RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/BFA/122 
8 December 2010 
 (10-6648) 
  
 
 
 
ANNUAL REPORT 2010 OF THE COMMITTEE ON BUDGET, 
FINANCE AND ADMINISTRATION 
  
1. In accordance with the proce dures for an annual overview of World Trade Organization 
(WTO) activities and for reporting under the WT O, adopted by the General Council on 
15 November 1995 (WT/GC/M/8, item 11), a report on the activities of the WTO Committee on Budget, Finance and Administrati on in 2010 is hereby submitted. 
 
2. It will be recalled that the Committee met on a nu mber 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 and the receipt of contributions, incl uding the implementation of the related schemes and 
measures pertaining to the receipt of  contributions.  It considered el ements related to human resources 
management, took note of the progress reports on th e WTO Pension Plan and on the building project of 
the WTO.  It also exam ined the Director-G eneral’s Budgetary and Fina ncial Report for 2009 and the 
Report of the External Auditors thereon as well as the first report of the Internal Auditor of the WTO. 
 
II. MAJOR AREAS OF ACTIVITIES 
A. BUILDING PROJECT OF THE WTO 
4. With respect to the intra-muros project, the bu ilding permit had been issued and the financial 
resources voted by the Swis s authorities.  The contract for the Ge neral Contractor of the intra-muros 
project had been awarded to HRS, a large firm based in Zurich, whereas the contract for the new 
building had been awarded to Implenia, the largest construction firm in West ern Switzerland.  Both 
firms had agreed on a fixed financial envelope and sc hedule to realize the projec ts, and a penalty fee was 
included in the agreements.   
5. The former HEI library had been demolished a nd the construction of the new South Courtyard 
Conference Centre was progressing well at the end of the year.  Th e renovation project of the Centre 
William Rappard was also on track, with the biggest move of staff ever from the North Wing into the 
renovated South Wing foreseen for January 2011. 
                                                      
1 Reports:  WT/BFA/115 covering the meeting held on 11 March 2010;  WT/BFA/116 covering the 
meeting held on 25 May 2010;  WT/BFA/117 covering the meeting held on 12 July 2010; WT/BFA/118 
covering the report of the meeting held on 5 October 2010,  WT/BFA/119 covering the meeting held on 9 November 2010,  WT/BFA/120 covering the meeting held on 26 November 2010  and WT/BFA/121 covering 
the meeting held on 6 December 2010. WT/BFA/122 
Page 2  
 
  6. The Swiss National Council approved the loan of CHF 40 million for the new building in 
December, which would allow the work on the new build ing to begin early in 2011.  The funds for the 
Security Perimeter had also been  approved by the Swiss authorities , which would result in four 
construction projects on the WTO site next year. 
B. D
IVERSITY  
7. In response to a joint proposal presented by several Members at the end of 2009 with the 
objective of increasing diversity in the WTO, the Secretariat presented its first annual report on diversity early in 2010. The report recalled that  the WTO Staff Regulations were based on the 
principles of merit and equal opportunity for all, with merit being the principal selection criterion. 
When candidates were equal in terms of merit, dive rsity considerations were  taken into account.  In 
order to increase the awareness of diversity, the S ecretariat had adopted several measures such as the 
implementation of diversity training in the Secret ariat, the increase in outreach and communication 
and the addition of a short text on the WTO's commit ment to merit and diversity in vacancy notices.  
These measures were welcomed by Members. 
C. M
EMBERS UNDER ADMINISTRATIVE MEASURES  
8. In 2010, six Members subject to Administrative Measures due to arrears extending over 
periods of up to 30 years had accepted a payment pl an proposed by the Director-General, with the 
objective of liquidating arrears on contributions over several years.  These Members were Côte d'Ivoire (10 years), Central Afri can Republic (30 years), Congo (five years), Gambia (10 years), Togo 
(five years) and Niger (15 years). The number of  Members subject to Administrative Measures had 
been reduced to 11 on 1 December 2010, its lowest number ever. 
D. W
ORKING GROUP ON ADMINISTRATIVE MEASURES  
9. In June 2009, the Committee had established a Working Group with  a mandate to review the 
current Administrative Measures in  place since a CBFA decision in 2006.  The Working Group met 
regularly throughout the year and the Chair consu lted with all Members who had more than three 
years of arrears and also with their regional coordi nators.  Based on this information, assessment of 
the implementation of the current system and comp arisons to other international organizations, the 
Working Group had adopted a draft system of admi nistrative measures including several changes such 
as the reduction of categories from 4 to 3, administrative measures applicable to Observers and regular reporting on Members in arrears.  In 201 1, the Chair would continue consultations with 
regional coordinators regarding this draft system and come back to the Committee as soon as he had 
finalized this phase. 
E. M
IDTERM -REVIEW OF THE BUDGET 2011  (WT/BFA/120) 
10. The Revision of the Biennium Budget 2010/2011 for the year 2011 resulted in an overall 
reduction of CHF 2.2 million or 1.11 per cent in the Budget for 2011.  The budget adopted for 2011 
amounted to CHF 196 million, including CHF 190 million for the WTO Secretariat and CHF 6 million for the Appellate Body and its Secretariat. 
F. M
EMBERS ' TRANSITION OPERATING FUND (WT/BFA/120) 
11. The Members' Transition Operating Fund (the Fu nd) had been established in 2008 in order to 
finance additional operating costs during the Buildin g Project as well as final installation costs once 
the construction had been completed.  In orde r to further strengthen the Fund, the Committee  WT/BFA/122 
 Page 3 
 
 
  recommended transferring the balance of the surplu s of 2009, amounting to just over CHF 1 million, 
to the Fund.  In the light of the need to equip the South Conference Centre, for which no other funds were presently available, the Committee recommended to finance that project by using the budgetary 
savings accruing in 2010, to be supplemented by an  allocation of up to a maximum of CHF 3 million 
from the Fund. 
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