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WT/BFA/199  
 
3 November 2 021 
(21-8349) Page: 1/7 
Committee on Budget, Finance and Administration    
 
 
REPORT OF THE MEETING HELD ON 22 OCTOB ER 2021  
The Committee on Budget, Finance and Administration (CBFA) met on 2 2 Octob er 2021. Her 
Excellency Ambassador Bettina Waldmann, German Ambassador to the WTO , welcomed Members 
to the meeting.  
In her welcome remarks, the Chair emphasize d that there were important items for decision on the 
agenda and expressed the hope that some results would be achieved. She noted that it would be 
important to endorse the WTO budget proposal for 2022 -2023, for submission to the General Council 
as this would contribute to a positive momentum in the run -up to MC12.  
 
1  ADOPTION OF THE AGENDA  
The Chair noted that the agenda  was released on 1 2 Octob er, with the reference 
WTO/AIR/BFA/4 8, together with the annotated agenda bearing the reference JOB/BFA/5 6.  
The agenda as set out in document WTO/AIR/BFA/4 8 was adopted . 
2  ORAL REPORT FROM THE CHAIR OF THE CBFA ON ONGOING WORK  
The Chair informed the Committee that, f ollowing up on the formal m eeting of the Committee 
held on 23 September, she had  met informally with some delegations to help make progress with 
regard to the WTO 2022 -2023 budget proposal  and the subject of the utilization of the 2020 
budgetary surplus.  
The Chair said that she had  met with some delegations on 15 October regarding proposed 
revisions to Financial Regulation 19. The group had a constructive  exchange regarding the 
procedures for notification and approval of voluntary fund contributions. The discussion focused on 
the sc ope and contours of the notion of direct and indirect “costs”, liabilities  and the time period 
within which notification is to be provided. The Chair said the group also had a helpful conversation 
regarding the 13% overhead charge applied by the WTO to hel p offset variable indirect costs, 
including support provided by existing regular budget funded staff. She concluded by saying that 
the discussion was helpful and will hopefully pave the way to progress during the current meeting.  
3  PROPOSED UTILIZATION OF THE 2020 BUDGETARY SURPLUS – WT/BFA/W/565 /REV.1  
The Chair introduced the agenda item and indicated that it is ripe for a decision . She recalled 
that DDG Ellard had introduced the proposal during the meeting held on 12 July. Furthermore, robu st 
discussions were held during the Committee  meeting  on 23 September and v ery constructive 
suggestions made. As a follow up, a document bearing the reference WT/BFA/W/565/Rev.1 , 
provid ing further clarification and underlin ing the context for the Director -General's proposal , was 
circulated to Members before the meeting of 22 October .  
DDG Ellard said  very constructive comments  and suggestions that  were made during the 
Committee's  meeting  on 23 September had been taken into account in submitting the revised 
document  to Members . She added that more information is provided  in the revised proposal , in 
particular,  that the proposal is premised on the fact that the budgetary surplus for 2020 was l argely 
driven by travel constraints that resulted from the pandemic and that the proposal is made on an 
exceptional basis.  In addition, the proposal notes that , in making the proposal, prudential 
considerations with respect to the WTO's long -term liabiliti es have been weighed alongside the dire 
circumstances that many countries are experiencing as a result of the pandemic.  Furthermore,  the WT/BFA/199  
 
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  revision notes that the recommendation is linked to the pandemic and does not create a precedent 
for future recommendat ions and is not a de facto lowering of future assessed contributions.  
The Chair informed the Committee that, a fter circulation of the document, a Member had  
suggested some edits to the text. These were project ed on the screen during the meeting , for ease 
of reference.  
The Member that had proposed the changes stated that i t has been three months now that the 
Committee has been discussing the proposal. He added that this is not how his delegation  would 
have done things , but at the same time the delegation do es not want to delay or interrupt consensus 
on this matter. He recalled that , during the meeting on 23 September , some Members  had stated 
that, in an organization such as the WTO , flexib ility and sympath y towards others is necessary and 
that Members ought to stand shoulder to shoulder when it comes to taking decisions.  
The Member said, although the proposal is not to his delegation's preference, the delegation is  
asking the Committee to accept a small set of changes. He stated that the change s improve the 
argumentation of the proposal and provides  the rationale in a simpler manner.   
The Member explained the changes and read out the related extracts , tracking the c hanges,  
from the document bearing the reference WT/BFA/W/565/Rev.1 .  
The first suggested change was t he transferral of the last sentence of paragraph 5 to the end 
of paragraph 6 , with the replacement of the phrase "in addition " in the sentence with  the wor d 
"however". The Member explained that the  reason for the change is to strengthen the argumentation 
of the proposal . The Member said his delegation sees this as necessary because it was a bit strange 
to say that prudential considerations had been  taken int o account with regard to finance in the 
proposal and then  go on to  say there are problems of the balancing of the institution's books. Putting 
things in the proposed  order makes it more logical , he said . 
The second  suggested change was to delete paragraphs  7 and 8. In this regard, the Member 
said the Committee had held a discussion on this, and particularly what these paragraphs tackled, 
during the meeting on 23 September. He added that , during the discussion back in 2018 , with 
regard s to the utilization of  the CHF 52 million surplus from 2011 to 2017 , one option that had been 
deliberated upon was whether to allocate the  CHF 52 million to ASHI  assets . The Member said those 
discussions have no relevance to the proposed utilization of the 2020 budgetary surplu s as, 
regardless of which of the two options being considered in 2018 was finally chosen, the WTO would 
in both cases have the same net liability of CHF 836 million today . In view of this, the Member 
suggested that paragraphs 7 and 8 be deleted in their entirety .  
The Member emphasized that the changes that his delegation were suggesting do not affect 
the final paragraph of the proposal, being  the recommendation to be put before the General Council.  
He said that his delegation puts the suggestions  to other Members with a view to the adoption 
of the proposal with the changes.  
Before inviting Members to comment or ask questions, the Chair reminded Members that they 
will have an opportunity to discuss the issue of liabilities in due course and in depth . 
A Member said that, a s stated in earlier meetings, his delegation supports the proposal by the 
Director -General to pass on some of the savings realized in 2020 to the Members , by way of reduced 
contributions for 2022. He stated that the Committee has  had a good discussion on this proposal , 
ever since it was introduced , and Members' concerns had been  taken on board through the revis ed 
document.  
The Member said his delegation notes and has no problems with  the suggestions that had just 
been made by another  Member . 
After indicating that she had m issed the first part of the discussion  and apologizing for this, a 
Member said that, b efore deciding on th e recommendation, her delegation would very much welcome 
that the proposal also reflect  the fact that there ar e long -term liabilities . She said that, from her 
delegation's perspective, it is important to have the full picture , considering also the option proposed WT/BFA/199  
 
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  in the paper , if the Committee would  like to use the budgetary surplus for the reduction of Members' 
contributions .  
The Member said her delegation  recognize s the intention of the proposal  in view of the  current 
situation, and at the same time, would just like for the record to reiterate that the prudent financial 
management of this organization  has to be kept in mind . She added that the External Auditors ' 
Report stated that  there are net long-term liabilities of CHF  836 million. She said her delegation 
finds it very appropriate also to look at these aspects in the further discussion of th e propos al and 
prioritize seeking solutions regarding these increasing long -term liabilities. She welcome d the Chair  
having said that the issue of long-term liabilities has to be discussed in due course and more in 
depth. However, the Member said she has to get ba ck to her headquarters regarding the 
recommendation.  
The Member that had proposed changes to the document earlier during the meeting asked 
the previous intervener to clarify whether the consultations with her c apital are related to his 
proposal or whether this is a consultation of a more general nature  with regard to the proposal.   
In response, the Member clarified that her comment was related to the proposal itself 
regarding the Members' contributions and not directly to changes that had been suggest ed ear lier 
on during the meeting . 
The Chair asked whether her understand ing was correct that the Member is not ready to gavel 
the proposal on the surplus.  
The Member said she wo uld have to get back to the Committee on this because her delegation  
is of the view t hat it is really a priority to seek solutions for the long -term liabilities and that this is 
an important part for the prudent financial management of this organization. She said that she will  
get back  to the Committee  on this.  
A Member said that he had no t intended to intervene,  adding that  his delegation had to some 
extent raised similar concerns to those expressed by the Member that had spoken immediately 
before him . He said that  his delegation is willing to go along with th e proposal with the clear 
understanding from DDG Ellard and the Chair that long -term liabilities are a priority issue for the 
Committee  and would be taken up for discussion in the first quarter of 2022. The Member said the 
discussion ha s been very helpful t o refresh Members'  minds of the intensive discussions and work 
done a few years ago but at the same time  highlighting  the urgency of the matter.  
The Member said an alternative  could be  to simply include a short paragraph reconfirming 
what the Chair had ea rlier on said about the  issue of long -term liabilities being  a priority issue for 
the CBFA in 2022  and perhaps , with that , the Committee could conclude th e discussions of the 
recommendation between Committee meetings .  
A Member  recall ed that Financial Regu lation 23 very clearly gives the Director -General the 
right to make th e proposal on the utilization of the budgetary surplus . As such, the current proposal 
is within the Director -General's purview and she should not have to justify it in the manner that wa s 
suggested by another Member or qualify or put limitations on her ability to make this 
recommendation. The Member said that his delegation is not objecting and is only putting down a 
marker, as Members begin to add more elements or put caveats or contingenc ies on the proposal . 
He said that the proposal presented options that are in line with Financial Regulation 23. The Member 
also added that his delegation is not in a position to accept any linkages to what happens next year 
as it deems this as no t being  appropriate.  
The Member recalled an explanation that had been given by an Official of the Secretariat on 
23 September, to the effect that the Working Capital Fund is not the appropriate place to deal with 
these long -term liabilities hence the incl usion, in the recent revision to Financial Regulation 23, of  
the choice to move funds to a special reserve account  in order to address the issue of long -term 
liabilities. He highlight ed that moving money to the working capital fund is not the solution and that 
the Committee has to take  additional steps to make sure that there is a financial accounting way to 
put money aside for this  issue.  WT/BFA/199  
 
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The Member said his delegation support s the recommendation and is prepared to move 
forward with consensus . 
The Member that had proposed changes to the proposal reiterated that he had simply put 
them forward for c onsideration by Members , but his delegation is not requiring them . He said he 
would prefer that the proposal be approved with the proposed changes  but would nonetheless 
withdraw them if they were to pose a problem to the Secretariat or Members .  
A Member said her delegation  welcome s the suggestion s that had been made by another 
Member regarding possibly includ ing, in the text , that the finding of a solution for the long -term 
liabilities is a priority for th e Committee.  
DDG Ellard said the Secretariat is committed to having discussion s with Members on the 
important issue of long-term liabilities  in the coming year, as suggested by the Chair. She stated 
that there  seem s to be a difference among the delegations about whether or not such  language 
should appear within the text of th e proposal, which is the Secretariat 's document. She suggest ed 
that perhaps other ways of making that point very clear could be consider ed, given the apparent  
disagreement among the delegations as to whether that commitment should be within this document 
or expressed in some other way. She emphasized  that both she and the Chair ha ve stated their 
strong commitment to having such discussion s.  
The Chair asked  if it would be helpful for the Member that needed more time for reviewing  
the proposal if the  commitment that was mentioned by DDG Ellard was reflected in the report of t he 
meeting .  
In response to the Chair's question, the Member said  that including the commitment made 
by the Chair and DDG Ellard in the report would certainly be helpful . The Member added that she 
would, nonetheless, have to get back to her capital . 
The Committee t ook note of the statement.  
4  WTO 2022 -2023 BUDGET PROPOSAL – WT/BFA/W/556  
The Chair recall ed that the Director -General had introduced  the WTO 2022 -2023 Budget 
Proposal at the meeting of the CBFA which  took place on 22 June . She said that delegations had 
posed questions and provided comments with regard to the proposal , and that these had been 
addressed by the Secretariat.  
The Chair sai d that, i n addition, the WTO 2022 -2023 Budget Proposal had been  on the agenda 
of the Committee on 23 September  and that a delegation had indicated that it require d a little more 
time to be in a position to endorse the budget. She added that there had not b een any objections to 
the proposal itself.  
A Member said his delegation is still reviewing the budget proposal and request s some more 
time for its adoption.  
A Member thank ed the Secretariat and the Director -General for putting together the proposal 
for th e next budget and said that his delegation  supports  it. He said his delegation share s the belief 
expressed in the proposal that multilateral trade is facing significant challenges , ranging from the 
effects of the pandemic to increasing protectionism , that the WTO can and should address.   
The Member said s wiftly passing a budget for the next years before the upcoming 12th 
Ministerial Conference, and ideally today, is an essential contribution that Members  can make to 
reduce some of the uncertainty the Organi zation is currently facing and enable it to pursue its 
mission.  
A Member expressed puzzlement at the statement by another Member that his delegation 
required more time and asked what had changed since the meeting that had taken place on 23 
September . He sa id that Members had had ample time to consider  this topic. The Member expressed 
the hope that the request for additional time by the other Member is just a minor procedural point.  WT/BFA/199  
 
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The Member added that it would be a real pity if the Committee keeps this topic pending  as 
this would unduly create tension. Nonetheless, the Member said his delegation respects all delegates 
and that they are taking important steps towards arriving at a decision . The Member said his 
delegation had  actua lly expected to adopt the budget today, and expressed that p atience is a great 
attitude.  
Another Member also stated that his delegation had expect ed the Committee  to take decisions 
today and not to continue to delay decisions on items 3 and 4 of the agenda  i.e. the u tilization  of 
the 2020  budgetary  surplus and the budget for 2022-23 biennium.  
The Committee took  note of the statements made.  
5  PROPOSED CHANGES TO THE TEXT OF FINANCIAL REGULATIONS 19 THAT WAS AGREED 
IN JUNE 2019 – BY INDIA – WT/BFA/W/564  
The Cha ir said that, a fter more than a year of no discussion on Financial Regulation 19 , there 
had been a sequence of meetings focussing on possible changes to it. She recall ed that the 
Committee had discussed changes proposed by India on 12 July, as summarized i n paragraphs 12.1 
to 12.23 of document WT/BFA/197 , and on 23 September, as  summarized in section 11 of document 
WT/BFA/198.   
The Ch air said,  as she had m entioned earlier  on during the meeting, she had met informally 
with some delegations on 15 October. She added that she anticipated that the key points will be 
revisit ed under this agenda item topic , in order to provide transparency and ensure inclusiveness 
for the benefit of all.  
The Lead Sponsor thank ed Members for the constructive discussions that the Committee had 
during the meeting on 23 September. He said that s ince that meeting, his delegation had  discussions 
with some Members , both bilaterally and in the small group format. He thank ed Members who had 
come forward with constructive suggestions and proposals to narrow down the differences and to 
move towards consensus. He thanked the Ch air and the Secretariat team for the discussions that 
had taken place in the small group format on 15 October , sayin g that these have been really helpful 
in finding the required landing zones.  
The Lead Sponsor said his delegation is  working on a revised text, taking into consideration 
the suggestions received from various quarters , and hope s to present these  to the CBFA  in due 
course.  
The Chair proposed that the Committee take note of the Lead Sponsor's statement, as there is 
no agreement on the changes. She said the topic will be revert ed to at a subsequent meeting  of the 
Committee . She said she might continue holding i nformal consultations to advance the matter . 
6  ENDORSEMENT OF THE PROPOSED FULL TEXT OF THE REVISED FINANCIAL 
REGULATIONS OF THE WORLD TRADE ORGANIZATION – WT/BFA/W/568 /REV.1  
The Chair recalled that , at its meeting on 12 July, the Committee had discussed the document  
bearing the reference WT/BFA/W/568 . The document  set out specific revisions to Financial 
Regulations 4, 17, 26, 27, 29, 37, 38 , and 42 that were agreed in 2019. The Chair said  that at the 
end of that meeting , she ha d noted that there appeared to be no disagreement with respect to the 
revisions .  
The Chair said that, at  its meeting on 23 September,  the Committee approved revisions to 
Financial Regulation 23.  She indicated that the revised Financial Regulation 23 would  be included in 
an updated document bearing the reference  WT/BFA/W/568/Rev.1.  
The Chair  propose d that the Committee endorse  the specific revisions to Financial Regulations 
as mentioned before and the revision to Financial Regulation 23 agreed at the meetin g of the 
Committee held on 23 September. These revisions will subsequently be submitted to the General 
Council for approval.  WT/BFA/199  
 
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A Member said that, as illustrated in his intervention on the previous agenda item, his 
delegation is  moving forward , with the help  of the Chair's support and also that of Secretariat and 
some Members , on the revision s to Financial Regulation 1 9 with respect to his delegation's  proposal. 
He said that his delegation will try to bring an updated version to the Committee , and he expressed 
the hope it would get the consensus.  The Member said that his delegation would like all the Financial 
Regulations to go as a package , as he had stated in previous Committee meetings . He, therefore, 
request ed the deferral of this agenda it em. 
A Member thank ed the Members that he said had constructively engaged on updating the 
Financial Regulations and said his delegation welcome s the progress made so far. He said that there 
are elements of the WTO's financial framework that require further discussion, as some Members 
have pointed out.  The Member said that the Committee, nonetheless, has th e rare opportunity to 
move forward with the package as it stands regarding the important parts that have been  agreed 
on to be implemented , for the benefit of our Organization.  
A Member said that she has  no intention to change the position  of the Member that has stated 
that it deem s the Financial Regulations as a package. She said that she knows that it is difficult 
because the matter has been there  for quite long time. The Member said the revision of Financial 
Regulations takes place  every four years  and that, a ccording to the practice, it should be that, by 
the end of that year, the revise d Financial Regulations would take effect.  
The Member said t here is no requirement that all suggested revised regulations should be 
considered  as a package. She said, past practice was that those Financial Regulations for  which  
consensus could not  be reached  would remain unchanged  and those for which there is consen sus 
would be taken onboard . The Member said the whole process t his time  has been delayed . She, 
therefore, urged the Members that did not yet agree on the advancement of the revised Financial 
Regulations to consider joining the consensus so as not to delay the process. She said, considering 
that this process started in 2019, the next 4 -year timeframe would soon arrive , yet the Committee 
would not have finished th e current proces s, which ought to have been concluded a couple of years 
ago.  
Several Members agr eed that a decision ought to be taken soon.  
A Member reiterate d that, as indicated in previous meetings, h e is confident that Members' 
interest in continuing the discussions on Financial Regulation 19 can be maintained. He said his 
delegation would prefer to move forward with the revisions to which the Committee  had already 
agreed.  
On a procedural matter, the Member asked for clarification why the  recommendation in the 
document makes reference to a document bearing the reference WT/L/156/Rev.4  when a document 
bearing such a reference was not yet ready.  
In response, an Official of the Secretariat said that the intention is to present the full text of 
the Financial Regulations  after the Committee  endorse s the revisions made to select ed Financial 
Regulations. Thereafter, the reference of the CBFA document containing the full text of revised 
Financial Regulations would be replaced with one bearing  the series of documen ts that are approved 
by the General Council, prior to be ing submitted to the General Council for approval. She added that 
the document presented to the CBFA is a working document and get s updated frequently during the 
course of discussions by the CBFA. The reafter, it will be replaced by a formal set of Financial 
Regulations . 
The Member said that he had asked for clarification because the document that was listed in 
the agenda is WT/BFA/W/568/Rev.1. He said that, going forward, it would be helpful for the 
Committee to not be asked to agree to documents that it does n ot have in front of it to avoid things 
being unclear . Nonetheless, he said that the Official of the Secretariat has addressed his question.  
The Member reiterate d that his delegation would fully s upport moving forward with Financial 
Regulation s 4,17,23, 26,27,29, 37, 38, and 42. 
A Member said that his delegation is ready  to safeguard and make use of the rest of the 
package, which has been the result of good discussions, and particularly since const ructive WT/BFA/199  
 
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  discussions had been held on Financial Regulation  19. He said that the full text could be endorsed 
and a footnote or a reference could be include d that the CBFA is still considering proposals for 
Financial R egulation 19.  
Several Members expressed disappoint ment that the Committee has not been able to take 
some important decisions for the good functioning of this Organization , in particular with respect to  
the budget.  
A Member said she  hopes that the Committee  will be able to resolve th is quickly a nd welcome 
guidance on the future work to resolve any particular issues that delegations might have.  
Speaking in his delegation's capacity as Coordinator of the LDC Group, a Member thanked the 
Chair for having convened the meeting and said the  budget is, of course, an important question for 
all. 
The Member provided a brief update on the Secretariat  and LDCs  workshop that had taken 
place a few days before . He said t he LDC group congratulates and thanks the Secretariat Division 
that deals with CBFA matters , as well as its Director and the team for their work in favour of the 
LDCs and for having expeditiously  respon ded to the LDC 's request for a workshop . He said the goal 
of the workshop was to provide LDCs with all the relevant information that would allow their 
delegations to better understand the financial and administrative aspects of the WTO.  
The Member added that t he exchanges during the  workshop met the attendees'  expectations 
and have enabled them to more actively participate in CBFA  meetings . He said that it also gave 
attendees an excellent opportunity to review the budget and Members' contributions ; payment plan s 
for arrears in contribution;  trust funds and the work of the CBFA on voluntary contributions; and 
other administrative matters such as  the strategic plan for buildings and spaces.  
The Member said that the LDC Group support s the adoption of the 2022 -2023 budget as this 
will provide predictability and ensure the Organization does not fall into a situation of uncertainty.  
The Chair thanked Membe rs for their comments and the constructive proposals they had 
made.  
The Chair recall ed that the Financial Regulations were last revised in 2014, adding that  
Financial Regulation 4 , which  stipulat es that the Financial Regulations should be revised every four 
years , is currently not being complied with.  
The Committee took note of the comments made . 
7  CLOSING REMARKS  
Before closing the meeting, the Chair said that she has not given up on the possibility to gavel 
the budget before MC12. She said it is for this reason that she would like to make an additional 
effort on 4 of November and hopes that the Committee would be in a position to pass the budget 
and the surplus  recomme ndations on that date, as well assess if there is a need for other items to 
be put on the agenda . 
The Chair thanked Members for their active participation and informed them that the next 
formal meeting is scheduled for 4 November.  
_________  