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WT/BFA/214  
 
 
19 September  2023 
(23-6217) Page: 1/18 
Committee on Budget, Finance and Administration    
 
REPORT OF THE MEETING HELD ON 18 JULY  2023  
The Committee on Budget, Finance and Administration (CBFA) met on 18 July 2023. Her  Excellency 
Ambassador Dr. Bettina Waldmann, German Ambassador to the WTO , welcomed Members and the 
Director -General to the meeting.  
1  ADOPTION OF THE AGENDA  
1.1.  The Chair propose d to adjust the order of the items on the agenda  to take up item D and item  E 
regarding the WTO and ITC budget proposals immediately after her report on ongoing activities  to 
make best use of the Director -General's presence at th e meeting.  
1.2.  The agenda , as set out in document WTO/AIR/BFA/ 61, with the suggested modifications , was 
adopted.  
2  ORAL REPORT FROM THE CHAIR OF THE CBFA ON ONGOING WORK  
2.1.  The Chair pointed out that the last meeting was only three weeks ago and so her update would 
be relatively brief. She said that the main priority for the Committee this autumn would be to ensure 
a smooth passage of the budget for the next biennium.  
2.2.  Turning  to the question of pension reform, she noted that  the Pension Plan Management Board 
had updated  its recommendation for addressing the Pension Plan's funding gap , which was circulated 
to the Committee in document WT/BFA/W/644. She express ed appreciation to  the Board for its 
revised proposal , which takes into consideration the views expressed by Members in the last meeting 
as well as recent consultations. She  also note d that Members have been extensively discuss ing 
technical elements of the Board's proposal in both formal and informal settings for several months.  
Therefore, she emphasized that it is important to move the discussions forward so as to address the 
implications for the Committee's broader focus on the next biennial budget.  
2.3.  She urged Members  to focus on  insights and ideas they may have regarding the terms of 
reference for a process to explore longer term structural reform to be undertaken following the 
budget process. She said that any such process would be Member -driven and supported by the 
WTOPP Management Board and the Secretariat. To support that effort, she  suggested that she could 
work to identify a CBFA delegate acceptable to Members who can facilitate the process and ensure 
regular reporting to the Committee as the work progresses. She invited Members to share  any 
thoughts they may have in this regard, and any other ideas they may wish to bring to the table  to 
constructively advance the work on this topic . 
3  WTO 2024 -2025 BUDGET PROPOSAL – WT/BFA/W/64 3 
3.1.  The Director -General presented the budget proposal to Members. Her statement is reflected in 
paras. 3.2. - 3.59. below.  
3.2.  Good morning, Chair, Excellencies, and delegates. I am pleased to be here today to present to 
you our biennium budget request for 2024 -2025. We circulated the detailed budget proposal to you 
on 3 July, which will be the basis of my presentation. I would like to thank our team for all the work 
they've done in putting this proposal together. I am joined today by DDGs Ellard and Paugam, as 
well as our key specialists on budget, human resources, and transformation, so I hope we can 
provide as complete a picture to you as we can.  WT/BFA/214  
 
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  3.3.  Last year's discussions in the context of my proposal for the mid -term budget for 2023 were 
very useful for me to und erstand your concerns and priorities. We have learned from what you told 
us last year and took your comments into account in preparing this proposal.  
3.4.  For the past two plus years, I have been privileged to lead a Secretariat that is dedicated to 
serving you , our Members, and I have heard you complimenting and commending our staff. As the 
complexities of trade have expanded and the global setting has changed radically, so too has our 
work. In addition, the success of MC12, the considerable work that Members a re engaged in for 
completion by MC13, and exigent circumstances beyond our control, including inflation, create an 
important, and, I believe, compelling, context for this budget request.  
3.5.  I don't come to you lightly. As a former Finance Minister, I realize that all of you are 
experiencing considerable pressures due to inflation and rising food and energy costs. And many of 
your governments face zero nominal growth policies as well. We know that in many ways, we are 
not special. In recognition of those pressu res and the potential of increased contributions due to the 
need to fill the growing pension actuarial gap, we have managed to reduce this year's request 
compared to what we previously asked for during the mid -term review.  
3.6.  As you know, before 2012, the Sec retariat received regular budget increases, on average 3% 
annually, amounting to 86% in total from the WTO's creation in 1995 until 2011. But since 2012, 
the Organization's budget has been frozen at zero nominal growth.  
3.7.   But while our budget has remained f lat in nominal terms over the period, it has been declining 
significantly in real terms, taking inflation into account. By applying the Swiss Consumer Price Index 
to deflate the budget, we can see the effect of inflation on our frozen budget. In real terms , our 
budget has actually declined by more than CHF 10 million since 2012 (from CHF 197.2 million in 
2012 to CHF 186.94 million in May 2023). In 2023 alone, we are experiencing a 5 percent decrease.  
3.8.  But the decrease is even greater than the Swiss CPI would  indicate. The basket of goods we 
purchase is not limited to Switzerland but includes goods and services purchased from abroad, as 
well as travel and hotel costs abroad, all of which have risen significantly more than the Swiss 
inflation rate. So, the infl ationary impact is greater than the Swiss CPI.  
3.9.  In essence, what I am asking you is not really to increase our budget, but rather to adjust it 
for inflation accumulated over the 12 years of zero nominal growth budgeting. I'm asking you to 
bring us back to C HF 197.2 million in real terms, and to add a little extra to improve our ability to 
serve you. In other words, my request is to make us whole again – to make our budget today 
consistent with the budget you gave us 12 years ago.  
3.10.   But I am not asking you to j ust blindly make this adjustment to make up for inflation. We 
know we must justify every bit of our request. We must show you how we have done more with 
less. 
3.11.   And in fact, we have been good stewards of your taxpayers' money. In 2021, in the midst of 
the pa ndemic, we exercised prudence and achieved substantial savings instead of spending the 
excess. We refunded part of these savings – CHF 9.8 million – to you on our own initiative in 
recognition of the special needs of developing countries as they deal with the consequences of the 
pandemic, and we put the rest into the Working Capital Fund.  
3.12.   In addition, in 2021, we succeeded in securing CHF 6 million of budgetary surplus, again 
because of the pandemic, which we sought to utilize to cover certain mandatory and  unavoidable 
costs due to inflation. Unfortunately, the General Council did not reach consensus on our request, 
so we could not use that savings for our pressing needs. It remains on the books.  
3.13.   In response to your requests, we have also been cutting and re -allocating resources whenever 
we could. Let me give you a few examples.  
3.14.   We have redeployed staff where possible to areas of pressing need. I, together with my senior 
team, examine each staff retirement and departure to determine whether we should refill t hat their 
post, change it, or leave it vacant. Doing this helps us to fulfil pressing skills needs identified by 
divisions, and this has not been easy.  WT/BFA/214  
 
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  3.15.   To reduce our energy bill, we have optimized our technical installations and imposed 
restrictions on con sumption. As you may have noticed, in the past year our premises were chillier 
than usual in winter and now warmer in the summer because we've turned down our heating and 
air conditioning.  
3.16.   We are disciplining travel by prioritizing virtual events whenever possible, combining trips, 
and reducing the number of staff going on missions. However, we cannot cut travel beyond a certain 
point because Members themselves often demand our in -person presence. Sixty per cent of our 
travel is technical assistance, and 89 % of respondents to our technical assistance questionnaire said 
they prefer in -person training activities. Given the importance of technical assistance -related travel 
to Members, we really would not want to have to cut into this category of travel. I would  also like to 
note that some senior management travel is reimbursed by event organizers, whenever possible 
and whenever it does not pose possible ethical and political challenges.  And when staff travels with 
me, it is usually because they already have bus iness in that country, such as fisheries workshops, 
otherwise I usually travel with only one or two staff members.  
3.17.   We expect savings on IT of more than CHF 600,000 (or 6%) in 2023 through the extension 
of the desktop and laptop lifetime from 4 to 5 years, streamlining service center staffing, and 
strategically managing projects.  
3.18.   We have also managed to create savings of CHF 100,000 annually on translation costs through 
the use of new technologies. We have renegotiated contracts with our interpreters.  
3.19.   To red uce our spending on short term contracts, we established the Short -Term Needs 
Committee, consisting of the four Deputy Directors -General (DDGs) and the Chief of Staff, to review 
all short -term staff requests and control expenses for this category of resour ces. This has already 
borne fruit, and our expenditure on short -term staff (including interpreters) is projected to be 24% 
less this year than last year. I would like to thank the DDGs for the work they are doing because it 
is not easy.  
3.20.   But these cuts aren 't sufficient for us to make ends meet. In fact, we have had to keep an 
increasing number of posts vacant because we need liquidity to pay for other things. This necessity 
has in essence shrunk positions and staff in our Secretariat from the 645.5 posts se t out by Members 
in 2012 to less than 600. The normal practice in an organization of our size is to have 20 -30 posts 
vacant at a given moment due to the normal churn. But this year, we have had to keep 47 posts 
unfilled because we simply cannot pay for all  the posts we have been allocated given our other 
expenses. If our budget is not put on a sustainable footing, we will have to increase this number 
and keep 60 posts vacant. This restriction will further eat into our already limited staff resources 
and our  ability to deliver the best possible service to you. And of course, the necessity of keeping 
these posts vacant has contributed to our over -reliance on short term contracts, which appear 
attractive because they cost 50% less than fixed -term posts but in t he long -term result in high 
turnover and loss of expertise which is not healthy.  
3.21.   We've trimmed and scrimped and saved to cope. We've created efficiencies and made savings 
where we could, and we've been diligent custodians of your money. We've now cut to th e bone and 
reached the tipping point where we truly can't do more with less. And that is why I am asking you 
for a modest budget increase to make us whole, which I will describe to you now.  
3.22.   Let me first say upfront that the budget document does not yet cov er two aspects. First with 
regard to long -term pension liabilities, we have included the base amount from last year but left a 
placeholder related to closing the actuarial gap. The amount to fill in is your decision, and I did not 
want to prejudge your pro cess to reach agreement among yourselves. Second, our budget proposal 
does not account for the request from the ITC, our partner in providing technical assistance, for a 
budget increase. As usual, the ITC submitted its budget proposal to you as a separate document. 
My colleague Pamela Coke -Hamilton, the ITC Executive Director, will present it to you today. We will 
of course incorporate whatever you decide into our own budget in addition to the ITC's base budget.  
3.23.   As we explained in detail in our written prop osal, half of the proposed sum is linked to 
contractual, external, and unavoidable costs, which have increased in the past couple of years due 
to inflation.  WT/BFA/214  
 
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  3.24.   Mandatory increases in staff remuneration and benefits due to inflation represent a big part 
of this picture. As you may recall, 75% of our budget is staffing. In 2023, as a result of comparison 
of WTO salaries with market comparators (the UN and Coordinated Organizations), we are required 
to increase salaries of our regular and short -term staff by 3.1%  in 2023, even as they remain at the 
same grade level. Dependency allowances must also be increased by 4.6% as of 1 January 2024. 
And salaries are projected to rise by an additional 2% in 2024. These increases are in addition to 
the mandatory salary increm ent – or step increase – that we are contractually obliged to provide to 
staff every year to reflect the increased experience they bring us. The overall cost of these 
unavoidable, contractual increases amounts to CHF 4.4 million, representing nearly one -third of the 
sum I am requesting. These mandatory, contractual salary increases help us remain competitive 
with other international organizations if you compare grade for grade. But the real problem is that 
our staff stay for a long time in the same grade, a nd I will get to that later.  
3.25.   As a result of inflationary pressures, prices for electricity and gas went up significantly. As I 
said before, we've made significant efforts to reduce our consumption, and we've prudently 
renegotiated contracts to take advanta ge of price dips. However, rising energy prices have 
outstripped our savings, which necessitates increased spending of CHF 0.5 million.  
3.26.   Moreover, the cost of travel has increased dramatically in the aftermath of the pandemic. 
Ticket prices to most destinat ions are now 40 -60% higher than before the pandemic, and we've also 
experienced an increase in hotel rates. We are disciplining travel through stricter controls and 
prioritizing remote participation in events whenever possible. But many activities, such as  technical 
assistance, which amounts to nearly 60% of our travel budget, must take place in person to be 
effective. In fact, many Members firmly express a preference for in -person activities, and as I said 
we would not want to cut into this category of tra vel given its importance to Members.  
3.27.   As I told you during the mid -term review, as a result of the pandemic, the cost for freelance 
interpreters doubled due to changes in the rules of the profession, which had cut in half the number 
of hours freelance interpreters were permitted to work if covering hybrid meetings. During the mid -
term review, we requested additional CHF 1.5 million to cover these expenses. The good news is 
that we have negotiated a restoration of the normal working hours for i nterpreters as we see fewer 
virtual interventions during large meetings, which has resulted in significant savings. But at the 
same time, the number of meetings requiring interpretation has climbed, especially as we are 
preparing for MC13.  As a result, we  need additional CHF 800,000 to meet the demand. This is down 
from the 1.5 million we originally requested.  
3.28.   Finally, we've witnessed an increase in the cost of contractual services as a result of inflation 
and renegotiation of salaries by industry unions i n Switzerland. We are asking for an extra 
CHF 1 million to cover these expenses. A large part of this increase is due to the increased costs of 
services we obtain from the UNICC (the UN International Communications Centre), to which we've 
been outsourcing much of our IT infrastructure to save costs. The costs of these services went from 
CHF 600,000 in 2012 to nearly CHF 3 million in 2021.  
3.29.   So, all of these are the unavoidable expenses that we are contractually obliged to meet. Now 
let me turn to the other ha lf of our request, which is intended to improve the Secretariat's "brain 
trust" (or human resources) to better serve all Members.  
3.30.   Part of the budgetary pressure we are facing is due to the expansion of our work, as mandated 
by Members. And if you ask me – that is a good problem to have! Since 2011, you have added two 
new multilateral agreements to our rulebook – the Agreements on Fisheries Subsidies and Trade 
Facilitation – and created new committees and working groups. But our resources have not grown 
comm ensurately. Instead, they've stood still.  
3.31.   At our successful 12th Ministerial Conference, you've entrusted us with even more work, which 
we welcome enthusiastically. We are trying to keep pace with these developments and provide the 
best possible services t o you. And I think we've been doing pretty well. Our staff has been and will 
continue supporting you diligently as you undertake the important task of reforming the WTO.  
3.32.   Furthermore, we need to be prepared to deal with the challenges posed by climate chang e, 
global pandemics, and rapid developments in technology, including AI. But dealing with the ever -WT/BFA/214  
 
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  evolving modalities of international trade and Members' needs requires new approaches, tools, and 
most importantly, additional human resources and skills, wh ich we do not have.  
3.33.   As I mentioned, you have capped our human resources at 645.5 posts. That level was 
reasonable and worked well in 2012. But today it no longer does, especially as we have to keep 
47 of these posts vacant to free up liquidity to pay for o ther things and may need to increase this 
vacancy rate. By comparison, back in 2012, we kept only 33 posts vacant, a workable level because 
we usually have 20 -30 posts vacant during the gap between when staff depart and new staff is 
recruited. Basically, w e are asking to maintain the same level of vacancies for liquidity purposes as 
we did in 2012, when you set our existing staffing structure.  
3.34.   In addition, we need to increase our complement of technical specialists. Therefore, I am 
asking for funding for 15  more posts. This will enable us to supplement our resources with experts 
in the areas where we clearly lack expertise – trade and environment, fisheries subsidies, internal 
oversight, digital trade, data sciences, and human resources with respect to diver sity and inclusivity.  
3.35.   The cost of these new 15 posts amounts to additional CHF 3.25 million.  I have reduced my 
request from the 18 posts that I asked for during the mid -term review because I want to be 
responsive to the challenges you are facing regarding  the pension. To do so, I managed to re -
purpose three existing posts. However, the additional posts are urgently needed. I am sharing the 
roles for each of these additional posts in a transparent manner in the budget justification we have 
shared with you.  
3.36.   A related point concerns our staffing structure. Because our staff ceiling is set at 645.5 posts, 
we need to add these 15 posts to our existing staffing structure, thus increasing it to 660.5 posts. 
However, I am not asking you to give us funding for all t hese 660.5 posts, just 630.5.  
3.37.   Let me explain. As I said, we normally have an average of 20 -30 vacant posts at any given 
point during the year due to turnover. With discipline, we can manage our work with funding for 
only 630.5 posts. However, expanding our  staffing structure, even if not fully funded, provides us 
with greater flexibility in filling individual staffing slots, while, at the same time, providing greater 
accountability to Members about the full range of staffing slots available. You will contin ue to 
regularly receive this information from us through our Grading Structure reports.  
3.38.   During the mid -term review, many of you have asked us to come up with a human resources 
inventory, to better understand what expertise we have in the house, and what sk ills are missing. 
We have started that process under the leadership of Alison Holmes, our very able HR Director who 
has made such a difference in only six short months.  
3.39.   We are undertaking a three -step process. First, we are mapping our existing resources, by 
grade, department, and incumbency status, and that step is by and large complete. Second, we are 
developing a competency framework to set out the behavioural skills that should be displayed by all 
staff members and the technical skills required for indi vidual positions and job families. This process 
is currently ongoing, and we are hoping to complete it by autumn. And third, we will conduct a skills 
mapping exercise, which will help us understand where the gaps are and to make strategic decisions 
as to h ow to address them.  
3.40.   But even as this three -step exercise is ongoing, we are already seeing where the major gaps 
are in our staffing and have started redeploying resources to address them. The request for 15 posts 
and additional competencies we are seeking is part of the effort to address the obvious and urgent 
needs.  
3.41.   I am also asking you for CHF 0.5 million to double the number of promotions from 30 to 60 
in 2024 to address the promotion backlog. I believe that this action, which does not cost much, will 
go a long way towards improving staff self -confidence and team spirit. This action does not cost 
much, but it will make a huge difference. Let me explain.  
3.42.   Unlike some national administrations, we do not provide automatic promotions after a certain 
number of years of service. As a result, almost half of our staff members have reached the top salary 
step of their grade. This means that they have not been promoted for more than 9 -13 years and 
don't receive an annual salary increment. I can see for myself that th is situation saps staff morale. WT/BFA/214  
 
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  In the office hour meetings I conduct with staff regularly, the single most frequent concern staff 
members raise with me is promotions. We have come up with a system of non -monetary rewards 
as part of the transformation proc ess, but staff tell me they don't feel valued, and it breaks my heart 
because they work so hard.  
3.43.   In the 2023 staff satisfaction survey conducted by the Staff Council, more than 50% of 
respondents indicated that staff morale is low and that the lack of prom otion opportunities may push 
them to leave the WTO. Although the rate of participation was low (25%), these responses confirm 
my observations from my open office hours with staff.  
3.44.   In fact, we recently have seen attempts to attract several of our highly qua lified experts by 
other organizations that can offer better remuneration. We can't afford to have this happen.  
3.45.   Staff, both professional and support, are the biggest asset of the Secretariat, our brain trust. 
Without them, we cannot meet your, our Members',  needs. We must stand up for them and give 
them a reason to stay. In fact, I would argue, we have a moral duty to provide them with adequate 
and realistic career pathways, or they will leave us for better opportunities.  
3.46.   Let me now turn to short -term resour ces. Last year, we exceeded our budget allocation by 
four times. I know you are frustrated about this, and I am also frustrated that our circumstances 
have led to this development. You have asked us to be more accountable, transparent, and also 
more realis tic about our needs and the budget envelope on short term contracts. You are right.  
3.47.   As I said, we have taken steps to address this problem. We created the Short -Term Needs 
Committee, which rigorously reviews each request for a short -term contract and makes  a 
recommendation to me. This action has helped us reduce our expenses on short -terms this year by 
almost a quarter compared to last year.  
3.48.   But our expenses are still above the existing budget allocation. And we still, of course, need 
short-terms to fill pr essing temporary needs, for fresh expertise, new projects, and coverage during 
parental leave and long -term sick leave. So let me be straightforward with you – even as we continue 
to cut actual spending on short -term staff, we need to revise our current bu dgetary envelope 
because the current allocation is unrealistic and insufficient for our needs.  
3.49.   I am therefore asking you to increase the allocation for short -term staff, which includes 
interpreters, by CHF 2.2 million. And we will do our part. From our sid e, we propose to cut our actual 
expenditure on this category in 2024 by a third. These adjustments will make this line item a more 
realistic snapshot of our needs and expenditure.  
3.50.   Let me briefly touch on two other important items under this category. First , we are seeking 
additional funding in the area of information technology to modernize the way the Secretariat 
functions as it serves Members, and to create greater efficiencies. Some technology we use, such as 
Documents Online (DOL), which I am sure you a ll know and appreciate, is outdated and requires an 
overhaul. We are also trying to be forward -looking and exploring the efficiencies we can create 
through the use of Large Language Models (LLMs) and Artificial Intelligence.  
3.51.   Finally, we are seeking a small  sum to cover the costs of external translators and HR 
consultants who are helping us develop the competency framework as well as the skills mapping 
and gap analysis as you requested.  
3.52.   Madam Chair, Excellencies, a year ago, you reaffirmed your belief in the  WTO and in 
multilateralism more broadly by successfully concluding our 12th Ministerial Conference. Since then, 
you've embarked on the process of implementing and building on the outcomes achieved and, most 
importantly, on reforming this Organization acro ss all its functions. I think all of us – you, me, and 
our staff – believe that multilateralism is a treasure worth nurturing, protecting, and expanding.  
3.53.   We are committed to serve you to the absolute best of our ability, to meet the trust you have 
placed i n us. But for us to continue doing so effectively, you must commit to our future. I am sure 
that what we do here is useful for you and the people you represent. Our existence cannot be taken 
for granted.  WT/BFA/214  
 
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  3.54.   I believe what I am seeking is modest considering th e value we provide you and the pressure 
of inflation on our budget, frozen since 2012. To the extent we can, we have taken in stride the 
rapid expansion of our work, the changing nature of our world, the economic pressures of our times, 
and we have been ve ry mindful of the pressures on you.  
3.55.   I want to reiterate that we really understand that budgets are in a difficult place in every 
country now. That is why we have made an adjustment and I am requesting a 7.4 percent increase, 
which essentially keeps us at t he break -even point given inflation.  
3.56.   I hope that you will favourably consider and approve our modest request. We are in your 
hands.  
3.57.   We submitted the document to you early so that we have ample time to work with you and 
for you to consult with your capitals to have a decision on this matter by the last General Council 
meeting in December.  
3.58.   As to next steps, I am committed to continuing consultations with you. As we know, the final 
decision on this matter must be taken at the last GC meeting, which is scheduled for December, 
meaning that the CBFA must make a recommendation before then. We are I seeking a decision by 
the November meeting of the CBFA as we prepare for MC13.  
3.59.   In the meantime, please do not hesitate to reach out to the budget team with any q uestions 
you may have.  
3.60.   A Member first thanked the Director -General and said the budget is well -considered and takes 
into account realities on the ground. He said that the request amounts to more of a restoration of 
the situation that existed in 2011 than a n increase because as a result of inflation, consumers today 
can buy around 73% of what they could buy in 2011 with the same amount of money. Second, he 
noted that the proposal takes into account Members' concerns and is smaller than the midterm 
request. H e underlined the need to balance prudent financial management with trust. Third, he 
observed that the Secretariat needs new resources in areas such as climate change and digital trade 
to remain globally relevant. The Member called on all Members to conside r the implications of 
rejecting the request and said his delegation will positively consider it and engage with other 
Members.  
3.61.   A Member expressed support for the request noting that the WTO's work is invaluable and 
responsive to Members' needs. The Member recalled, in particular, that during Covid, the Secretariat 
made savings and returned the surplus to Members. In addition, the Member underscored the 
importance of the Secretariat's work for Members with limited representation in Geneva. He further 
noted t hat capacity building and technical assistance often require in -person delivery and that his 
delegation would like to continue benefitting from it. Finally, he observed that a modest increase 
would help maintain tools for virtual meetings and meet Members'  needs.  
3.62.   A Member said the Secretariat must be able to exercise its functions in times of rising inflation. 
He said his delegation will keep an open mind but needs a few clarifications to understand the 
proposal and its intentions. The Member expressed disa ppointment that the budget discussion will 
end up replacing a discussion on strategic priorities because strategic orientation must be a pre -
condition, not an afterthought. In his delegation's view, many elements of the proposal might benefit 
from a more g lobal approach, understanding of linkages, and a more forward -looking perspective. 
The Member further questioned whether all committees and working groups are still relevant and 
performing meaningfully. He further noted that the proposal does not reflect l ong-term liabilities and 
pension, which may lead to a further budgetary increase. Therefore, it is difficult to make decisions 
on new staff without understanding a full picture. The Member added that while he appreciates the 
need for staff's professional d evelopment, an increase in promotions should make sense from the 
institutional perspective. In addition, an increase in promotions may hurt the efforts to reverse the 
inverted pyramid. The Member added that it would make sense to increase the staff ceiling  only 
after determining where the strategic priorities lie. The Member also noted that 15 new posts would 
reduce the need for short -term staff and therefore questioned the increased budget allocation for 
short-term staff. The Member also asked what consult ancies the Secretariat requested an increase 
for and why existing posts cannot be filled instead of requesting an increase in the staff ceiling. The 
Member further questioned the need for new posts in the Office of the Director -General, which seems WT/BFA/214  
 
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  to be t he largest in the WTO's history, and the Economic Research and Statistics Division, especially 
given that a number of highly qualified lawyers have been reallocated to other divisions after the 
Appellate Body stopped being operational. The Member asked for  more information about resources 
for global and regional coordination as well as grades and duties of resources requested in the area 
of trade and environment. The Member questioned the need to increase the travel budget given the 
possibility of participa ting in events remotely. Furthermore, the Member questioned the need for 
additional resources on separation and removal given that not many retirements are envisaged in 
2026. The Member stressed the need to identify the activities that will be discontinued  and suggested 
that savings could be made by splitting the digitization project into stages. He also asked how the 
significant budgetary surplus in 2021 was taken into account in the budget proposal.  
3.63.   A Member called on other Members to consider the request  favourably. He also expressed 
trust in how the Secretariat manages the resources allocated to it. The Member noted the importance 
of modern trade -related technical assistance, especially in light of new issues on the Organization's 
agenda. He noted that h is delegation expects continued support with respect to JSIs. The Member 
also took note of and commended the cost -cutting efforts by the Secretariat. Finally, he stressed 
the need for more transparency, monitoring, and measuring of results in the Organizat ion's work.  
3.64.   A Member took the floor on behalf of the majority of the African Group members and said 
that the budget freeze since 2012 has affected the Organization and its mandate. The Member said 
that in light of the global situation, Members should be pa rticularly careful and support 
multilateralism as a way to overcome global challenges. The Member said the Director -General's 
initiative is right, despite inflation and other difficulties, and everyone should make their contribution, 
even if it may be diff icult. He specifically noted the need for technical assistance and capacity building 
and emphasized the negative impact of inflation on the budget. He asked Members to give their full 
support.  
3.65.   A Member said that the balance between needs and existing resou rces would be ideally 
informed by strategic priorities. The Member added that he would have appreciated more progress 
on the human resources management side. In the Member's view, everyone has to agree on what 
the inflation has done to the Organization's r esources, and that the effect goes beyond the 
Swiss  inflation rate. The Member said his delegation is still puzzled about the relationship between 
the 47  vacant posts and the request for new posts. In his view, to address mandatory staff costs, 
the budget must be increased, or the number of staff must be reduced. He further noted that some 
organizations have set a number of vacant posts that is acceptable, e.g., 5%, which could be a 
model for the WTO.  
3.66.   A Member welcomed the Director -General's proposal and sa id that a well -resourced 
Secretariat that can continue helping small delegations like his and facilitating their participation in 
the multilateral trading system, which is of paramount importance to it. The Member also underlined 
the importance of in -perso n technical assistance and capacity building to integrating small 
economies into the multilateral trading system. The Member welcomed the Secretariat's efforts to 
cut costs and make savings. He said both the Secretariat and Members are facing challenges, b ut 
the work of the Secretariat depends on the resources provided by Members. He said that his 
delegation would grant favorable attention to the request and will review it.  
3.67.   A Member commended the quality of the Secretariat's work and expressed its willingne ss to 
maintain this quality and confidence in the Secretariat's work. The Member said it has not been easy 
for the Organization to function in the context of zero nominal budget growth in the past 10 years. 
Since the current period of inflation is likely t o last for a while, the situation needs to be looked at 
with a new eye. The Member said a discussion of mandatory expenses is unavoidable. In addition, 
while recognizing the need for motivating staff through promotions, the Member said it is important 
to understand the details. The Member also asked for more information about the request for new 
posts. The Member said it will participate constructively in the discussions.  
3.68.   A Member said it will examine the request with an open mind and stressed the importanc e of 
a well -functioning Secretariat. The Member noted that 47 posts are kept unfilled to pay for other 
things and asked what exactly the resources are used for.  
3.69.   A Member said that her delegation has confidence in the management of the Organization 
and the Secretariat, and it would be good to go beyond the zero nominal growth budget. She added WT/BFA/214  
 
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  that h er delegation is looking forward to the establishment of the Organization's strategy. While 
noting that it may not be easy for an organization such as the WTO to  have a system of objectives, 
she observed that other organizations, such as UNCTAD and ITC, have detailed indicators and 
objectives that help understand what has been done, what needs to be done, and what financial 
means are needed. The Member further not ed the importance of having a good system of promotions 
and added that promotions are not the only way to reward and encourage staff. Assigning new 
responsibilities, particularly in emerging areas, could also be an important motivational tool.  
3.70.   A Member sai d his delegation appreciates the good intention of the proposal, which is being 
reviewed by the capital. The Member said that it has had problems with balance of payments and a 
major currency devaluation compared to the Swiss franc. Therefore, in real term s, its contribution 
will increase more than projected. The Member said it will engage in discussions pragmatically and 
request further information as to where increases are really needed, particularly related to inflation.  
3.71.   A Member said the discussions hel d after the mid -term budget review, as well as updates on 
the transformation exercise and strategy and vision, have been very helpful. The Member expressed 
its commitment to work with others to ensure sustainable functioning of the Secretariat. With respec t 
to the proposal, the Member first expressed appreciation for the reduction in the amount requested, 
compared to the mid -term request, and the recognition of difficulties Members are facing. However, 
the Member noted that a further increase of 0.9% is pro jected for 2025, which will bring the overall 
increase to 8.3%, excluding pension and the increase requested by the ITC. She noted that this 
could be burdensome for some Members, especially given a strong Swiss franc. She noted that the 
request for new pos ts is the most controversial one, and even through the number of posts has been 
reduced from 18 to 15, the amount requested represents an increase. She said her delegation would 
appreciate more information about the new posts requested. With respect to sho rt-terms, she said 
her delegation appreciates the effort to reduce the number of short term contracts, but would 
appreciate an explanation as to why an increase is nevertheless requested. The Member also asked 
whether the requested post for Strategy & Visi on could be taken from the existing headcount. In 
addition, she said it would be helpful to better understand the relationship between three categories 
(fixed headcount, posts used, and actual staff recruited) to get a clear picture of the real gap between  
the budget and staffing needs.  
3.72.   A Member said she has a long list of detailed questions, which is not a sign of the lack of 
commitment to the Organization, but the opposite. She added that all requests for an increase from 
multilateral organizations are su bject to intense scrutiny and need to be justified with a lot of 
information and detail because the Member's policy is zero nominal growth. She said her delegation 
is still trying to understand the request for new staff and the request for mandatory increa ses. She 
further noted that the creation of a one -person unit to deal with Vision and Strategy suggests more 
staff will be hired for this area. She also noted that adding new staff creates additional pension and 
other liabilities. The Member expressed its commitment to work constructively on the proposal.  
3.73.   A Member said the challenges affecting the WTO are also affecting the Member domestically 
and expressed appreciation for the efforts to keep the costs down. The Member said it applies intense 
scrutiny to a ll requests for taxpayers' money, so it would have to take the request to the capital and 
cannot promise it would lead to the desired result because it has a policy of zero nominal growth for 
international organizations. The Member said her delegation sees  a budget increase going hand -in-
hand with the transformation process and the elaboration of strategy and vision. The Member 
requested more information regarding the staffing increase; the rationale for an increase in travel 
and a copy of the travel policy ; and a breakdown of consultancy projects.  She also asked that 
technical sessions akin to those conducted on the pension reform be organized to better understand 
the request.  
3.74.   A Member said that in light of the appreciation of the Swiss franc and depreciat ion of 
currencies in developing countries, the request will be difficult to meet. He said that for his country, 
the contribution to the WTO's budget has not remained steady but has increased due to the exchange 
rate. The Member further noted a reduction in  activities of some committees, such as committees 
on Rules of Origin, Trade and Development, Regional Trade Agreements, and Customs Valuation. In 
addition, he noted that two crucial development -related reports have been delayed, and there is a 
lot less di spute settlement -related activity. He noted the lack of evidence regarding an increase in 
the number of meetings and that breakdowns of meetings, which were previously provided to 
Members, are no longer provided. The Member observed that factual justificat ions for the requested 
increase were not provided. In addition, he requested more detail regarding output reporting as well WT/BFA/214  
 
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  as travel and capacity building. The Member said more granularity is needed on procurement of 
goods and services outside Switzerland , noting that a strong Swiss franc means that the cost of such 
purchases should be lower.  
3.75.   A Member said it had some reservations about the proposed increase. In particular, the 
Member questioned the increase in the staff ceiling. With respect to the 15 new  posts, the Member 
asked what the reasons are for the four new positions in the Economic Research and Statistics 
Division because there are already 36 staff members in that Division and expressed doubt as to the 
added value of these posts. The Member also noted that several posts have been requested for areas 
with no mandated multilateral activities, such as trade and gender and trade and environment. The 
Member also asked for additional details as to the IT projects and contractual services required, and 
questioned why UNICC services are required. Finally, the Member asked whether a decision on the 
pension plan would lead to an increase in contributions.  
3.76.   A Member expressed appreciation for the early circulation of the proposal. The Member said 
it will refra in from listing detailed questions at this stage but will come back once it has studied the 
proposal. The Member also said it would be important to get a comprehensive picture on pensions 
in the context of discussing the budget proposal.  
3.77.   A Member said that  for some developing countries, an increase will be higher than projected 
due to the exchange rate, inflation, and cost of living increase. The Member said it would prefer a 
more gradual increase commensurate with reality, and that it would engage construc tively in the 
discussions.  
3.78.   A Member, speaking on behalf of the European Union, agreed with the suggestion of the 
Member in para. 3.73. to have consultations on the proposal. The Member said one has to look at 
the cumulative impact of inflation on the WTO budget and that in essence, the proposal is asking to 
restore the situation as it existed in 2012. In the same vein, he added that if currently the number 
of staff is lower than it used to be in 2012, then it appears that the Secretariat is not really asking 
for new staff. He further noted that sometimes it is difficult to understand the choice between not 
promoting existing staff and hiring new staff, and that it would be helpful to get an understanding 
of how those choices are made. The Member also st ressed the need to identify negative priorities. 
He suggested that an outline of topics for further discussion be provided in September.  
3.79.   The Chair encouraged Members to send questions in writing. As to the requests for technical 
meetings, she said the Secr etariat will get back to Members with a proposal.  
3.80.   The Director -General thanked all delegations for their comments and welcomed the idea of 
technical sessions to discuss the proposal. She also thanked the Members who spoke about technical 
assistance and cap acity building and noted that this is a critical part of the Organization's support to 
developing countries and LDCs. As an example, she referred to Members' requests for technical 
assistance to better understand the Fisheries Subsidies Agreement and prepa re for the second wave 
of negotiations. As to some Members' requests to identify negative priorities, she noted that it can 
be difficult to stop certain types of work at the WTO because Members' priorities differ, and 
something that is a priority for one M ember may not be a priority for another one.  
3.81.   With respect to redeployment of staff, she said great efforts have been made since she 
became Director -General. She noted, however, that in some instances, it is very difficult to 
repurpose staff. She said the E conomic Research and Statistics division is where the intellectual 
strength of the Organization is, and that the division has done impressive work on calculating costs 
of economic decoupling, which has served as a basis for much of policy - and decision -making in the 
world. She highlighted that the Secretariat needs economic modellers and statisticians to stay 
relevant and be proud of the work it does. She added that the work on trade and climate is urgent 
and that the WTO has been collaborating on it with o ther international organizations.  
3.82.   With regard to strategy, the Director -General said she was surprised by the lack of strategy 
in the Organization when she began as DG. She noted, however, that when she began discussing it 
with Members, it appeared that no t all Members were interested in having an Organization -wide 
strategy, and therefore it was decided to begin with the Secretariat's strategy.  WT/BFA/214  
 
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  3.83.   She further observed that it was not accurate that the Office of the Director -General is the 
largest in the Organi zation's history. She noted, in this regard, that some units report directly to the 
Director -General and therefore count as part of her Office, such as Office of Legal Counsel.  
3.84.   Finally, she took note of the concerns expressed by developing countries regard ing the 
exchange rate and said she will look into what can be done for each country.  
3.85.   Deputy Director -General Ellard took the floor and thanked Members for all their questions. 
She said it would be useful to have a list of suggestions from Members as to topics of technical 
sessions. She highlighted that a major increase beyond the zero nominal growth budget is that 
mandatory inflation -related increases in staff costs reached CHF 4.4 million, which represents 1/3  of 
the budget request. She further explaine d that details about the requested consultancies and IT 
projects will be shared with Members. As an example, she referred to the Documents Online service 
update estimated at CHF 300,000. With respect to Member's comment in para. 3.62. questioning 
the need for additional expenses on separation and removal in 2026, she noted that this budget 
request does not cover 2026 and that there will be a new biennium budget for 2026 -2027, with 
relevant projections. With respect to some Members' observations that an incr ease in the number 
of staff will affect long -term liabilities, DDG Ellard pointed that more staff means more contributions 
to the pension fund, which is good for the pension plan's financial health.  
3.86.   With respect to short -term staff, she said that the Secre tariat has been making a good faith 
effort to address the problem of overspending, as demonstrated by the reduction in actual spending 
by 1/4 in 2023 compared to 2022 due to discipline imposed by senior management. She noted that 
while short -term staff are  a valuable part of the Secretariat and it is less expensive to hire staff on 
short-term contracts than on fixed -term ones, there are also hidden costs. She added that the 
current envelope on short -term staff is artificially low, and that the proposal prov ides a more realistic 
assessment of the needs, which Members have been seeking.  
3.87.   Deputy Director -General Paugam took the floor and said that strategic redeployment of staff 
is at the heart of the Secretariat's transformation efforts. To get there, the Secre tariat is following 
an incremental approach to transformation, i.e., without disrupting ongoing work and while 
preserving the services provided to Members. Moreover, he noted that while short -term strategic 
redeployment is already being done, the Secretari at is developing tools for long -term strategic 
redeployment: baseline mapping of existing resources; developing a competency framework; and a 
skills mapping exercise. Once these tools are in place, the Administration will be able to consider 
trade -offs of functions and posts and possible new repurposing or recruitment.  
3.88.   The Director -General took the floor to comment on the question of promotions vs new hiring. 
She said since she became Director -General, the number of promotions has been increased by six. 
However, she said, it means that resources have to be reallocated from somewhere else, which is 
not sustainable.  
3.89.   The Committee took note of the discussions.  
4  ITC 2024 -2025 BUDGET PROPOSAL – JOB/BFA/84  
4.1.  The Executive Director of the International Trade Centre (I TC) presented some background on 
the ITC and its budget , jointly overseen by the UN and the WTO. She noted that the regular budget 
of the ITC is denominated in Swiss francs and is equally funded by the UN and WTO.  
4.2.  The Executive Director mentioned three doc uments shared with the Committee as part of the 
presentation of the ITC's  budget request : 
• a cover note, showing the 2024 -2025 budget in the WTO format, JOB/BFA/84 ; 
• the proposed programme budget for 2024 in the United Nations format  
(A/78/6  (Sect.13) ); and  
• supplementary information to the programme budget for 2024  (A/78/6 (Sect. 13)/Add.1 ). WT/BFA/214  
 
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  4.3.  Recalling that the WTO has a biennial budget while the UN has introduced an annual budget 
cycle, she explained that the ITC's budget proposal for  the WTO 's 2024-2025 budget cycle  reflects 
twice the amount of the proposal for 2024 submitted to the UN, i.e. , the same amount for 2024 and 
for 2025. She said that the  ITC is proposing a budget level of CHF 76 ,273,000 for  the 2024-2025 
biennium , or CHF 38,136,500 each year. The WTO annual contribution would be  CHF 18,968,250 , 
which  represents an increase of CHF 725,125 compared with the amount contributed by the WTO in 
2023. The increase is an inflation adjustment, based on the UN  methodology. Therefore , the 
proposed budget represents zero real growth compared to the budget previously approved.  
4.4.  The Executive Director pointed out  that since 2016, the ITC consistently presented a zero 
nominal growth budget without any adjustments for inflation and s taff costs. However, as the world 
is experiencing an unprecedented inflation , years of zero nominal growth budgets have implications 
on the Centre 's work as there are limits to the effectiveness of efforts to achieve efficiencies without 
eventually limitin g the potential of the Centre . She explained that t he regular budget funding is used 
to cover salaries and other  staff expenditures for 160 staff members, which has remain ed unchanged 
since 2014/2015 . ITC's interventions will continue to offer technical expertise through core service 
areas combined with tools and approaches delivering impact in five areas: sustainable and resilient 
value chains; inclusive trade ; benefitting women ; youth and vulnerable communities; sustainable 
trade; e -commerce; regional integration ; and South -South trade.  She said the ITC has been 
consistently receiving  an unqualified audit opinion on its financial statements, including in 2022, 
confirming sound financial management practices and full compliance with Internationa l Public 
Sector Accounting Standards.  
4.5.  The Executive Director concluded the presentation of the budget with the assurance that the 
ITC's focus will continue to be on supporting the WTO agenda  by translating WTO discussions and 
agreements into operational pr iorities on the ground. It will prioritize partnerships that create 
synergies and deliver integrated policy advice, including with local partners and private -sector 
entities. Additionally, t o improve efficiency in line with its commitment to deliver value for money, 
the ITC will continue to improve its data management, risk management, and monitoring and 
evaluation practices.  
4.6.  Before concluding , the Executive Director mention ed that in 2024, during the mid-term review, 
ITC will present a proposal to establis h a reserve account for funding ITC 's After Service Health 
Insurance ( ASHI) liability for  staff funded from the regular budget , similar to the approach taken by 
the WTO . Additionally, she noted that given recent developments, such as the adoption of the annual 
budget cycle by the UN, the administrative arrangements for ITC should be updated. She suggested  
that t he Secretariats of the UN and the WTO  could  conduct a joint review of the administrative 
arrangements and propose a suitable update to the General Assembly and the WTO General Council 
for consideration in 2024.  
4.7.  Several Member s thanked the ITC and the Executive Director for the presentation and its 
valuable work . A few indicat ed their preliminary  support for  a moderate inflation -oriented increase 
of the WTO's contribution to the ITC in line with the increase of the UN's share as document ed in 
the proposal . 
4.8.  A Member said he had several questions for the ITC . First, he noted that a footnote  in Table  9 
of the WTO document  referred  to the elimination of the objectives relating to gender equality and 
women's empowerment . He said he would just like an explanation as to what exactly this refers to 
and what implications it has . Second, he noted  that the same table indicates  that the ITC has 
achieved climate neutrality, which his delegation  welcome s. He wondered , however,  if the ITC is 
able to demonstrate any independent certification  of this claim.  Third, with respect to the same 
table, he noted  that the percentage of achievement of financial activities with extra budgetary 
resources  refers to several acronyms , including IATI , and asked what this stand s for. 
4.9.  Turning to the UN documents shared with the Committee by the ITC, the same Member asked 
for clarification regarding information in Table S.13.1 on page 3 and Table S.13.12 on page 17 of 
the Supplementary Information document shared with the Committee. He said he wants to know 
how many non -permanent positions are being funded currently and how many non -permanent 
positions are therefor e funded from the extra budgetary resources in addition to  the CHF 29 million . WT/BFA/214  
 
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  4.10.   Finally, he asked about the organigram in the Annex to the same document. He noted that 
the Office of the Executive Director has 30 of t he permanent positions , and that  seem s like a  high 
number  give the  organization 's size. Therefore, he wondered if the organigram is accurate or if there 
may be functions not directly linked to the Office of the Executive Director that nonetheless appear  
as part of the office like at the WTO , where certain independent functions technical ly report through 
the DG's office.  
4.11.   A Member commented that he had first -hand experience with the ITC budgeting and strategic 
funding process es and appreciates the  organization's  transparency and how  it incorporate s the 
indicators and res ults-based manageme nt. Therefore, he feels very comfortable with the document 
that it has provided and support s the request before the Committee.  
4.12.   A Member asked if  the inflation adjustment that was mentioned  as a basis for the requested 
increase  refers to the accumulated inflation for the period of four years.  
4.13.   A Member asked for confirmation of his understanding that the WTO budget proposal does 
not reflect the increase being requested by the ITC so that if t he ITC budget is approved it would 
imply a change in the WTO budget figures. He also asked for  a clarification of figures reported  in 
Table 3 of the ITC budget request , which seem to show  that the amounts contributed by each parent 
organization are not equal . With respect to  Table 4 , he asked where pension and other post -
retirement remuneration are reflected  under staff costs . Finally, he asked if there were any other 
areas where the question o f possible cost savings was examined.  
4.14.   A Member said her delegation underst ands the pressures of inflation and added that  the ITC 
request would have to be looked at in the context of the overall WTO budget request. At this point, 
she said she w ould apprecia te if the  ITC could provide  further explanation of the inflation re-costing 
figures in Table 4 because it is quite difficult to understand the reason s for some items . For example, 
she said that one would think that with the benefits of technology , postal c harges w ould be reduced 
even taking the  inflation  into account,  noting that that has been  the case at the WTO.  Therefore, 
she said, her delegation  would appreciate more information on th e elements showing increases to 
help Members understand the factors dr iving the increases.  
4.15.   The Deputy Executive Director of the ITC thanked Members for the questions posed. She also 
invited Members to provide feedback on  the areas of reporting that could be improved. In response 
to a few Members who asked for more information on the inflationary elements in the ITC's budget 
request , she confirmed that they represent a compounded figure over the four years  and explained 
that some elements reflect  standard inflation , such as energy costs , while others represent actual  
known costs , such as staff salaries , where the UN process has resulted in  an increase  in salaries . 
She clarified that  the ITC is seeking an increase  only for the elements where there are real increases 
that could not have been anticipated or controlled. S he explained that the ITC has  tried to absorb 
most of these increases over  the years, but they have reached the point where improvements in 
efficiency of effectiveness can no longer absorb the increases  without compromising the work of the 
organization. She said the ITC will continue to improve  efficiency, but the organization will  need 
additional budget resources to remain effective. She expressed willingness to have  additional 
conversations bilaterally to explain th e situation further.  
4.16.    The Deputy Executi ve Director then explained that the  certification of the climate neutrality 
is based on purchasing carbon credits to offset emissions, mostly from travel. The proceeds from 
the purchase of these offsets are used to support environmentally friendly  projects  in developing 
countries . She acknowledged that there is more  work that needs to be done and noted that ITC  
includes this as part of its operational plan  and work going forward. She clarified that the acronym 
IATI found Table 9 stands for "International Ai d Transparency Initiative ", which relate s to standards 
on ensuring transparency and accountability regarding the public disclosure on financial data and 
development results . She added that , in the interests of transparency, ITC publishe s data on an 
open data portal on a biennial basis . The portal  contains information that c an be used by 
development partners and beneficiary countries . 
4.17.   The Deputy Executive Director then t urned to staffing -related questions. On t he question o f 
the CHF 29 million that is being paid  for staff positions , the representat ive of ITC clarified  that I TC 
has approximately 400 staff members of which 160 are regular budget . The ITC also has  more than 
1,000 people working around the world, including staff managed through the UNDP, UNOP , and as WT/BFA/214  
 
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  consultant s. On the question relatin g to the organigram , she explained that the  30 posts identified 
in the Annex of the Supplementary Information document , refer to the whole office of the Executive 
Director, which include s the Cabinet  as well as Strategic Planning and Communications Unit s. Finally, 
in response to questions on Tables 3 and 4 of document Job/BFA/84 , she confirmed that Table 3 
shows the difference between the WTO and UN , which is due to UN re -costing mechanisms , and that 
Table 4 includes several kinds of staff costs, but not pension costs. The Deputy Executive Director 
thanked Members and said she would be happy to follow up bilaterally if anyone needed further 
clarification s. 
4.18.   A Member took the floor again to say  he was not sure that his question about the footnote to 
Table 9 where reference is made to a downgrading of the gender responsiveness indicator has been 
answered . The Deputy Executive Director clarified that the standard for the indicator had changed , 
and the ITC has been  temporarily downgraded. However, she noted that the issues ha ve been 
addressed by senior management and would be reflected in the next report.  
4.19.   Another Member took the floor again to seek  confirmation that  the UN 's contribution is higher 
than that of  the WTO. The Deputy Executive Director confirmed that this is the case and clarified 
that the ITC did not intend to come back next year to seek an increase.  
4.20.   The CBFA Chair thanked the ITC for its presentation and responses and stated that t he 
Committee takes note of the ITC budget proposal for 2024, 2025 and anticipates return ing to this 
matter in the near future.  
5  RECOMMENDATION OF THE WTOPP MANAGEMENT BOARD FOR ADDRESSING THE 
PENSION PLAN'S FUNDING GAP – WT/BFA/W/ 644 
5.1.  The CBFA  Chair opened the agenda item by reporting to the Committee that she had  written 
to the Staff Council as promised at the 27 June CBFA meeting.  The objective is to keep staff informed 
about the Committee's work on the topic of pension reform, which is under standably of great 
importance to staff . She noted that a  copy of her letter to the Staff Council, as well as the response 
letter from the Staff Council to the Chair , were shared with delegations by email on 5 July  
(documents JOB/BFA/85 and JOB/BFA/86, resp ectively) . She then invited Mr van Dril, Chairman of 
the WTO Pension Plan Management Board, to provide the Committee with an update regarding the 
Board's revised recommendations aimed at addressing the actuarial gap between the pension plan's 
assets and li abilities . 
5.2.  The WTOPP Chair said that the revised recommendations take into consideration feedback from 
stakeholders in CBFA meetings, informal consultations, and written input from the EU and its 
27 member States, as well as  the exchanges between the CBFA Chair and the Staff Council of the 
WTO. The revised recommendations can be found in document  WT/BFA/W/644 of 7 July 2023 . 
5.3.  He noted that t he main concern included in the comments was that the proposed capital 
infusion would be problematic if Members had to seek additional direct payments beyond amounts 
safely available from the Working Capital Fund . In addition, in their comments on the original 
proposal, some Members expressed the view that  a higher burden  should be placed on current staff . 
Others support ed the proposal as presented in May but  expressed willingness  to support a mo dest 
shift in burden sharing , as long as the package does not increase the legal risk . Furthermore, he 
noted that some Members believe  that long -term sustainability may require deep er reforms and 
additional measures. These Members  have suggested inviting the CB FA to establish a working group 
to analyse  the potential for  further structural reform . Finally, he noted that a few  Members expressed 
the view that the reform should focus onl y on deeper changes . The WTOPP Chair said that  these 
considerations are reflected in the Management Board's  recommendation  which  focuses on 
addressing the current gap, according to the mandate Members have provided to the Board when 
establishing the pensio n plan . Nonetheless, he confirmed that t he Management Board stands ready 
to fully support any work that the CB FA may wish to undertake regarding further structural reform.  
5.4.  The WTOPP Chair specified that the revised recommendation reduces the capital infusi on from 
CHF 68.77 million to CHF 57.9 million to accommodat e the capacity of  the Working Capital Fund. To 
compensate for this shift, the pension  contribution rate was raised from 5.1% to 5.4%. As a result 
of these adjustments, the burden borne by staff increases modestly from 49.5 % to 50.5% and , 
correspondingly , the burden borne by Members is reduced modestly from 50.5% to 49.5%. He noted WT/BFA/214  
 
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  that while this shift is material, it can still be considered to respect the principle of equal burden 
sharing  without  expos ing the Organization  to additional legal risk . In summary, the WTOPP Chair 
said that all stakeholders are c onscious that the pension plan 's funding gap can be addressed only 
with considerable efforts from staff, M embers , and beneficiaries . He added that t he Management 
Board worked with care and diligence  for more than a year t o develop a reform package in 
consultation with all stakeholders. Following this process , the Management  Board is of the view that 
the reform outlined in document WT/BFA/ W/644 will address the gap equitabl y and effectively. 
Therefore, it recommends that the CBFA endorse the recommendation.  
5.5.  A Member took the floor to reiterate the importance of  deepe r structural reform and including 
option s such as transitioning f rom a defined benefit to a defined contribution  plan or joining UN  Joint 
Staff Pension Plan . In his view , the incremental changes proposed by the Pension Board for 
immediate reform w ill not be  sufficient to ensure  long-term sustainability of the Plan . Therefore, his 
delegation is  of the view that the Committee  should  develop a  broader mandate for deeper reform.  
5.6.  A Member deliver ed a statement on behalf of the European Union and its 27 member States . 
He said that they  appreciate the efforts of the Manag ement Board in recommending corrective 
measures to address the actuarial gap, as contained in document WT/BFA/W/644 . He noted that the  
written submission, JOB/BFA/81 , of the European Union and its Member States identified a number 
of concerns about the pro posed package of corrective measures , and while he acknowledge s the 
Board's efforts in having adjusted its initial proposal, he believe s that more comprehensive changes 
could have been implemented . In particular , he referred to  a fairer burden -sharing betw een present 
and future staff and wider measures to unburden the WTO pension system. He said he was  pleased 
to note that progress ha d been made regarding  the capital in fusion. He added that  the European 
Union and its member States have expressed  their agree ment with the revised proposal  to finish th e 
process on pensions reform soon, and they still stand by that commitment . However, it is important 
to note that discussions on the longer -term structural reforms will remain necessary. Therefore, he 
urged the CBFA to promptly establish a working group composed of Members to study  the long -term 
sustainable solution for the WTO's Pension Plan, with the technical input from the Management Board 
and high -level participation of WTO management . He concluded by saying  the EU and its member 
States hope this process of assessing  longer -term reforms will  be able to accommodate the 
sensitivities of all.  
5.7.  A Member suggested that since the final decision is expected to be  postponed to autumn , 
calculations  should  be based on the updated figures of the 2020 actuarial valuation corresponding 
to mid-2023.  
5.8.  A Member stated that his delegation understand s the challenge to balance various stakeholder  
interests . He welcomed the small shift in burden to existing staff  and said that his delegation is keen  
to ensure that Committee  continue s to explore  solutions that will help avoid future funding issues.  
5.9.  The CBFA Chair thank ed Members for the ir comments as well as the ir hard work and time 
invested to help the Committee  reach a pragmatic result on the question of the pension reform . She 
said that she  did not anticipate a need for further discuss ions on the  technical elements on the 
Management Board's recommendation . She e xpressed hope that this aspect of the  discussion can 
be considered closed  and the proposal put to the side pending deliberations and an outcome on a 
comprehensive 2024 -2025 budget package . She said it is her understanding that  the Committee will 
further discuss the contours and language for setting out a strong and clear commitment to a 
Member -driven process for exploring longer -term structural reform s following the budget process  to 
allow Members to focus on other important topics in the mea ntime. Therefore, she informed the 
Committee that she will reach out to  delegations to solicit their input on mapping out next steps 
regarding pension reform discussions.  
5.10.   The Committee took note of the discussions.  
6  ORAL UPDATE ON THE WTO SECRETARIAT TRANSF ORMATION EXERCISE DDG ELLARD   
6.1.  DDG Ellard delivered the statement contained in JOB/BFA/ 87, as follows:  
6.2.  I am pleased to provide you with an update on the progress of the Secretariat's transformation 
exercise. I will keep my remarks today brief, focusing on s elect recent developments in the overall WT/BFA/214  
 
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  transformation work. As the Director -General noted in her invitation to Thursday's extended Informal 
Heads of Delegations meeting, she will provid e an update for more detailed exchanges on the 
Secretariat transforma tion process and the work on Secretariat vision and strategy. She will share 
the results of the recent exercise to develop a vision statement and strategic focus pillars for the 
Secretariat, which she provided to Members on 10 July.  
6.3.  Accordingly, I suggest that we use today's meeting to discuss other transformation work.  
6.4.  I will provide my speaking notes to you in writing after this meeting. The transformation work 
will remain on the agenda for discussion at our meetings , and I will provide additional updates  if 
needed . The most recent written update on the status of the transformation work, as of 12 June, 
can be found in document WT/BFA/W/642. We did not have a written update for this meeting 
because of the short amount of time since that document was circula ted. 
6.5.  We continue to make good progress with the new Recognition and Rewards Programme. The 
new staff intranet page was launched in early July. As noted earlier, our key themes for the 
2023 DG Awards are innovation and teamwork. After the summer break, staf f will be invited to 
nominate deserving colleagues for these awards. On internal mobility, we have activated several 
temporary secondments of junior staff to different divisions within the Secretariat and continue to 
encourage more. On external mobility, t wo staff members from the Secretariat are now working 
with other international organizations in Geneva under exchange arrangements.  
6.6.  As we described during the budget discussion, good progress is being made by the external 
consultants working to develop a n ew competency framework and conducting a skills mapping 
exercise. The outcomes of this work will be critical to the implementation of reforms in several areas, 
including recruitment, mobility, promotions, and career pathways.  
6.7.  On risk management, screening interviews are underway for the new Chief Risk and 
Compliance Officer.  
6.8.  On digital transformation, we are continuing to push forward with transformation initiatives as 
we can, including building governance to adjust the sequencing, scope, and prioritization of 
initiatives as circumstances and available budget evolve. The Global Trade Data portal launched in 
May was recently presented to the Committee on Trade and Development, including a demonstration 
of the new dashboard with real -time data on  international wheat shipments. The Secretariat is now 
actively investigating how generative AI can transform the search tools we make available to you. 
This action follows on the work of a Secretariat task force that was created earlier this year to 
condu ct a preliminary assessment of the opportunities and challenges associated with generative 
AI. The recommendations made by the task force will be taken forward as part of the digital 
transformation . 
6.9.  With respect to Directors' recruitment, DDG Ellard recall ed that  as a result of Willy Alfaro's 
appointment as Director of Vision and Strategy, a director vacancy has opened in the Trade Policy 
Review Division, which has been advertised internally, and the selection process is ongoing. She 
said that a selection p rocess is also ongoing for the position of Development Division director , which 
has been advertised externally and internally. Finally, she said the Secretariat is in the process of 
determining next steps for the recruitment of Administration and General S ervices Division  director . 
6.10.   A Member complimented the Secretariat on the work done on determining the vision and 
mission statement for the Secretariat. He said his delegation is looking forward to the next steps of 
this work. He noted that the work on strat egic vision had started four years ago. He also noted that 
the language used in the mission statement refers to things that should be done better, such building 
a better world for people, enhancing external engagement, and strengthening the Secretariat. He  
said these relative statements presume the  existence of a benchmark, which needs to be defined, 
but at the same time it may not be possible to define it for certain things.  
6.11.   A Member asked whether Members w ould have access to the staff portal  on rewards  to be 
able to recognize work of staff members. He also asked for a detailed briefing on the use of external 
consultants and the competency framework. In addition, he said his delegation would appreciate a 
better understanding of databases and portals in orde r to understand what financial liabilities are 
being created for Members, particularly with respect to AI and similar things.  WT/BFA/214  
 
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  6.12.   A Member expressed the need for clear strategic priorities to deal with  the challenges faced 
by the WTO.  
6.13.   A Member asked whether DD G Ellard's updates can be circulated in advance, e.g. , a day 
before the meeting because otherwise it is hard to have a meaningful discussion. He further asked 
what the process is for the way forward on the mission statement. In addition, the Member said 
that, in his delegation's view, the statement reflects the mission statement for the Organization, not 
the Secretariat, and asked whether the mandate for the way forward would be formulated by 
Members.  
6.14.   A Member said, with respect to the internal mobility pol icy, that it appears there is not much 
mobility going on  and that only three individuals have been moved. He asked how the mobility is 
actually progressing . 
6.15.   DDG Ellard thanked Members for the support for the exercise with respect to the strategic 
vision of  the Secretariat. She said the Secretariat understands that work on strategic vision has an 
impact on the budget and therefore it is important for Members to engage in this work and express 
their views. With respect to Member's comments in para. 6.10.   end point , and that benchmarks will 
be determined to achieve speci fic objectives  in the next phase . She further said that the idea for 
Members to have access to the staff portal on rewards to be able to recognize staff is an intriguing 
one. She also said that the Secretariat will make sure Members are more informed about  the 
competency framework and costs of IT and digital projects.  
6.16.   With respect to Member's comments in para. 6.13.   , DDG Ellard said she is very committed 
to providing  up-to-date information to Members. She added that under the CBFA rules, documents 
have to be provided to Members 15 days before the meeting , and that she usually provides a brief 
state-of-play document at that point. She said her presentations before the CBFA expand on such 
written updates and cover developments in the 15 days between the circulation of the document 
and the Committee meeting. She further added that her CBFA updates on transformation are later 
circulated to Members in a written format  immed iately after the meeting . With respect to the 
Member's question about the mandate for strategy work, she said that the "strategy house" refers 
to what the Secretariat is doing and does not seek to impose a mandate on Members.  
6.17.   With respect to Member's questions on mobility in para. 6.14.  , she said that the mobility of 
three staff members is part of the pilot project and that there are ot her examples, on a less 
systematic basis than the pilot project. She also explained  the complications surrounding mobility – 
that mobility opens a spot  that has to be managed and that the WTO has to be careful because it is 
a relatively small Organization and does not have a "deep bench"  of staff to readily substitute.  
6.18.   The Member whose views are reflected in para. 6.11.  took the floor to clarify that the 
requirement  to circulate documents 15 days before the meeting applies to documents that are longer 
than 10 pages.  
6.19.   DDG Ellard thanked the Member for the clarification and noted that sometimes documents 
may be shorter than 10 pages, but they are dense, so the Secretari at always endeavours  to provide 
Members with information as far in advance as possible. She noted that it is good to have the 
flexibility noted by the Member when necessary.  
6.20.   The Member whose views are reflected in para. 6.13.   said that it is better to have a written 
document than to simply follow an oral update.  
6.21.   DDG Ellard replied that the previous meeting of the committee took place only three weeks 
before and that there were no developments  between the date of the meeting and the date when 
the update would have been circulated  (six days) . She said her endeavour is to bring Members up 
to speed on everything that has happened in the past two weeks in her oral report.  
6.22.   A Member asked if there is a plan to bring in people from other international organizations as 
part of the mobility efforts  to fill in some gaps in expertise.  WT/BFA/214  
 
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  6.23.   DDG Ellard replied that external mobility exchanges are taking place and that the  Secretariat 
intends not only to send WTO staff to other organizations but also to receive staff with the expertise 
that the WTO is lacking.  
6.24.   The Committee took note of the discussions.  
6.25.   The next CBFA  meeting will take place on 21 September.  
__________  