RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/BFA/W/228 
7 March 2011 
 (11-1118) 
Committee on Budget, Finance and Administration  
  
 
DISPUTE SETTLEMENT EXPENDITURE 
 
 
I. INTRODUCTION 
1. This document provides Members with high-leve l information on the activity level of the 
WTO Dispute Settlement Mechanism and the details of  the related expenditure incurred in this area 
by the WTO Secretariat.  
II. DISPUTE SETTLEMENT ACTIVITY LEVEL 
2. The total number of disputes handled by th e WTO in 2010 has significantly increased 
compared to 2009.  The average number of on-going disputes rose by 39 per cent to 20.5 between 
2009 and 2010.  The number of on-going disputes peaked at 23 during the summer of 2010.  Since 
August 2010, the total number of panel proceedings  has gradually decreased, while the number of 
appeals has increased.  However, there are some i ndications that the number of on-going disputes may 
rise again in the first semester of 2011 and at least remain above 15 in the next few months.  The following graph provides the evolution in the number of on-going disputes at the WTO on a month-by-month basis since 2005.  Each dispute has a diff erent level of complexity.  The Secretariat has 
observed that disputes have generally become more complex compared to a few years ago. 
 - 5 10 15 20 25 30
2005 2006 2007 2008 2009 2010 2011Total number of on-going disputes
 
 
3. The total number of disputes includes original pa nels, appeals, 21.5 panels and appeals, 22.2 
and 22.6 arbitrations.  The core of the Secretariat' s resources in the area of dispute settlement is 
engaged in original panels and appeals.  The work on the origin al panels is supported by two 
Divisions:  Legal Affairs and Rules.  The work on appeals is exclusively supported by the Appellate 
Body Secretariat. WT/BFA/W/228 
Page 2  
 
  4. Since the start of 2005, 41 original panel proceed ings have been completed.  As these panels 
required on average 610 days to be completed, the WTO had always between 8 and 20 on-going 
panels at any time.  
5. During the same period, 23 original appeals have  been completed.  As these appeals required 
on average just over 90 days, the Appellate Body ha d up to five on-going appeals at any one time, 
with some periods without any on-going appeals.  
6. The rise in the total number of on-going disputes in 2010 compared to 2009 was primarily 
due to a rise in the number of original panels.  Between 2009 and 2010, the average number of on-
going original panels rose by 52 per cent to 17. 6 per cent.  During the same period, the average 
number of on-going appeals has increased from 0.5 to 0.9 appeals.  The rise in the number of panels 
in 2010 could lead to a rise in the number of appeals in 2011.  
 - 5 10 15 20
2005 2006 2007 2008 2009 2010 2011Number of on-going original panels
 
 
 - 1 2 3 4 5
2005 2006 2007 2008 2009 2010 2011Number of on-going appeals
 
 
  WT/BFA/W/228 
 Page 3 
 
 
  III. WTO SECRETARIAT RESOURCES 
7. In 2010, the WTO spent a total of CHF 15.0 million to support the WTO Dispute Settlement 
Mechanism.  This amount includes only the direct co sts engaged by the WTO Secretariat in the three 
Divisions directly in charge of providing the necessary direct support (CHF 13.8 million) and the Appellate Body Operating Fund (CHF 1.2 million).  This amount excludes all indirect costs incurred 
by the Secretariat such as translation, document pr oduction, interpretation, conference, infrastructure, 
building, IT and general administrative support.  In the absence of a defined and detailed methodology 
to allocate these indirect costs, it can be roughl y estimated, based on the overall budget of the WTO, 
that for every franc of direct cost, there is at least one franc of indirect costs.  Therefore, the WTO is 
incurring costs of approximately CHF 30 million pe r year in the area of Dispute Settlement.  
8. The three Divisions in charge of directly  supporting the Dispute Settlement Mechanism 
incurred an expenditure of CHF 13.8 million in 2 010.  The financing of the 54 full time posts 
currently allocated to these Divisions represented some 75 per cent of the expenditure (CHF 10.4 
million). All these posts, except one, are financed from the regular budget of the WTO.  One lawyer in the Legal Affairs Division is financed from th e Doha Development Agenda Global Trust Fund.  
Number of posts by divisions and by type in February 2011  
 
 Director Lawyer Economist 
and Non-
Legal Support Total 
Legal Affairs Division 1 12 2.5 2 17.5 
Rules Division 1 12 4.5 4 21.5 
Appellate Body Secretariat 1 10  4 15.0 
Total 3 34 7 10 54.0 
9. Temporary assistance in these three Divisions represented another 10 per cent of expenditure 
(CHF 1.3 million) in 2010, including the costs for short-term staff, interns and consultants. 
10. Payments to panellists represented 8 per cent of the expenditure (CHF 1.1 million).  The 
travel expenses of panellists represented CHF 0.7 million.  The fees paid to non-governmental 
panellists represented CHF 0.4 million.  These panellist s receive a flat fee of CHF 600 per day worked 
on a panel in Geneva and CHF 600 per 8 hours of pr eparation work.  The level of this fee has not 
changed since 1995.  The Secretariat is considering pr oposing an adjustment of this fee to ensure that 
a sufficient number of qualified pane llists continue to be attracted. 
11. The retainer fee (CHF 9,031/month) and the administrative fee (CHF 330/month) paid to each 
of the seven Members composing the Appellate Body represented 6 per cent (CHF 0.8 million).  
These are the fixed cost elements of the contracts with the Appellate Body Members.  The variable 
costs of the contracts, namely the daily fee and the travel expenditure, are paid from the Appellate 
Body Operating Fund detailed in the next section. 
12. The remaining 1 per cent of the expenditure (CHF 0.2 million) concerned various costs 
incurred by the three Divisions.  These related to  items such as: additional security surveillance 
(CHF 32,648) requested by the Appellate Body Secr etariat to meet the security requirements adopted 
in the light of requests by the parties;  missi ons performed by the staff of these Divisions 
(CHF 28,940), publications (CHF 23,860), office s upplies, postage, specific training and specific 
software. WT/BFA/W/228 
Page 4  
 
  IV. APPELLATE BODY OPERATING FUND 
13. The Appellate Body Operating Fund (the Fund)  was established in 1997 and is intended to 
cover the variable costs of the Appellate Body linked to the number of cases brought before the 
Appellate Body.  The Fund is replenished through a specific line in the annual budget.  The Fund was 
replenished by CHF 1.5 million in 2010.  Annuall y, the Fund incurred between CHF 1 million and 
CHF 2 million of expenditure, amounting to a total of CHF 19.2 million in the course of its first 
13 years (1997-2010) of existence. 
Appellate Body Operating Fund annual expenditure (in MCHF)  
 
 14. The Fund has covered the following types of e xpenditure since its establishment:  Appellate 
Body Members' daily fees (46 per cent), Appellate Body Members' travel expenditure (40 per cent), temporary assistance (6 per cent), court reporters (4 pe r cent), interpreters (2 per cent), postage (1 per 
cent) and reports & miscellaneous (1 per cent).  
15. The Fund provides for the payment of the vari able part of the contracts with the seven 
Appellate Body Members consisting of the daily fee for every day worked  for the WTO and the 
related travel expenditure.  They represent 86 per ce nt of the expenditure of the Fund in the last 
13 years.  Since 1997, Appellate Body Members have worked for the WTO between 615 and 1,617 work days per year.   WT/BFA/W/228 
 Page 5 
 
 
  Total number of work days paid to Appellate Body Members  
 
 
 
 
16. In 2010, the daily fee amounted to CHF 778 for every day worked in Geneva or for every 
8 hours of work outside of Geneva.  The Appellate Body Members worked a total of 805 days for the 
WTO in 2010, representing a total cost of CHF 626,290 of expenditure.  The related travel 
expenditure amounted to CHF 456,529 in 2010.  
Appellate Body Operating Fund expenditure in 2010 (in CHF)  
 
Type Expenditure 
Members' Fees 626,290 
Members' Travel and Per Diem 456,529 
Court Reporters 44,465 
Oral hearing filming 21,214 
Postage 16,251 
Temporary Assistance 49,580 
Total 1,214,329 
17. The expenditure related to transcribing the hear ings of appeals amounted to CHF 44,465.  The 
transcribing is outsourced to a company established in the United Kingdom.  The filming of oral 
hearings (closed-circuit broadcast in a separate ro om to the general public) amounted to CHF 21,214 
in 2010.  This service is also being outsourced.  The postage of documents , essentially to Appellate 
Body Members, amounted to CHF 16,251.  This amount is in line with prior expenditure.  The 
Appellate Body Secretariat also benefited from tem porary assistance to cope wi th the surge in activity 
in the second part of 2010.  Temporary assistan ce amounted to CHF 49,580.  Formerly, temporary 
assistance essentially consisted of additional secretaria l support related to the activity level.  In 2010, 
the Fund provided for the recruitment of lawyers on a short-term basis when the surge in the level of 
activity could not be absorbed by the permanen t staff of the Appellate Body Secretariat.  
 
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