RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/BFA/86 
4 May 2006 
 (06-2157) 
Committee on Budget, Finance and Administration  
  
 
 
REPORT OF THE MEETING HELD ON 14 MARCH 2006 
 
 
1. The WTO Committee on Budget, Finance and Administration met on 14 March 2006 under 
the successive chairmanships of Mr. Jan-Meinte Po stma from the Netherlands and Ambassador Juan 
Antonio March Pujol of Spain..  The terms of re ference and composition of the Committee are set out 
in document WT/L/44/Rev.1.  The agenda c ontained in document WTO/AIR/2773 was adopted. 
I. ADMINISTRATIVE UP-DATES AND PROGRESS REPORTS AS AT 
28 FEBRUARY 2006 
A. CASH SITUATION AND STATEMENT OF OUTSTANDING CONTRIBUTIONS  
B. CONTRIBUTIONS OF OBSERVER COUNTRIES TOWA RDS THE COST OF SERVICES PROVIDED BY 
THE SECRETARIAT – PROGRESS REPORT  
2. A member of the Secretariat presented the cash  situation, the statement of outstanding 
contributions from Members as at 28 February 2006, and a statement regarding the contributions of Observer countries towards the cost of services provide d by the Secretariat.  As at the reporting date, 
the total of funds available stood at CHF 60 milli on.  Contributions received from Members amounted 
to CHF 63 million for the current year and CHF 6 million for prior years, while those from the 
Observers amounted to CHF 268,000.  The Work ing Capital Fund stood at CHF 9.3 million at 
28 February 2006.  The Secretariat pointed out th at nine Members (Chad, Congo, the Democratic 
Republic of the Congo, Djibouti, Guinea, Guinea-Bis sau, Niger, the Royal Kingdom of Cambodia, the 
Kingdom of Saudi Arabia) had still outstanding adva nces to the Working Capital Fund amounting to 
CHF 284 thousand as at 28 February 2006.  Since the date of the report, the ten following Members made a payment: (i) Belgium, (ii) France, (iii) German y, (iv) Italy, (v) Mozambique, (vi) Philippines, 
(vii) Rwanda, (viii) Saint Lucia, (ix) Trinidad and Tobago and (x) Tunisia. WT/BFA/86 
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  C. 
HUMAN RESOURCES MATTERS  
3. A member of the Secretariat introduced document CRP(06)10 and informed the Committee 
about the Special Recruitment Exercise to fill th e consolidated posts through a competitive process. 
He further indicated that the recruitment of all pos ts should be finalized by the end of June 2006. 
4. With regard to training, the Management Tr aining Programme was bei ng coordinated and has 
been communicated to Directors and the training  focal group.  The Human Resources Division has 
collated all other training needs and requests from the divisions and is now undertaking individual 
consultations with directors, as necessary, in orde r to prioritize those training activities that can be 
delivered in 2006. 
D. PENSION MATTERS  
5. A progress report document CRP(06)09 was presented by a member of the Secretariat who 
informed the Members that the investment performan ce figures for the Plan showed a gross return of 
approximately 25.8% in 2005.  The Board had consid ered ways in which the currency risk could be 
hedged and also the recovery of withholding tax levied  by certain countries on the Plan's investments.  
Finally, it was pointed out that Board would continue  its discussion of the issue of same-sex marriages 
at its next meeting. This was a complex issue, as illustrated by the fact that intergovernmental 
organizations were divided on their approach to the question. 
6. The Committee took note of the various reports. 
E. STATUS OF EXTRA -BUDGETARY ACTIVITIES : 
1. Technical Assistance Activity as at 28 February 2006 
2. Doha Development Age nda Global Trust Fund 
7. Another member of the Secretariat presented documents WT/BFA/SPEC/144 and CRP(06)11.  
With regard to earmarked funds, Members were in formed that fifteen trainees had joined the WTO 
since the beginning of the year under the Nether lands Trainee Programme. Outstanding commitments 
in connection with the new trainees amounted to  1 million Swiss Francs for the year 2006. The 
Internship Programme for selected Geneva-based Missions had funds of some 700,000 Swiss Francs 
which could enable up to 16 interns to benefit fro m the programme.  Resources had been secured for 
the Trust Fund for the IF Programme Implementa tion Unit in order to finance two professional and 
one support staff over two years.  Finally, the STDF on SPS Trust Fund had commitments for project 
and project preparation grants of  about 2.7 million Swiss Francs, whereas the uncommitted balance of 
the fund stood at 1.5 million Swiss Francs. 
8. With regard to the DDAGTF, the attention of the Members was drawn to the fact that the 
uncommitted balance of the fund was only 2.1 m illion Swiss Francs, which was sufficient only for 
one more month.  It was further explained that contributions of 9 million Swiss Francs were required 
to meet the target amount of 24 million Swiss Fran cs in 2006 and an additional 6 million Swiss Francs 
in order to build up the cash reserve at the beginni ng of 2007, which brought the total contributions 
required in 2006 to 15 million Swiss Francs. 
9. The Secretariat urged Members to pledge contribu tions in order to enable the continuation of 
the implementation of the Technical Assistance Trai ning Plan and to expedite the transfer of funds 
already pledged. 
10. The Committee took note of the report.  WT/BFA/86 
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 F. ORAL REPORT ON NEW WTO ANNEXE  
11. A member of the Secretariat provided an oral progress report on the project of the new WTO 
annexe. Members were informed that a number  of supplementary requests and requests for 
clarification of the bids had been submitted to the companies.  On 7 March, the WTO received replies 
from the general contractor companies and these are now  being analyzed and evaluated.  Thereafter, a 
proposal for the award of the contract would be provided by the Construction Committee by the end 
of April. 
12. With respect to the loan from the Swiss author ities, it was further explained that the States 
Council and the National Council were to come to a decision at the end of the current Spring Session 
in the case of the former and the end of the Summer Session in the case of the latter. 
13. The Committee took note of the progress report. 
II. ADMINISTRATIVE MEASURES 
14. The Chairman presented document WT/BFA/W /141/Rev.1 which included a proposition for 
the revision of the Administrative Measures. So me Members expressed concerns that certain 
measures might be too strict.  Following the propos itions of several Members, the measure of not 
providing access to the Members' Website was shifte d from Category II to Ca tegory III.  It was 
further decided that Members affected would be informed once approval was given by the General 
Council and that the recommendation would only take effect as from the first day of the second month following approval by the General Council. 
The Committee recommends to the General Counc il that the following Revised Administrative 
Measures be implemented as from the first d ay of the second month following approval by the 
General Council:  
CATEGORY I 
 
After one full year's assessed contribution remai ns outstanding at the end of the financial year:  
- documentation will not be posted to delegations in Geneva,  
- representatives will not be nominated to preside over WTO bodies.  
 C
ATEGORY II 
 
After more than one but less than two full years'  assessed contributions remain outstanding at the 
end of WTO's financial year, in addition to the above measures:  
- At the start 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 
are under Administrative Measures in Categories II through IV.  
- Each year the Director General will contact directly the minister of the Member responsible 
for the WTO emphasizing the question of arrear s and report on his results to the General 
Council.  
 C
ATEGORY III 
 
After two but less than three full years' assessed contributions remain outstanding at the end of 
WTO's financial year, in addition to the above measures:  
- documentation will not be posted to members,  
- use of the WTO Members' Web site will not be available,  WT/BFA/86 
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  - recommendations by the Committee on Budget, Finance and Administration to the General 
Council on financial matt ers will be acted on only by Member s whose contributions are paid or 
who have less than two full ye ars' assessments outstanding,  
- At each meeting of the General Council, the Chairman will request Members in Categories III 
and IV to inform him/her before the next meeting of the General Council as to when the 
payment of arrears may be expected.  The Chairm an will report on Members' replies at each 
subsequent meeting.  
 C
ATEGORY IV:  I NACTIVE  
 
After three full years' assessed contributions remai n outstanding at the end of the financial year, 
in addition to the above measures:  
- a Member will be designated as an Inactive Member,  
- the list of Inactive Members will be notified to the General Council by the Committee on 
Budget, Finance and Administration at the beginning of each calendar year with a 
recommendation that these members be urged to liquidate their arrears,  
- Inactive Members will be denied access to training or technical assistance other than that 
necessary to meet their WT O Article XIV-2 obligations.  
- Inactive Members taking the floor in the General Council  will be identified as such.  
 15. The Committee further recommends that the General Council authorize it to suspend the 
application of Administrative Measures for Memb ers in Category IV which agree to, and abide 
by, a defined schedule of instalment payments aimed at liquidating all arrears.  
16. The Committee indicated that the review would be  one year after the measures have entered 
into force.  If, by that date, the situation has not improved, the CBFA will consider introducing other 
measures, such as the right to take th e floor and the right to attend meetings. 
III. OTHER BUSINESS 
17. A Member drew attention to the continuing prob lem of parking in front of the CWR building 
and behind the WMO.  The Secretariat explained that several solutions to improve the situation were 
being studied. 
IV. ELECTION OF CHAIRPERSON 
18. The Chairperson recalled that the Chairman of  the General Council had carried out informal 
consultations on the appointment of Chairpersons  to the various WTO standing bodies in accordance 
with the established guidelines for such officers.  On the basis of  the understanding reached, Mr Jan-
Meinte Postma proposed that the Committee on Budge t, Finance and Administration formally elect 
Ambassador Juan Antonio March Pujol of Spain as chairperson of the Committee by acclamation.  
The Committee so agreed. 
19. The elected Chairman assumed the Chair, tha nked the Committee for its confidence and  said 
that he looked forward to a fruitful year in 2006. 
POINT FOR DECISION:  Paragraph 14 and 15 
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