RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/BFA/123 
5 April 2011 
 (11-1693) 
Committee on Budget, Finance and Administration  
  
 
REPORT OF THE MEETING HELD ON 17 MARCH 2011 
 
 1. The WTO Committee on Budget, Finance and Administration met on 17 March 2011 under 
the chairmanship of Mr.  Pasi-Heikki Vaaranmaa (Finland).  The terms of reference and composition 
of the Committee are set out in document WT/L/ 44/Rev.1.  The agenda contained in document 
WTO/AIR/3710 was adopted with one item added under other business regarding the International 
Trade Centre (ITC). 
I. ADMINISTRATIVE UP-DATES AND PROGRESS REPORTS AS AT 
28 FEBRUARY 2011 
A. WTO
 BUDGET AND FINANCE REPORT (WT/BFA/W/231) 
2. A member of the Secretariat presented the situation regarding Members' contributions as at 
28 February 2011 showing that CH F 73 million of the assessed CHF 194 million had been received 
and that 36 Members or 24 per cent of the Memb ership had no outstanding balance.  Payments 
received from Observers represented 22 per cent of the total assessment of CHF 0.9 million.  The receipt of contributions was slightly lower than at the same time in prior years. 
3. The cash situation could be considered as ad equate as the WTO held CHF 102 million on its 
bank accounts, including the Working Capital Fund and Extra-Budgetary Funds as at 28 February 2011. 
4. The 2011 budgetary performance remained larg ely on schedule after two months with an 
implementation rate of 22 per cent.  Some sections  of the budget had a higher level of implementation 
as they included commitments until the end of the year. 
5. The contract to equip and install the South C ourtyard Conference Centre had been awarded 
for an amount of some CHF 3.8 million at the end of 2010.  The contract was being financed from savings obtained on the 2010 budget for some CHF 2.0 million, and the remaining amount from the 
Members' Transition Operating Fund.  The 2010 bu dget had therefore been fully committed by the 
end of 2010.  Members welcomed that outcome and asked the Secretariat for an updated list of the 
common facilities that would require funding as part of the building project. 
6. At the end of 2010, the WTO Secretariat had changed its accounting methodology for 
calculating provisions for contributions in arrears following a recommendation of the External Auditor.  That change of methodology reduced th e amount of the provision and positively impacted 
the Surplus Account by some CHF 10 million.  The Secretariat indicated that the amount could be 
allocated by Members to finance the equipment of the common facilities provided by the building 
project.  In a reply to a Member, the Secretariat c onfirmed that the accounting change did not give rise 
to significant financial risks for the WTO as long as Members' contribution payments remained in the 
same pattern as observed in the previous ten years. WT/BFA/123 
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  7. The project to implement International Public  Sector Accounting Standards at the WTO for 
2012 remained on schedule.  The WTO would be required  to change its Financia l Regulations in order 
to comply with those Standards.  The Secretariat had engaged a review of the Financial Regulations 
and would provide a proposal to the Committee in  the coming months.  The Committee would then 
need some time to consider the revision of the Fi nancial Regulations and it mi ght wish to establish a 
working group to review the proposal in greater detail.  Several Members had expressed interest in 
taking part in that review. 
B. E
XTRA -BUDGETARY FUNDS REPORT (CRP(11)01) 
8. A member of the Secretariat presented the financial situation on trust funds, especially 
focusing on the Doha Development Agenda Global Tr ust Fund (DDAGTF).  As at 28 February 2011, 
total funds available in the DDAGTF stood at only CH F 1.1 million, with expenditure amounting to 
CHF 9.7 million.  The funds brought forward from 2010 amounted to CHF 8.9 million. In the first two months of 2011, the WTO had received volunt ary contribution payments from the European 
Union, Germany and Estonia for a total of CHF 1.9 m illion.  In order to secure the timely execution of 
the activities, the Secretariat would follow up with donors who had outstanding pledges. The 
DDAGTF guideline to have 75 per cent of the required funding received by the end of March would, 
most likely, not be achieved.  Therefore, the Secr etariat would have to enga ge planned activities with 
significant caution until the funding situation became cl earer.  It appeared unlikely at that stage that 
the Secretariat would be able to achieve the full im plementation of the Technical Assistance Plan in 
2011. 
9. The Secretariat also informed the Committee of a new policy with  respect to expenses to be 
covered by the Organization for participants attending WTO-funded training courses, seminars, 
symposia and workshops (document WT/BFA/W/225) .  The Secretariat had undertaken a review 
aimed at formalizing and harmonizing its practices in that area.  The new policy did not entail major changes for participants.  The only key change fo cussed on short regional training activities taking 
place outside Geneva and where the WTO had no local implementing partner.  For those events, the 
WTO was now providing all meals directly through the hotel instead of paying per diem to 
participants.  That change had been prompted by th e need to eliminate the risks associated with the 
transportation of large amount of cash overseas by WT O staff.  A Member welcomed the fact that the 
Secretariat had terminated the practice of carrying large sums of cash. 
C. WTO
 PENSION PLAN REPORT (CRP(11)02) 
10. The Secretary of the WTO Pension Plan inform ed the Committee that the implementation of 
the revised investment strategy had been comple ted in January 2011.  The transition to the new 
strategy had been achieved seamlessly and at minimum cost.  The Management Board of the WTO Pension Plan had also completed its examination of the offers received for consulting actuarial 
services.  
D. H
UMAN RESOURCES REPORT  
11. A member of the Secretariat presented an overview of human resources by funding source, 
contract type and division.  As at 31 December 2010, the WTO had employed 723 staff with 94 per cent funded by regular budget and 6 per cent from extra-budgetary funds.  An overview of the distribution by division of the 53 staff employed on short-term contracts was also provided.   
12. The WTO salary adjustment methodology as defined by the Staff Regulations was based on 
the evolution of salaries in the United Nations ( 70 per cent) and Coordinate d Organizations (30 per 
cent).  In 2010, the application of the methodology had resulted in a zero increase in WTO salaries.  
The result of the annual salary survey indicated a negative adjustment of 1 per cent for 2011.  The  WT/BFA/123 
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  main driver of this negative result had been the drop in the value of the Euro against the Swiss franc.  
The variation in that exchange rate had an imp act on the methodology to assess the salaries paid in 
Euro by the Coordinated Organization, representing 30 per cent of the overall weight.  In accordance 
with the WTO salary methodology, the Director-Gen eral had decided to apply a 1 per cent negative 
adjustment to the WTO salary scale in 2011.  It  would be implemented operationally by freezing 
salaries for existing staff in 2011.  Salaries would essentially be maintained at their 2009 levels, as no 
increase had taken place in 2010.  The 1 per cent reduction in the 2011 WTO salary scale would be offset against future salary adjustment increases.  Given the limited number of recruitments planned for 2011 and the potential additional cost of operating a dual salary scale, the Secretariat was currently considering its options with respect to staff who jo ined the Secretariat on or after January, 1, 2011. 
13. In 2010, the WTO had issued 35 vacancy notices, with 15 at the junior professional grade 6.  
The WTO had had 136 interns in 2010, including the selected Mission and Regional Coordinator 
Internships.  The Secretariat reported on the 2010 staff training activities and provided information on 
the type of training given.  A new online Staff Performance Evaluation Reporting system had been launched in February 2011 to replace the former paper-based system.  In 2011, further actions would 
be taken to improve the objective-setting approach by more clearly linking individual work objectives 
with the divisional work programme and planned outputs.  
14. Several Members expressed an interest in obtaining additional info rmation regarding the 
number of staff on short-term contracts and the du ration of those contracts.  One Member also 
enquired about the Secretariat's general approach to internship. 
E. B
UILDING PROJECT REPORT  
15. A member of the Secretariat reported on the progress of the building project.  The intensity of 
the building work was now reaching a peak with several on-going projects engaged in parallel over 
the next 18 months.  Those projects included th e renovation of the Centre William Rappard, the 
construction of the South Courtyard Conference Cent re and the Atrium (intra-muros project), the 
construction of a new administrative building with an  underground car park (the extra-muros project), 
the establishment of a new security perimeter and the construction of a new WTO car park on the 
Sécheron site.  In addition, the WTO needed to or ganize the related logistical moves of personnel and 
equipment, as well as install and equip the ne w facilities, while maintaining its operations in a 
business as usual mode. 
16. The timeline for the different phases of the renovation of the Centre William Rappard was 
presented.  The renovation of the South Wing had be en completed in January 2011.  The renovation 
work had moved to the North Wing, beginning with both sides of the North Courtyard.  The Centre 
William Rappard was now divided in two, with a la rge portion of the staff working in the South Wing 
and the conference rooms located in the North Wing.   The connection between those two areas would 
only be possible through the first floor lake side corridor until April 2011.  From April to September 
2011, access would be via an external covered walkwa y.  The renovation of the entrance hall, library 
and the conference rooms W and F should take place  from fall 2011 to April 2012.  The renovation of 
the conference rooms A, B, C, D, E and X would take place from April to September 2012.  There should be limited disruption for Members as the new South Courtyard Conference Centre would be in 
operation by the autumn of 2011.    
17. The work on the South Courtyard Conference Ce ntre had advanced.  The major structural 
work had been completed.  The building work on th e North Courtyard Atrium had started in January 
2011 and would be completed by January 2012.  Work  on the site of the new building had also begun 
and should be completed by December 2012. WT/BFA/123 
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  18. Information was provided regarding the parking situ ation for delegates and staff.  The city of 
Geneva was currently building a "Park & Ride" car park at the end of the current Sécheron WTO car 
park, next to the Avenue de France.  This car pa rk should be completed by January 2012.  It would 
first be used by the WTO until January 2013.  During that time, a new WTO car park and the 
headquarters of a multinational company would be er ected on the current location of the Sécheron car 
park.   
19. The Secretariat would provide the Committee w ith an updated list of the common facilities 
projects.  Those projects included the installation and equipping of the new facilities provided by the building project once completed.  Several Member s had expressed interest in obtaining further 
information about those future costs.  One Me mber expressed some concerns and suggestions 
regarding the insufficient number of small meeting rooms which were especially  needed for bilateral 
consultations. 
II. REPORT ON DIVERSITY IN THE WTO SECRETARIAT (WT/BFA/W/227) 
20. A member of the Secretaria t presented the second Annual Report on Diversity in the 
Secretariat.  This report provide d detailed data on the current composition of WTO staff on the basis 
of WTO Membership, gender and the evolution of st aff diversity since 1995.  Data were provided on 
staff recruitment, including the number of appli cations received and candidates interviewed.  The 
actions taken by the Secretariat to improve diversity were also presented. 
21. The WTO remained committed to merit and divers ity in its recruitment policy.  The Human 
Resources Division had produced and distributed flye rs at several events in 2010 to promote the 
recruitment policy of the WTO.  Those events in cluded the Geneva weeks, the WTO Public Forum 
and Open Day and several careers fairs and round ta bles.  The Secretariat would implement diversity 
training and increased outreach activities in 2011.  WTO Members could also play an important role 
in promoting diversity, and the Secretariat was read y to provide them with advice and assistance.    
22. The WTO overall staff turnover rate had dropped to  2.4 per cent in 2010, mainly as a result of 
the increase in the retirement age.  The low turnove r rate and the limited number of vacancy notices 
made it difficult to bring about significant changes in the WTO staff composition in a short period of 
time.  
23. Nevertheless, the number of WTO Members represented in the staff of the Secretariat had 
increased by 2 to 76 in 2010.  There had been a 55.1 per cent increase in the number of Members 
represented since 1995.  The share of professional staf f represented by developing and least developed 
countries had continued to increase in 2010 to reach 33.1 per cent of the total professional staff.  The 
percentage of professional staff, excluding linguistic  staff, originating from Asia, Latin America and 
Africa had consistently increased since 1995. 
24. The proportion of female professional staff had also steadily increased since 1995 and had 
represented 41.9 per cent of professional staff at the end of 2010.  The 7:3 female to male ratio in the 
support staff had remained largely unchanged since 1995.   
25. The WTO continued to run 5 internship progra mmes.  Four of those programmes focussed on 
building sustainable capacity in LDCs and devel oping countries.  The internship programmes were 
also providing a stream of applications for the j unior professional vacancy notices that contributed to 
increased diversity in the Secretariat.  
26. Several Members welcomed the report on dive rsity and the progress achieved.  Members 
expressed an interest in obtaining additional info rmation on the number of interns who had been 
successful in obtaining a staff position and similar information on internship applications as for  WT/BFA/123 
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  vacancy notices.  Members supported the merit-ba sed recruitment policy and would seek advice and 
assistance as necessary from the Secretariat to furt her develop the diversity in the Secretariat. 
III. DISPUTE SETTLEMENT EXPENDITURE (WT/BFA/W/228) 
27. Following an earlier request for some Members, the Secretariat provided a report containing 
high-level information on the ac tivity level of the WTO Dispute Settlement Mechanism and the 
details of the related expenditure incurred by the Secretariat. 
28. The total number of disputes handled by the WTO had significantly increased in 2010.  The 
number of on-going disputes had peaked at 23 during the summer of 2010, composed of 20 original panels.  The work on panels was supported by two Divisions: Legal Affairs and Rules.  Those two 
Divisions had had between eight a nd 20 on-going original panels at any time since the start of 2005.  
The average number of on-going original panels rose by 52 per cent in 2010 compared to 2009.  
While there were no appeals in th e first semester of 2010, the activ ity had peaked in the second 
semester with two on-going appeal s at any time.  Appeals were supported by the Appellate Body 
Secretariat. 
29. The WTO had spent a total of CHF 15.0 million in direct costs to support the WTO Dispute 
Settlement Mechanism in 2010.  That sum incl uded the costs engaged in the three Divisions' 
supporting mechanism (CHF 13.8 million) and the expenditure incurred on the Appellate Body 
Operating Fund (CHF 1.2 million).  The major part of  the expenditure was related to the 54 permanent 
posts in the three Divisions for an amount of CHF 10.4 million.  The amount paid to panelists, fees 
and travel, had amounted to the CHF 1.1 million.  N on-governmental panelists received a flat fee of 
CHF 600 per day worked on a panel.  The level of that fee had not been changed since at least 1995 
and the Secretariat was considering proposing an adju stment to the fee to ensure that a sufficient 
number of qualified panelists c ontinued to be available. 
30. Of the expenditures incurred under the Appellate  Body Operating Fund in 2010, 89 per cent 
concerned the daily fees paid to Appellate Body Members and their travel to Geneva.  The other 
expenditures concerned Court Reporters, oral heari ng filming, postage and temporary assistance.  
Following a question for a Member, the Secretariat confirmed that there had not been any other 
miscellaneous expenditure incurred by the Fund in 2010. 
31. Several Members highlighted the need to ensure  that the Appellate Body Operating Fund was 
used only to finance the variable costs linke d to specific appeals.  One Member expressed 
disappointment that the data provided on the Appella te Body Operating Fund did not sufficiently 
present requested details on the expe nditure directly related to the adjudication of specific disputes as 
opposed to expenditures not directly related to such activities and requested that such detailed 
information be provided to the Committee. 
IV. MEMBERS SUBJECT TO ADMINISTRATIVE MEASURES (WT/BFA/W/229, 232  
& 233) 
32. The Committee was informed that the Republic of the Burundi and the Democratic Republic 
of the Congo had accepted payment schemes to liquidate  their outstanding cont ributions over a period 
of 20 and 5 years, respectively.  The Chair congr atulated these two Members for their commitment to 
clear their outstanding contributions.  A represen tative of the Republic of Burundi thanked the 
Committee and the Secretariat for considering this pa yment plan and for the assistance provided to his 
country by the WTO.  One Member expressed so me concerns when the payment plans exceed 
15 years.  The Committee approved the following two recommendations: WT/BFA/123 
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  33. In accordance with the decision of the General Council of 15 May 2006, the Committee 
on Budget, Finance and Administration recomm ends that the General Council suspend the 
application of administrative measures for the Republic of Burundi, which agrees to, and 
undertakes to abide by, a schedule of instalment payments aimed at liquidating all arrears over 
a period of 20 years starting on 30 June 2011. . 
34. In accordance with the decision of the General Council of 15 May 2006, the Committee 
on Budget, Finance and Administration recomm ends that the General Council suspend the 
application of administrative measures for th e Democratic Republic of the Congo, which agrees 
to, and undertakes to abide by, a schedule of instalment payments aimed at liquidating all 
arrears over a period of five years starting on 1 January 2011.  The payments must be received 
no later than 31 December of each year, failin g which the administrative measures will be 
reinstated . 
35. A member of the Secretariat recalled that the Membership had established a number of 
Administrative Measures for Members that had one full year or more of assessed contributions remaining outstanding at the end of the fina ncial year.  With r espect to Members under 
Administrative Measures, it was reported that 23 Members were under Administrative Measures at 
the end of February, comprising four in Category I, eight in Category II, tw o in Category III and nine 
Members in Category IV (Inactive).  Two of the nine Members in Category IV were presenting payment schemes to the Committee. 
36. Under the Administrative Measures, a Member wa s declared as an Inactive Member if more 
than three full years of assessed contributions remained  outstanding at the end of the financial year.  
The Administrative Measures also required that: "t he list of Inactive Members 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 Me mbers be urged to liquidate their arrears". 
37. The Committee therefore recommends to the General Council that the following seven 
Members be urged to liquidate  their arrears : 
Chad  
Djibouti  
Dominica  
Guinea  
Guinea-Bissau  
Mauritania  
Sierra Leone  
38. The Secretariat also updated the Committee on its  actions to find financial solutions with 
respect to those Members and on the situation on the seven payment schemes already approved.  The 
number of Inactive Members had been reduced from 18 to 7 in the last two years.  
39. The Chair of the Working Group on Administ rative Measures updated the Committee on the 
work of the Working Group and on the consultations th at he had held with the Regional Coordinators. 
40. Members welcomed the progress achieved in resolving the situation with Administrative 
Measures.  Several Members urged the Secretariat to apply fully the existing Administrative Measures 
and asked that this item is being included in the agenda of the next meeting of the Committee.  A 
Member thanked the Secretariat for its dialogue  approach that had led to positive results.  WT/BFA/123 
 Page 7 
 
 
  V. OTHER BUSINESS 
A. INTERNATIONAL TRADE CENTRE  
41. The Executive Director of the International Tr ade Centre (ITC) inform ed the Committee that 
on 7 March 2011 the United Nations Secretary Genera l had requested all UN departments, including 
the ITC, to reduce their proposed 2012-2013 budgets by a minimum of 3 per cent.  
42. The ITC's regular budget was jointly funded by the UN and the WTO.  The Administrative 
Arrangements between the two pare nt organizations provided that the ITC budget proposal should be 
reviewed in full by both Organizations in  the autumn preceding the new biennium. 
43. The implementation of a budgetary cut of that  magnitude was a challenge and would require 
careful analysis, especially considering the relatively small size of the ITC and its strategic objectives.  
ITC had several challenges for the next biennium, such as enhanc ing accountability and value through 
result-based management, and delivering projects with  greater potential impact to achieve long-term 
sustainability, efficiency and effectiveness by growing projects into larger multi-year and multi-stakeholder programmes.  The ITC regular budget w ould have to be sufficient to support the above 
challenges as well as to keep pace with th e growth in extra budgetary activities. 
44. The ITC management recognized the need for budget reductions and the importance of all 
international organizations working together to achie ve that goal.  The ITC was therefore, ready to 
examine all options and would consult with all st akeholders.  The ITC management was confident 
that a solution could be found and it would provide a comprehensive analysis to both the UN and the 
WTO in time for the budget review process in the autumn.  As required by the Administrative Arrangement, the ITC was seeking some time until then  to consult and work out the most effective 
solution for making the budgetary reduction. 
45. Members clearly expressed the need to respect  the timing of the budgetary process and the 
consultation process as provided by the Administrati ve Agreement and looked forward to reviewing 
the ITC's 2012-2013 budget proposals in the autu mn of 2011, leaving sufficient time for its 
preparation.  Several Members expressed their supp ort for the work carried out by the ITC and for 
maintaining the ITC budget.  Other Members indi cated that the proposed reduction could set a 
realistic benchmark.  
VI. ELECTION OF THE CHAIRPERSON 
46. 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. Pasi-Heikki Vaaranmaa (Finland) info rmed the Committee on Budget, Finance and 
Administration that he had accepted to run for a second term of office as chairperson of the Committee by acclamation.  The Committee so agreed. 
47. The Chair thanked the Committee for its confidence  and looked forward to a fruitful year in 
2011. 
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