RESTRICTED
WT/BFA/W/352
5 February 2015
(15-0805)  Page: 1/15
Committee on Budget, Finance and Administration   
 
 REVISION OF THE WTO FINANCIAL REGULATIONS 
1.1.  The Committee on Budget, Finance and Administration established at the start of 2014 a 
Working Group to review the WTO Financial Regulations which are set out in document 
WT/L/156/Rev.2. 
1.2.  This Working Group provided its report (WT/BFA/W/344/Rev.1) to the Committee at the end 
of 2014. This report included a proposed revision of the WTO Financial Regulations. 
1.3.  The Committee has received some additional suggestions from delegations regarding the 
proposed revision of the WTO Financial Regulations.  These have been reviewed by the Chair of the 
Working Group and presented in document WT/B FA/W/351 and presented to the Committee in its 
meeting on 2 February 2015. 
1.4.  The Committee also received the following further suggestions from a delegation on its 
meeting on 2 February 2015: 
• Regulation 13. It is proposed to add a reference to the early payment encouragement 
scheme implemented at the time of the GATT and operating since 1 January 1989. The 
following paragraphs would be added at the end of Regulation 13: 
• "With a view to encouraging Members to pay their contributions as early as possible in 
the year in which they fall due, the interest  earned by investing the funds received by 
the Secretariat should be refunded to the Members pro rata, depending on the amount of their payments and on the date which they are made, as set out in Annex C." 
• The Annex C is added to the Financial Regulations as it has been approved in 1988 with 
updated terminology. 
• Regulation 36. It is proposed to make a clearer timing reference for the availability of the 
report of the External Auditor and the audited financial statements in order for the 
Committee to have sufficient time to review them. 
• It is proposed to add at the end of the first sentence: "in a timely manner, allowing 
sufficient time for the Committee to examine the report and the audited financial 
statements in advance of the regular meeting of the General Council in July." 
• Regulation 46. To achieve the same objective as on the previous point, it is also proposed to 
add at the end of the first sentence:  "in a timely manner, in accordance with Regulation 36".  
1.5.  A final copy of the proposed revision of the WTO Financial Regulations is attached to this 
document. It takes into account the proposal received by the Working Group in document WT/BFA/W/344/Rev.1, the additional suggestions included in document WT/BFA/W/351 and the 
further suggestions presented in the preceding paragraph. The proposed revision has been 
reformatted to the new WTO formatting guidelines and the regulation numbering has been updated. 
1.6.  The Committee is invited to recommend to the General Council to approve the revised WTO 
Financial Regulations as annexed to this document. The revised WTO Financial Regulations would be annexed to the report of the Committee to the General Council. WT/BFA/W/352 
 
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FINANCIAL REGULATIONS OF TH E WORLD TRADE ORGANIZATION 
PROPOSED REVISED VERSION TO BE RECOMMENDED FOR THE APPROVAL 
OF THE GENERAL COUNCIL 
 
Chapter I. Authority and Applicability  
Regulation 1 
 
These Regulations shall govern the financial administration of the World Trade Organization (WTO). 
 
Regulation 2 
 
The Director-General shall be responsible for th e implementation of these Regulations. He may 
delegate to other officers of the WTO such authority as he considers necessary for the effective implementation of these Regulations.  
 
Regulation 3 
 Rules made by the Director-General in order to ca rry out the provisions of these Regulations shall 
be communicated to the General Council for approval.  
 Regulation 4 
 These Regulations shall not be amended except by the General Council acting upon the advice of 
the Committee on Budget, Finance and Administration (the Committee). The Committee shall 
review these Regulations at least every four years. 
 Chapter II. Preparation of the Budget  
Regulation 5 
 
The WTO biennium shall consist of two consecutive financial periods covering each year of the 
biennium. The financial period shall be from 1 January to 31 December.  
 Regulation 6 
 For each financial period, the Director-General shall prepare a budget proposal containing estimates of the income and expenditure of the WTO, together with the comparable figures for the previous period.  
 
This budget proposal, as well as any revisions for the second year of the biennium as may be necessary, will be presented to the Committee at least eight weeks prior to the last scheduled 
meeting of the year of the General Council.  
 The budget proposal and any proposed revisions to the budget shall be presented in Swiss Francs 
(CHF). 
 Regulation 7 
 
The budget proposal shall present the breakdown of  expected expenditure by key categories, such 
as those for staff, temporary assistance, genera l services, travel or capital expenditure.  
 
In addition, the budget proposal shall set out how the Secretariat intends deploying the budgeted 
resources to achieve the WTO’s objectives, showin g, for illustrative purposes, the breakdown of 
expected expenditure by key output areas such as dispute settlement or technical assistance. WT/BFA/W/352 
 
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The contribution to the budget of the International Trade Centre (ITC) shall be included as one category in the WTO budget proposal. The detailed ITC budget proposal as presented to the United Nations is presented as a separate document and is subject to a specific recommendation by the 
Committee.  
 Expenditure specific to the functioning of the Appe llate Body and its Secretariat shall be identified 
and subject to a specific recommendation by the Committee.  
 The budget proposal shall show the maximum number of Full Time Equivalent (FTE) Posts in each year of the biennium, together with anticipated changes in the distribution of the FTE Posts by 
grade and by division. 
 The budget proposal shall be accompanied by such information annexes and explanatory 
statements as may be requested by or on behalf of the General Council, and such further annexes 
or statements as the Director-General may deem necessary or useful.  
Regulation 8 
 
Supplementary budget proposals for the current financial period may be submitted by the Director-General on an exceptional basis. 
 
The Director-General shall prepare supplementary bu dget proposals in a form consistent with the 
approved budget. These proposals shall follow th e same examination and approval process as for 
the annual budget proposals.  
 Regulation 9 
 The proposed budget expenditure shall be financed by income that consists of:  a) Contributions from Members and Observers. A dr aft scale of contributions to be assessed 
shall be prepared in accordance with Regulation 12; and 
b) Miscellaneous income, with an explanation of the source of each item of miscellaneous 
income. 
These figures should be accompanied by the comparable figures for the prior period. 
 Chapter III. Adoption of the Budget 
 
Regulation 10 
 The Committee shall examine the budget proposal an d seek further explanations and amendments 
as it deems necessary. Once the Committee has completed its examination, it shall prepare a 
report and a recommendation which shall be submitted to the General Council for adoption.  
Regulation 11 
 
The same procedures set out in Regulations 6, 7, 9 and 10 shall be applied to any revision for the 
second financial period of the biennium. The Dire ctor-General may submit a revised proposal for 
the second year of the biennium when there ar e exceptional and unexpected changes that could 
not have been foreseen at the time of the presentation of the budget proposal for the biennium.  
Chapter IV. Contributions by Members and Observers 
 Regulation 12 
 The draft scale of contributions to be assessed to Members is established on the basis of each 
Member’s international trade (imports plus exports) in relation to the total international trade of all 
WTO Members. 
 WT/BFA/W/352 
 
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  Calculations of assessed contributions for a given year shall be based on international trade 
statistics over a five year period. E.g. the calculations of assessed contributions for 2015 shall be based on international trade statistics for the years 2008 to 2012; or if these statistics are not available, for the last five years for which statistics are available. 
 
The statistics used refer to trade in goods and commercial services, including intellectual property rights payments, derived from the balance of payments statistics of the International Monetary 
Fund (IMF). Data are based on the IMF's methodology as defined in its 5th edition of the Balance 
of Payments Manual (BPM5) up to 2010 and as defined in the 6th edition of the Balance of 
Payments Manual (BPM6) as of 2011.  
Where IMF data deviate from IMF guidelines and include transactions not related to goods, 
services or intellectual property rights, adjustments provided to the WTO by the Central Bank or the National Statistical Office of a Member shall be taken into account by the Secretariat when 
adequately documented and justified. 
 If IMF data are not available, the WTO Secretar iat shall use estimates based on the best other 
available sources. 
 A minimum contribution of 0.015 per cent of the total assessed contributions to all Members shall be applied to those Members whose share in the total international trade of all WTO Members is 
less than 0.015 percent. 
 The same minimum contribution shall also be assessed to Observers. 
 
The contributions shall be assessed and paid in CHF.  
Regulation 13 
 
After the General Council has adopted the budget and the scale of contributions, the Director-
General shall promptly notify Members and Observers of their financial obligations by providing an 
invoice and a statement of account. 
 Members and Observers have the obligation to pr omptly pay their contributions. Contributions 
shall be considered as due and payable in full up on receipt of the invoice or on 1 January of the 
financial period to which they relate, whichever is later. As of 1 January of the following calendar year the unpaid balance of such contributions shall be considered to be one year in arrears. 
 
With a view to encouraging Members to pay their co ntributions as early as possible in the year in 
which they fall due, the interest earned by inve sting the funds received by the Secretariat should 
be refunded to the Members pro rata, depending on  the amount of their payments and on the date 
which they are made, as set out in Annex C 
 Regulation 14 
 The Director-General shall take appropriate action with a view to ensuring that Members and Observers pay their contributions promptly. The Secretariat shall report regularly to the 
Committee on the state of payment of contribution s. Members and Observers with arrears shall be 
subject to Administrative Measures as defined in Annex A.  Regulation 15 
 Observers may only accede to the WTO if their contributions as Observers have been fully paid. New Members shall be required to make a pro rata contribution for the year in which they become 
Members, after any relevant deduction of their assessment as Observer which shall also be 
calculated on a pro rata basis for that year. New Members shall also be required to provide their proportion of the total advances to the Working Capital Fund; this advance shall be carried to the 
credit of the relevant Member. Payments made by a Member shall be credited first to the Working 
Capital Fund and then to the contributions due.  WT/BFA/W/352 
 
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  Regulation 16 
 
Any payment in respect of contributions made by a Member which has not paid in full its 
contribution for previous calendar years shall, unless the General Council decides otherwise, be 
credited against the earliest date of such arrears. 
 Regulation 17 
 A Provision for contributions in arrears shall be maintained. It shall be funded through the Surplus Account.  
Chapter V. Miscellaneous income 
 Regulation 18 
 Except in so far as the General Council may decide otherwise, all income other than (a) contributions payable by Members, (b) interest ea rned by investing contributions received by the 
Secretariat and not required immediately, and (c) income derived from investments of the Working 
Capital Fund shall be classed as miscellaneous income.   Chapter VI. Voluntary Contributions, Gifts or Donations 
 
Regulation 19 
 
Voluntary contributions, gifts or donations from WTO Members and Observers may be accepted by 
the Director-General provided that the purposes for which the contributions are made are consistent with the policies, aims and activities of the WTO, and provided that the acceptance of 
such contributions which directly or indirectly involve additional financial liability for the WTO shall 
require the consent of the Committee. Voluntary contributions, gifts or donations from Non-Governmental Donors are subject to the additional guidelines laid out in Annex B.  
Moneys accepted for purposes specified by the donor shall be treated as trust funds. A standard 
overhead fee of up to 13% may be charged on direct expenditure incurred by trust funds to reflect supporting services provided by the Secretariat. The standard overhead rate can be reduced when 
implementing partners are being used and when de fined in the agreement signed with the donor. 
The Programme Support Fund collects the overhead fees from all trust funds and pays expenditure incurred to support the trust funds activities. The Programme Support Fund also releases a fee 
representing 10% of its expenditure to the WTO Secretariat that will record it as miscellaneous 
income.   Moneys accepted in respect of which no purpose is specified shall be treated as miscellaneous 
income and reported as "gifts" in the accounts of the financial period.  
 Money received by a staff Member as honoria in his/her official capacity shall be remitted to the 
Organization and be credited to the WTO Staff Assistance Fund. 
 Unless otherwise provided, such voluntary contributions, gifts or donations shall be administered in 
accordance with the present Financial Regulations. 
 Chapter VII. Use of the funds  
Regulation 20 
 
The adoption of a budget by the General Council shall constitute an authorization to the Director-
General to incur expenditure for the purposes for which the appropriations were adopted and up to 
the amounts so adopted.   
Regulation 21 
 
At the end of the financial period the Director-G eneral shall report on the transfers of credits 
between sections of the expenditure budget to the General Council for approval. For items so 
identified by the Committee at the time of budget  finalization, transfer shall not be permitted. WT/BFA/W/352 
 
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Regulation 22 
 The Director-General may enter into commitments for future financial periods, provided that such 
commitments: 
 a) are for normal ongoing activities that are more effectively procured using a multi-year 
approach; Where the total expected value of multi-year contracts with a supplier exceeds 
CHF 2 million, the Director-General shall notify, as part of the quarterly financial reporting, these contracts to the Committee, including details of the goods or services procured and the likely amounts to be paid under the contracts; or 
b) are authorized by specific decisions of the General Council. 
Chapter VIII. The Surplus Account 
 
Regulation 23 
 
Budgetary savings shall be transferred to the Su rplus Account. Budgetary savings are defined as 
the difference between approved expenditure and the corresponding actual expenditure as 
presented in the WTO financial statements for the period. The actual expenditure does not take into account the variations in the actuarial provisions for the long-term liabilities associated with staff pensions and after service health insurances if they have not been included in the approved 
budget. 
 The difference between the approved miscellaneo us income and the corresponding miscellaneous 
income as presented in the WTO financial statements for the period as well as the variation of the 
provision for contributions in arrears shall also be transferred to the Surplus Account.  
If at the end of a financial period the Surplus Account shows a credit balance, the Director-General 
shall make proposals to the Committee with regard to its use which may be:  a) application as income against the budget for the second financial period following that in 
which the surplus occurs, thereby reducing Member's contributions; 
b) transfer to the Working Capital Fund;  or 
c) use for any other purpose decided upon by the General Council. 
A deficit in the Surplus Account at the end of a financial period shall be covered, to the extent 
possible, by transfer from the Working Capital Fu nd. Any part of the deficit left uncovered after 
transfer from the Working Capital Fund shall be in cluded as an appropriate credit in the budget for 
the next earliest possible financial period.  
 Chapter IX. The Working Capital Fund  
Regulation 24 
 
The Working Capital Fund shall be constituted by: 
 
a) assessed advances made by Members. Such sums shall be carried to the credit of the 
Members which have paid them; 
b) any sums which the General Council may cause to be paid into it from time to time. Such 
sums shall be carried to the credit of the organization. 
Regulation 25 
 
Any government acceding to the WTO shall make an  advance to the Fund in accordance with the 
scale of contributions applicable to the budget for the year of its accession. The minimum advance WT/BFA/W/352 
 
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  to the Working Capital Fund amounts to 0.5 percent of the principal of the Fund for countries or 
separate customs territories whose share of the total trade of Members is 0.5 percent or less.  Regulation 26 
 The Director-General is authorized to advance from the Working Capital Fund:  
a) such sums as may be necessary to finance budgetary appropriations pending receipt of 
contributions; 
b) in exceptional circumstances and subject to prior authorization of the General  Council, such 
sums as may be necessary to finance commitmen ts relating to extraordinary expenditure. 
Regulation 27 
 
Sums advanced under Regulation 26(a) above shall be reimbursed to the Working Capital Fund as 
soon as receipts from contributions are available for the purpose. Sums advanced under 
Regulation 26(b) shall be reimbursed to the Wo rking Capital Fund by including an appropriate 
credit in the budget for the next earliest possible financial period.  
 
Regulation 28 
 The General Council may liberate all or part of the sums constituting the Working Capital Fund, 
and the sums so liberated in so far as they are derived from monies placed in the Fund under 
Regulation 24(a) shall be returned in CHF to the Members which have contributed to the Fund in proportion to their respective shares in the Fund. 
 
Regulation 29 
 
Subject to a decision of the General Council, countries or separate customs territories which for 
any reason cease to be Members of the WTO shall be entitled to the reimbursement of the total 
CHF amount of their shares in the Work ing Capital Fund under Regulation 24(a). 
 
Regulation 30 
 
Interest accrued on the Working Capital Fund shall be added to the Working Capital Fund and 
carried to the credit of the Organization under Regulation 24(b) above. 
 Chapter X. Treasury Management 
 
Regulation 31 
 The Director-General shall establish clear and comprehensive financial rules related to treasury 
management activities engaged by the Secretariat. Funds retained by the Secretariat shall be 
securely kept or invested only with first class financial institutions. 
The Secretariat shall designate the banks in which the funds of the WTO shall be held. The 
Secretariat shall set criteria for the selection of banks, including a minimum credit rating, and 
these criteria shall be included in the WTO’s Financial Rules. 
The Director-General shall not engage in any speculat ive activities such as on exchange or interest 
rates. Monies should only be held in CHF, with the exception of where the Secretariat reasonably 
expects or has committed to making payments in other currencies in the near future.  
The investments of monies standing to the credit  of any trust funds, reserve or special account 
shall be subject to any directives of the appropriate authority. 
 
The Director-General shall include in the financial statements submitted to the General Council a statement of the investments currently held. 
 
Income from investments shall be credited as provided in the rules or agreement relating to each fund or account. WT/BFA/W/352 
 
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Chapter XI. Financial Reporting  Regulation 32 
 The financial statements of the Organization shall be prepared in accordance with the International 
Public Sector Accounting Standards (IPSAS) applic able to the accounting period concerned. Any 
divergence from the use of the specified standards shall be explained in the notes to the financial 
statements.  Regulation 33 
 Appropriate separate accounts shall be maintained in respect of all trust funds, reserves and special accounts. 
 
Regulation 34 
 
The accounts of the Organization shall be mainta ined and presented in CHF. Accounting records 
may, however, be recorded in both the transaction currency and in CHF.   Regulation 35 
 The Director-General shall submit the financial statements of the WTO to the External Auditor no later than the 31 March after the close of the financial period. 
 
Regulation 36 
 
The report of the External Auditor shall be tran smitted to the Committee together with the audited 
financial statements in a timely manner, allowing sufficient time for the Committee to examine the report and the audited financial statements in advance of the regular meeting of the General Council in July. The Committee on Budget, Financ e and Administration shall examine the financial 
statements and the audit report with a view to making a recommendation to the General Council 
to approve the financial statements.  
Regulation 37 
 
The Director-General shall also provide to the Committee: 
 
a) Quarterly reports on the financial position and performance of the Organisation, no later 
than six weeks following the end of the financial period concerned. The Quarterly reports shall include information on the financial performance of the Organisation by activity (for 
example, technical assistance or dispute settlement). 
b) Annual reports on Human Resources with details on evolution of the grade structure, salary 
adjustments and employee benefits, diversity of st aff, internal mobility of staff and external 
recruitment activities, and learning and development.   
Chapter XII. Internal Control 
 
Regulation 38 
 
The Director-General shall:  
a) establish an effective system of risk management to identify and address internal and 
external risks to the Secretariat;  
b) establish detailed financial rules and procedures in order to ensure effective financial 
administration and the exercise of economy;   
c) cause all payments to be made on the basis of appropriate supporting documents and other 
documents which ensure that the services or goods have been received and that payments 
have not previously been made; WT/BFA/W/352 
 
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  d) designate the officers who may receive monies, incur obligations and make payments on 
behalf of the WTO. All payments shall require a minimum of two signatories; 
e) maintain an internal financial control which shall provide for an effective current examination 
and/or review of financial transactions in order to ensure: 
 
• the regularity of the receipt, custody and disposal of all funds and other financial 
resources of the WTO; 
• the conformity of obligations and expenditures with the appropriations or other financial 
provisions voted by the General Council, or with the purposes and rules relating to trust funds and special accounts; 
• the economic use of the resources of the WTO. 
Regulation 39 
 
Commitments or obligations shall not be incurred and payments shall not be made unless an 
appropriate authorization has been made under the authority of the Director-General. 
 Regulation 40 
 The Director-General may, on an exceptional basis, make such ex gratia payments as he deems to be necessary in the interests of the WTO. A stat ement of such payments shall be submitted with 
the final accounts. 
 
Regulation 41 
 
The Director-General may, after full investigation, authorize the writing off of losses of cash, 
supplies, equipment and other assets, other than a rrears of contributions. A statement of all such 
losses written off during the financial period shall be submitted to the external auditor with the 
final accounts.  
 Regulation 42 
 
The Director-General shall establish rules for the procurement function. The procurement function 
includes all actions necessary for the acquisition, by purchase or lease, of property, including products and real property, and of services, including works. The following general principles shall 
be given due consideration when exercising the procurement function of the WTO: 
 • Efficient and effective use of the Organization's resources 
• Non-discriminatory, fair, open competition and equal  opportunity for vendors 
• Transparency 
• Best value for the money in terms of quality and price 
• Accountability 
Tenders for property and services shall be invited by a recognized method of solicitation, except 
where the Director-General deems that, in the interest of the WTO, a departure from this 
Regulation is desirable. 
 WT/BFA/W/352 
 
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  Chapter XIII. External audit 
 Regulation 43 
 
The General Council shall appoint an External Auditor to perform the audit of the financial 
statements of the WTO and of its Pension Plan in accordance with Regulation 44 for a six-year period non-renewable. 
 
The External Auditor shall be the Supreme Au dit Institution of a Member of the WTO. 
 The Committee shall organize an open invitation to  bid, define selection criteria, examine offers 
received and make a recommendation to the General Council to approve the appointment of a new 
External Auditor before the end of the mandate of the current External Auditor.  
The External Auditor shall not be removed during  his tenure of office except by the General 
Council.  
Regulation 44 
 
The External Auditor shall be required to audi t the WTO and the WTO’s Pension Plan financial 
statements in accordance with INTOSAI Auditing Standards and other generally accepted 
international standards such as the International Standards on Auditing issued by the International 
Federation of Accountants and express an opinion thereon. The External Auditor shall be required 
to conduct itself in conformity with the INTOSAI Code of Ethics and other generally accepted 
professional standards. 
 The mandate of the External Auditor shall comprise regular and performance audits as defined by 
the INTOSAI Auditing Standards.  
 The External Auditor shall be completely independent and solely responsible for the conduct of any audit that it undertakes. 
 
The General Council may request the External Auditor to perform certain specific examinations and issue separate reports on the results. 
 
Regulation 45 
 
The Director-General shall provide the External Au ditor with the facilities he may require in the 
performance of the audit.  In the event of a disagreement between the Dire ctor-General and the External Auditor on the 
facilities to be provided, the Director-General should seek guidance from the General Council. 
 Regulation 46 
 The External Auditor shall issue an annual report on the audit of the financial statements to the Committee in a timely manner, in accordance with Regulation 36. The External Auditor may also 
report to the Committee on financial issues, on performance audits and/or special reports on any 
issue deemed of significance by the External Audito r, or any issue raised by the General Council in 
accordance with Regulation 44.   WT/BFA/W/352 
 
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  ANNEX A 
 
ADMINISTRATIVE MEASURES FOR MEMBERS AND OBSERVERS IN ARREARS 
 
Cate-
gory Administrative Measures 
I After one but less than two full year's  assessed contributions remain outstanding at 
the end of the year: 
1. Representatives of Members will not be nominated to preside over WTO bodies  
2. Documentation will not be posted to delegations in Geneva nor to the Members' 
and Observers' capitals. 
3. At the beginning of each year, the Direct or-General will notify the Ministers of 
the Members and Observers responsible for the WTO of the applicable 
administrative measures. 
4. The Director-General will contact annually the Minister of the Members' and 
Observers' responsible  
for the WTO, or any other official at the appropriate level emphasizing the question of arrears. 
5. The Secretariat will report annually to the Committee on Budget, Finance and 
Administration on the implementation of administrative measures. 
6. Members and Observers will be subject to specific reporting at the General 
Council meetings.
1 
II After two but less than three full year's  assessed contributions remain outstanding 
at the end of the year, in addition to the measures of Category I: 
1. The access of the WTO Members' web site will be discontinued.2 
2. The ability of Members to act on the recommendations by the Committee on 
Budget, Finance and Administration to the General Council on financial matters 
will be removed. 
3. Observers will be denied access to training or technical assistance. 
The Chairs of the accession working group of  Observers will remind the delegation of 
Observers, during their working group meeting, of their financial obligations. 
III After three full year's  assessed contributions remain outstanding at the end of the 
year, in addition to the measures of Categories I and II: 
1. Members and Observers will be designated as Inactive Members and Inactive 
Observers, respectively. 
2. Inactive Members will be denied access to  training or technical assistance other 
than that necessary to meet their WTO Article XIV-2 obligations. 
3. The accession working groups do not meet either formally or informally. 
WTO will suspend its request for annual contributions from Inactive Observers. 
Request for annual contributions will resume the year the Observers are not anymore designated as Inactive.
3 
4. Inactive Members and Observers taking th e floor in the General Council will be 
identified as such. 
 
                                               
1 See General Council procedures. 
2 Applicable to Members and Observers. Under current  policy, Observers have a differentiated access to 
documents posted on the Members' Website. 
3 To be enforced starting 1 January 2013. WT/BFA/W/352 
 
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GENERAL COUNCIL PROCEDURES FOR MEMBERS AND OBSERVERS 
SUBJECT TO ADMINIST RATIVE MEASURES 
 
At the beginning of each calendar year,  the Committee on Budget, Finance and 
Administration will notify to the General Council the list of Members and Observers under Administrative Measures, with a recommendation that these Members and Observers be urged to 
liquidate their arrears. 
 
At the end of each meeting of the General Council , the Chairman of the Committee 
on Budget, Finance and Administration will provide information with regard to which Members and 
Observers are under Administrative Measures. The Chairman of the General Council will request 
Members and Observers in Categories II and III to inform the Secretariat as to when the payment of arrears may be expected. 
 
Each year  the Director-General will report on the results of his contacts with Members’ 
and Observers’ authorities on the issue of arrears. 
 
* * * * * * * 
  
SPECIAL PROVISIONS FOR THE SUSPENSION OF ADMINISTRATIVE MEASURES  
FOR INACTIVE MEMBERS AND OBSERVERS 
 
 
The General Council can suspend the application of Administrative Measures for Members 
in Category III which agree to, and abide by, a defined schedule of instalment payments aimed at 
liquidating all arrears.
4 
 
Those Members with pre-1988 arrears that were assessed at the minimum contribution 
may benefit from a reduction in those arrears to the level of the 1989 minimum contribution. For 
each full payment of an annual contribution between 1988 and 1994, any contracting party with 
pre-1988 arrears may cancel an equal number of assessments for 1987 and earlier years upon payment of the 1989 minimum contribution amou nting to CHF 19,137. The difference between a 
pre-1988 assessment and the payment of CHF 19, 137 would be funded by the Miscellaneous 
Income of the WTO.
5 
 
The General Council can suspend the application of Administrative Measures for Observers 
that are in Category III on 1 January 2013, which agree to, and abide by, a defined schedule of installment payments aimed at liquidating all arrears.   
                                               
4 Amend earlier decisions of the General Council in 1988 (C/M/226) and 1994 (C/M/273) to reflect the 
reduced number of categories. 
5 As approved by the General Council in 1994 (C/M/273). WT/BFA/W/352 
 
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  ANNEX B 
 
VOLUNTARY CONTRIBUTIONS, GIFTS OR DONATIONS FROM 
NON-GOVERNMENTAL DONORS 
 
Given that voluntary contributions, gifts or donations (hereafter "donations") from non-governmental donors could be of benefit and since Members are committed to ensuring that no 
conflict of interest should arise through the acceptance  of such donations, it is herein affirmed that 
the process with regard to such donations w ill be governed by the following guidelines. 
 
1. Donations proposed by private individuals and non-governmental, non-profit organizations or 
foundations (non-governmental donors) may be considered. These may include donations of 
goods or services "in kind"; however, secondment  of staff from non-governmental donors to the 
WTO is prohibited. 
2. Donations from non-governmental donors which are for-profit organizations or companies shall 
not be accepted. 
3. The activities, aims and motivations of the non-governmental donors mentioned under 1 above 
shall not be incompatible with the policies, aims and activities of the WTO and, as mentioned 
above, shall not give rise to a conflict of interest. 
4. While non-governmental donors shall be encouraged to make donations to the Doha 
Development Agenda Global Trust Fund at large, the donor may specify one or more activities 
associated with WTO programs as the purpose of the donation. 
5. All proposed donations from non-governmental donors shall be notified to the Committee on 
Budget, Finance and Administration which shall pr omptly consider the proposals. The Director-
General shall accept a proposed donation only after the Committee has approved the proposed 
donation and its intended use(s). It is recognized that the Committee may wish to consider establishing a subsidiary working group to make recommendations to it relative to proposed 
donations. 
6. The notification shall include full details regarding the activities, aims and motivations of the 
non-governmental donors mentioned under 1 abov e and the intended uses(s) of the donation. 
7. All accepted donations from non-governmental donors shall be placed in a trust fund and be 
disbursed in a manner that takes into account the broad objectives of the Committee on Trade 
and Development, the Memorandum of Understand ing Establishing the Global Trust Fund and 
any additional modalities to be established for the purpose of disbursing the resources of the 
trust fund. 
8. Donations shall not entitle non-governmental donors to use of the WTO name or logo in any 
way. Full details relative to all accepted donations from non-governmental donors and their 
uses shall be included in the Director-General’s Budgetary and Financial Report on extra-
budgetary funds. 
Information with regard to accepted donations shall also be made available on the WTO Website in 
order to ensure transparency. WT/BFA/W/352 
 
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  ANNEX C 
 
WTO EARLY PAYMENT ENCOURAGEMENT SCHEME  
 
With a view to encouraging Members to pay their co ntributions as early as possible in the year in 
which they fall due, the interest earned by inve sting the funds received by the Secretariat should 
be refunded to the Members pro rata, depending on  the amount of their payments and on the date 
which they are made. As a consequence, the miscellaneous income in the annual income budget 
estimates will no longer include the item for interest earned on investments.  As a general rule, the secretariat, upon receiving contributions, invests in short term deposits the 
funds which are not to be used immediately. Since the total interest received is a combination of 
three factors: 
a) the amount of funds held in deposit; 
b) the duration of the deposits;  
c) the interest rate; 
 
The amount to be distributed can only be known with precision at the close of the budget year. 
Therefore, the crediting operation can physically take place only after the beginning of the new 
financial year, in other words, too late in principle for the amount credited to be deducted from the contributions assessed for the new financial year. Consequently only the contributions assessed for 
the second following year would be reduced by th e amount of interest accrued. The scheme would 
work as follows:  
• YEAR A   interest is credited; at the end of the year the allocation of interest is 
determined; 
• YEAR A + 1   the contributions assessed for year A+2 are calculated when the budget 
estimates are prepared; interest credit is taken into account and deducted from the 
contributions assessed for year A+2; 
• YEAR A + 2   payment of contribution assessed less interest credited. 
 
Bearing in mind that the date of payment and the amount paid are two important factors, one 
could consider that the determination of the amounts of interest to be distributed should be based on a formula under which these two factors would serve as a basis for the calculations of interest 
entitlements. 
 Where a contribution was received during the year when it was due, a number of points to be 
credited to the account of the contracting party concerned would be calculated as follows; 
 number of points  = amount X number of days to run up to the end of the year (360 days) 
         10,000 
 
For example   assuming a Member paid CHF 200,000 on 17 March, the number of points crediting in its favor would result from the following formula: 
 
200,000 X 283 = 5,660 
            10,000      
 
Assuming further that the total number of points apportioned during the year amounted to 350,000 and that the amount of interest to be distributed was CHF 150,000, the amount credited 
to the Member concerned would be: 
 
150,000 X 5,660 = CHF 2,426 
   350,000 
 WT/BFA/W/352 
 
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  Should the Member have paid its contribution on 10 October (number of days to run up to the end 
of the year: 77) the amount credited would have been CHF 660.   
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