. /. 
     WORLD TRADE  
ORGANIZATION  WT/BFA/92  
12 December 2006 
 (06-5950) 
 
 
 
ANNUAL REPORT (2006) OF THE COMMITTEE ON BUDGET, 
FINANCE AND ADMINISTRATION 
  
 1. In accordance with the procedures for an annua l overview of WTO activities and for reporting 
under the WTO, adopted by the General Counc il on 15 November 1995 (WT/GC/M/8, item 11), a 
report on the activities of the WTO Committee on Budget, Finance and Administration in 2006 is 
hereby submitted. 
 2. It will be recalled that the Committee met fo rmally and informally on a number of occasions 
and has presented reports to the General Council on a regular basis
1. 
 I. ON-GOING RESPONSIBILITIES 
3. The Committee monitored on a re gular basis the fina ncial and budgetary situation of the 
Organization, the receipt of contributions includi ng the implementation of the related schemes and 
measures pertaining to the receipt of  contributions.  It considered el ements related to  human resources 
management and heard progress repo rts on the WTO Pension Plan, the implementation of the Security 
Enhancement Programme and the future office needs of the WTO.  It also examined:  (i) the Director-
General’s Budgetary and Financial Re port for 2005 and Report of the External Auditors thereon;  (ii) the 
Report on Extra-Budgetary Funds for 2005;  and (iii) the Mid-term Review for the Biennium 2006-
2007.  At the time of finalizing this report, th e General Council is sc heduled to act on the 
recommendations contained in the report of the me etings of the Committee in 2, 22 November and 5 
December 2006 (WT/BFA/93 and WT/BFA/93/Add.1). 
 
II. MAJOR AREAS OF ACTIVITIES 
A. R
EVISION OF ADMINISTRATIVE MEASURES  
4. The Committee noted that there continued to be a persistent problem of ac cumulation of arrears, 
which had implications for all Members in the annual final accounts of the organization and therefore  
made a recommendation to the General Council to revise the Administrative Measures currently in 
effect in the WTO (WT/BFA/86).  
                                                     
 
1 Reports: WT/BFA/84 and WT/BFA/85/Rev.1 covering the meeting held on 6 February 2006; 
WT/BFA/86 covering the meeting held on 14 March 2006, WT/BFA/87 covering the meeting held on 
7 June 2006, WT/BFA/88 covering the meeting held on 20 July 2006 and WT/BFA/89, WT/BFA/90 and WT/BFA/91 covering the meetings held on 29 September and 6 October 2006.  
Documents WT/BFA/93 and WT/BFA/93/Add.1 coveri ng the recommendations from the meetings of 
2, 22 November and 5 December 200 6 will be submitted to the Gene ral Council on 14-15 December 2006. WT/BFA/92 
Page 2  
 
B. H
UMAN RESOURCES MATTERS  
5. The Committee was informed th at the WTO Dependency Allowances had been recalculated 
according to the methodology for adjusting depend ency allowances (WT/GC/M/90) following the 
2006 adjustment to the WTO salary scale. The revi sed allowances had been applied provisionally as 
of 1 January 2006 pending the approval of the General Council in accordance with Staff Regulation 
13.2. (WT/BFA/87). 
6. The Special Recruitment Exercise  to fill the consolidated posts  through a competitive process 
was successfully completed at the end of June. The staff concerned were offered and accepted their fixed-term contracts effective 1 July 2006. 
C. WTO
 ANNEXE  
7. After a thorough analysis of the way the WTO operated, the Director-General came to the 
conclusion that the most efficient way for the WTO to function was under one ro of.  Therefore, he was 
convinced that the Avenue de France project was not  adequate for the WTO, since it meant a permanent 
division into two sites, which would not only pose cons traints on delegations and staff but also increase 
operating costs significantly.  Consequently, the Di rector-General addressed the Committee with a 
proposal to start discussions with the Swiss author ities with respect to a co mprehensive examination 
of all aspects concerning the identification of a suita ble site and all other relevant issues regarding a 
possible  new permanent headquarters for the WTO.  The Committee noted that the process would be 
without prejudice to the final outcome (WT/BFA/89). 
8. Furthermore, the Director-Gener al outlined that a solution had to be found to the immediate 
housing needs of the WTO.  The Committee sub sequently recommended that he hold intensive 
discussions with the Swiss authorities in this regard (WT/BFA/90). 
9. In addition, the Committee recommended that th e Director-General be invited to urge the 
Swiss authorities to liberate the premises occupied  by the IUHEI Library in the Centre William 
Rappard at the earliest possible date, in view of  the pressing space and security concerns facing the 
Organization (WT/BFA/90). 
D. DOHA DEVELOPMENT AGENDA GLOBAL TRUST FUND (DDAGTF)   
10. The Committee recommended that  the target amount for the Doha Development Agenda 
Global Trust Fund be set at CHF 24 million in 2007.  E. M
ID-TERM REVIEW 2006-2007 
11. The Committee recommended that the Ge neral Council, at its meeting of 
14-15 December 2006, approve the revision to the 2007 budget for the biennium 2006-2007 
amounting to CHF 182 million (WT/BFA/93 and WT/BFA/93/Add.1).  F. O
THER ITEMS  
12. The Committee also discussed and/or was informed  about the following points in the various 
meetings:  (i) the situation of contributions fo r the Doha Development Agenda Global Trust Fund 
(DDAGTF);  (ii) WTO Programmes for Training;  (iii) the question of WTO Members with arrears;  and (iv) the Mid-Term Review of the International Trade Centre UNCTAD/WTO. 
 
__________