RESTRICTED  
  
WT/BFA/136  
 
22 May 2013  
(13-2739)  Page: 1/3  
Committee on Budget, Finance and Administration    
 
REPORT OF THE MEETING HELD ON 25 MARCH 2013  
 
1.1.  The WTO Committee on Budget, Finance and Administration met on 25 March 2013 under the 
successive chairmanships of Ambassador Albinas Zananavi čius (Lithuania) and the Permanent 
Representative Michael V. Stone (Hong Kong, Chin a). The terms of reference and composition of 
the Committee are set out in document WT/L/44/Rev.1. The agenda contained in document 
WTO/AIR/4101 was adopted.  
1  TRUST FUND REPORT AS AT 28 FEBRUARY 2013 1.2.  A member of the Secretariat provided an update on the financial situation of the Global Trust 
Fund. The level of contributions was gradually going down since 2009 and no new contributions 
had been received in the first two months of 20 13. Some Members' contributions were expected 
such as from Australia and France. The funding available was sufficient to start the activities in 2013, but new contributions will be required during the first semester in order to carry the 
expected work programme. 
1.3.  Members were also invited to contribute to the dedicated trust fund that facilitates the 
participation of LDC to the next Ministerial Conference to be held in December 2013. The 
Secretariat was seeking to raise some CHF 400,000 by the summer in order to plan and prepare 
for this support. 
1.4.  The Committee took note of this report. 2  REPORT ON OUTSTANDING CONTRIBUTIONS FROM MEMBERS AND OBSERVERS 
(WT/BFA/W/297) 
2.1.  A member of the Secretariat introduced the report on the outstanding contributions from 
Members and Observers. The collection of Memb ers' and Observers' contributions has been 
satisfactory in 2012. The number of Members subj ect to Administrative Measures at the end of 
2012 has been the lowest ever with only 6 Member s. At the start of every year, the list of 
Members, and now also Observers, is updated with  the annual assessed contributions. As part of 
the approved procedures the Committee has to notify the General Council, at the start of every 
year, of the list of Members and Observers subject to Administrative Measures.     
2.2.  The Committee recommends to the General Council to urge Members and Observers 
under Administrative to liquidate their arrears.  The list of the Members and Observers 
currently under Administrative Measures will be  provided by the Chair of the Committee at the 
General Council.  
3  ACCESSION OF THE LAO PEOPLE'S DEMOCRATIC REPUBLIC (WT/BFA/W/294) 
3.1.  A member of the Secretariat introduced the document regarding the assessed contribution of 
the Lao People's Democratic Republic following its accession. 
3.2.  Consequent to the accession to the WTO on 2 February 2013, the Committee recommends 
to the General Council that a pro rata contribution to the 2013 budget amounting to 
CHF 26,754 be assessed to the Government of the Lao People's Democratic Republic, as 
well as a contribution to the Working Capi tal Fund amounting to CHF 52,511 as an 
advance to the Fund.  WT/BFA/136 
 
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  4  ACCESSION OF TAJIKISTAN 
4.1.  A member of the Secretariat introduced the document regarding the assessed contribution of 
Tajikistan following its accession.  
4.2.  Consequent to the accession to the WTO on 2 March 2013, the Committee recommends to 
the General Council that a pro rata contri bution to the 2013 budget amounting to 
CHF 24,504 be assessed to the Government of Ta jikistan, as well as a contribution to the 
Working Capital Fund amounting to CHF 52,774 as an advance to the Fund.  
5  HUMAN RESOURCES UPDATE: WTO SALARY ADJUSTMENT: 2013 
5.1.  A member of the Secretariat presented the results of the WTO Salary Scale methodology to 
be applied at the start of 2013.  The Director ‐General’s preliminary view was to apply a further 
0.86% negative adjustment to the WTO Salary Scale in 2013, as defined from the methodology. 
This negative adjustment is mainly driven by a drop in the purchasing power between Switzerland 
and France and a further drop in the CHF/EUR exchange  rate that have to be applied as part of the 
methodology. 
5.2.  The intention of the Director ‐General was to operationally implement this by: a) adjusting the 
salary scale for staff that join the organization as  of 1 January 2013, and b) continuing the existing 
freeze of salaries to staff that joined before 2012. The freezing of salaries for existing staff is consistent with prevailing practice at the WTO and the UN. There have been no increases in the 
salary scale since January 2009 for existing staff. Since that date the cumulative negative 
adjustment amounts to 4.26%. Going forward salaries would only increase once the negative salary adjustments have been fully offset ag ainst future positive salary adjustments. 
5.3.   Several Members stated that they appreciated that the Director-General consulted the 
Committee before taking a decision on this matter and would appreciate that this practice 
continues in future years. They also stressed the importance to continue to engage human resources reforms to compensate for the addition al expenses incurred by the salary freeze. One 
Member questioned what approach would be follow ed in 2014 if the trend of negative adjustments 
would further expand.  
5.4.  A member of the Secretariat then explai ned that the health insurance premiums would 
increase by 5% as of 1 January 2013 due incr eased expenditure under the plan. The premiums 
have remained stable since 2010. Additional information was also provided regarding the evolution of the WTO grade structure and turnover and how it compares with some other international organizations. 
5.5.  Several Members expressed some concerns regarding the present inverted grade structure at 
the WTO, with a high proportion of staff at higher grades. They welcomed measures taken by the Secretariat in the last few years to improve the situation such a limiting promotions, recruiting at 
lower grades and reviewing the promotion policy. One Member asked that those policies be 
pursued in the future, with strict limitations in terms of promotion, and in cases where promotion were warranted, a strong preference for competitive based promotions over promotions in situ. 
One Member mentioned that the budget process provides for an upper ceiling to be applied for 
regradings by the Secretariat both in monetary terms through the budget and percentage of the 
overall number of posts, noting that budgetwise, the Secretariat should consider a zero nominal growth in the budget for the next period. The memb er was also of the view that salary conditions 
shall not be the main recruitment driver in an international public organization, and further that 
there was no reason, in his view, for international organizations to provide significantly more attractive financial packages than national administrations. Another Member suggested that the 
Secretariat provides annually a report to the Committee on promotion and the grade structure of 
the Secretariat. One Member expressed concerns about the low level of staff turnover. 
5.6.  The Committee took note of the informatio n and recommends that a) the Director-General 
continue to consult the Committee before taking a decision on the salary scale adjustment, and b) 
that the Secretariat provides an annual report on  promotions and the grade structure, including 
movements in all grades across the Organization. WT/BFA/136 
 
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  6  BUILDING PROJECT UPDATE (WT/BFA/W/295) 
6.1.  A Member of the Secretariat updated the Co mmittee on the Building Project. He informed the 
Committee that the renovation project was 95% co mpleted and that meeting rooms in the North 
wing would become operational in the coming months. The intra-muros  project was completed but 
that two issues were pending with the general contractor, HRS. The terrazzo flooring had some 
defects and the shutters in the atrium roof needed to be fixed. The contractual situation with HRS was expected to become difficult, possibly ending  with litigation. However, the Secretariat was 
confident that the project would be completed within the amount approved by the grant. The 
extra-muros  project was 99% completed and was delivered within the schedule and budget. He 
also informed the Committee about the last major project related to the security perimeter. The 
Secretariat apologized about the disturbances experienced by Members due to the on-going 
building work that will be completed by the summer.  Finally, he indicated that the negotiation on a 
new infrastructure agreement with the Swiss Authorities was being completed and the Committee will be able to review the pr oposal at its next meeting. 
6.2.  The Deputy Director-General presented the report on the utilization of the Members' 
Transition Operating Fund. He also informed the Committee that the interpretation equipment of the General Council room would be renovated during the summer. This would be financed by the 
Swiss Authorities. 
6.3.  Members asked about the remaining work to be completed and about the difficulties 
encountered with HRS.  
6.4.  The Committee took note of the report.  
7  ELECTION OF CHAIRPERSON 
7.1.  The Chair recalled that the General Council at its meeting in February had taken note of a 
slate of names of officers for the various WTO stan ding bodies.  On the basis of the understanding 
reached, he proposed that the Committee on Budg et, Finance and Administration formally elect 
the Mr. Michael V. Stone as new chair of the Committee by acclamation. The Committee so agreed. The Chair thanked the Committee. Severa l Members thanked the Chair for his work.  
7.2.  Mr. Michael V Stone assumed the Chair, cong ratulated the outgoing Chair.  He also thanked 
Members for their participation.  
POINTS FOR DECISION: paragraph 3.2, 4.2 and 5.2  
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