RESTRICTED  
  
WT/BFA/195  
 
18 June 2021  
(21-5015) Page: 1/16 
Committee on Budget, Finance and Administration    
 
REPORT OF THE MEETING HELD ON 25 MAY 2021 
The Committee on Budget, Finance and Administration (CBFA) met on 25 May 2021. Her Excellency 
Ambassador Bettina Waldmann  (German  Ambassador  to the WTO ), welcomed Members to the 
meeting.  
The Chair opened the meeting noting that the whole day had been reserved for the meeting to 
ensure that there was sufficient time for discussion . 
1  ADOPTION OF THE AGENDA  
 
1.1.  The Chair noted that the agenda for the meeting with the reference WTO/AIR/BFA/44, together 
with the annotated agenda with the reference JOB/BFA/50, and related documents were sent out on 
12 May 2021. She further proposed slight adjustments to the order of the items on the agenda such 
that the m eeting proceed in the following order: Item A – Adoption of the Agenda;  Item B – 
Introduction of the Director -General; Item C – Address by the Director -General. The Chair noted 
that this was to ensure that the first item of business be the consideration an d approval of the 
agenda. She further suggested that agenda item D (Exchange of Ideas on Enhancing Strategic 
Planning) be taken up in informal mode, and that the CBFA revert to formal mode as from 
agenda  item E. She noted that this would enable delegations  to freely discuss strategic planning 
with the Director -General.  
1.2.  The Chair further proposed that agenda item N, be modified to read "Reimbursement of 
US Taxes - Requested by China", so as to make clear that this agenda item has been included at the 
request  of the Chinese Delegation. In addition, she proposed that agenda item F - Continuity of 
Operations of the WTO (Communication from Mexico and the United States), be taken up in the 
afternoon, immediately after the agenda item regarding the WTO Pension Plan .  
1.3.  The agenda, as set out in document WTO/AIR/BFA/44, was adopted with the modifications 
suggested by the Chair.  
2  INTRODUCTION OF THE DIRECTOR -GENERAL  
2.1.  Turning to agenda item B, the Chair extended a warm welcome to the Director -General. The 
Chair noted that the Committee provides an ideal platform for exchange s between delegations and 
WTO leadership, and that the focus of the Committee was on achieving outcomes. Following her 
introductory remarks, and turning to agenda item C, the Chair invited the Director -General to 
address the Committee.  
3  ADDRESS BY THE DIRECTOR -GENERAL  
3.1.  The Director -General thanked the Chair of the CBFA for the invitation to the meeting  and all 
delegations . The Director -Gener al commended  the former CBFA Chair, 
Ambassador  Manuel  Teehankee, an d the present Chair for the important work carried out in the 
Committee.  
3.2.  The Director -General said her focus in 2021 is on delivering results for MC12 and beyond. She 
noted the importance of creating a new and reinvigorated WTO to respond to the needs of 
WTO Members and the global community at large. To assist in achieving this aim, she ha s created 
a Delivery Unit to help focus on getting to MC12 with deliverables and achieving results.  WT/BFA/195  
 
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  3.3.  The Director -General noted that the Delivery Unit is led by Edwini Kes sie and has a core team 
of six staff members, as well as focal points across other Divisions. The Delivery Unit will work to 
ensure that Divisions deepen existing collaboration amongst them in furtherance of set objectives. 
The Director -General added that the Delivery Unit works closely with her to provide solutions -
oriented support to Members in the run up to MC12. Key areas of immediate focus include: working 
with relevant Divisions to deliver a WTO response to the COVID -19 pandemic ; fisheries subsidies ; 
dispute settlement ; agriculture ; development, including LDC issues ; and devising a more 
coordinated approach to discuss WTO reform.  
3.4.  The Director -General 's other priority is  to work with Members on a vision for the Organization, 
as well as on a strategy or  strategic plan and an accompanying budget to enable the achiev ement  
of set goals. She said she was surprised upon taking office to learn that the WTO had no vision 
statement per se , nor a strategy, and no strategic planning unit. She wanted therefore to commend 
the CBFA, for having started work in this direction. Regarding the im portance of planning she 
referred to an Igbo proverb along the following lines: " If you do not know your destination, how can 
you know what route to take to get there." She added in this regard that without a vision and 
strategic plan, the sum of the parts  would not amount to a whole.  
3.5.  The Director -General further emphasized that the time for identifying true talent in the 
Organization is now. She said that the WTO ha s a tremendous opportunity to show it can change. 
To assist her in gaining a deeper understa nding of the functioning of the Secretariat and whether it 
is fit for purpose, she recalled that she ha s launched an external review of the WTO to get an 
independent assessment of how to optimize the ability of the Secretariat to benchmark itself against 
best practices, especially around culture and organizational structure.  
3.6.  The review will aim at achieving greater efficiencies  and identify  a robust set of initiatives to 
enhance the WTO Secretariat's provision of support and services to Members. Key to thi s is to 
abandon territoriality, to rationalize work and to focus on what can be done to make a positive 
difference in people's lives around the world. She noted that nine management consultancy 
companies had submitted their bids and four had been short lis ted. Interviews were currently in 
progress. The commencement of the consultancy was scheduled for early June and the completion 
of the work for end of July.  
3.7.  She said she expect s the selected company to consult with Members, as well as with WTO 
Secretariat staff members . She added that she would keep Members informed of progress.  
3.8.  The Director -General further considered that the external review of the WTO would also help 
her institutionalize some processes and gave the example that there are no procedures wi th respect 
to responsibilities in the absence of a Director -General. She added that improvements in this regard 
could help avoid a politici zation of such decisions.  
3.9.  The Director -General informed the Committee that  her management style is to have a 
managem ent team comprising of  Directors and D eputy Directors -General . She noted that she has 
had weekly meetings  with Directors  and added that she had held two townhall  meetings with staff 
members. She intend s to continue the practice of having meeting s with staf f members once a month 
once or every two months.  
3.10.   Regarding budget preparation, the DG noted that this matter is in the able hands of 
Nthisana  Phillips and her team. The DG thanked Ms Phillips and budget and finance staff members  
for the good work they are doing. She further noted that Doctor Bright  Okogu , the new Chief of 
Staff, was the former D irector -General  of the budget of the Federation of Nigeria and will help 
oversee the budget process.  
3.11.   The D irector -General  said she will be submitting her first budget proposal to the CBFA  on 
22 June. She emphasized  that the budget has been unchanged , in nominal terms , over the past 
eleven years, thus it has actually contracted in real terms by anywhere between 6 to 10%. 
Considering that she had only recently assumed duty, the DG said she would be assessing options 
and defining priorities over the coming month s. Noting  that countries ha ve been economically and 
financially hit by the pandemic , she said she would propose to maintain the same budget amount in 
the 2022 -2023 budget proposal as in the past decade or so . WT/BFA/195  
 
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  3.12.   Nonetheless , the D irector -General signalled to the Committee  that, should the external review 
produce recommendations that require additional funding, she would bring this to the attention of 
Members at the mid -term review. She noted that, a s a former Finance Minister, it was in her DNA 
to be prudent and parsimonio us with the budget but where additional resources would be required 
she would be remiss if she did not point this out and draw it to Members' attention, especially if the 
aim is to reorient the organization.  
3.13.   The D irector -General  underscored that the world is looking to the WTO to guide global 
cooperation and play a central role in policy making on a range of systemic issues including equitable 
access to vaccines, rapid technological change, and climate -related change. The expertise of the 
WTO on trade -related matters is well known and will be relied upon. The D irector -General  said the 
Secretariat had not expanded and developed its domain of expertise beyond its traditional one during  
the past two decades.  
3.14.   She stressed that there will be a price to pay to wak e up the "sleeping beauty ". Recalling that 
Members had elected her as D irector -General  to deliver change, she said that she expects  Members 
to provide her with the means to reform the organization so as to serve its Members appropriately.  
3.15.   She reiterated, f or example, that the WTO may benefit from a strategy and planning unit. 
She also noted the lack of a gender policy, adding that a multilateral institution of this day and age 
that does not have a thorough gender assessment, leaves a lot to be desired.  
3.16.   The Director -General  said, confronted with an ever fast -changing environment, the 
Secretariat needs to become more agile. This may require new skills not yet present in the 
Secretariat even if such new skills may be obtained from outside suppliers, this may require extra 
resources , in particular with Members' help and support. She said she was considering 
reconfiguration of the Young Professionals Programme to help recruit new talent and the 
diversification of staff resources by gender and nationality, to better represent the diver sity of the 
WTO's membership. She added that one of the most recurring complaints she had heard since taking 
office was that some Members were telling her that they were either not represented or are very 
poorly represented  in the staff . 
3.17.   The D irector -General also emphasized the importance of reflecting on the possibility of 
launching a modest mid -career programme to tap specialised skills as 7.4% of staff are due to retire 
in the next five -years (not counting those who may take early retirement).  
3.18.   She added  that the pandemic has demonstrated that the digitalization of the WTO and its 
Secretariat is far from complete and significant progress is required to better connect the 
Organization to the outside world, and to exploit the potential of Artificial Intelligence and big data. 
These reforms will not be possible without additional resources.  
3.19.   The D irector -General  further noted that the relevance of the WTO hinges in part on its capacity 
to address the subjects of the day when they are raised and not years later . This would require an 
increase of its brain power, access to new skills and competences and hence most likely new 
resources. She said she hope s to soon have a more comprehensive diagnostic of the situation to 
share with Members in order to consider the b est way forward. Beyond these examples, what she 
saw as frustrating at the moment was the lack of flexibility in the budget, including the fact that with 
so many budget lines being fixed, it was impossible to reallocate from one category to another to 
initiate urgent initiatives.  
3.20.   The D irector -General  briefly touched on trust funds to acknowledge the work Members are 
carrying out in the area, and to signal to Members that she will liaise with them on the matter, 
including with respect to efficiency of functi oning and effectiveness, and the ITC.  
3.21.   In closing, the Chair thanked the Director -General, on behalf of the Committee, for her 
remarks. She noted that the Committee would now turn to an informal exchange on strategic 
planning and was grateful that the Direc tor-General was in a position to participate in that 
conversation.  WT/BFA/195  
 
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  4  ORAL REPOR T FROM THE CHAIR OF THE CBFA ON ONGOING WORK  
4.1.  Regarding her  recent and ongoing activities , the Chair recalled that trust fund issues had been 
discussed in the context of a small gr oup process , and that  Alicia Goujon , a delegate for Mexico , is 
leading the process. The Chair further noted that the Working Group on Trust Funds had  met on 
26 April,4 May and 19 May  and that , thus far, 22 Members had indicated their interest in participat ing 
in the working group.  
4.2.  The Chair said progress ha s been made , and that her  expectation is that the Working Group 
should be able to report back with some recommendations before the Summer break .  
4.3.  Regarding the issue of the continuity of operations of the WTO , the Chair recalled that she had 
invited interested Members to consult with her on 7 and  10 May  on the text of a proposed 
Financial  Regulation in this regard . Questions had been raised concerning the nature of expenses 
that would be authorized during an interim period, the length of that period, and the incentive 
structure needed for Members to remain focussed on reaching consensus on the budget during any 
interim period.  
4.4.  The Chair noted that , in the context of her consultations, she had  met with the Mexic o and US 
delegations  who had subsequently prepared a communication setting out thoughts t o provide a basis 
for further exchanges of ideas moving forward.  
4.5.  Regarding the subject  of US taxes , the Chair  informed delegations that she had met with the 
Chinese and US Delegations to gather further information and gain a better understanding of the 
issues at stake. The Chair further recalled that China ha d requested  inclusion of the matter on 
agenda  of the CBFA.  
4.6.  The Chair further noted that the question of continuity of operations of the WTO, as well as the 
issue of US taxes, would be discussed in the afternoon session of the CBFA Committee meeting.  
5  WTO SECRETARIAT'S LEARNING AND DEVELOPMENT PROGRAMME 2019 & 2020  – 
WT/BFA/W/553  
5.1.  The Secretariat 's Head of Learning began by thanking her colleagues in the Learning Service 
for the support they have provided Secretariat colleagues during the pandemic, especially when they 
themselves were personally grappling with the impact of COVID -19. She stated that  as a result of 
the pandemic the manner in which Learning and Development initiatives were delivered in 2019 and 
2020 were vastly different with the focus on virtual learning as of March 2020.  
5.2.  She addressed four areas in her presentation:  (1)recently revis ed Language and Performance 
policies;  (2) training in the area of Corporate Values;  (3) learning initiatives to assist staff to cope 
with the pandemic;  and (4) functional training.  
5.3.  Mention was made of a revised Language Policy, issued in late 2019, partly  with the intention 
of having staff be more accountable for their learning by ceasing funding if staff members were to 
fail their language examination on two consecutive occasions. Given the pandemic and the initial 
technical challenges related to virtual learning, a decision was made not to cease financing 
arrangements in 2020. However, she stated that in 2021 there has been greater attention to 
administering the policy, as originally intended. A revised Performance Policy , issued in 
October  2019, emphasized the importance of on -going feedback and made clear the process for 
addressing underperformance.  
5.4.  Regarding training in Corporate Values , the Head of Learning said  95% of staff have undertaken 
the "Respect&Harmony@WTO" e -learning programme which  was launched in September 2019. 
Webinars on Diversity & Inclusion and Ethics were conducted in 2020. Staff members were provided 
with an Ethical Decision – Making Model when faced with a dilemma. A conscious effort has been 
made to include male Secretaria t staff in discussions pertaining to Gender & Inclusion.  
5.5.  To assist managers and staff members during the pandemic, the Learning Service provided 
practical support regarding remote working and psychological support via a Motivational Speakers 
series - explo rers and adventurers were invited to deliver messages of courage, of perseverance and WT/BFA/195  
 
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  of resilience. In addition to the programmes delivered by the Learning Service support was also 
provided by the WTO Community Support Network who conducted sessions such as Mindfulness; 
and Posture and Managing Stress. Some staff members even shared what it felt like to contract 
COVID -19. 
5.6.  With respect to functional training, staff members who facilitate Technical Assistance 
programmes were trained on how to deliver their p rogrammes virtually. In addition, a number of 
functional learning networks were established , including networks for Managers and Research 
Economists. This includes t he Transparency Network , a cross -divisional initiative aimed at improving 
the WTO's transpa rency mechanisms.  
5.7.  A Member said the report is excellent and expressed  appreciat ion for  the Secretariat 's timely 
response  to do everything to keep the meetings going in a virtual mode and to keep staff members 
motivated and working together via virtual mean s. The Member said that this is an investment , not 
only for the period of the pandemic but perhaps for the  long-term. He said  a balance between virtual 
meetings and physical meetings  has to be explored for the future.  
5.8.  The Member expressed  appreciat ion for the wide range of activities that promote a diverse, 
safe and inclusive workplace  and congratulate d the Secretariat and staff members for their 
investment in that subject.  He said this ties in with the notions of a highly qualified staff that we re 
mentione d in previous discussions.  
5.9.  A Member congratulate d the Secretariat and said the report provides Members with very sound 
result s and achievements. On the holding of workshops for men in the area of gender issues , the 
Member said t his is very good because gen der issues involve not only women but men as well. He 
further commended  the technical and psychological support that has been provided , making it 
possible for staff members to work in very challenging and very trying circumstances.  
5.10.   Subsequent to congratulating the Secretariat for  95% of staff members hav ing undertaken 
the "Respect&Harmony@WTO" e-learning programme , a Member said i t seems that the expenditure 
rate for training  for 2020,  due to the COVID -19, is quite low (less than 50%) but even in 2019, it 
was only 68% , and asked why this was the case . With regard to input and output, the Member said 
it is unclear whether there is any mechanism for assessment on the learning and development 
programme  and asked h ow the input and output for suc h training is assessed.  
5.11.   A Member agree d with others that this was a very helpful contribution and said his delegation 
likes the statistics and the information that were provided. He said his delegation has long been 
interested in the respect and harmony initiativ e and really appreciate and commend the efforts that 
went in to some of the ideas that were reflected in the report on bringing some topical discussions 
forward.  
5.12.   The Member said his delegation would be  interested in seeing an assessment of the  pluses 
and m inuses of moving to an online or teleworking environment and other related  workplace issues 
and if some of the Secretariat's efforts contributed to ensuring that people who are isolated and may 
not have the benefit of a home office showed certain behaviour  or experienced i ntimidation , as some 
of these bias es can come through even more on one on one emails. He said this is something that 
his delegation looks at across all U N agencies and all international organisations that it cover s. 
5.13.   The Secretariat's Head of Learning and development t hanked Members for their ongoing 
support.  
5.14.   With respect to the questions about the rate of expenditure, she said  in 2020, because of the 
pandemic, there was no external training. Usually a third of the training budget is spent on external 
training and by that, comprising of the cost of the course s, travel and daily subsistence allowances . 
She said that due to the impediment t o travel, t here was no physical movement and any external 
courses and programmes were done online. Focus was more on webinars rather than day -long 
courses. Webinars tend be 1.5 to 2 hours in length as opposed to a an 8-hour day long course  hence 
further re duction in cost. 
5.15.    In terms of the assessment of input and output, she said the Secretariat works closely with 
all training providers to ensure that the input meets the needs of staff  members . She added that  WT/BFA/195  
 
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  sometimes staff members are involved in ensur ing that the input meets their needs, especially for 
divisional programme s. With respect to the assessment of output, she said that programmes are  
assess ed and evaluate d. She gave the example of coaching interventions  and said managers are 
involved with the co ach and the coachee to set the initial objectives of the coaching process and 
then managers  are later involved  towards the end of the coaching process to evaluate the extent to 
which the coachee 's performance  was enhanced . For workshops , surveys are conduc ted to gain 
feedback o n not only the reaction to the programme, but the extent to which staff members  are able 
to implement anything back in the workplace.  
5.16.   The Head of Learning and Development said that, going forward , there will be even greater 
emphasis on projects , Webinars and workshop s in the coming years and that the competency 
framework  would be revisited  activities such as talent review , succession planning and 
360°assessment for managers  will be considered . The findings of the gender audit  will be taken 
forward . In addition, a diversity and inclusion audit will be conducted .  
5.17.   The committee took note of the update provided and of the statements made.  
6  UPDATE ON THE REPLACEMENT OF DOCUMENTS ONLINE  – WT/BFA/W/5 49 
6.1.  The Chair introduced the agenda item by stating that Documents Online (DOL) is the 
Secretariat's online document repository for WTO official document consultation , observing that the 
system currently in use is outdated and the Secretariat is presenting the follow -up paper on its 
planned updat e. 
6.2.  An Official of the Secretariat said this project was initiated in July 2020 in response to a request 
from Members. A first update on the project was provided to Members during the CBFA meeting of 
9 November 2020. The initial phase of analysing the user needs had been completed and there was 
a clear roadmap for the replacement of the system.  
6.3.  For the analysis of user needs, as DOL has a wide stakeholder base of varying needs, the 
Secretariat sought professional input from an independent consultancy with br oad expertise in state -
of-the-art document dissemination and publishing platforms ideally tried and tested by other 
international organizations and/or corporations. The scope was to capture and analyse user needs, 
understand the best industry practices and  identify a suitable matching technology. The work was 
performed between July and December 2020 and the Secretariat had received the final report with 
recommendations.  
6.4.  Dedicated focus group meetings were conducted with Members and the Secretariat to identi fy 
specific needs. Delegates from more than 20 delegations participated and provided input. The 
Secretariat thanked the Members for their time during these focus group meetings and for their 
valuable inputs. Several Substantive Divisions and Sections from the Secretariat also actively 
participated and provided input, namely Trade Policy Review ; Development ; Agriculture ; 
Technical  Barriers to Trade ; Intellectual Property ; Rules ; Knowledge Management ; Market Access ; 
Trade in Services ; Trade Facilitation ; Training and Technical Cooperation ; and Economic Research 
and Statistics.  
6.5.  The summary of the main needs for a future DOL system includ es that it be end-user focused, 
in particular to help new delegates to easily find information ; device -friendly for phones and tablets ; 
allows for personalization ; has an intuitive google -like search with natural language ; allows for 
improved information discovery ; and is better integrated with the WTO website s. 
6.6.  Technologies have  advanced over years  and these evolving needs pointed to replacing DOL 
with a more intuitive and fit -for-purpose solution.  
6.7.  The roadmap recommended a two -step approach. The first mandatory step is to develop a 
sophisticated thesaurus and ontology. This is crucial to provide an intuitive google -like search as 
well as smart information discovery. This would enable a faster learning curve for new users, reduce 
the need for training and enable consistency across all systems. The procurement process ha s been 
started to get expert professional assistance from an independent consultancy with broad expertise 
in the domain. This work is expected to take place from July to December 2021.  WT/BFA/195  
 
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  6.8.  The second step is the technical component acquisition, development and implemen tation. This 
work is expected to start during the second half of the year.  
6.9.  During the focus group meetings, several delegates had indicated their interest in participat ing 
in the pilot phase. The Secretariat would consider this during the development peri od. 
6.10.    In summary, the study recommends an architecture that best -matches the end -user needs 
captured. This will ensure that the new Documents Online system  will be the authoritative, secure, 
well-designed and intuitive application users expect from a forwar d-looking organization . 
6.11.   A Member commended the Secretariat for the progress that ha s been made regarding this 
long-standing concern of Members that the system desperately needed  an update. He appreciated 
the time  and effort put in by the Secretariat and for Members ' engagement  through focus group 
meetings. He also said that it sounds like Documents Online was beginning to move into the 
21st century.  
6.12.   A Member voiced appreciation and she said that she had also participated in focus group 
meetings. She mentio ned that having a search engine that could do google -like search is very 
welcome . She requested the S ecretariat to provide further updates.   
6.13.   Responding to a question about cots, a n Official of the Secretariat said the technical 
components are currently be ing reviewed for alignment with the WTO Information Technology 
Architecture. Once this review is finalised, the Secretariat will update the Members on the financial 
details.  
6.14.   The Committee took note of the report.  
7  ITC BR IEFING NOTE FOR CB FA MEMBERS  – JOB/BF A/51  
7.1.  The Chair welcomed the ITC Executive Director, Ms Pamela Coke -Hamilton , and her colleagues  
to the meeting . The Chair  expressed the hope that this would further enhance cooperation between 
the ITC and the CBFA.   
7.2.  Ms Coke -Hamilton thanked Members for their support during the first seven months of her 
being in office, noting that the ITC's work is more relevant than ever before during the pandemic 
period.  
7.3.  Referring to JOB/BFA/51, Ms Coke -Hamilton noted that the brie fing note circulated in advance 
of the meeting was  a response to requests from several WTO delegates for more information on ITC 
and its contribution to WTO objectives. ITC had  heard Members  and underst ood that they require 
clarification and better insight  into the organization's decision -making process, expenditures , and 
performance .  
7.4.  Ms Coke -Hamilton said the first section of the briefing note is a response to questions on the 
way ITC works, how decisions are taken, and the accountability mechanisms that are in place. It 
also addresses ITC 's governance and oversight arrangements  explaining  the relationship  between , 
on one hand, the governing bodies of the UN and the WTO, and on the other hand, the Joint Advisory 
Group (JAG) of ITC and the Consultative Comm ittee of the ITC Trust Fund (CCITF).  The first section 
of the note also provides background on how ITC carries  out its mandate, the resources it receive s 
and how it programme s and manage s those resources. In so doing, it  describ es the process of 
developing the organization's  strategic plan, annual operational plans, proposed programme plan 
and budgets.  
7.5.  Regarding  the administrative and oversight arrangements in place , the briefing note  explain s 
the roles of ITC's external and inter nal auditors, oversight bodies and committees. Ms Coke -Hamilton 
noted that the 2020 results would be set out in ITC's  year-end reports , currently being finalized, 
adding that  like in 2019 and previous years ITC would  receive an unqualified audit opinion on  its 
financial statements for 2020. WT/BFA/195  
 
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  7.6.  Ms Coke -Hamilton expressed the hope that after studying the briefing note , Members would  
be satisfied that they understand how ITC works, and would have confidence that its governance 
and oversight structures are functio nal. 
7.7.  Turning to the second section  of the briefing note , Ms Coke -Hamilton recalled that it  elaborates 
on ITC 's contribution to the work of WTO  through contribution to specific WTO initiatives and 
ensuring that the trade opportunities provided by the WTO ru les are realized on the ground. By way 
of example, she noted  that: 1) ITC  support s developing countries and LDCs in their implementation 
of the WTO Trade Facilitation Agreement, the WTO Agreement on the Application of Sanitary and 
Phytosanitary Measures  and the Technical Barriers to Trade Agreement ; 2) ITC developed a LDC 
waiver database with WTO Secretariat and delivered capacity building workshops around this ; 3) ITC 
established trade and market intelligence databases and the information is shared with th e WTO for 
use in its data related services and publications ; 4) ITC  assist s developing countries and LDCs in 
their capacity building, for example, for WTO accession, negotiations on Investment Facilitation, 
discussions on E-commerce, in the development and  adoption of the Buenos Aires Declaration on 
Women and Trade , as co-chair of the International Gender Champions' Trade Impact Group , conduct 
of sustainability impact assessments for on -going or new F ree Trade Agreements ; and 5) ITC  
support s the work of the Committee on Trade and Development, the Sub-Committee on Least 
Developed Countries, and the Informal Working Group on MSMEs.  
7.8.  Going forward, ITC's focus will continu e to be on supporting the WTO agenda in the post -
pandemic period and continuing a core element of its work: translating WTO discuss ions and 
agreements into operational priorities on the ground.  
7.9.  ITC also wants to have a more organic engagement in the Committees and informal working 
groups of the WTO as deemed appropriate and necessary by members.  
7.10.   Ms Coke -Hamilton emphasize d that ITC integrates a gender perspective in its operational 
activities  and deliverables by focusing on the economic empowerment of women: SheTrades leads 
a set of actions that increase gender equality in trade. Among them is the "SheTrades call to action ", 
which mo bilizes funding and partnerships to bring women to markets, through seven transformative 
actions at the levels of policy, institutions and micro -, small and medium -sized enterprises.  
7.11.   Ms Coke -Hamilton said the third section of the briefing note  demonstrate s how the regular 
budget funding received through  the WTO and the UN helps ITC to function and deliver , how ITC  
performed against the 2020 regular budget and the status of ITC resources as of 31 December 2020.  
She further explained that to tal 2020 expenditu re amounted to 97% of the approved regular budget 
(CHF 35,612,130 out of CHF 36,686,250) , and that ITC had provided explanations on performance 
against budget in staff costs, administrative costs and other costs .  
7.12.   Referring to  page 14 of the briefing note , Ms Coke -Hamilton indicated that it provides 
highlights of ITC 's 2020 financial information, focusing on the regular budget, extra -budgetary 
resources, and the programme support account. In line with the UN cost recovery policy, the 
programme support costs  are charged to extrabudgetary contributions to ensure that the additional 
cost of supporting activities financed from these contributions are fully covered and not borne by 
the regular budget. In 2020, ITC collected approximately $8 million in programme s upport costs to 
recover incremental indirect costs of extra -budgetary implementation. As an illustration, 160 of ITC 
staff members  are paid from the regular budget and an additional 40 staff  members  are recruited 
using programme support costs to support de livery.  
7.13.   Ms Coke -Hamilton said she  believe d that as an institution, ITC had  passed a first test on 
flexibility and responsiveness in 2020, adjusting its operations, and being able to trigger tangible 
results in the field. Generally speaking, COVID -19 ha d not had major negative impact on the financial 
situation of ITC . However, the organization had  already seen that COVID -19 has had an impact on 
overall Of ficial Development Assistance flows and their composition.  
7.14.   In closing, Ms Coke -Hamilton emphasize d ITC's  commitment to ensuring that trade acts as 
an engine for inclusive growth and sustainable development , adding that ITC will manage the 
resources entrust ed to it with efficiency and effectiveness to deliver impact and contribute to 
Agenda  2030 and to decisions taken at the WTO. ITC will come back and present its                        
2022-2023 budget  proposal  to Members .  WT/BFA/195  
 
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  7.15.   A Member acknowledged and express ed appreciation for the efforts undertaken by ITC. The 
Member noted that the briefing note was very helpful for two key reasons : firstly, it provides a good 
overview regarding possible synergies between WTO Committee work  and ITC work ; and s econd ly, 
it provides a more robust picture of the technical assistance and capacity building efforts that ITC is 
capable of undertaking and the substantial policy support that is provided. The Member added that 
further exchange and dialogue would help Members better unde rstand complementarity and 
synergies, and that some donors might begin to think of ITC as an implementing agency that is 
perhaps better equipped than the WTO in many instances to deliver technical assistance, in particular 
taking into account the experienc e and the network that ITC already has. The Member further 
expressed the view that an area where the WTO may need to focus more is building resilienc e and 
preparedness for global challenges.  
7.16.   A Member thanked ITC for the briefing note, noting that it was a very good document that 
shows the contribution that ITC can make to the mandate of the WTO and to enhanc ing 
transparency.  
7.17.   A Member appreciated the thorough description of ITC's support for the WTO's work, noting 
that it underlines how ITC works with the WTO Members to ensure that trade opportunities provided 
by WTO rules are realised on the ground. The Member also expressed appreciation for the focus on 
smaller companies, noting that they may at  times find it difficult to be aware of the rules, to follow, 
and make full use of them in international trade cooperation. In addition, the Member said, as a 
partner and donor of ITC, his delegation is pleased with the mandate, work  and the results of ITC . 
The Member further welcomed opportunities for continued cooperation between ITC and the WTO  
and, where feasible , in cooperation with UNCTAD as well. Regarding how to enhance synergies, the 
Member noted that the preparation of the ITC Strategic Plan for 2022-2025 presents another 
opportunity to exchange views with the WTO Members , including  on policy development and work 
to promote economic recovery after the pandemic.  
7.18.   A Member said it was very helpful to have a paper that sets out how the support and 
programmes that ITC implements connect with the WTO's work , across the board. The Member 
added that it is useful to have this information ahead of discussion s on the ITC budget. The Member 
observed that the paper would also assist delegations to effectivel y consult with colleagues working 
on the issues relating to ITC programs, including with regard to the response to COVID and the 
pressure of the virtual world and issues around strategic planning.  
7.19.   Ms Coke -Hamilton thanked Members and  expressed her appreci ation for their feedback. 
Regarding the ITC strategic plan, she noted that when the discussions began in 2020  COVID was 
not on the front burner. However, it has necessarily had an impact on priorities. She added that ITC 
will engage with Members on these i ssues, including how best to support the work of the WTO in a 
more organic way – including in relations to MSMEs.  
7.20.   Regarding engagement with UNCTAD and the WTO, Ms Coke -Hamilton noted all 
three  organizations have carried out work on the gender issue. She a dded that she strongly believes 
that the synergies for all three organizations need to be pulled tighter and that it is possible to be 
more efficient and more effective in terms of outreach to Members as a joint grouping rather than 
acting separately. She referred in this regard to the absorptive capacity on the side of recipient 
countries and the importance of recognizing that many count on ITC, UNCTAD and the WTO to work 
together in a seamless and coherent way that benefits them.  
7.21.   With respect to the issu e of policy development, Ms Coke -Hamilton underscored the 
importance of ensuring that issues of policy inform the T rade-related Technical Assistance  that ITC 
delivers. She said ITC will  continue to work with the WTO on policy imperatives and to assist 
Memb ers in building their capacity on the ground.  
7.22.   In conclusion, the Chair joined Members in thanking Ms Coke -Hamilton for her participation 
in the meeting and for the briefing note prepared by ITC. The Chair added that she looked forward 
to further enhancing cooperation between the CBFA and ITC.  
 WT/BFA/195  
 
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  8  WTO PENSION PLAN UPDATE  – WT/BFA/W/5 50 
8.1.  The Chair of the WTOPP presented the update report from the Management Board. He reported 
on the better than expected investment returns for the Plan in 2020 which continues an overall 
pattern of above average returns in the past several years. However , he noted that this out 
performance could lead to under performance in the medium term going forward.  
8.2.  The Chair then mentioned the procurement process for a new consulting actuary  that had to 
be conducted due to the Lead Actuary having left the employ of the company that has been providing 
actuarial services to the Pension Plan  He report ed that a new provider of actuar ial services  had been 
appointed . Though th is is a positive  devel opment , the intervening delay in producing the normal 
cycle of actuarial reports means that the next report is not expected until the end of the year at the 
earliest.  
8.3.  Due to the previously mentioned concerns about expected future returns due to economic 
conditions and low or negative interest rates, plus emerging changes in staffing related 
demographics and other assumptions key to the actuarial valuations, the Management Board expects 
that the next report could point to an actuarial imbalance. If that is t he case, the Management Board 
will report back to the Committee consistent with Article 9 of the Pension Plan Regulations.  
8.4.  The Committee t ook note of the report.  
9  CONTINUITY OF OPERATIONS OF THE WTO – COMMUNICATION FROM MEXICO AND THE 
UNITED STATES – WT/BFA /W/555  
9.1.  The Chair recalled that the delegations of Mexico and the United States had outlined an 
alternative way forward to ensuring continuity of operations of the WTO, entailing an amendment to 
Financial Regulation 6. She referred in this regard to documen t WT/BFA/W/555 and invited the 
cosponsors of the proposal to take the floor.  
9.2.  In introducing the proposed amendment to Financial Regulation 6, the Delegation of the United 
States  underlined the importance of decision -making procedures set out in Article VII of the 
Marrakesh Agreement, including the requirement that the General Council make an affirmative 
decision regarding the adoption of a budget. For the United States  any solution would hav e to take 
into account that requirement. The United States further emphasized that a financial regulation 
cannot be used to override the procedures set out in Article VII, and that if there were a revision to 
such procedures this would have to be done by m eans of a protocol of amendment. The delegate 
added  that the proposed amendment to Financial  Regulation 6 would allow the Committee to 
establish a mechanism that can be used or not, but which nonetheless would provide for a continuity 
of operations in a ma nner consistent with the Article VII of the Marrakesh Agreement. Under that 
proposal, the Director -General could include in her budget proposal a request that would allow for 
continuity of operations. The Member recognized that such a request would have to  be reiterated 
each time a budget is proposed, adding however that this is what is required in the case of any 
budget proposal. In any event, the process could be expected to become quite routine over time.  
9.3.  The United States further noted that the precise  details of the request would be for the D irector -
General  to decide. He stated that d iscussions in the CBFA had confirmed that the provision of interim 
authority for a partial year was not workable for many delegations and did not result in finality of 
outcome. Clarity and consequence are needed , including in terms of what would happen if Members 
were unable to reach the decision to approve the budget. The trade -off is that the Director -General  
could have an additional year and that those Members that wante d to seek changes would be 
incentivized to try to constructively engage on a compromise. The Member added that considering 
the D irector -General 's request for an extension of two years prior to when it might need to be used 
meant that there was less incenti ve for any Member to be obstructionist.  
9.4.  In conclusion, the United States reiterated that the proposed language for an amendment to 
Financial Regulation 6 was an attempt to bring forward something that the cosponsors could both 
agree on. He said that they each had significant problems regarding the proposed revisions to 
Financial Regulation 10 and hoped that the alternative approach they had suggested would help 
move the issue forward.  WT/BFA/195  
 
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  9.5.  The Delegate of Mexico  thanked the Chair for accommodating her schedule, and thanked 
delegations for their patience. She noted that proposed Financial Regulation 10 in its current form 
is quite complex and difficult to pass, and that the Committee had not heard new ideas on how to 
move it forward without further complicating it . She emphasized that, for some Members , approving 
partial contributions is not an option, and that while partial payments could be made, the complete 
budget for the fiscal year had to be approved upfront, and cannot be changed later in the year.  
9.6.  Mexico  said a regulation cannot be used to override Article VII of the Marrakesh Agreement, 
and that even with the proposal regarding Financial Regulation 10, the General Council would most 
likely need to make an additional decision to apply that approach in a spec ific case. She said, b y 
contrast, the proposed amendment to Financial Regulation 6 is less complex in its operation and 
entail s seeking an approved budget for up to three years in advance. Moreover, it would allow 
Members to focus on negotiating a budget.  
9.7.  Mexico  said, i n sum, the idea was to get to achieve the same objective as was being sought by 
means of Financial Regulation 10, but in a simplified way without a need for an additional decision 
by the General Council  and that  the proposal also made it unn ecessary to refer to the concept of 
interim authority or to list expenditures that could be incurred during an interim period, and those 
that could not. She added that if a Member seeks to block approval of the budget, such Member 
would  have to hold its po sition for approximately 18 months assuming that a budget extension for 
an additional third year has been approved by the General Council. She recognized that the proposal 
would not solve all problems. She added that the cosponsors of the proposal were ope n to 
suggestions and had already received two. One was the suggestion to specify that the extension of 
the approved budget would be for the last financial year with necessary contributions from Members. 
The cosponsors agreed with the idea, considering that  the second year of a biannual budget could 
be different compared to the first. The other suggestion was to clarify that the approach 
contemplated would apply in the event that no consensus is reached on a biennial budget proposal.  
9.8.  Many Members thanked the  cosponsors  for their communication. A Member found the proposal 
to set out an elegant and pragmatic way to deal with the underlying issue and provides flexibility to 
the Director -General and avoids unnecessary detail . The Member  added that, conceptually , the 
approach merits consideration.  
9.9.  A Member asked what would be done with the previous proposal for Financial Regulation 10. 
The Member apprec iated the efforts to find a solution and understood that the idea was to provide 
the D irector -General  with flexibility while respecting the requirements set out in Article VII. The 
Member further noted that it was clear that  the annual budget should be app roved by the 
General  Council  as provided in Article VII. She queried about the nature of the interim authority, 
recalling that at issue here was not the annual budget as we usually understand,  but rather the 
provision of interim authority. The Member furth er asked whether a request for a budget extension 
for a third year  could realistically  be automatically approved together with the budget . If yes, this 
meant that each time it was going to be a three -year budget rather than bi -annual budget. If not, 
open d iscussion would lead to similar questions raised and discussed as in relation to Financial 
Regulation  10 – just at a later point in time.  
9.10.   A Member expressed concern that the current proposal would have to be rediscussed every 
two years and disagreed with the proposition that discussions regarding an amendment to 
Financial  Regulation 10 were not going anywhere. He said that they were quite advanced. The 
Member suggested that the information gathered during discussions on Financial Regulation 10 could 
be useful and asked whether Members would really agree to an extension of the budget for an 
additional year without any limits on the nature of spending that can occur during that period. The 
Member further suggested organizing a small group discu ssion regarding a way forward.  
9.11.   A Member expressed lack of clarity as to whether the proposed text for Financial Regulation  6 
was more compatible with the Marrakesh Agreement than the proposed amendment of 
Financial  Regulation 10. The Member observed  that the issue of budget extensions would have to 
be discussed every two years and expressed doubt as to whether the proposal provided an incentive 
for Members to agree on a budget. The Member also queried whether the idea was to approve a 
budget extension for every category of expenditure for a third year, or for  only for selected 
categories – and sought further clarity as to what the proposal seeks to do.  WT/BFA/195  
 
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  9.12.   A Member queried whether the idea was that a budget for a third year would be approved 
togeth er with the biennial budget, or whether the D irector -General  would be required to make a 
separate request to the General Council at some point during the two -year budget period. The 
Member considered that it would be useful to hear from the Secretariat on how the idea would work 
in practice.  
9.13.   Referring to the discussion with the D irector -General  about moving into an era of greater 
strategic vision and planning, the Member asked whether a straightforward roll over for a third year 
of the second year of a bie nnial budget would reduce the ability of the Director -General to be flexible 
and creative beyond the end of the two -year period. The Member suggested that this may, in theory, 
put pressure on Members and the D irector -General  to work better together to upda te the budget 
and to agree a new budget on time so that that a new strategy can be implemented from the third  
year onwards.  
9.14.   A Member said the new proposal provide s another interesting way of approaching the issue, 
and a different path to the same objective . Still the Member noted that making a request alone does 
not provide a guarantee that the request will be approved.  
9.15.   A Member noted that the proposed text for Financial Regulation 6 does not specify a time limit 
of one year, adding that his delegation would appreciate  the views of the S ecretariat as to how the 
proposal would work in practice.  
9.16.   A Member noted that while either Financial Regulation 6 or Financial Regulation  10 could 
potentially form a basis for discussions, it considered the proposal under d iscussion to be a more 
practical way of moving forward.  
9.17.   A Member said his delegation is  supportive of an approach that will ensure continuity of 
business, and suggested looking at the different options together and then choose the one that is 
the most like ly to find support, while also contributing the most to the stability of the organization.  
9.18.   Mexico  said that the proposed change to Financial Regulation 6 would constitute an alternative 
to the proposed amendment to Financial Regulation 10, but that both co uld be discussed, including 
even a third option. The Member added that the budget proposal would not be discussed every other 
year, although any request by the D irector -General  for an extension would be  as such a discussion 
is required in any event for each biennial budget proposal . The Member further emphasized that the 
hope was to provide flexibility for the Director -General  to frame any request for an extension as she 
prefers, and then to discuss that text.  
9.19.   The United States  added that Article VII of the Marrakech Agreement provides a very clear 
path to the approval of a budget . The Member expressed the hope that , in extreme cases where a 
Member may seek to block the approval of a budget, other Members can see the value of applying 
Article VII rather t han risking the continuation of operations of the WTO . The Member further noted 
it had had concerns regarding the text of proposed Financial Regulation 10 which it did not view as 
providing a viable way forward.  
9.20.   In closing, the Chair thanked Mexico and th e United States for their constructive ideas in 
moving the matter forward. She also thanked delegations for their engagement. She noted that 
questions had been raised regarding legal implications and how the approach outlined in the 
proposed amendment to Financial Regulation 6 would work in practice. She also recalled that some 
Members had expressed the hope that the Secretariat could share its views regarding these issues. 
She encouraged Members to consider and compare the two approaches openly, bearing in  mind that 
the proposed text for an amendment to Financial Regulation 10 had been drafted and discussed 
when the organization was in a different situation compared to where it stood today. Regarding next 
steps, she informed delegations that she would make a concrete proposal to Members, noting also 
that it would be useful if a conclusion could be reached before Members focus on biennial budget 
discussions.  WT/BFA/195  
 
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  10  REPORT FROM THE CHAIR OF THE WORKING GROUP ON COHERENCE IN THE 
ESTABLISHMENT AND MANAGEMENT OF WTO TRU ST FUNDS – WT/BFA/W/551  
10.1.   The Chair of the Working Grou p updated the Committee on developments at the third meeting 
of the Working Group that was held on 19 May. She reported that ITTC has been invited to present 
its processes for developing the TA Plan and monitoring and evaluation at the meeting of the working 
group scheduled to take place on  2 June. Finally,  she reiterated that the WG is open to all Members 
and she is  available for consultations should Members have questions or comments.  
10.2.   One Member comment ed that the deadline of the end of June for the W orking Group to report 
back to the Committee might be too ambitious.  
10.3.   Another Member raised the point  that it will be important to have a mechanism whereby the 
views of beneficiaries of trust  funds can be ta ken into account in the work of the W orking Group. 
10.4.   The Committee took note of the report . 
11  Q1 2021 BUDGET AND FINANCE REPORT – WT/BFA/W/552  
11.1.   An Official of the Secretariat introduced first quarter update by saying that,  in general terms, 
the income streams are similar to those for  prior years , except for the fact that a Member made a 
significant payment towards their 2020 assessed contributions in early 2021.  
11.2.   The percentage of actual 2021 receipts  relative to assessed co ntributions for Members  was 
56% and that for Observers was a 35%.  
11.3.   The Official of the Secretariat proceeded to read the Members and Observers under  each 
category of  administrative measures, as at 31 March and as at 25 May, respectively .  
11.4.   Turning to the  expenditure, the Official of the Secretariat  pointed to staff costs being in line 
with expectations for the first quarter, at 27%. She explained that the  high percentage for general 
services  expenditure  is mainly due to the fact that there are some contracts  which have to be paid 
upfront for the year. I f these are carved out, the expenditure rate would be around 25% . The spend 
of travel continued to be low due to travel restrictions.  
11.5.   The Official of the Secretariat said the high expenditure rate under capital  expenditure is due 
to the fact that the CHF 1.2 million due to the Swiss Government for the building loan was paid at 
the beginning of the year . In addition,  the replenishment of the Building Renovation Fund and the 
Ministerial Conference Operation Fund is effected at the beginning of the year . 
11.6.   A Member thanked the Secretariat for the report. He said that he noted his country is listed 
under  Category I of administrative measures list and mention ed that on 4 November  2020, his 
delegation had received a note from the Secretariat requesting that the country pay its contributions 
indicating that, as a minimum, CHF 100,000 had to be paid before the end of 2020 to not be subject 
to the aforementioned measures.  He added that, d uring the first week of February this year, his 
delegation paid the amount to the organization and had,  therefore , completed the 2019 contributions 
as well paying a small amount for the contribution for 2020. He thus requested, that the situation 
be corrected  and that his delegation  be withdrawn from the Category I list.  
11.7.   In response, an Officia l of the Secretariat said the dates that the Member had announced and 
the correspondence he had  mentioned are all valid. Nonetheless, the Official of the Secretariat sai d 
there is an audit observation regarding an amount of CHF 209,000 for MC11  owed by the Member,  
which has been outstanding for four years. She said the Secretariat had followed up through letters, 
emails and notes verbale over the years and added that the Secretariat has arranged a meeting  to 
discuss this with the delegation during the following week and that the CHF 100,000  had been put  
in a suspense account in anticipation of assumption of office by a new DDG.  
11.8.    The Member reacted by saying that contributions are one track  and the discussion around 
MC11 amounts claimed is another track. The Member said his delegation is  looking forward to 
meeting with the Secretariat in the following week. The Member reiterated hi s delegation's request 
to be removed from Category I .  WT/BFA/195  
 
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  11.9.   A Member expressed an observation on temporary assistance . She said the Official of the 
Secretariat had mentioned why there is an over expenditure on temporary assistance at that time 
this year and add ed that on looking at previous report s, even before the COVID -19 pandemic , 
temporary assistance has been always high . She said this is an issue that was raised by Members 
for quite a long time  and expressed the hope that , this issue could also be well addressed through 
the external review  as it seems that it could be a challenging issue for the Secretariat.  
11.10.   Referring to capital expenditure, t he Member said that her delegation is aware there was 
some investment on computer software for virtual meetings and other relevant equipment in the 
first quarter . She asked  whether the current facilities and input will ensure the smooth conduct of 
major meetings that are likely to be held though virtual m eans, such as the Ministerial me eting in 
July, the Public Forum  and the 12th Ministerial Conference.  
11.11.   A Member said that t here had been some discussion , in 2020,  about looking at alternative 
providers for the virtual service . She asked how  the costs were evolving in relation to the curre nt 
main virtual platform, Interprefy, and added that the  ongoing need for the virtual platform s appear s 
to be something that the Committee needs to think about and also be conscious that the travel 
expenditure remains low as there is nearly no activity . She said balancing the need for travelling , at 
some point that resumes , with the potential ongoing need for virtual platforms  would be necessary .  
11.12.   An Official of the Secretariat said the capital expenditure for  virtual platforms is quite small  
and that the i nfrastructure is already in place  and was already paid for in 2020 . She added that t he 
main expenditure is the utilization of the services for running meetings through the platforms , which 
falls under general expenses . She said if more rooms  need to be equ ipped  the incremental cost of 
the capital equipment would be minimal .  
11.13.   On the Public Forum and Ministerial meetings, the Official of the Secretariat said the decision 
as to whether the Ministerial Conference is going to be fully virtual or not  was still to be made and 
that, in the event that there would be a virtual component, be it full y or not, there would be additional 
costs for capital expenditure  to equip the CICG whilst expenses  for using the virtual platforms would 
not necessarily shift significantly compared to 2020 year because some meetings would be held back 
in order to accommodate major meetings and the Ministerial Conference.  She added that besides 
Interprefy other platforms which are relatively affordable to run such as WebEx and Zoom have been 
installed . 
11.14.   The Official of the Secretariat said a request for information had been conducted to assess 
the market for virtual platforms that offer  interpretation as well as high cyber security. She said 
most of the service providers have not yet added component for both interpretation  and a  stringent 
standard of cybersecurity protection. She said a few of the service providers will be able to come 
into market with such enhancement s by Q3. She added that the Secretariat had  determine d that it 
will be prudent not to try to change the system  before the Public Forum and the 
Ministerial  Conference in order to mitigate any risk of major malfunctioning were a new system to 
be installed and that a request for proposals for virtual platforms will be lau nched in early 202 2. 
11.15.    The C ommittee took note of the report and the comments made and the replies given.  
12  Q1 2021 EXTRA -BUDGETARY FUNDS REPORT – WT/BFA/W/554  
12.1.   An Official of the Secretariat presented the report to the Committee. He drew attention to 
responsi veness of the ITTC in adapting to virtual delivery of trade related technical assistance. While 
not ideal for all TA delivery, virtual formats have resulted in cost savings and that, in spite of reduced 
contributions , the financial situation of the GTF rem ains stable for 2021.  
12.2.   The Official of the Secretariat mentioned that the activities of the STDF had been less impacted 
by COVID -19 as approv als to  implement project proposals  were continuing . He added that  since the 
end of the first quarter, the WTO has received contributions from Germany and the United States 
for the STDF.  
12.3.   The Committee took note of the report.  WT/BFA/195  
 
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  13  REIMBURSEMENT OF US TAXES – REQUESTED BY CHINA  
13.1.   The Chair noted that this matter had been briefl y discussed at the meeting of the Committee  
held in April, and that it was on the agenda of the current meeting at the request of China. The Chair 
also recalled that she had met with the United States and China to gather further information and 
to gain a b etter understanding of the underlying issues.  
13.2.   China noted that it had raised this matter over the course of several years, and that it had 
also been identified by the external auditors. China asserted that the WTO incurs a deficit of 
approximately CHF 400 000 each year due to its policy of reimbursing US taxes. China said it 
understood the discrepancy to result from the Secretariat's policy of reimbursing US staff in excess 
of the amount contemplated in an agreement signed between the WTO and the US regardi ng tax 
reimbursements. To China 's understanding , the "overpaid" amount relates to non -WTO income of 
US staff, whereas the agreement signed between the WTO and the US only concerns WTO income. 
While noting that the issue was complex, China queried how the p ractice came about in the first 
place and expressed disappointment that no written clarification had been provided, although China 
had requested several times for the factual information . 
13.3.   China referred in this regard to WTO Staff Rule 106.11 which provide s that "national income 
tax on salaries, allowances, indemnities or grants paid by the WTO shall be refunded to the staff 
member by the WTO", and asked why the WTO does not follow either the contract it signed with 
the US or this Rule 106.11. China underst ood that the Secretariat's action was taken to abide by 
ILOAT decisions, and noted in this regard that Staff Regulation 1.1 requires t he WTO to "act with 
fairness and impartiality, and in full respect of the Staff Regulations  and the applicable jurispruden ce 
of the Administrative Tribunal of the International Labour Organization in its relations with staff 
members." China queried however how the Secretariat interprets the term "applicable" in this 
context.  
13.4.   China further asked how the decision was made to de part from the approach set out in the 
contract signed with the US ，whether the contract was taken into account when such a decision was 
made, whether Members were informed or consulted, whether Regulation 1.1 was noted or discussed 
when the contract with the US was signed, if the contract came later than Re gulation 1.1 and whether 
there had been any assessment of that decision .  
13.5.   China further requested that  the Secretariat provide a written information paper responding 
to the questions it had outlined , adding that Members needed to know the facts before exploring 
how to address the issue. China added that it was as important to discuss how conflicting decisions 
had been made and how to prevent this from happening again.  
13.6.   In closing, China requested that  the issue be dealt with in an urgent manner given that it 
resulted in costs of approximately 400 ,000 CHF for the organization each year , which would 
accumulate to millions of CHF in the past so many years . 
13.7.   Responding to the comments made by China, an Official of the Secretariat clarified that there 
appeared to be some factual miscomprehension and that , in reality , the amounts involved were 
significantly below CHF 400,000 per year. She further expressed appreciation for the proposal that 
the Secretariat pre pare a written paper responding to the questions outlined by China, noting that 
this was a good starting point. She added that the ILOAT ruling referred to by China concerned the 
issue of the methodology to be applied to calculate tax reimbursements, inclu ding whether 
reimbursements should be made based on a first income or last income method, noting this raised 
complex issues that could perhaps be best described in a written document . She added that the 
auditors had been asked to look into the matter, and that they would cover this in their audit report 
to be table d to the CBFA.  
13.8.   The U nited States thanked China for its intervention and for putting very clearly the questions 
that need to be addressed and the United States  had repeatedly  posed , including in th e last two 
budget cycles. The United States  noted that it was important to be careful in terms of what the 
Secretariat puts forward as fact versus interpretation . The delegate of the United States said, from 
his delegation's perspective,  it is very clear t hat it was the Secretariat's choice and interpretation 
that drive its decision to provide compensation, not fact because there are no facts at issue here. 
The United States added that if the Secretariat wanted to compensate beyond the reimbursement WT/BFA/195  
 
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  agreeme nt it had signed with the U.S., it may be able to do so, but should then also have 
communicated  this to Members.  
13.9.   The Chair noted that this is a complex issue with legal implications covering several elements, 
including method of reimbursement, existing rules for reimbursement, as well as cash -flow 
procedures. She added that she was pleased that the Secretariat would provide information 
regarding  these matters. She also recalled that the matter was being examined by external auditors 
who are in a position to provide an impartial point of view and can perhaps cross -reference with how 
similar matters have been addressed by other international organi zations. Further information, 
including the paper requested from the Secretariat would be presented at the next meeting of the 
CBFA.  
14  DISCUSSION OF THE WAY  FORWARD FOR FINANCIAL REGULATIONS 19 AND 23  
14.1.   The Chair noted that the Secretariat would welcome further guidance from Members on the 
way forward on Financial  Regulations 19 and 23 , regarding voluntary contributions and the surplus , 
respectively . She further recalled that Regulations 19 and 23 were extensively discussed and had 
almost been finalized, in 2019.  
14.2.   An Official of the Secretariat recalled that Financial Regulation 4 stipulates that the 
financial  regulations are to be revised every four years. She noted that approximately ten regulations 
had already been accepted and agreed by the Committee.  
14.3.   She added that Financial Regulation 19 had also been agreed, but towards the end of the 
year, one Member had  had a different  view. In relation  to Financial Regulation 23, there were a few 
delegations that had varying views  on the proposed text. It was for  that reason that the regulations 
had been put in abeyance.  
14.4.   The Official of the Secretariat said, given the express language in Financial Regulation 4, and 
considering the likelihood  that Financial Regulations 19 and 23 would require more deliberation, she 
asked Members whether they could allow for the financial regulations that had already been agreed  
upon by the Committee  to be readied for approval by the General Council at its meeting in July. She 
said that, hopefully , Financial Regulations 6 or 10, relating to assuring of continuance of operations 
pending budget approval, could be agreed soon and be included on the list of agreed changes. The 
Official of the Secretariat said she  recognize s that this was an ambitious aim but expressed the hope 
that progr ess could nonetheless be made.  
14.5.   A Member supported the proposal to move forward with Financial R egulations that had been 
agreed . The M ember suggested that Financial Regulation 19 be discussed only after the 
Working  Group on Trust Funds had completed its wor k. 
14.6.   A Member suggested that Financial Regulation 19 be discussed together with other 
regulations, emphasizing that his delegation is  flexible and ready to work constructively with other 
delegations to reach a solution that is acceptable regarding this finan cial regulation, and also open 
to holding these discussions in a small group on financial regulations or in the context of the 
Working  Group on T rust Funds. 
14.7.   The Chair proposed that the Committee take note of the comments made and revert to this 
matter in due course. She further expressed the hope that it might be possible to work pragmatically 
to achieve an outcome before the Summer break.  
15  CLOSING REMARKS  
15.1.   In clos ing the meeting, t he Chair thanked Members for their energy and their active 
participation , and the Secretariat for the preparation of the meeting.  
 
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