RESTRICTED  
  
WT/BFA/187  
 
16 September  2020 
(20-5989) Page: 1/14 
Committee on Budget, Finance and Administration    
 
 
REPORT OF THE MEETING S HELD ON 23 JUNE  AND 7 JULY  2020 
 
The Committee on Budget, Finance and Administration (CBFA) met on 23 June . The meeting was 
adjourned and reconvened on 7 July 2020 . His Excellency Ambassador Manuel Teehankee  
(Permanent Representative of Philippines  to the WTO ), welcomed Members who were physically 
attending the meeting and those that had logged in through the virtual platform , noting that 
42 delegates had registered to participate in person and 92 had joined virtually.  
 
The Chairman gave the floor to DDG Brauner, who  also extended a warm welcome to the Members. 
He stated that the Secretariat had made great  effort to prepare the premises and make them  safe 
for delegates  and Secretariat  staff members. He added that 250 staff members were currently 
working from the premises.  
 
DDG Brauner  said the host country ha d made an announcement on 19 June , easing some of the 
measures in place regarding the pandemi c. He said that the WTO Secretariat would  follow this  lead, 
while remaining a bit more restrictive, allowing 50% of staff to come to the premises.  He added that  
Rooms  S1 and W  would be used more often as of the following week, with Interprefy being accessi ble 
from Room S1. In passing, he asked  Members for their thoughts  regarding the use of virtual 
platforms , such as Interprefy,  and encouraged them to reflect on this  as this would inform 
assessment of the extent to which such platforms could be used, whilst  bearing the related costs  in 
mind.  
 
He said delegations are requested to register, when entering the WTO premises, to enable contact 
tracing . 
 
The Chairman presented t he agenda , with the reference WTO/AIR/BFA/38 , and related documents.  
A Member requested to make a brief statement about the Natural Disaster Trust Fund , under "Other 
Business" . 
 
The agenda , with the item under "Other Business"  was adopted .  
 
1   FINANCIAL REGULATION FOR OPERATIONS PENDING BUDGET APPROVAL – 
WT/BFA/W/507/REV.1  
1.1.  The Chairman introduced the topic by stating that proposed revisions to Financial Regulation  10 
were first presented during the CBFA meeting on 9 March  and that  many delegations had welcome d 
the proposal, noting that this kind of provision is consistent with best practice and important to the 
smooth functioning of the WTO.  
1.2.  An Official of the Secretariat recall ed that the aim of the Financial Regulation is to ensure that 
the Secretariat and t he Members are able to continue  their work, and the institution can discharge 
its obligations,  pending approval of a budget. The Official of the Secretariat  highlighted the following 
edits that had been made to the text: the word "WTO Secretariat" was repl aced with only "WTO" in 
the context of the necessity for continuity, in order to encompass both Members and the Secretariat ; 
reflection of the  preference of many Members that the periodicity of the Director -General 's authority 
to spend ad -interim be altered from one month to three months ; and precis ion that interim reporting 
on expenditure by the Director -General to the General Council  would be during General Council 
meetings.   WT/BFA/ 187 
 
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  1.3.  A Member thanked the Secretariat for the changes and stated that  Members ought to come to  
a common understanding to strike a balance between keeping the pressure on Members to reach 
consensus to get  the budget approv ed in time whilst ensuring  that, in case of pending budget 
approval , WTO activities  can continue . For further discus sion, Members should have a common 
understanding that what kind of balance is needed to strike so Members can better assess the current 
effect and the duration of interim authority on a monthly basis or quarterly basis. The Member said 
there could be different reasons leading to the approval of a budget being p ending  and observed 
that Members could consider w hether to have an automatic interim mechanism to cover all drivers 
of such situations  or whether  to target limited situations. The Member stated that her delegation  
sees the necessity of the Financial Regulation and that they would take an open attitude in the 
discussions.  
1.4.  Raising a specific question regarding the text in point (i) "in this regard, the Director -General 
shall request Members to pay corresponding contributions, in accordance with the last assessed 
contributions, until the budget for the new financial period is adopted" , the Member asked  if this 
implies  that the current payment practice  for assessed contributions would change from a yearly to  
a monthly or quarterly frequency. The Member said it would be  difficult for her delegation to  make 
payments at the beginning of the year because the  approval of the National Congress covers  the 
whole budgets .   
1.5.  A Member reiterated that from their delegation's perspective, the Financial Regulat ion is an 
important measure which Members would never expect to be used. On the basis of this  reason, the 
Member said the Financial Regulation should be quite s imple,  time limited and restricted to the legal 
obligations for which the Director -General is responsible. In that way it  would  become an emergency 
measure. The Member expressed willingness  to take part in informal discussions of the text in order 
to allow the membership to keep the conversation moving in between formal meetings of the CBFA . 
The Member stated that time is of the essence, and that the Financial Regulation  can be dealt with 
in a fairly swift way, as the Committee has many other important issu es to discuss.  
1.6.  A Member commended the improvement s in the text.  He cautioned that the Financial 
Regulation ought  to not create incentives for a kind of new normal and  said it ought to  be targeted 
on exceptional and essential expenditures  such as  the salaries of the Secretariat. The Member  also 
said it ought to be strictly time bound  and supported delink ing the interim measure  from new 
contributions .  
1.7.  A Member said the revision  is closely aligned with  their mission 's views, especially the provision  
of interim expenditure report s, to the General Council, by the Director -General . The Member called 
for further  discussion regarding a  deadline by which any  pending budget ought to be approv ed, 
suggesting tha t the pending period be no more than three months.  
1.8.  A Member said that the delegated interim authority  under Financial Regulation 10  should not 
create incentives that go beyond legal obligations . The Member said the use of discretion is a 
systemic concern for their delegation  and added that the phrase "the expenditures that he/she shall 
deem necessary to ensure the continued operation of the WTO"  is very wide  and that it is still  
uncertain whether the concept of necessary expenditure is clear in this contex t. The Member  asked 
for the  Secretariat 's thoughts as to what would constitute necessary expenditure , based on historical 
precedent. The Member said reference to the execution of the budget for three months, could  add 
the phrase "or part thereof" because it may be that the authority is not needed for a full  three 
months.  
1.9.  He asked if there would be any attendant risk to the level of the assessed contri butions as a 
result of  the negative impact of  COVID -19 on world trade. The response given was that  the level of 
assessed contributions would not be affected, rather the distribution per Member would vary, relative 
to the previous year.  
1.10.   A Member asked for clarity as to how interim reporting of expenditures would be done if there 
is no General Council meeting. The Member  asked whether  the Director -General would be oblig ated 
to call an extraordinary meeting of the General Council in such a situation . 
1.11.   Supporti ng the revised draft Financial Regulation, a Member said it  provides a balanced 
approach to ensur ing the core functions of the WTO that are able to continue in case of an impasse. WT/BFA/ 187 
 
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  The Member said this is in line with the regulations of other international organizations.  The Member 
added that  the organization n eeds to play a critical role in the COV ID-19 response and recovery 
efforts, and th at an impasse would  diminish its credib ility.  
1.12.   A Member said their delegation had assessed Financial Regulation 10  through  the following 
lenses: simplicity ; time bound nature ; and the limits to  spend . The  Member said the  uncertainty 
resulting from the COVID -19 pandemic has reinforced the importance of  this Financial Regulation 
and the need to put in place a  procedure to ensure that legal obligations are taken care of and 
salaries are paid. The Member said that their delegation support s an informal , Member -driven, 
transparent and inclusive  working group process as there is need  for a deeper discussion of the text. 
Most of these observations were shared by several other Members.  
1.13.   A Member said that it ought to be clearly stated when t he new procedure would com e into 
effect and how long t he interim aspect wo uld be in place . The Member said that the text should 
clarify that the interim expenditure be guided by the allocations of the previous budget , as the 
determination of what is necessary expenditure can be delicate and could cause confusion.    
1.14.   Several Membe rs supported the revised tex t as is . 
1.15.   Several Members expressed the need to ensure that the interim period is  time-limited and 
pressure to pass the budget maintained, making this an exceptional mechanism used by the 
Director -General to ensure necessary payment s continue to be made.  
1.16.   A Member said the  phrase "…make payments consistent with the last adopted budget …" is 
confusing as it suggests that the Members will be billed on a quarterly basis for their assessed 
contributions .  
1.17.   A Member proposed a decoupling of the interim authority  given to the Director General  from 
the annual budgetary contribution . 
1.18.   A Member said similar mechanism s exist in other  international organizations  and encourage d 
alignment of the text to them . 
1.19.   The Chairman said that, g iven the length of discussions  and the items still on the agenda, he 
had noted all interventions and would  be conducting further consultations to gather feedback from 
delegations. He said that around 10 delegations were ready to work on text-based suggestions and 
about 12 delegations were supportive of an early endorsement of the Financial Regulation.  
1.20.   Regarding Financial Regulation 10, DDG Brauner said that the Secretariat  is grateful that 
Members are taking the initiative to discuss the text in small groups  as this will allow its further 
development in an informal manner, without the need for multiple revisions of the formal document . 
1.21.   The Chairman said the  item and comments a re noted.  
2   ITC 2021 BUDGET PROPOSAL – JOB/BFA/44  
2.1.  The Chairman stated that Members are aware that the ITC Budget is part of the WTO Budget , 
which would be the next item on the agenda.  He said the  ITC budget was first presented during the  
meeting of the CBF A on 24 September 2019 and the CBFA had endorsed it for approval on 
21 October 2019.  He added  that, considering that only the 2020 budget was approved by the 
General  Council and that the amount for the 2021 ITC budget was noted and subject to finalization 
in 2020, the 2021 ITC ha d been  resubmitted  to the Committee .  
2.2.  The Chairman invite d the Acting Executive Director of the ITC, Ms.  Dorothy Tembo, to  
reintroduce the 2021 ITC budget proposal.   
2.3.  Ms. Tembo express ed the ITC's  solidarity with all Members and  beneficiaries  of the ITC, as they  
face the COVID -19 global pandemic.  She recalled that  ITC is the  joint trade  development agency of 
the United Nations and the World Trade Organization, focused on building  the international 
competitiveness of  micro, small and  medium sized enterprises in developing countries and 
economies in transition.  WT/BFA/ 187 
 
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  2.4.  Ms. Tembo stated that the following three documents had been circulated to Members: a cover 
note ITC/BUD/72 showing the budget in the WTO form at; the long fascicle A/75/6 (Sect.13) 
"Proposed programme budget for 2020 ", which is in line with CBFA recommendations and is prepared 
in the United Nations format; and supplementary information to the programme budget for 2021 , 
contain ing the detailed fi nancial resources by object of expenditure and the list of positions funded 
by the regular budget - A/75/6 (Sect. 13)/Add.1.  
2.5.  Ms. Tembo said the ITC's focus remain s on inclusive and sustainable trade, complementing the 
work of its parent organizations and aligning with relevant outcomes of the ir intergovernmental 
processes. She said the ITC support s the 2030 Agenda for Sustainable Development, where 
international trade and SMEs are seen as central to inclusive economic growth and poverty reduction.  
She adde d that o ver 80% of efforts are targeted to LDCs, land -locked developing countries, Small 
Island Developing States (SIDS) , small vulnerable economies, conflict -affected countries and Sub -
Saharan Africa, with over 55% of the interventions being country -specific technical assistance 
targeted towards least developed countries.  
2.6.  She said  interventions continue to be guided by the six focused areas as outlined in the ITC  
Strategic Plan for 2018-2021.  She highlighted key achievements of the ITC in 2019, including Market 
Analysis Tools being consulted over 5.6 million times, a 35% increase compared with 2018 ; Support  
to member states' strategies, regulatory and policy changes in over 130 cases ; and impro ved 
effectiveness and services of trade and investment support institutions, in over 460 cases.  
2.7.  She said the focus for 2021 would be on achieving the transformative outcome targets that 
had been  set at the beginning of th e implementation phase with respect  to the Strategic Plan such 
as continue d support bringing the MSME voice into the discussions on e -Commerce, trade facilitation 
and other priority areas of the WTO Members  and support for the discussions on the Buenos Aires 
declaration and the work leading  up to MC12.  She outlined issues being tackled by ITC that relate 
to some of the challenges of the COVID -19 crisis.  
2.8.  Ms. Tembo said ITC's regular budget is funded in equal parts by the United Nations and the 
WTO. She added that the ITC r egular budget resou rces cover  running costs and the programme of 
work core expertise and development, maintenance and expansion of ITC's intangible assets and 
global offering and programme development, including monitoring and evaluation .  
2.9.  Ms. Tembo stated that the proposed budget for 2021  remained unchanged at C HF 36,486,250. 
The net contribution of the WTO and UNCTAD would be  CHF 18,243,125.  
2.10.   Several Members and spokespersons for the LDC Group, SIDS and OECS thanked Ms. Tembo 
for her presentation and expressed strong support  for the proposed ITC budget and lauded the ITC  
for past and o ngoing projects  in their respective countries.  
2.11.   A Member thanked the work done by the ITC and expressed support for the budget. The 
Member said her delegation saw the value of extra funds as a complement to ITC's better function. 
Her delegation looked forward to further discussion and enhancing communic ation with the ITC but 
in the meantime those strategic questions should not prevent the ITC budget from being endorsed.  
2.12.   A statement  was made  on behalf of the C -4 and the 36 LDCs who are producers and exporters 
of cotton and cotton derivatives , thanking donors and the ITC for the financial and technical support 
given to MSMEs ' benefit.  The spokesperson urged  that efforts  be made  to improve financial resources 
that would be allocated for the 2021 budget to make it  possible for the ITC to continue providing 
technical assistance that fits the increasing needs of the various beneficiary countries.  
2.13.   A Member said v arious reports confirm that the economic impact of the COVID -19 pandemic 
on SIDS  will be immediate and disproportionate, given their high dependence on international trade. 
The Member  said that  in the post -COVID scenario, there is an  even enhanced role for the ITC in 
supporting small businesses from developing countries, including SIDS, as the latter struggle for 
their recovery from the crisis. This Membe r and a few other Members urged the ITC to address the 
challenges brought by COVID -19. WT/BFA/ 187 
 
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  2.14.   A Member summed up the coverage of ITC as being in the areas of MSMEs, entrepreneurship 
development, skill s development, market promotion, institutional capacity buildin g, policy and 
strategy formulation and implementation in developing and Least Developed Countries .  
2.15.   A Member recognized the valuable and quality work that the ITC does  and thank ed the ITC 
staff members that took time , over three months , to engage in a discussion with the delegation  and 
to respond to some of the questions raised .  
2.16.   The Member stated that their delegation is of the understand ing that the UN i ntends to 
approve the budget in the fourth quarter of 2020. The Member stated that  the ITC was established 
in 1968, when the landscape of development assistance and the range of assistance providers was 
vastly different from the present time.  He said it would be worthwhile for Members to  discus s, in 
greater detail , what the development assistance environment is at present  relative to  1968, and how 
a large number of UN agencies and a multitude of other institutions have also increased their 
technical assistance activities in this area.   
2.17.   The Member said their delegation continues to review  and evaluate the ITC budget proposal 
alongside the WTO 's budget proposal for 2021  and looks  forward to continued discussions .  
2.18.   Referring to Table 4 on page 9 of JOB/BFA/44 , the Member enquired whether the  Board of 
Auditors ' Report from 2019  had been made available to WTO Member s. The Member requested that 
Members be given a copy of the same , for follow up on the implementation of recommendations.  
2.19.   The Member said that the current 4 -year Strategic Plan of the ITC would be  concluding in 
2021 and asked when th e Strategic Plan for 2022 -2025 would  be issued .  
2.20.   The Member asked for more  details to be provided on the specific projects that are supported 
and funded by the regular budget. The Member mentioned that the  Operational Plan presented to 
Members in February  mainly covered  activities funded by extra -budgetary funds.  
2.21.   The Member said their delegation request for  additional documentation that clearly shows 
what activities are supported by the regular budget. The Member added that t he UN budget 
document that was provided to Members shows that 160 staff members are funded by the regular 
budget, which is approximately CHF 36 mill ion, while the extra -budgetary activities of CHF 96 million 
are staffed by only 20 staff members. The Member  said if technical cooperation projects are funded 
from the CHF  96 million portion of the budget, what staff is implementing those projects? And if 
there are consultants hired that do not appear in the ITC 's budget documents?  
2.22.   The Member expressed apprecia tion for  clarification from the ITC that it follows UN policy 
which requires that regular budget funds not  be used to support extra -budgetary activities. The 
Member said the existence of the Programme Support Cost charge or (PSC) seems to indicate a 
recogn ition of regular budget support for extra -budgetary activities  as the ITC provided information 
that indicates that it collects a PSC "of up to 13% of extra -budgetary expenditures ". The Member 
said it appears that only CHF 200,000 was recorded under  miscell aneous income. The Member said 
that, a t the February ITC meeting , Members were informed that some donors have negotiated 
charges considerably less than 13% . The Member asked for the number of donors that p ay only half 
the 13% charge  and requested an explan ation of how this discount is in the interest of WTO Members 
that are contributing to the regular budget but do not seem to be fully compensated for the support 
that is provided to extra -budgetary activities .  
2.23.   The Member asked for an  explan ation of  the bud get line item for a UN Levy of 1% on extra -
budgetary funds  and for  details of the coordination that goes on between the EIF and the ITC on 
correlated funds  such as the Cotton Initiative . 
2.24.   Ms. Tembo respond ed that the Cotton Initiative was intended to avoid duplicati on of efforts 
by the WTO, UNCTAD  and ITC  as the entities  decided to get together to respond to the need of the 
cotton producing countries being led by the C -4, with e ach party bring ing different expertise and 
allowi ng for  the leveraging of the accompanying resources.  WT/BFA/ 187 
 
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  2.25.    A Member expressed support for the budget  and suggest ed a closer dialogue with WTO 
Members so that ITC's message  can be transmitted in an appropriate way to the WTO, as  a 
contribut or of ideas, support and financial resources.  
2.26.   A Member expressed appreciat ion of the ITC's work and its cooperation with their delegation . 
However, in the context of the WTO budget discussion, the Member said there was room for 
improvement on the aspect of references to the va lue for money  and the impact of the WTO 
contributions in the overall work of the ITC . 
2.27.   The Chair man stated that he had noted all the interventions regarding the overwhelming 
appreciation for ITC and would revert to this item at the next meeting and conduct further 
clarifications in the interim. The Chairman thank ed Ms Tembo and the ITC for the success of the ITC 
in the past years.  
2.28.   Ms. Tembo thanked Members for  their interventions and remarks in relation to the work of 
the ITC. She said the ITC would continue to build on the positive efforts and on aspects that have 
been highlighted by Members . She said the ITC would ensure that necessary expertise that is 
required is availe d and would build on  these  with strategic pa rtners .  She said, in the context of  
reporting by the ITC over the past few years, a good sense of what strategic partners hips had been 
entered into and the  concrete actions that the ITC had undertak en had been included in certain 
reports .  
2.29.   The Chair man st ated that he had taken note of the interventions on this agenda  item.  
3  WTO 2021 BUDGET PROPOSAL – WT/BFA/W/523  
3.1.  On 23 June, the Chairman introduced the agenda item by saying that the 2021 WTO B udget 
Proposal was part of the presentation of the 2020-2021 budget that had been made in 2019 , when 
the two -year budget was presented.  
3.2.  An Official of the Secretariat recalled that Members had generously approved the 2020 budget , 
and taken note of the 2021 budget , in late 2019, with the understanding that  the Secretariat would  
resubmit the 2021 budget to the CBFA in 2020 . The Official of the Secretariat said that the 2021 
budget proposal was ba sed on  a zero nominal growth budget , a status that the budgets have had  
since 2011.  
3.3.  The proposed budget of CHF 197.2 million , including the ITC allocation of approximately 
CHF 18.2 million , was presented . The funding is to be CHF 195.5 million from Member s' assessed 
contributions and CHF 1.7 million from miscellaneous income.  
3.4.  The Official of the Secretariat provided a summary of changes between some individual budget 
lines in the revised budget, compared to the one that Members had noted in late 2019. The  drivers 
of the changes were mainly  expenditure patterns  due to the impact of COVID -19 and the lull in  the 
operations of the Appellate Body.  
3.5.  An Official of the Secretariat highlighted  the adjustment  of CHF 150,000  related to Part A of 
the budget  (Staffing  Resources ), to increase the allocation to  the retiree health insurance premium, 
due to  the double effect  of premium increase s and the growth in the population of retire es. Another 
change was a shift  of CHF 485,000 from "Appellate Body Members' Fees" to "P anellists' Fees" and 
CHF 306,000 from " Appellate Body Members ' Fees" to " Consulting" , in order to fund consulting work 
for new  IT projects.  
3.6.  Under  Part B  of the budget (Other Resources), " Contractual Services " were increased by 
CHF 450,000, of which CHF 150,000 is driven by offer ing more  staff members the ability to work 
from home and the associated purchase of  600 more laptops  and maintenance of capital equipment 
that is to be  purchas ed. The line for travel has been increased by CHF  600,000 to enable more 
technical assistance activities in 2021 to  partially compensate for cancellations of activities  that had 
been planned for  2020.   
3.7.  The allocation to capital expenditure  was increased by CHF 800,000  for IT projects that are 
ongoing or  are anticipated  to enhance the Secretariat's  ability to serve Members better and to ensure WT/BFA/ 187 
 
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  more effective and efficient operations internally. The projects  include the  Open Trade Data 
Initiative , which seeks to harmonize  and centralize  the various portals  in databases for various 
notifications ; the provision of virtual platforms for meetings;  XML translation tools, a software 
application that allows for reading of script from different forms of documents beyond just Word and 
PDF; a new  Human Resources Enterprise Resource Planning (ERP) platform ; and  exploring the 
possibility of using Artificial Intelligence more robustly .  
3.8.  The allocation to Part C of the budget (Operating Funds and ITC) was reduced by  the 
CHF 2 million  that was initially allocated to the Appellate Body Operating Fund , which amount was 
distributed as explained in the paragraphs preceding this one .  
3.9.  A spokesman for LDCs said that due to the  COVID -19 pandemic , the movement of people 
around the world has been limited, resulting in technica l assistance activities being  provided on -line 
as in-person ITTC activities were halted. The spokesman added that the LDC Group is attached to 
the biennium plan for technical assistance and training because it has tremendous impact on LDCs'  
ability to impl ement WTO Agreements and truly participat e in the Multilateral Trading System. The 
Member suggested that the amounts allocated for 2020 for technical assistance could  be maintained 
and added to the 2021 budget, particularly for activities that were planned  but were not carried out 
because of the pandemic.  
3.10.   A Member reiterated comments that their delegation had made during previous Committee 
meetings to  asking about  the impact of COVID -19 on the 2020 and 2021 budget s. The Member 
added that the 2021 budget ou ght to be discussed fully at the next Committee meeting and said 
that, for reasons of transparency, this item would be best d iscussed  in formal meeting s. 
3.11.   The meeting was adjourned . 
3.12.   The CBFA meeting that had been adjourned on 23 June resumed on 7 July. The Chairman 
welcomed the Members  and invited DDG Brauner to make some comments regarding the sanitary 
measures in place.  
3.13.   DDG Brauner informed the Committee that the Secretariat has made great effort to assure 
that the WTO is one of the safest place s in Geneva. Measures in this regard include the requirement 
for people to wear masks . He noted that the Swiss  Authorities are more liberal  than the WTO  when 
it comes to the wearing of mask s.  
3.14.   The WTO is less strict than s ome of the U nited Nations offices w hich demand that mask s be 
worn when people  are sitting in meeting rooms. The WTO requires that people wear masks when  
moving around the premises or if sitting within 1.5 metres from each other. He said that new filters  
had been installed for air conditione rs in the meeting rooms, to improve air quality.  
3.15.   The Chairman stated that Members ought to have received the updated version of the Airgram 
bearing the reference WTO/AIR/BFA/38/Rev.1. He added that the pending agenda items were: C - 
the 2021  WTO Budget Proposal ; D - Enhancing Output Reporting ; and E - Other Business on the 
matter of the Natural Disasters and Trade Extra -budgetary Fund. The Chairman said that he would 
be gathering Members' interventions and comments on these three items. He added that, at th e end 
of the meeting,  he would  report further on some consultations he had had. 
3.16.   A Member expressed appreciation for the early tabling of  the budget. The Mem ber expressed 
concern that the budget was not going to be discussed. The Member asked if the Secretariat and 
the Chair man would provide Members with  their ideas on the work programme for the year , in 
writing after the meeting, even if it this would  be adap ted due to some COVID -related issues . 
3.17.   The Chairman acknowledged the suggestion and said he noted the delegates that were still 
lined up to intervene.  
3.18.   An Official of the Secretariat briefly re-introduced the budget, as it had already been presented 
to the Committee on 23 June.  The Official of the Secretariat  highlighted that 2021 would be the 
eleven th year of a zero nominal growth budget , at CHF 197.2 million , of which CHF 178.9 million is 
for the WTO and CHF 18.2 million would be allocated to ITC. The Off icial of the Secretariat reiterated 
the adjustments that had been presented during the Committee meeting on 23 June.  WT/BFA/ 187 
 
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  3.19.   The Official of the Secretariat made an appeal to Member s to support the budget proposal, 
either on the day or any time before the beginni ng of December  2020.  
3.20.   A Member said that i t is important that the budget be addressed in formal meetings that are 
open, transparent and inclusive and  expressed  regret that th e current Committee meeting was not  
held in an appropriate format  i.e. physically, with a virtual add on as an option for Members who 
could not come to the premises, given the current context . The Member stated that in the previous 
meeting Members  were also asked if they wished to continue with Interprefy and most had 
responded in the affirmative .  
3.21.   The Member restated the request for  an up to date  workplan for the CBFA until the end of the 
year, as requested in the previous Committee meeting and during consultations.   
3.22.   A Member asked that updates on the reallocation of funds during course 2020 , considering 
elements  such elements as unused travel funds  and the provision of virtual meetings. The Member 
said that information on current IT spend would be relevant as the plan ned budget for IT in 2021 is 
under discussion. The Member asked the Secretariat to consider  improving the platform that gives 
online access to documents, saying that the current platform is technologically outmoded.  
3.23.   Referring to  Table 4 "Miscellaneous Inco me", the Member asked for a more detailed 
explanation of the CHF 190,000  income from the Program Support Fund. The Member stated that 
their delegation's understanding is that the Program Support Fund is funded by  the 13% charge for 
overhead from expenditur es from extra -budgetary funds. He noted that CHF 190,000 is 13 % of 
CHF 1.4 million  and sought to get clarification as other documents had shown  much higher 
expenditures from extra -budgetary trust funds , an example being the Global Trust Fund whose 
expecte d expenditure for 2020 is  CHF 5 million.  
3.24.   The Member said, b roadly , Members review and approve a consolidated budget which includes 
some very general estimates by Output Chapter. He added that it is important for the budget to 
align with Members'  priorities . He said their delegation  would like to know how the budget for 
individual Divisions is determined  and whether  budgets  are solely based on the number of staff 
members .  
3.25.   The Member asked how  travel funds and resources for workshops, events, or r esearch 
projects are allocated . He asked if Division Directors have a set budget for these kinds of activities, 
or whether  Divisions can draw upon a central fund which is separate from their annual division 
budget? If central ized, the Member asked w ho mana ges and oversees th e concerned  resources to 
ensure that they are equitably shared across Divisions . 
3.26.   Other questions posed by the Member were: when Divisions propose to hold non -Committee 
meeting events, or when a division 's staff takes on research projects  – where does the budget for 
that come from?  How are the budget proposal estimates by Output Chapter transferred to the 
Division Directors? How are Division Directors held accountable for fulfilling the proposed distribution 
of outputs? What oversight mech anisms are used to ensure that the targets are respected and not 
exceeded? For example, in a Division where staff oversee a range of Committees, how do managers 
track the activities of staff that fall outside of Output Chapter 2, such as capacity building,  conducting 
research, or reaching out to ensure that the institution as a whole reaches its target of 23% for 
Administering Agreed WTO Rules, and does not exceed , for example , the 7% for reaching out?  
3.27.   The Member said considerable resources are held by the  Secretariat in the form of extra -
budgetary funds  and that  Secretariat staff have access to use these funds and most of the 
expenditures fall into categories  covered by the Output Chapters  yet the output from these funds 
does not seem to be represented in the budget proposal.  The Member asked why the WTO measures 
the CHF 18 million ITC budget support contribution as capacity building but does not measure the 
output associated with the Global Trust Fund, or any of the other extra -budgetary trust funds. The 
Member said their delegation is not convinced that the general budget support for ITC should be 
measured exclusively as capacity building.   
3.28.   The Member said their delegation had  noted, in the document bearing the reference 
WT/BFA/W/518, that support costs are assumed to be distributed equally across all eight Output 
Chapters. The Member said that  administering extra -budgetary trust funds consume s resources, but WT/BFA/ 187 
 
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  trust fund activities are not active in all eight Output Chapters. The Member asked  how the 
Secretariat reconciles the inclusion of the costs associated with extra -budgetary trust funds in the 
budget by Output Chapter, but not the extra -budgetary funds themselves.  
3.29.   The Member said their delegation would continue to review the budget and responses that 
will be provided to their questions and would revert to the budget proposal at a future meeting.  
3.30.   Citing the ongoing uncertainty, a Member asked how confident the Secretariat  is that the 
travel budget would be expend ed in 2021 and what conti ngency plans are in place. The Member 
asked if, given the postpon ement of MC12 and the potential implications for the 2021 budget and 
noting this should be covered by the Ministerial Conference Operating Fund, some costs from the 
cancellation or the postpo nement of MC12 would affect any further postponement in 2021.  
3.31.   The Chairman said that the s pecific questions on MC12 allocations would be looked  into.  
3.32.   A Member asked whether funds reallocated from the Appellate Body Operating Fund to  other 
budget lines  could be reallocated to  the Appellate Body Operating Fund in case the Appellate Body 
resumes its activities in 2021.  
3.33.   A Member  made comments and shared views that include the following: the  budgetary 
discussion should mainly focus on the primary functions of the Organization , and be placed at  the 
top of the budget document instead of towards the end; what the  Organization is seeking to achieve  
and its key functions and whether the budget  is fairly allocated to those functions.  
3.34.   The Member said that Technical A ssistance and capacity building are some of the  primary 
objective s of the Organization  and encouraged requisite steps to facilitate this.  
3.35.   A Member said it would be good to start the process and discussions for the 2022 -23 budget 
early. The Member said a f undamental aspect would be  for Members to discuss the setup of the 
budget and have clarity on their priorities. Several Members echoed this  view. 
3.36.   A Member said their delegation strongly recommends a return to the  biannual budget cycle , 
as soon as possible, given the uncertainty that COVID -19 has imposed. Having longer cycles to 
adjust and reassess the budget is going to be crucial . The Member suggested that savings related 
to travel be allocated in a transparent manner,  especially in r espect of Technical Assistance.  
3.37.   The Member said their delegation had seen the communication regarding the creation of a 
new Division and that some functions have been moved from the ITTC  to the new Division. The 
Member said their delegation's concern is , if resources and funding are taken away from the ITTC, 
an entity that has  experience in managing and in implementing training and technical assistance 
needs , efficiency  may be lost due to the change . The Member asked how this structural change has 
been fac tored into the  budget.  
3.38.   A Member expressed the hope that diving deeper into some of the aspects of t he budget , 
though of interest, would not lead in answers to the posed questions generat ing new questions and 
that would result  in delays in adopting the bud get.  
3.39.   Several Members expressed support for the budget, as presented.  
3.40.   Regarding agenda item C, the Chairman said that he had noted Members' interventions of 
support and their question s.  
3.41.   A Member said that their delegation had focused its comments on the 2021 Budget . He noted 
that some  Members had asked some specific questions about ongoing operations this year. The 
Member said that if Members' questions are to only be noted and revert ed to at a later stage , their 
delegation would like to get a sense from the Secretariat as to when Members would receive  the 
final 2019 numbers, as well an estimat e between the cost of COVID -19 and the savings from it, in 
2020.  WT/BFA/ 187 
 
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  4  ENHANCING OUTPUT REPORTING – WT/BFA/W/518  
4.1.  An Official of the Secretariat introduced the paper on the background and history of Output 
Reporting. The Official of the Secretariat  said that the system was introduced in 2012  and that prior 
to the introduction of Output Reporting, reporting had three dimension s: by budget account; by cost 
centre; and by funding source.  
4.2.  The Official of the Secretariat  said that the fourth dimension, reporting by outputs, was 
premised on  the eight main m issions of the WTO at the time, with every expenditure line recorded 
to an output  based on inputting of relevant data  by every staff member at the end of each quarter . 
Furthermore, there is a ninth category, a general support function output, which represe nts the 
activities of support divisions and activities  such as human resources , administration, translation 
and information technology . These costs are dispatch ed to the eight Output Chapters  in order to 
arrive at the  full cost of each output category.  
4.3.  A slide show ing the budget proposal by Output Chapter for 2021 was presented, reflecting 
adjustments to the amounts for Administering Agreed WTO Rules , relative to those that had been 
presented in late 2019. The changes  resulted from the deferral of the Ministerial  Conference  from 
2020 to 2021 . Another adjustment that was cited relates to Settling Disputes , reflecting a slowdown 
in the activities of the Appellate Body and its Secretariat.   
4.4.  The Chairman commented on that the allocation to negotiations is only 5% and that for  capacity 
building is 21% of the total.  
4.5.  The Chairman said that, in view of the time, this topic and the 2021 WTO budget would be 
noted. He said that there seems to be support for informal consultations  amongst Members, with 
the assistance of the Chairman . He added that he hopes to have an informal CBFA meeting dedicated 
to Financial Regulation 10 as well as further discussions on the WTO 2021 budget.  
4.6.  A Member said that their delegation is n ot going to e ngage on the two last items because the 
items were not  afforded enough time . He said that these two topics are very important and that the 
meeting ought to be suspend ed and reconvene d at a later stage so that the items could be  treated 
with the respect tha t they deserve . The Member also said that the conduct of meetings may require 
a rethink , including starting at 10h00 and continuing in the afternoon, if need be. The Member 
expressed preference to have detailed discussion s during CBFA meetings and said tha t their 
delegation had provided a lot of feedback to the ITC in advance of the meeting, hoping for Members 
to pay be informed , in an inclusive and transparent manner . The Member said that th eir delegation 
had also prepared questions for Output Reporting.  
4.7.  The Chairman said that time would be availed for Output Reporting at a future meeting.  
4.8.  When the meeting was reconvened on 7 July, the Chairman introduced the topic of Output 
Reporting by stati ng that an Official from the Secretariat had presented the topic on 23 June. He 
added that the document bearing the reference WT/BFA/INF/5 , was relevant to this topic.  With this, 
the Chairman invited Memb ers to make comments and ask questions.  He said tha t he had noted 
during the discussion of the 2021 WTO Budget that there are certain questions relating to future 
planning and reversion to a biennium budget as of the budget for 2022. He expressed the view that 
the historical background of Output Reporting also relates to the strategic aspect of budget planning, 
which is not necessarily related purely to the 2021 Budget but requires some strategic Members ' 
discussions and thinking forward for 2022 and perhaps 2023, 2024 and 2025.  
4.9.  A Member thanked the Secret ariat for having produc ed the background note on Output 
Reporting. The Member said that, in 2019, their delegation had raised some questions about how 
the data for the budget by Output Chapter s was gathered and how it might be better understood by 
Members as they evaluate not just how much money has been  spent, but what exactly it is spent 
on, and what results were achieved with those resources.  
4.10.   The Member said it appear s that a disaggregation of output data is possible, since Divisions 
report to a budget focal point . The Member suggested that as the Committee moves forward with 
its discussion s on how to better utilize  Output Reporting , a divisional breakdown might be helpful in 
enhancing  understanding.  WT/BFA/ 187 
 
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  4.11.   The Member said that during  discussions in 2019  many  staff members were reporting time to 
trade facilitation negotiations when in fact those negotiations had been concluded six years earlier. 
The Member said that the Committee ought to  closely examine the management oversight of 
reporting at the divisio n level, since it appears that the process for quarterly reporting may not be 
as clear to staff as it should be.  
4.12.   The Member said from the consolidated Output Chapters  it is unclear  whether  the allocation 
of resources across the chapters matches up with wh at Members would expect specific Divisions to 
be doing.  He gave the example that Members could assume that the 8 % of the WTO budget spent 
on research would be attributed to  the Research Division, though this cannot  be confirm ed from the 
tables provided. The Member added that, l ikewise, given that 20 % of the WTO budget is reported 
as Settling Disputes, it would also be good to know how that is reflected in a Division by Division 
breakdown.  
4.13.   The Member asked what percentage of staff complete their outputs at  the end of every 
quarter.  The Member asked if it was possible to get Output Report s by Division . The Member asked 
what the role of Division Directors is in ensuring the appropriate Division of activities across staff 
members .  
4.14.   The Member said that the budget proposal includes projections for how budget resources are 
to be utilized and Members approve the budget proposal with those projections in mind. From a 
management perspective, he asked how  the projections are put into pract ice in the first place . He 
said that Members would envision the quarterly reporting to be a confirmation exercise.  
4.15.   The Member noted that  the WTO contribution of CHF 18 million to the ITC is automatically 
included in the Capacity Building Output Chapter, making it  the second largest use of WTO resources 
by Output. The Member said that, h owever, the regular budget of the ITC does not directly or entirely 
fund capacity building assistance activities . He said this made this allocation misleading and he said 
a re-evaluat ion of  whether this is the appropriate way to reflect use of that money  would be 
appropriate .  
4.16.   The Member said that it is not evident, from the WTO Budget Proposal , how extra -budgetary 
funds are taken into consideration since considerable staff ti me is spent on activities relating to these 
expenditures.  
4.17.   A Member said that when looking at the output for capacity building one wonders , considering 
that ITTC is doing horizontal coordination , to what extent  the Dispute Settlement Division , for 
example,  is doing capacity building?  How much is the Rules Division doing capacity building ? What 
portion of their outputs are to  assist Members to make notifications ? The Member said that it would 
be useful to have some more clarity on how the Organization is doi ng these things and not only have 
them at the aggregate  level.  
4.18.   The Chairman said that t his is an area that it is good for discussion and that he had noted 
that the re were interventions at the previous  meeting as well  about the importance of certain matters 
being discussed , perhaps in a smaller group , for interactive brainstorming and further development 
of ideas.  
4.19.   The Chairman said that one of the Committee's  primary function s is budget passage, which 
is separate and distinct on its own and there are also functions of finance and administration, which 
is sometimes looking into the current expenditures and reporting mechanisms, which are important 
but are a second separate element. He said time would be accorded to discussing and report ing back 
on the matters of administration and finance and reporting.  
5  GENERAL COMMENTS  
5.1.  Some Members took the opportunity to provide initial thoughts on the comments made by DDG 
Brauner concerning use of virtual platforms.   No item was specifically put forward to Members for 
discussion or decision on this matter.   Comments are reflected in th is report for information purposes 
only and do not reflect Committee views or preferences.    
 WT/BFA/ 187 
 
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  5.2.  Delegations that commented on virtual meeting platforms, such as Interprefy, said though they 
have utility, a proper assessment of cost is a crucial element to be  considered in full.  
5.3.  The Chairman informed the Committee that he plans to undertake consultations on this and 
revert later.  
6  OTHER BUSINESS  
6.1.  The Chairman informed the Committee that a Memb er had requested the inclusion of an item 
on the Natural Disasters and  Trade Extra-budgetary Fund under "Other Business" . The Chairman 
said that a document, bearing the reference WT/BFA/W/445 , from 2018, had been recirculated to 
Members before the meeting.   
6.2.  The Member that had requested the item to be included stated that th eir delegation had raised 
this issue on 23 June as an item under Other Business as the agenda had already been closed. The 
Member said their delegation wanted to flag their systemic concerns and would like to revert to them 
more properly in a future meetin g under the  topic pertaining to the  management of trust funds.  
6.3.  The Member added that it was their delegation's understanding that the Secretariat believes 
that it has managed this specific trust fund consistent with what Members agreed to in 2018 upon 
its establishment. The Member said that there may be differences of opinion on this . 
6.4.  The Member asked the Secretariat to commit to closing out this fund , consistent with the 
agreement reached with Members that the fund would run to the end of the first quarter of 2019,  
and that the Secretariat ought to  refrain from soliciting or accepting additional monies.  
6.5.  The Chairman said that the Committee notes that this subject would be included for discussion  
of extra-budgetary funds.  
7  CLOSING COMMENTS  
7.1.  The Chairman said that the meeting of 23 June, wh ich was adjourned sine die and continue d 
on 7 July was concluded . He said he had noted the interventions on the use of Interprefy and said 
that future meetings  of the Committee would offer the option of using Interprefy, depending on the 
availability of the rooms that have  Interprefy.  
7.2.  The Chairman added that he had noted,  from consultations and from the previous meetin g, 
the support for  smaller groups convening provided they are able to report back in a fully transparent 
manner to the Committee . He said that he would consult with Members on the possibility to use 
Zoom or other mechanisms for such consultations, as Inter prefy would not be available for the 
smaller groupings .  
7.3.  The Chairman informed the Committee that he had held consultations with 16 delegations on 
30 June and 1 July , three of them by skype or virtually by phone. The Chair man expressed preference 
for inter active discussions, especially when brainstorming important issues. The Chairman said the 
consultations were focused on getting views on the following topics : Updating of the 2020 Work 
Plan; The refinement of Financial Regulation 10 ; Enhancing Strategic Planning  and Horizontal 
Coordination ; and Output Reporting.  
7.4.  Regarding updating the 2020 Work Plan, the  Chairman informed the Committee that there 
were calls for further meetings where the Committee  can have interactive discussions as well as for 
informal m eetings or working groups in order to discuss specific issues. He added that the passage 
of the 2021 Budget  is a priority .  
7.5.  The Chairman said there are two tracks of topics to be considered by the Committee. One is 
the Committee's  function of passing the b udget for 2021 , with comments  expressed  about reverting 
to the biennium system.  The second track relate s to administration and finance policy, as well as a 
level of oversight of current expenditures.  
7.6.  The Chair man said he  intends to hold discussions on cer tain types of policy and strategy, 
current quarterly reporting and the use of more Member -friendly reports that allow Members to WT/BFA/ 187 
 
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  understand how the current budget is being expended and how reallocations are taking place. He 
said that, b ased on consultation s and Members' interventions during the meeting , he would  updat e 
the 2020 Work Plan for the rest of the year.  
7.7.  On the refinement of Financial Regulation 10, the Chair man report ed that most delegations 
find that the text is at an  advance d stage, while requi ring refinements on three specific issues : the 
period of interim authority ; contributions ; and the reporting requirement by the Director -General. 
The Chair man said he will be continuing consultations on these refinements with the aim of  gather ing 
Members' consensus.  
7.8.  On the topic s of Enhancing Strategic Planning, Horizontal Coordination and Output Reporting,  
the Chairman made  reference to WT/BFA/INF/5 and WT/BFA/INF/7. The Chairman report ed that 
Members are eager to discuss further issues of strategic planning and forward planning in the longer 
term. The Chairman said he had noted  Members'  interventions earlier on about the return to bienni al 
planning  and said that i n terms of strategic plan ning or planning on a longer term, this can also 
involve budget planning on a medium term and longer basis, which is relating to forward strategic 
planning. He said Members welcomed the idea of having a small group consultation or working group 
to express ideas on this important issue of strategic planning, horizontal coordination as well as 
further understanding of output reporting. He said he planned to conduct further consultations in 
Room E, if it is reopened for use . 
7.9.  DDG Brauner said  all the meeting rooms had been reopened and that Members could book 
them for their consultations and working groups . He said the equipping of Room S1 with Interpr efy 
was about to be completed and that there would be two rooms, CR and S1, available for Interprefy. 
DDG Braune r said CHF  1.2 million had been allocated to the use of Interprefy , in these two meeting 
rooms, until  31 May 2021, with two meetings foreseen for  each working day.  
7.10.   DDG Brauner mention ed that  delegates would still be required to register when coming to the  
WTO premises as this was necessary for co ntact tracing , were there to be new  cases of COVID -19. 
7.11.   A Member thanked  DDG Brauner and ask ed him if the planned use of Interprefy would be for  
approximately  one year.  Whilst acknowledging the utility that Interprefy had at the current time,  
the Member said at some point  Members  should have a more complete conversation that looks at 
how they can operate and the pros and cons of how virtual platforms are shaping the way Members  
work. The Member said that there had been meetings during which Committee rules were amended 
on the fly. He said that it is important to note that delegations were willing t o make some 
compromises  at those points but that it would be important to  assess the parameters of how 
Members  are interacting and acknowledge the changes that the virtual aspect would bring.  
7.12.   The Member added that a discussion of  prioriti zation of meeting s in the use of Interprefy is 
important, as there are only one or two rooms  equipped for this.  The Member said conducting 
meetings with a virtual component  is a complex matter and that, though their delegation appreciate s 
the work that has gone into making  the technological advancements , it encourages Members to 
figure out how they revise their interaction to make sure that if they are  going to break a rule they 
are all acknowledging that they are breaking a rule and do so with full knowledge.  
7.13.   A Member than ked the Chairman for his summary of his consultations with  Delegations. The 
Member  said that in the previous Committee meeting many delegations had expressed interest in 
Financial Regulation 10 and a willingness to have consultation s amongst them selves  through the 
format of a working group. The Member asked whether the Chairman  support s the idea of having a 
working group for this purpose .  
7.14.   Turning to the three different issues that the Chairman had highlighted, regarding Financial 
Regulation 10, the Member said that their delegation would like to add one more  item - the 
categories of expenditure . The Member said the text currently broadly says that the Director -General 
shall have the authority to approve expenditure that h e or she shall deem necessary . The Member 
said their delegation finds this too  broad and vague  and would like to have some discussion to gain 
clarity on the kind of expenditure.  
7.15.   A Member said the CBFA is the appropriate place to discuss the cost  of conduc ting meetings 
through virtually platforms . The Member agree d with the  comments that had been made by another WT/BFA/ 187 
 
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  Member that the hierarchy among meetings has to be discussed . The Member said their delegation 
does not agree with the view that Members had veered  from their rules of procedure because the 
move to hybrid meetings  follow the rules , as Members are physically present and Interprefy ought 
to be seen as a complement allowing delegates  based in capitals to participate in  meetings. The 
Member added that vi rtual platforms could , hopefully , be used in the  future for necessary meetings, 
so capital -based  delegates could join meetings without having to travel to Geneva .  
7.16.   A Member said that, g iven the context of COVID -19, Interprefy has been an impactful 
mechanis m and technology that all agree has enabled Members  to continue the ir work. The Member 
said their delegation do not see Interprefy as a luxury and rather as  an add -on and virtual platforms 
and a necessity. The Member said that, in view of this, the hierarchy of importance regarding 
meetings could also come into the frame. Whilst noting the costs related to conducting the Interprefy 
add-on, the Member said their country has  registered continually very high new numbers of  COVID -
19 infections, which  mean s that at least until the end of the year and even further , none of the 
Members capital -based  officials would be able to travel to Geneva , even if the WTO as an 
Organization is open  and allows for physical meetings. The Member said that there are predictions 
that there may be a second wave that may disrupt physical meetings at the WTO and other 
International Organizations. The Member added that p art of the mitigation and the planning that 
has been  put in place is to ensure that Members have a platform that enables access and 
participation in the processes that are required  of Members . The Member stated that there are  very 
important decisions coming up , including the selection of the new  Director -General , and thus 
Members need to ensure that they have th e necessary platforms and access available for Members 
to exercise their right s.  
7.17.   The Chairman thanked Members for their comments  and added that  they w ere beyond the 
agenda of the meeting . He said that the  remainder of the session would be conducted in informal 
mode .  
7.18.   As a result, the ensuing comments and questions are not included in the Report.  
__________