million , respectively. He said 
there could be very substantial impact if Members have absolutely no understanding of what is 
coming their way, and thus  the ex isting ex -post notification is insufficient. He said part of the work 
that is being done by the Working Group  on Trust Funds  is to try and establish common guidelines 
to give Members  comfort  as there may be Members in the room that are contributing to the fisheries 
fund and know exactly how the management structure is being organized . He said this would be a 
plurilateral approach that is then imposed on the rest of the Members . 
The lead sponsor thank ed all the delegates who had participated in the discussio ns for the ir 
comments and questions. She said it is clear that Members  are not far off from reaching an 
understanding  and added that her delegation is  open and flexible to discuss ing this proposal with 
Members to reach consensus.  In this regard, the lead sponsor requested the Chair's intervention 
and guidance in steering this process so that the loop on F inancial Regulation 19 could be  closed 
quickly and the full text of revised finan cial regulations, including F inancial Regulation 19, could be 
sent to the G eneral Council  for approval.  She said they are ready to engage with Members in small 
groups or bilaterally , to reach an understanding.  
The Chair thanked Members for their active par ticipation  and said, as there is no agreement 
yet, the Committee is not in a position to include Financial Regulation 19 , at this stage , in the full 
text of revised financial regulations to be endorsed for approval by the General Council . She said 
since th e trust fund topic is very broad, she will reflect on it and facilitate exchange s among 
Members.  
12  REVIEW OF THE CHANGES TO FINANCIAL REGULATION 23 AS PRESENTED IN 2019 – 
WT/BFA/W/572  
The Chair recall ed that Financial Regulation 23 had briefly been touched on at the meeting of 
the Committee on 12 July.  
An Official of the Secretariat explained the changes made and their rationale and said that i n 
the last CBFA meeting, some Members had asked that this Financial Regulation be  included in the 
revised full text of financial regulations to be recommended for approval by the General Council.  
The motivation behind the changes is to ensure that the financial regulation is aligned to 
IPSAS because the regulation preceding it had been there before the Organization adopted  IPSAS.  WT/BFA/198  
 
- 18 - 
 
  Relevant aspects included the fact that long-term assets and l iabilities are reflected  in the balance 
sheet ; a distinction  is made  between  the budgetary result and the financial result , as these are  
distinct ; and inclusion of the definitions of asset s and liabilities.  
A Member reiterated that their delegation  has no problem with the changes to 
Financial  Regulation 23.  
As there were no objections to t he changes , the Chair propose d that Financial Regulation 23 
be included in the revised complete text of financial regulations to be endorsed for  submission to 
the General Council  for approval . It was so decided.  
13  ENDORSEMENT OF THE PROPOSED FULL TEXT OF THE REVISED FINANCIAL 
REGULATIONS OF THE WORLD TRADE ORGANIZATION – WT/BFA/W/568  
The Chair recalled that this topic had been on the agenda of the Committee meeting that took 
place on 12 July, and that at the  end of that meeting it had appeared as if there was no disagreement 
with respect to th e document . She cited the need to  comply with Financial Regulation 4, which 
requires the Committee to review the Financial Regulations  at least every four years.  Against this 
backdrop, the Chair propose d that the Commi ttee endorse the document . 
A Member said her delegation demanded that  the adoption of the full text of revised financial 
regulations be  deferr ed. 
The Member said her delegation u nderstand s the need to comply with Financial Regulation 4  
and the urgency of this matter. The Member said it is with this in mind that her delegation had 
decided to table a revised proposal for Financial Regulation 19 in July 2021 , in lieu of the text that 
her delegation  had tabled in November 2019. The Member said the discussion  of her delegation's  
proposed text during the CBFA  meeting on 12 July  had been constructive. She said t he proposal has 
support from some Members and that an agreement could be reached  if Members were to sit  down 
and thrash out  their concerns. The Member stated that her delegation's desire is for a revised  
Financial Regulation 19, to be included in the full text of revised financial regulations that will be 
recommended for approval by the General Council.  She said that there ar e meetings still for the 
Committee this year, which could accommodate the finalization of a revised text of 
Financial  Regulation 19.  
The Member said that their delegation is  not blocking the passage of the agreed 
Financial  Regulations  but only making a reasonable demand for a little more discussion on their 
revised proposal . She said t he insistence on the part of some Members to push through other 
Financial Regulation s only raises doubts , in her delegation's view,  about their intent. She said her 
delegation will not allow  the blocking of the amendment of Financial Regulation 19 as it had come 
up with a reasonable proposal . 
She concluded by saying that the engagement of Members and their attitude to her 
delegation's proposal will determi ne her delegation's approach to the rest of the agreed F inancial 
Regulation s and said they seek the Chair's  leadership and intervention to bring the issue to 
resolution.  
A Member clarified that his delegation's co-sponsorship of the proposed revisions to 
Financial  Regulation 19 was specific to the text and that his delegation's issues differ a bit from the 
position taken by the lead sponsor regarding the full text of the revised financial regulations.  He said 
that this was not a condition of his delegation's  support of the  proposal  and added he would follow 
up with the lead sponsor separately.  
A Member said, as a sign of good faith , the Committee should move forward with the tabled  
set of revised financial regulations as a lot of  hard work had been put into them. The Member asked 
if the recommendation would be modif ied to include the revision of Financial Regulation 23.  
An Official of  the Secretariat responded that the revised version of Financial Regulation 23 
would be included in the full text of the revised Financial Regulations, which would then bear the 
reference WT/BFA/W/568 Rev.1.  WT/BFA/198  
 
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The Chair said it is regrettable that no consens us could be reached during the meeting and 
said she would refer to this matter at a subsequent meeting . 
The Committee took note of the comments made.  
14  REPORT OF THE INDEPENDENT EXTERNAL AUDITORS  ON THE WTO'S HANDLING  
OF THE COVID -19 HEALTH CRISIS AND ITS C ONSEQUENCES  – WT/BFA/W/574  
The Chair welcomed the External Auditors to the meeting and invited them to present the 
performance audit report  on the management of the COVID -19 pandemic.  
The Director of the external audit team, Mr. Hervé -Adrien Metzger said the scope of the audit 
was to review the measures adopted by the Organization in order to meet the situation created by 
the COVID -19 health crisis and the efficiency and chronology of these internal measures in the light 
of external constraints impose d by the Federal Government or authorities of the Canton of Geneva.  
He mentioned the travel constraints that had led to the audit being conducted remotely and 
thank ed the services of the Organization, more particularly, the A dministration and General Services 
Division and its Director . He also thanked the  Human Resources and the IT Divisions , which  had fully 
cooperated and made it possible for his team  to access a large amount of information.  
He noted that the organization had respond ed rapidly and effectiv ely in order to ensure the 
safety of its workers and to implement the means necessary to limit the consequences of the health 
crisis on its ongoing activities.  
He mentioned that his team had followed the classical chronological cycle on crisis 
management: What were the pre -existing and preparatory measures? How did the organization 
respond when this crisis was triggered? How did the  Organization  ensure the protection of its workers 
and the continuity of the work? How will it be more resilient in the future?  
Mr Erwan Rigaud stated the principal points from the report as covered in the following 
paragraphs.  
The Organization was not really ready to confront a major crisis  as an evaluation of the risks 
involved could be considere d as somewhat unsatisfactory , but subsequently the services of the 
Organization responded rapidly.  As of 2020 there was no pre -established structure set up to cope 
with a crisis. A note entitled "Policy for Risk Management" did exist, but it was not very o perational 
and had not been revised since 2014.  
The rapid response in 2021 was very good, also with risks and resilience being analysed and 
the need to strengthen t he actions under way had to be refined further.  The services of the 
Organization were creati ve and responsive  and had immediately set up measures , by way of priority 
to protect staff  and delegates.  
A Health Task Force  was set up in February 2020 . Initially, it exclusively focussed on 
protect ing staff members . In a sense it was very successful bec ause throughout the crisis it followed 
the decisions and measures announced by the Government . It provided  sustained communication 
and even put advance measures in place  out of prudence. However, the decision -making powers 
were ambiguous.  
 The sudden move to remote working was imposed by the crisis . The absence of a 
representative from the IT Division  early in the Health Task Force  was regrettable. However, this 
was rapidly corrected.  
The situation catalys ed the digital transformation of the organizati on. The use of Microsoft 
Team s grew exponentially  as of February 2020 indicating that the personnel was ready to use these 
solutions and above all that the IT structure was sufficiently robust to do so.  WebEx and Interprefy 
enabled delegates to participate  in a number of meetings and conferences as of  June 2020 . The 
participants were even greater in number virtually than in person even if  there were some 
deficiencies because of a lack of physical meetings.  WT/BFA/198  
 
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IT security ought to  be of particular concern given  the sensitive information that could be 
made available, so stepping up of security was already done as of February 2020 and no serious 
incident was reported. Nevertheless, the growth in the risk of cyber -attack was obvious and 
consequently it was importan t to continue to be vigilant.  
The External Auditors highlighted several points relating to human resources and the 
protection of workers , organizational measures and continuity of activities.  Specific  measures in 
human resources would  benefit from a standa rd-setting framework which is clear for crisis 
management.  The staff was given particular assistance during this process , which is positive.  
However, urgent decisions that could be taken in this connection were done so in a regulatory 
framework which is somewhat uncertain.  Paragraph 3, Article 6 of the Marrakesh Agreement states 
that "the Director -General shall appoint the Members of the staff of the Secretariat and determine 
their duties and conditions of service in accordance with regulations adopted b y the Ministerial 
Conference".  
The Secretariat considers that provision 115.2 of the Staff Rules grants the Director -General 
the power to change or to make exceptions to staff management rules and thus revise the necessary 
flexibility for crisis management . The External Auditors do not agree with such analysis because it 
can, as far as they are concerned, only be applied to individual cases. This led to the first 
recommendation, that is, that specific provisions conferring exceptional powers for management to 
the Director -General in the case of force majeure, subject to the reservation that a regular account 
be given to the governing bodies making use of these powers and explaining how these powers are 
being used , ought to be adopted . 
The External Auditors c onducte d a staff survey and a separate survey of decision -making 
heads of the Secretariat to measure and assess their views  and expectations regarding crisis 
management. 300 replie s were received . The result is that all categories of staff members were 
pleased with the action taken by the organization to protect their health, to inform them and to 
enable them to carry out their mission.  
The crisis led to savings for the organization. In its 2020 Financial Performance Report, 
published in 2021, the WTO submitted an assessment of the costs and savings caused by the health 
crisis. This showed a positive effect of CHF 7.4 million resulting from savings of CHF 10.1 million and 
CHF 2.7 million for supplementary expenditure.  
The indi cators making it possible to follow the activity of the organization showed a 
downward trend in certain sectors , for several years. In the absence of more refined performance 
indicators, it is impossible to isolate the impact of COVID from other sectors.  This le d the External 
Auditors  to recommend renewed determination in assessing performance measurements within the 
Organization.  
The Director of the external audit team said, prior to the finalization of the recommendations, 
the Secretariat had been request ed to give its comments and clarifications and had subsequently 
accepted the final version.  
A Member thank ed the External Auditors for their presentation and for conducting their work 
under such difficult circumstances.  He also compliment ed the French to E nglish Interpreter for an 
excellent job  interpreting the presentation . 
The Member said the report was extremely useful . He stated that it would be remiss to not 
acknowledge DDG Karl Brauner's efforts in mobilizing the Secretariat and Members . Pointing out 
that no one knew what to do, but Karl  seem ed to know what to do , and he had really steered 
everyone  through. The Member also c ompliment ed the entire Secretariat staff for weathering very 
difficult circumstance s in continuing to operate in 2020 . He said this was a  testament to the strength 
of the Organization.  
The Member offered clarification regarding the first recommendation. He said their 
delegation  fully support s the recommendation and would very like to remain involved in what the 
Director -General may do. He said that while the Marrakesh Agreement refers to the Ministerial 
Conference, he would hope that what that means the General Council sitting in place of the WT/BFA/198  
 
- 21 - 
 
  Ministerial Conference . He added that any proposals ought to come through the CB FA, which would 
in turn make a recommendation to the General Council.  
Speaking on behalf of the LDC Group a  Member thanked the External Auditors for the 
performance audit and report. He said that independent  audits are a very useful tool and most 
helpful f or the Organization. He said that the WTO was, i n fact, not ready to meet such an 
unprecedented crisis but was able to rapidly adapt , was responsive and creative in order to limit the 
consequences of the global health crisis. He said the recommendations that were made will make it 
possible to better the performance and the relevance of the Organization.  
A Member said that the fact that the report is written in the past tense, instead of the present 
tense, is a compliment because it in dicates that the Secretariat and Members are looking into the 
response to the crisis. He said the recommendations ha ve wisdom and should be learnt from as 
quickly as possible  and serve as a pathway  for getting out of th e crisis.  He said his delegation is 
extremely grateful for the dedication and continued strong commitment by the staff working from 
home, taking care of family and friends, being locked down , but at the same time being 
interconnected with each other , with the membership and with the real worl d of trade outside.  
The Director of the extern al audit team thank ed Members for the compliments addressed to 
the Secretariat , saying they are  well deserved , and also for the compliments addressed to his team . 
He said that it is not very often that External  Auditor s conclude  their report s on such a positive note  
and said that credit ought to be given where it is due . He then congratulate d the Secretariat for the 
work it had done . 
The Director of the external audit team further said they are pleased to note that the 
Committee  support s the recommendations as, even if everything was done properly, there are 
certainly lessons to be drawn.  
The Chair thanked the External Auditors for their extensive report and wish ed them safe 
travel back to Paris.  
The Committee took note of the report.  
15  STATUS REPORT ON THE LDCS TRUST FUND FOR PARTICIPANTS IN MINISTERIAL 
CONFERENCES – WT/BFA/ W/573  
An Official of the Secretariat updated the Committee on the financial situation of the L DCs 
Trust Fund for Participation in Ministerial Conferences. He informed the Committee that, due to a 
successful procurement exercise, estimated costs had been reduced significantly and that there had 
been additional contributions from Members. As a result , the current forecast funding gap had 
reduced significantly to approximately CHF 66,000. He expressed optimism that , with just a little 
more support from Members , the full participation of LDC Members in MC12 could be fully budgeted 
for. He expressed appr eciation to the contributors to the trust fund.  
A Member asked how many LDC delegates per Member are covered by the trust fund and if 
Members under category 3 of administrative measures for Members with arrears in contribution are 
eligible for support from  the fund.  
A representative of the Secretariat responded that the trust fund provides support for a head 
of delegation plus two delegates for each eligible Member. However, Members subject to 
administrative measure restrictions would not be eligible for fi nancial support.  
The Chair of the Committee encouraged Members to consider if they can provide further 
support to the trust fund. 
The Committee took note of the report.  WT/BFA/198  
 
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  16  ORAL UPDATE ON COSTS INCURRED BY THE WTO ON REIMBURSING STAFF MEMBERS 
CHARGEABLE TO U.S. INCOME TAXES  
The Chair recalled that the Committee had several exchanges on this matter at previous 
meetings . She said the paper that had been prepared by the Secretariat , bearing the reference 
WT/BFA/W/567 , had been discussed at the Com mittee meeting on 12 July  and the discussions 
therefrom summarized in paragraphs 9.1 to 9.12 of document W T/BFA/197.  
The Chair said the issue is also addressed in section 4.5 of the document WT/BFA/W/561, the 
External Auditors' Report and document WT/BFA/W /563, the Secretariat's Responses  to the External 
Auditors' Report . 
A Member said the previous discussions  had really helped her delegation to have a better 
understanding o f the issue. The Member questioned how t his situation , especially with regard to the  
ILO Administrative Tribunal (ILOAT)  judgment, had come  about. She said, paragraph 73  of the 
External Auditors' Report reads, "by virtue of their status and pursuant to international conventions, 
WTO staff are normally exempt from taxes in their country of origin for the income they receive from 
the Organization".  She said this exemption is applicable only to income the staff members receive 
from the Organization. She asked how the ILO AT judgment could stipulate not only to include income  
from the  Organization  but also external  income.  
The Member said this question is also relevant to the future  as it is  possible  that such kind of 
losses to the WTO , because of the ILO AT approach , which  includes external  income  a higher  marginal 
tax rate , will be used, thus resulting in the WTO itself  paying higher  taxes. Another concern 
expressed by the Member is that if a staff member of the WTO invests in the financial markets , 
taxable income derived from this , which could be a very large amount of money , could  also be 
included.  
The Member said her delegation fully understand s that it is very difficult to find a solution for  
the current situation. She said her delegation is looking forward to the Secretariat addressing the 
related  questions and concerns to help Members  better understand and assess the possible risk s 
that this organization could face.  
The Member said her delegation had tried to be quite pragmatic and does not deem it 
necessary to keep this item o n the agenda of CBFA meetings, to avoid lengthy agendas for meetings 
of the Committee. She said as there is no solution at the moment, her delegation would like to leave 
the topic for future discussion, and when the time is mature. She added that her deleg ation would 
like that the recommendations from the External Auditors be adopted in order for  a clear record of 
such costs and loss  to the WTO , as per recommendation number 10.  She said while her delegation 
is seeking more information on this issue, this mi ght be the best landing zone for the moment.  
A Member reiterate d his delegation's  object ion of  the framing of the issue, adding that he 
does not disagree with most of the concerns that had been  raised by another Member . He added 
that this has been a perennial issue and something that would possibly need to  be resolve d, though 
possibly not  in the Committee. He said that he sees this as an internal Secretariat  issue.  
The Member also reiterate d that the United States Treas ury Internal Revenue Service is the 
only global ly competent body that can determine US tax liability  and that the tax reimbursement  
amounts  payable are determined by the US Department of Treasury.  
The Member said one of the problems with this issue is that  there seem s to be an inability to 
discuss any option other than what the Secretariat has decided to do. He stated that neither the 
United States nor the WTO were parties to the ruling that is cited as the underlying cause for the 
change in policy. He aske d if the WTO Secretariat has implemented every single ILO AT ruling , since 
Members are being told that there is no choice  as any ILO AT ruling is automatically applicable to the 
WTO.  
The Member asked if the Secretariat has explored any of the alternative met hods used by 
other international organizations to address this issue, including the World Bank  and the many UN 
affiliated organizations that use the first income  method . He also asked the Secretariat to provide a 
list of all ILOAT rulings relevant for the WTO Secretariat and how they are implemented.  WT/BFA/198  
 
- 23 - 
 
  
The Legal Counsel of the WTO said, i n terms of ILOAT rulings , the WTO do es not do any 
reimbursement of non -WTO income. The difference is only on how the amount of taxes paid on WTO 
income  is calculated . He said that, depending on the method used , the tax amount may be higher 
or lower.  
The Chair noted that the topic has not yet been concluded upon, whilst recognizing that the 
discussion  of the topic in  the Committee  had come to an end and ha s assisted i n providing Members  
with a better understanding of the matter and related issues.  The Secretariat would need some time 
to compose  the requested list of ILOAT rulings and their implementation. She said that this would 
be followed up on.  
The Committee took note of the discussions . 
17  OTHER BUSINESS  
An Official of the Secretariat recalled that the Director -General had mentioned that the report 
of the Structural  Review would be presented to her in August. She said the Director -General is still 
considering the recommendations and would most likely update Members during the Informal Trade 
Negotiations Committee and Heads of Delegation meeting on 30 September.  
The C hair thanked Members for their active participation, and the constructive stance, that 
had led to the approval of some items.  
Speaking on behalf of the LDC Group, a  Member said he had noted the work of the WTO and 
the strategic importance of the Committee on Budget, Finance and Administration. He highlighted 
the deliberations that had taken place relating to the WTO Pension Plan . He added that the charm 
and the relevance of the WTO is , that it constantly seeks to achieve consensus.  He congratulated 
the Secretariat on its excellent work and requested the Secretariat to organize a briefing session for 
LDC delegations so that these delegations can have updated information on budgetary issues and 
increase awareness amongst LDCs and enable t hem to truly and actively participate in the work of 
the Committee.  
The Chair thanked the Member for the initiative and said the Secretariat will be able to 
organize a workshop or a briefing session as requested.  
18  CLOSING REMARKS  
The Chair closed the meetin g by stating that the next formal meeting will take place on the 
afternoon of 22 October and that passage of the WTO 2022 -23 Budget will be a priority item.  
_________