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WT/BFA/209  
 
8 December 2022  
(22-9085) Page: 1/19 
Committee on Budget, Finance and Administration    
 
REPORT OF THE MEETINGS HELD ON 1 AND 5 DECEMBER 2022  
The Committee on Budget, Finance and Administration (CBFA) met on 1 and 5 December 2022. Her 
Excellency Ambassador Dr. Bettina Waldmann, German Ambassador to the WTO , welcomed 
Members to the meetings.  
1  ADOPTION OF THE AGENDA  
1.1.  The agenda for th e meeting was r eleased on 21 November, with the reference 
WTO/AIR/BFA/57, together with an annotated agenda bearing the reference JOB/BFA/66.  
1.2.  The agenda as set out in document WTO/AIR/BFA/57 was adopted.  
2  ORAL REPORT FROM THE CHAIR ON ONGOING WORK  
2.1.  The Chair recalled that  the Chair of the General Council suggested in early October that each 
Subsidiary Body "be tasked to see what has been done" and explore ways "to improve their daily 
functioning and better deliver on their respective mandates." She noted that the CBFA had  already 
considered these matters and agreed in April 2021 to several improvements to the CBFA procedures. 
These include the issuance of reminder notices before meeting agendas close; reporting by the CBFA 
Chair on ongoing work; and providing additional time  to Members to review reports by the 
Secretariat. The full set of procedural improvements adopted  by the Committee  is set out in 
document WT/BFA/W/538/Rev.2. The Annual Report of the CBFA has also been enhanced and now 
contains a list of all CBFA documents  issued in 2022, as recommended by a delegation. Moreover, 
to aid its work, the CBFA holds informal open -ended meetings and consultations, addresses agenda 
items in informal mode, and has established open -ended Working Parties to help make progress on 
specific issues. The Chair propose d to inform the GC Chair of these improvements to the CBFA 
procedures  and invited  Members to propose any further improvements in the operation of CBFA 
meetings.  
2.2.  The Chair then reported on the informal consultations she and DDG  Ellard held to discuss the 
Secretariat's proposal to use  up to CHF 6 million of  the 2021 budgetary surplus to cover mandatory 
and unavoidable expenses of the organization for 2023 only. She thanked  Members for their 
flexibility and constructive engagement  on these matters , noting that the proposal was on the 
agenda of the meeting for endorsement by the Committee and submission to the General Council 
for approval. Similarly, she noted that  the mid-term budget proposal for 2023 remain ed on the 
agenda , but she said she anticipate s that the discussion of that proposal will take place in the context 
of the 2024 -2025 biennial budgeting process.  
2.3.  Next, the Chair informed the Committee that  she received a letter from the External Auditor 
request ing to attend any and all meetings of the CBFA that the External Auditor  deems necessary, 
on a permanent and systemic basis and regardless of whether any financial or performance audit is 
being discussed. She noted that, in this context, the External Auditor r eferred to international 
auditing standards.  
2.4.  She recall ed that in accepting the terms of engagement, the Auditor acknowledged the General 
Council's request that he audit the financial statements of the WTO, as well as those of the WTO 
Pension Plan.  In addi tion, the General Council requested that the External Auditor produce, on an 
annual basis, a performance audit report focusing on one aspect of the WTO.  She noted that the 
terms of engagement do not speak to the question of whether the Auditor may attend C BFA meetings 
in which he/she is not presenting a report.  WT/BFA/209  
 
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  2.5.  The Chair recognized  the need for the  External Auditor to have access to information and 
materials to carry out his mandate  and confirmed that  the Secretariat ha d assured her that it has 
and will continue to respond completely, thoroughly, and in a timely manner to all requests by the 
External Auditor for information and materials includ ing detailed reports on CBFA meetings . 
2.6.  The Chair also noted that the Secretariat has report ed to her  that in canvass ing other  
international organizations , it had  not found a case in which the External Auditor has been granted 
continuous observer access to Member deliberations.  
2.7.  The Chair said, in the interest of transparency and openness, she has  asked that the request  
from the External Auditor  be circulated to delegations  along with  the External Auditor's engagement 
letter.  She concluded by inviting Members to let her know how they wish to proceed on this matter 
after having  had time to study the  Auditor's request. She proposed that in the meantime the 
Committee  continue to operate as it has in the past.  
3  REFORM OF THE PENSION PLAN: ORAL REPORT OF THE CHAIR OF THE MANAGEMENT 
BOARD  
3.1.  The Chair welcomed Mr Jean -Marc van Dril, Chairman of the WTO Pensio n Plan Management 
Board, to the meeting. She recalled that the issue had been discussed at the CBFA on 8 November, 
and that the basis for the discussions had been the draft reform proposal contained in document 
WT/BFA/W/613, circulated to delegations on 3 November.  
3.2.  The WTOPP Chair said he would update the Committee on what steps he and the Board had 
taken  since the last meeting of the CBFA to consult with stakeholder groups, and what the next 
steps will be to return the WTOPP to a sustainable long -term position. He encouraged Members to 
stay engaged on the topic because the sooner reforms can be implemented , the easier it will be to 
address the problem.  
3.3.  The WTOPP Chair reminded Members of his offer to meet them bilaterally or in small groups 
with the objective of providing an opportunity for delegations to ask questions on the actuarial 
situation and the dra ft proposal and informally share their initial views on the proposal.  Noting that 
several Members had already taken him up on this offer, he reiterated that he remains available to 
meet with other delegations.  
3.4.  The WTOPP Chair reported that the Board organi zed a Town Hall Meeting for staff and retirees 
on 18  November where they were presented with the same information that had been shared with 
the CBFA. He said the hybrid meeting was well attended and that staff and retirees are very 
interested in the propos ed reforms and had many questions and comments. He observed that not 
all questions can be answered definitively yet and that this is part of the reason why it is a draft 
proposal that has been circulated at this point.  
3.5.  The WTOPP Chair said overall there wa s a constructive attitude on the part of staff and a 
recognition that the challenge of under -funding is real and will require good faith engagement on all 
sides. He reported that the principal concerns expressed by staff and retirees related to what they 
consider might be violations of their acquired rights for past service and concerns about the 
willingness of Members to bear a fair share of the burden.  
3.6.  The WTOPP Chair also noted that it will be important to consult further with the WTO 
Administration as s everal of the proposed measures will have direct or indirect implications for 
managing the workforce and staffing policies.  
3.7.  In terms of the overall process, the WTOPP Chair explained that the Board will consider the 
feedback from all stakeholder groups bef ore adopting a formal proposal to be submitted early next 
year to the CBFA. He recalled that the longer the funding gap goes without being addressed , the 
larger the problem becomes. He added that, even after an acceptable package can be agreed, there 
will need to be time to update the regulations and pension plan administrative systems to allow new 
measures to come into force and be practically and correctly implemented.  WT/BFA/209  
 
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  3.8.  The WTOPP Chair further reiterated that he and the Board remain committed to engaging 
actively with Members and other stakeholders of the WTOPP to find an appropriate package that will 
return the WTOPP on a sustainable footing  in the long term . 
3.9.  As a final point, the WTOPP Chair observed that, based on preliminary questions and comments 
received from Members, he wished to clarify that while it is possible to explore more dramatic 
redesigns of the WTOPP, there is a difference between such a redesign exercise and addressing the 
current funding gap. He said changing the design of the plan for the  future will not solve the long -
term actuarial deficit that the draft proposal is seeking to address.  
3.10.  The Committee took note  of the update by the Chairman of the WTO Pension Plan 
Management Board.  
4  PROPOSED UTILIZATION OF THE 2021 BUDGETARY SURPLUS – WT/BF A/W/614  
4.1.  The Chair introduced the topic by saying that, a s a follow -up to the discussion that the 
Committee  had at its meeting on 8 November, the Director -General has prepared a proposal 
regarding the utilization of the 2021 budgetary surplus to address the  urgent needs of the WTO 
arising out of contractual obligations and mandatory costs.  
4.2.  DDG Ellard said the Secretariat is seeking to utilize the 2021 surplus of CHF 6 million, already 
paid by Members nearly two years ago , exclusively for the purpose of payin g for certain mandatory 
and unavoidable expenses listed in the proposal.  She thank ed the many delegations who had met 
with her, the Chair , and the Secretariat  team over the last several days, as well as those who 
provided comments and asked questions by email. She said a meeting was s cheduled with every 
delegation that sought consultations, and that each and every email had received a reply. 
4.3.  DDG Ellard said tha t in addition to the budget ary surplus proposal itself, the Secretariat had, 
on the preceding Monday evening,  circulated a list of responses , in document WT/BFA/INF/17, to 
some common questions that Members had been raising.  
4.4.  DDG Ellard said she realizes that Members have not reached consensus on the Secretariat's  
mid-term b udget review request and that Members are still asking questions and consulting with 
their capitals. She suggested that the question of the budget increase proposed for 2023  be deferred  
and instead move d into the 2024 -2025 cycle next year, when the Secretariat  will make a fresh 
budget request and continue discussions with Members . 
4.5.  DDG Ellard said, a ccordingly, the only consideration the Secretariat is seeking for 2023 at this 
time relates to the use of the 2021 budgetary surplus for 2023.  
4.6.  She noted that the years 2020 and 2021 were unusual because the surpluses were due 
primarily to COVID . She said the Secretariat had not spent the largesse  and had i nstead proposed 
that over CHF9 million of  the over CHF11 million surplus in 2020 be returned to Members. She added 
there is also the CHF 6 million surplus in 2021.  
4.7.  DDG Ellard said the years 2022 and 2023 are unusual, but for different reasons. She 
emphasized that there w ill be no surplus in 2022, and it is highly unlikely in 2023. She added that, 
instead, the Secretariat is facing certain mandatory and unavoidable expenses for 2023, which are 
detail ed in the document  WT/BFA/W/614 . She noted with a zero nominal growth budg et for so long, 
there is no  excess budget to soak up those costs. The use of the surplus , she said,  would alleviate 
some of that pressure.  
4.8.  Turning to the expenses themselves, DDG Ellard said they are mandatory and unavoidable.  
She added that t here are no new non -recurring expenses – except for one, which she will explain 
momentarily  because it is unusual.  
4.9.  DDG Ellard said i nstead these expenses relate to costs result ing from factors such as in flation 
in contractor and security costs, rising energy costs, the doubled cost of interpretation in hybrid 
mode, the mandatory and contractual staff salary increase that is expect ed due to inflation, and 
Member requests and expectations that services such  as DOL and UNICC services  be upgraded . WT/BFA/209  
 
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  4.10.  DDG Ellard said the one expenditure that is recurring relates to the audio -visual  system repair 
in four of the large conference rooms, a three -year project. She said t his project represents an 
immediate need , given t hat no maintenance or repair of the system is possible. She said the 
recurrence  can be managed in a way that does not oblige Members for 2024 -2025 because it is 
explicitly eligible for the Building Renovation Fund . However, she noted the CBFA has to approv e the 
use of that Fund , and there is insufficient time to obtain that approval . She said that while the 
Secretariat has commissioned an analysis of the problem and proposed solution, it is not far enough 
along in the procurement process to come to the Comm ittee with the required specifics.  She said 
the Secretariat plans to come to Members early next year with a specific proposal to use the Building 
Renovation Fund for the estimated CHF 2 million total for 2024 and 2025. She added that if the 
Committee decide s to deny that request, the Secretariat w ould have to fund this expense out of the 
regular budget . She said that covering the first year of expense through the surplus would not create 
an obligation on Members beyond t he budget baseline that Members have approve d, and that is also 
the case for the other elements on the list.  
4.11.  DDG Ellard made the following clarifications: First, the surplus reflects contributions already 
made by Members back in 2021 , and the Secretariat i s not asking for any new contributions or 
funding . Second, this is a one -off situation, and Members would not be committing themselves to 
any expenditures beyond 2023 . She emphasized that the baseline stays fixed for 2023, and the 
budget for 2024 and beyon d is fully in the hands of Members to decide . Third, the proposal contains 
a list of estimates that in total exceed the CHF 6 million surplus, reaching 6.95 million.  She stressed 
that the Secretariat's request does not exceed the CHF 6 million that repres ents the surplus , noting 
that assuming the Secretariat in fact face s all of these expenses next year, it will have to find a way 
to pay the CHF 0.95 million shortfall out of the regular budget . Fourth, the list of expenses is 
exclusive , and only any increa ses for these expenditures would be eligible – not any base expense, 
which would be funded through the regular budget . Fifth, the Secretariat  will be accountable to 
Members on a quarterly basis with its reporting . Sixth, there is some urgency for the Secre tariat to 
know if Members will approve this request in time to submit a recommendation by December 8, in 
time for the last General Council meeting of the year.  
4.12.  DDG Ellard further explained the urgency , noting that the Secretariat  must to start the new 
year knowing what the budget pool would be. Otherwise, it is difficult to plan for the year , and the 
Secretariat would  have to hold back on recruitment or other expenses (but primarily recruitment) 
at the beginning of the year because of t he uncertainty.  She said the Secretariat cannot  take the 
chance of incurring expenses at the beginning of the year and ending up with a shortfall at end.  
4.13.  She concluded that she would appreciate Members'  open-mindedness and consideration to 
allow the Secret ariat to use these surplus funds, which Members already paid at the beginning of 
2021.  She emphasized that the situation the Secretariat is facing is unusual and unavoidable, adding 
that she know s Members are  facing it too. She thank ed those Members who had already indicated 
their full support.  
4.14.  The Chair said, i n the light of the Committee's e arlier discussions regarding mandatory and 
unavoidable expenses, she hopes that Members will be in a position to endorse the Director -
General's proposal.  
4.15.  A Member tha nked the Chair and DDG Ellard for their presentation s. She said her delegation 
has not taken part in the consultation s because her delegation believes that the request from the 
Secretariat is moderate . She said , as DDG Ellard had stated, that Members have already paid the ir 
contributions into the WTO pot. She said her delegation understand s the press ure that the 
Secretariat is feeling , and after the 12 years of zero nominal growth , her delegation does not want 
to micromanage  the Secretariat. She said the Secretariat has her delegation's full endorsement to 
use the surplus , and notes that Members will be coming back to the issue of how to adjust the 
budget in the future.  
4.16.  A Member said his delegation is certain that many other Members in their respective Ministries 
of Finance might have ideas as to how the document could be improved, but at the same , his 
delegation  thinks that at this time , it is important for Members  to address the current overarching 
challenges and enable the WTO to fully exercise its functions, particularly against the backdrop of 
rising economic challenges, inflation, energy costs, and so on.  He said, in this context, his delegation 
sees the Secretariat's proposal for the use of the surplus as a means to prov ide necessary respite . 
He added that his delegation hopes the Committee  will be in a place to approve the proposal during WT/BFA/209  
 
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  the ongoing meeting . The Member said his delegation is of the view that this does not only mean a 
respite for Members to have a proper conversation on the needs of the Organization as part of the 
negotiations of the next budget, but i t also means a respite for the Secretariat  to initiate and make 
progress on the strategic orientation process and also consider what further measures it can take. 
He said, in his delegation's view, the use of the surplus cannot create a new baseline for the budget 
or be used by the Secretariat to engage in any long -term commitments.  
4.17.  A Member said his delegation takes note of the Secretariat's request to increase the WTO 
budget and of the proposal for the utilization of the 2021 budgetary surplus. He said it is important 
that the WTO has the necessa ry resources to fulfil its mandate. He added that the Organization's 
financial stability is important to his delegation and that his delegation acknowledges that costs of 
energy, travel, interpretation, other services have increased in recent years. He sai d maintaining a 
zero nominal growth budget in this context of higher inflation rates, which also has an impact on 
salaries scales, is challenging. The Member said, in this context, that the proposed utilization of the 
2021 budgetary surplus is well -motivat ed, transparent, and reasonable. He said if accepted, it will 
allow the Secretariat to cope with the most pressing needs under these current circumstances, while 
at the same time allowing for more time to further discuss the other elements of the request t o 
increase the WTO budget. He said, for these reasons, his delegation supports the proposal on the 
2021 budget surplus without reservations.  
4.18.  A Member said his delegation supports the proposal that the budgetary surplus be exclusively 
used to cover the mand atory and unavoidable expenses. He said that in considering it,  his delegation 
took the following three background factors into account . First, utilizing the surplus for the 
unavoidable expenditure is a practical interim response to the Director -General's  request to increase 
the budget. He said that even as Members continue to discuss and dissect the request for a budget 
increase, there are practical realities such as rising costs . Second, his delegation is satisfied that the 
Secretariat has demonstrated p rudence in the management of Members' money. He said Members 
should avoid a situation of bean counting. Third, h e  recalled that  the Secretariat has demonstrated 
its sensitivity to Members' domestic situations by returning the 2020 surplus in 2021.  
4.19.  The Mem ber also noted  that more recently , the Secretariat has also heard Members' concerns 
with regard to the Director -General's request for an increase and has taken the decision to roll over 
discussions on the mid -term budget cycle to the 2024 -2025 cycle.  
4.20.  The M ember said his delegation  has consistently support ed the efforts to strengthen the WTO, 
which include ensuring that the Secretariat is sufficiently resourced and refreshed. He said an 
upgrade to the WTO Secretariat is a key enabler of a strong multilateral  trading system. He added 
that Members should aim to strike a balance between being prudent and accountable or being penny -
wise but pound -foolish.  
4.21.  A Member said her delegation also approves the Secretariat's proposal to use the 2021 surplus 
for compulsory and unavoidable spending in 2023. She said this is a short -term solution and must 
remain exceptional. She said her delegation will participate in the discussion on the budget increase 
requested by the Director -General next year because her delegation attac hes a lot of importance to 
an efficient multilateral trading system, which needs a Secretariat that works fully and fulfils its 
mission.  
4.22.  A Member thanked the Secretariat for the proposal and for consultation and the process to 
allow Members to have their s ay on the use of budgetary surplus. He said while his delegation had 
unfortunately not been able to participate in the consultations , it wishes to inform the CBFA that its 
recommendation would be to use the budget to support Members' financial contribution s to the WTO 
budget for next year. He said his country is faced with unprecedented crises affecting its balance of 
payment, which has worsened as a consequence of the recent floods. He said his country has 
adopted an overall austerity policy. He  observed that while the 2021 budgetary surplus may not 
amount to very much, returning it to Members would reflect an effort on the WTO's part to cut down 
on expenditures, notwithstanding the difficult situation that it is in. He said his delegation remain s 
flexible and open -minded to listen to the Members on this issue.  
4.23.  A Member said her delegation would like to apologize for not being able to attend the informal 
consultation s on the proposed utilization of the 2021 budgetary surplus because of many meetin gs 
on the days  when the  consultations were held.  WT/BFA/209  
 
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  4.24.  The Member said the ongoing meeting is an opportunity for her delegation to share its 
concerns and views on  the proposal with the entire membership. She said her delegation would first 
like to thank the Secr etariat for the report contained in WT/BFA/W/614 on proposed utilization of 
the 2021 budgetary surplus, and the responses to questions raised by the Members contained in 
document WT/BFA/INF/17. She said her delegation considers both these documents very us eful for 
Members to make an informed and well -considered decision . 
4.25.  The Member recalled that  it had been decided to reduce Members' contributions for 2022 
based on the budgetary surplus of 2020 . She said this was a great relief for countries such as hers , 
which had been badly impacted by the Covid -19 and aftermath. She recalled that  during the informal 
consultations held on 8 November , her delegation had suggested that Members' contributions should 
be reduced in light of  the surplus  of CHF 6 million. She sai d such  a reduction would certainly help 
her delegation obtain approval from its authorities for its contributions.  
4.26.  The Member  also said her delegation would be in a position to consider transferring the surplus 
to the Working Capital Fund if more details could be  provided to her delegation as to  how the 
transferred funds would be utilized.  
4.27.  The Member made the following comments on document WT/BFA/W/614. She started by 
saying the Secretariat has kindly listed the type of expenditure and given a description of these 
expenditures. She said the first category, staff remuneration, is a reasonable expenditure that that 
might be covered under the surplus. She said the  death and invalidity insurance is also reasonable.  
4.28.  Turning to temporary assistance for interpretation, the Member said her delegation had made 
a very detailed proposal to the Secretariat to provide her delegation with a detailed breakdown of 
expenses for all areas of expenses, including for multilaterally mandated issues, as well as JSIs and  
other initiatives. She said so far , her delegation had not received that data. She said her delegation 
did its own research by looking at the calendar of meetings published on the WTO website , excluding 
WTO holidays, and calculated the number of  regular meetings and JSI meetings. She said JSI 
meetings include the following: trade and environment for sustainably structured discussions; 
structured discussion s on investment facilitation for development; and JSI on e-commerce; informal 
working group on trade and gender; informal working group on MSMEs; informal dialogue on plastic 
pollution , and fossil fuel  subsidy reform. The Member said her delegation had analysed these 
meetings against the regular meetings, as well as negotiating meetings that were  multilaterally 
mandated by Ministers , and determined the share of each category as a percentage of all the 
meetings.  She said her delegation is not in a position to agree to the inclusion of CHF 1.5 million for 
temporary assistance/ interpretation without  further clarification from the Secretariat  about how 
much had been spent on the JSI meetings . 
4.29.  Regarding other contractual services and maintenance and security, the Member said her 
delegation is fine with funding them out of the budgetary surplus.  She sa id her delegation knows 
that energy is an unavoidable expense and has to be considered from a pragmatic point of view.  
4.30.  With regard to procurement of fixed access and conference services, t he Member recalled that  
DDG Ellard  had said that overall AV expendit ure would amount to around CHF 3 million,  and that  
the Secretariat did not have any formal bids and was thus giving an estimate. The Member noted 
that the Secretariat wants to allocate at least CHF 1 million out of the surplus to this. She said this 
preced ent should not be used by the Secretariat to enter into long -term contractual obligations in 
the future. She stressed that t his is an exceptional situation and an exceptional precedent that 
should not be repeated in the future. She said her delegation would appreciate a clarification on 
these items and with this understanding may be able to look at this proposal.  
4.31.  The Member said her delegation also has a concern that the Secretariat prepared the proposal 
based on the current rules of procedure for surpluses. She asked why the Secretariat cannot present 
the proposed utilization of the 2021 budgetary surplus based on the  revised  set of Financial 
Regulations that are to be approved by the General Council in December, since the budgetary surplus 
is to b e used in 2023.  
4.32.  The Member said her delegation has never before questioned similar proposals and added 
that other Members would have to also recognize that her country is in a deep crisis situation and 
that when it comes to finances , she, as the representa tive of her country, needs to be responsible, WT/BFA/209  
 
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  accountable , and transparent. She said her country's auditors are questioning why, while not being 
a JSI party , it is making a contribution towards JSIs , including  the interpreters and the infrastructure 
servin g them. She said her delegation participates in a couple  of plurilateral initiatives, such as the 
GPA and ITA. She said  her delegation is  able to explain to the auditors that these are actually 
multilateral.  
4.33.  A Member thank ed the Chair and Secretariat for t he documents and explanation provided on 
the proposed use of the 20 21 budgetary surplus to cover increases in various mandatory and 
unavoidable expenses during 2023.  The Member made reference to the statements of the Director -
General during the last G20 m eeting in Bali and said that her capital remained in favor of the proposal 
to use the 2021 surplus to cover such expenses. The Member added that while recognizing the 
urgency of such actions, the capital also wished to emphasize the current financial conce rns affecting 
several Member States due to the international context and the necessity to take such circumstances 
into account, in view of the future consultation on the 2024 -2025 budget process.  
4.34.  A Member thanked the Chair and the Secretariat and confirmed support for the use of 2021 
surplus for the budget expenses in 2023. However, the Member stress ed the exceptional 
circumstance for this proposal and action.  
4.35.  Another Member thanked the Chair and the Secretariat's team for the informative 
presentation and for the Q&A document circulated to clarify the points as well as for the consultations 
sessions of the previous days. The Member recognized that the proposed use of surplus is a one -
time temporary inc rease that focuses on unavoidable temporary cost s, and therefore the Member 
welcomed the proposal without reservation.  
4.36.  After having thanked the Chair and the Secretariat, a Member pointed out that it would be 
good to differentiate between what is urgent an d what is simply important. Given the urgency of the 
proposal, the Member invited those who had questions on the budget to postpone them to the 
following Item on the Agenda and to adopt this proposal today.  
4.37.  A Member thanked the Secretariat for the proposal  and the other information provided. The 
Member said that he  agree s with the proposal and to proceed accordingly for 2023.  
4.38.  A Member said that the remarks made by another Member on JSI issues, reflected in 
paragraph s 4.28.   - 4.32.  above, should be discussed at the General Council rather than in the  
Budget Committee , because it involves a policy discussion. The Member then said that his delegation 
would be open to make modification s to the text of the recommendation to achieve an outcome 
because the deleg ation would like to spend less time on procedural matters and more on what the 
Organization should achieve. The Member invited other members to be prag matic and find a 
compromise.  
4.39.  A Member thanked the Secretariat for consultations in the previous days , which clarified the 
concerns and questions on expenditure items. The delegation asked for assurance that the proposal 
covers unavoidable one-time expenditure only and does not create long -term obligations. The 
Member said that on one hand, the delegation  would be able to join the consensus , but on the other 
hand, it would be good to allocate some more time for these expenditure issues to achieve a common 
understanding.  
4.40.  A Member thanked the Chair and the Secretariat for the work done and for listening to all 
Members on a such sensitive topic. The Member said that his Delegation was comfortable with the 
proposal and would join the consensus. The Member also recognized the current challenges and 
increasing cost s. The Member said that his government is making difficult decisions due to increasing 
costs, and the WTO should be mindful of this  fact. The Member concluded that the proposal reflects 
an exceptional situation and that Members should not micromanage line by line on the budget. The 
Member agreed that, as  previously mentioned by another Member, the Budget Committee is not the 
right place for policy discussion. Moreover, the Member highlight ed that any expenditure funded in 
this proposal should not be the baseline for future budgets and should not create fu ture expenditure 
commitments or expectations. In this regard, the Member supported the approach for the use of the 
surplus for 2023 expenditures, but he also noted his questions on future long -term cost expectations 
for the upcoming years , and he asked for  additional details from the Secretariat.  WT/BFA/209  
 
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  4.41.  A Member thank ed the Secretariat and confirm ed support for the proposal. The Member added 
that due to the exceptional  nature of the situation , this proposal should not set a precede nt for the 
future . 
4.42.  A Member thanked the Secretariat and expressed appreciation for the proposal, including the 
commitment to return to longer -term perspectives in the context of the 2024 -2025 budget. The 
Member recall ed with regard to the 2020 surplus  that achieving the consensus on the release of the 
surplus to Members was not an easy decision, but Members found an agreement. Similarly, 
nowadays Members need to find again a consensus on the use of the surplus. The Mem ber expressed 
his sympathy for the tremendous economic difficulties that other countries are experi encing , but the 
Member said that in his opinion the Deputy Director General had already answered and provided 
details orally on the questions raised by anoth er Member. The Member therefore noted that there 
are two items in the proposal that would require more information. He concluded, however, that 
these questions should not be an obstacle to reaching the consensus during the current CBFA session 
due to time constraints.  
4.43.  A Member took the floor and expressed his support to the proposal and the submission to the 
General Council for approval.  
4.44.  A Member thanked the DDG , mentioning that the consultation sessions have been very useful. 
The Member confirmed support for the proposal to the use of 2021 surplus to cover urgent and 
unavoidable expenses. The Member said that the proposal is well argued and reasonable and that it 
is crucial that the Secretariat continue to prove to provide efficient good quality services an d 
expertise to the Member. The Member concluded that the broader budget discussions should be 
moved into the context of the next biennial budget discussions.  
4.45.  The DDG took the floor and thanked Members for the strong support for the use of the surplus 
for these mandatory and non -recurring expenses. The DDG acknowledged the questions raised by 
Members . 
4.46.  The DDG referred to the suggestion by a Member to allocating the surplus to the Working 
Capital Fund. In this regard, the DDG clarified the functioning of the WCF , noting that for each 
expense , the Secretariat would be required to ask authorization and seek consensus from the CBFA 
and the General Council , a complicated course of action given t he multiple requests foreseen for the 
upcoming year.  
4.47.  The DDG referred to the questions on the interpretation needs and t he doubling of 
interpretation costs due to hybrid meetings. The DDG clarified that whenever Members request a 
meeting, the Secretariat c omplies with the request , including providing interpretation services. She 
emphasized that the  Secretariat does not make judgment s nor look behind the request to determine 
whether the request is according to a particular mandate.  She noted that it would be  inappropriate 
for the Secretariat to make such determinations in a Member -driven organization.  
4.48.  As to the questions relating to the need to replace the audio system, the DDG reassured 
Members that this expense is unusual and urgent , noting that the system in four of WTO meeting 
rooms is not reliable because the system is obsolete  and cannot be repaired . The DDG mentioned 
that for project of such size , a rigorous procurement process will be undertaken, and that expert  
consultants estimate that 3 CHF million will be required for this project. She also noted that the 
project cannot be done piecemeal because the entire system is affected.  
4.49.  The DDG then noted that using the Building Renovation Fund could be an option but is not 
immediately feasible given the urgency of the situation. She stressed that while the expense is 
unusual , undertaking the repairs would not oblige Members outside of the budget baseline. In 
practice, the use of the surplus would be applicable only for 2 023, while in 2024 and in 2025, the 
Secretariat would either use the Building Renovation Fund (upon Member assent) or the Secretariat 
would use the regular budget.  
4.50.  The DDG confirmed that new Financial Regulation 23 had to be approved by the General 
Council  before it could be used as a legal basis. Therefore, the existing Financial Regulation 23 is 
the basis for action on the surplus.  WT/BFA/209  
 
- 9 - 
 
  4.51.  The DDG also stated that Members decide each year on the use of any s urplus  from the prior 
year, on a one -off basis. The DDG confirmed again that these expenses can be considered non -
recurring in the sense that they will not oblige Members for the future and will not part of the budget 
baseline in the future . She stressed that the surplus proposal does not change the budget baseline , 
which will remain at CHF 197 million  unless Members determine to chan ge it. 
4.52.  The DDG responded to the question as to how certain expenses would be funded in 2024 and 
2025. The DDG noted that she had already responded to the question about t he audio -visual 
expenses, and then described that with respect to energy , it would be impossible to foresee now the 
situation in 2024. The DDG also me ntioned that expenses related to security and contractual services 
are affected by inflation and that expe nses related to Document s Online are due to the Members' 
request for upgrade of this service.  
4.53.  The DDG concluded that she would be happy to answer any other questions.  
4.54.  A Member thanked the Chair and apologized for taking the floor again. The M ember thanked 
the DDG for the extensive explanation and said it was comforting to hear that the budget baseline 
remained unchanged. Similarly, the Member appreciated the clarification that the Secretariat can 
use existing rules , and she recognized the sens e of urgency stated by the Secretariat.  
4.55.  The Member asked for additional clarification on the category of expenditure for procurement 
of fixed assets and conference services , especially on the use of building renovation fund and on the 
estimation of cost. T he Member asked also for confirmation that the proposal is exceptional .  She 
asked for clarifications on the questions on the composition and cost of meetings, because without 
such information, the delegation could not join the consensus.  
4.56.  A Member took the  floor and thanked the Chair and the DDG for the explanations. The Member 
said that  he would like to find a solution to move forward. In this regard , he pointed out that the 
new and old Financial Regulations 23 are not mutually exclusive and that a solutio n could be the 
approach used in 2018 to create a special reserve account in the W orking Capital Fund . Therefore , 
similar language to what was used in 2018 could be used in this situation. The Member said that the 
statement "any other purpose" in Financial Regulation 23 gives the margin to find a solution to the 
issues raised by some Members, especially because it  seems that there is an emerging consensus 
to carry the surplus forward for use in certain areas, although Members may not have defined what 
those certain areas would be.  
4.57.  DDG Ellard replied that the essence of Financial Regulation 23 is that Members have full 
flexibility to decide, regardless of who initiated the proposal and regardless of the nature  of the 
proposal . With respect to the use of the building renovation fund, she explained that the fund 
suffered from many of the problems the working capital fund also had, especially that Member 
consensus is needed each time it is used. She further added that these surplus funds were due to 
contributions Members had already made and that Members are not being asked to provide 
additional funds.  
4.58.  With respect to the question about why a detailed table had been submitted, DDG Ellard 
replied that the Secretariat had done so in the interest of completeness and transparency. She added 
that the emergency expenditures would arise throughout the year and if Members are creating a 
reserve account for the surplus, it should not have the same restrictions than the Working Capital 
Fund.  
4.59.  The Member replied that it would have been preferable to not specify the items  in the 
proposal , and instead to spend what was needed during the year and to cover the deficit through 
the combination of the regular budget and the surplus at the end of the y ear. He mentioned that it 
is the practice to compensate for overspending o n certain budget lines at year -end with savings on 
other budget lines.  
4.60.  In response , DDG Ellard said that going into deficit and compensat ing later is not an option. 
She also reiterat ed that it was necessary to have visibility and predictability at the beginning of the 
budget exercise about the total available envelope, otherwise this would lead to imposed savings 
especially by foregoing the hiring of staff. WT/BFA/209  
 
- 10 - 
 
  4.61.  The Member replied that it is important to find a middle ground and suggested monitor ing 
expenditure throughout the year via the quarterly reports without micromanaging. He suggested to 
amend the recommendation to read: " The CBFA recommended to the General Council that the 
Budgetary  Surplus as at 31 December 2021, amounting to CHF 6 million, be exclusively utilized to 
cover mandatory and unavoidable expenses. " 
4.62.  The Member  referred to in para graph s 4.23.  - 4.32.  above  replied that it was important to 
keep the element of transparency and that therefore it was not in a position to accept the 
recommendation by the previous Member. She pointed out that table 1 must be included to the 
recommendation. She also said that tran sfers between budget lines were an acceptable practice in 
many governments.  
4.63.  Another Member proposed the following new text : "Having considered table 1 of the document 
WT/BFA/W/614, the CBFA recommends to the General Council that the Budgetary Surplus as at 
31 December 2021, amounting to CHF 6 million, be exclusively utilized to cover mandatory and 
unavoidable expenses. " 
4.64.  The Member  referred to in para graph s 4.23.  - 4.32.  above  said that she needed to consult  
with her capital during the break.  
4.65.  Another Member expressed concerns that certain expenditure items would increase due to 
the use of the surplus and that this would be a permanent shift of the baseline.  
4.66.  Another Member suggested exclud ing the budget line for interpreters and moving it into the 
Working Capital Fund , and the proce eding with the rest of the table.  
4.67.  DDG Ellard assured Members that the use of the surplus would not represent a shift of the 
baseline. She also added that whether or the not the surplus fund was approved, the expenditure 
for interpreters will still be incur red. Because it had become the norm to conduct hybrid meetings, 
the expenditure ha s doubled.  
4.68.  Another Member returned to its proposal on the surplus and expressed concerns that some 
Members seek to amend the table. He added that it was important that the Secretariat be allowed 
to use the surplus to its full extent of CHF 6 million.  
4.69.  After the break, the Secretariat projected a recommendation based on proposals by several 
Members: "Having considered Ta ble 1 contained in document WT/BFA/W/614, the Committee on 
Budget Finance and Administration (CBFA) recommends to the General Council that the WTO 
Budgetary Surplus as at 31 December 2021, amounting to CHF 6 million, be exclusively utilized to 
cover mandat ory and unavoidable expenses ". 
4.70.  The Member who had made comments at paragraph 4.22.  reiterate d that his country is going 
through tough times and has  been faced with one catastrophe after another . He said , with regard to 
COVID -19, funds were diverted to the development of a vaccine a s the WTO was too long to come  
up with a treaty. He said, his country was then hit by floods , with one -third of the country 
underwater , and again with all funds going towards the relief efforts . He said his country is  pleased 
that during COP 27 , Members had taken note of the concerns o f vulnerable economies to climate 
change  and had agree d to develop a fund . He said he acknowledges that the amount of the 
budgetary surplus under discussion would not make much difference , although he said it could be 
shifted towards the contribution for the next year . He said such a decision would be a positive one 
from an organization that which talks about development  and sustainable development . He 
reiterated that his delegation remain s totally open -minded and  flexible to whatever the Members 
decide about the surplus, but he wanted all Members to consider  his delegation's concern s. 
4.71.  The Member said some Members had  raised some concerns with regard to information they 
sought . He said without commenting on that information  and its relevance, his delegation is of the 
view that transparency remains at the core of this Organization.  He said his delegation has complete 
trust and confidence in the Secretariat and believes  it is important for the Secretariat to provide  
informatio n that Members ask for to make a decision , with the exception of information that is laid 
out in the rules and procedures as being confidential or restricted.  He said his delegation has WT/BFA/209  
 
- 11 - 
 
  complete confidence in the Chair and the decisions that she would make  on this  issue, as well as the 
Secretariat , and on the impartiality and transparency of the DDG.  
4.72.  A Member thanked the Chair and the Secretariat for placing the formulation of  
recommendation in front of Members. She said it is a middle path between what her delegation and 
another  delegation had suggested . She thanked another delegation for the formulation. The Member 
said she concur s with the comments made by the previous Member, noting that  it is her delegation 
that had said it w ould like to preserve the aspect of transparency in making a ll its decision s. 
4.73.  The Member presented a drafting suggestion , which she said would not a lter the main 
recommendation . Specifically, s he said her delegation would like to insert a footnote  just aft er the 
second  line in the recommendation, and after the number 614 in the document reference : "The WTO 
Secretariat will make arrangements to provide the information  sought by a delegation during the 
discussion of the CBFA in relation to a certain expenditure title contained in Table 1. " The Member 
said that, with that addition, her delegation  will be amenable to join ing the consensus.  She said the 
addition is important because her delegation is  not expressly naming the kind of expenditure because 
it would give a lot of discomfort  to many countries . She said she presumes that when the Chair 
compiles her report to the General Council , she will be touching  on the concerns expressed by many 
delegations, including those that her delegat ion expressed in r elation to the particular expenditure  
title. 
4.74.  A Member said that his delegation is  extremely uncomfortable footnoting a recommendation 
in this way . He said he does not understand whether or not the delegation that had suggested the 
footnote  intends to add some conditionality to the recommendation  under discussion. He recalled 
that in the past , another delegation had questions during a budget process in which it required some 
clarification and that clear  and important clarification was includ ed in the minute s of the meeting , 
referencing an understanding . He said this  could be an example of how to proceed. He said he is  not 
clear on the value of a footnote other than to inject a certain ambiguity into the determination that 
is being made. He sa id his delegation is not in a position to grant one Member exclusive right to 
change its mind between now and the General Council  meeting . He asked whether the CBFA is in 
agreement with the recommendation or whether this footnote allows a caveat for the Member to 
come back later at the General Council and say that her delegation is  not satisfied with the 
information it received . He said  if it is purely just an indication that  there is a n expectation for an 
answer , then it can  be included in the mi nutes and referenced at the request of a Member , similar 
to past practice . He said he is very reluctant to entertain a drafting exercise with a footnote of this 
nature.  
4.75.  A Member thanked the Member that had suggested a footnote in paragraph  4.73.  above . He 
said even though his delegation had raised a similar issue during consultations , and while his 
delegation will be prepared to join a consensus , it would seek absolute transparency in  terms of the 
expenditure that is being proposed and also how the  surplus is going to be utilized in the next year . 
He said the issue of transparency , both relating to the items of expenditure and its actual utilization 
next year  through a proper reporting , is an essential part of this process . He said  proper reporting 
could be considered as a way  forward. He said he understand s the concerns that a Member had 
raised in paragraph  4.74.  regarding a footnote  reference, and said his delegation is not fixated with 
a footnote or any other type of suggestion . He said if there is flexibility on  the part of the Members 
whose comment s are reflected in para graph s 4.73.  and 4.74.   his delegation can look at ways in  
which  the concern of his delegation can be reflected.  
4.76.  A Member said he had been reflecting on t he costs of interpretation and that the use of 
Interprefy has become standard, even though it was originally an emergency measure during the 
pandemic . He noted that now this item is one of the biggest components of the  proposal from the 
Secretariat . He said he is quite sympathetic with the concern that wh ile this is a one-off expenditure 
in the surplus proposal, at the same time there is a structural component to the use of this platform.  
He said  it is important to come back to this issue  and said that the utility of the footnote is slightly 
puzzling . He said an alternative wo uld be that , through the Chair at a later moment , to hold a 
discussion on the costs of interpretation based  on a full -fledged analysis of the  Secretariat as to the 
costs for the different ways of working in this Organization . He said that he would not alre ady come 
to conclusions . He said the discussion ought to be open and frank and also examine the situation 
before the pandemic because this is one of the elements at stake . He said he is not suggesting that 
Interprefy  should not be used . He said,  on the con trary, Members  have more or less become addicted 
to it, especially colleagues in capital . He said that Members never had to discuss this because there WT/BFA/209  
 
- 12 - 
 
  were savings in other categories . He said th e proposal to use the surplus for this increased 
expenditure has been raised because savings are no longer available. He said that a way forward 
could be for Members to have a commitment in the report and from the Chair that this is an issue 
that should be part of the Committee's  work program for 2023, as today's meeting is the last meeting 
for 2022.  
4.77.  The Chair said she is open to any suggestion that helps the process, though at the end of the 
day, the decision  is for Members to make as to how to move forward . She said  if there is a need for 
more reflection , she can g ive some more time for this. She said her impression is that  it is important 
for some delegations to have more time for reflection . She  request ed that delegations  let the 
Secretariat know if they have any objection s to the recommendation by 6 p .m. on 
Monday  5 December . She said i f no objections are received by then, then the Committee would 
proceed on the basis that the recommendation had been endorsed by the Committee for submission 
to the General Coun cil for approval . She said if there are objections , they could be examined.  
4.78.  A Member asked for clarification regarding what the Committee was  deciding . He asked if the  
suggestion is to have a separate  table from the recommendation . He asked how the recommendation 
by a Member to have a footnote would be handled.  
4.79.  In response to the points raised in paragraph 4.78., the C hair said Members will continue to 
discuss t hese aspects through  informal consultatio ns. She said she would be reaching out to find a 
solution to that end , with full transparency , and will inform Members about an outcome or about a 
proposal, not a decision . She said that she gave a  deadline o f Monday 5 December to try to solve 
other proble ms in between . She said if there is no solution , the matter would be taken from that 
point onwards.  
4.80.  A Member that had made comments at paragraph  4.73.  asked that the proposed formulation  
that her delegation  had made  be circulated to all Members for the  purpose of transparency so that 
no one can say that they do not have them . She said all  formulation s of the recommendation ought 
to be given equal importance. She said if any Member has some reservation s on the formulation , 
this would be recognized . She said her delegation's formulation was the basis on which her capital 
had given her delega tion instructions to join the consensus. She said her country had a legitimate 
concern in seeking information from the WTO, and said that some M embers are opposing it . She 
reiterated her delegation's request that its formulation of the recommendation to be circulated to 
Members.  
4.81.  A Member made a point of order. He said his delegation is confused on how the Committee 
would proceed given that a Member had rejected the Chair's  proposal . He said Members now have 
competing proposals . He said there are concerns with silent procedures anyway and said a Member 
had already  voiced opposition or objection to the Chair's  suggestions . He said his delegation now  
know s that the Committee is not in a position to leave t he room with the understanding that 
delegations  would have until a date in the future to voice opposition . He said he does not understand  
the issues raised by the Member that commented at paragraph  4.80.  He said the meeting could be 
stopped at this point and that perhaps the Member could explain  her delegation 's concerns to him. 
He said  he does not like  to be accused of being non -transparent  and takes  issue with that  
characterization . He said thi s is not the first time that weapon has been wielded and that he thinks 
it is getting a little bit old.  
4.82.  A Member said  he is confused because  the proposed footnote basically says the Secretariat 
agrees to provide  information on a certain expenditure . He said this decision is going to the General 
Council on 19 December  and asked if this clarification will come before or after 19 December . He 
said if it comes before then , the footnote would not make sense to ambassadors at the General 
Counci l because they will wonder what it is about when information has already been submitted . 
Regarding the  text of the proposed footnote , the Member said this is very vague. He asked what "a 
certain expenditure " and "sought by a delegation " exactly mean s. 
4.83.  A Member said his delegation has a mandate from its capital to join the consensus . He said  
that before coming to that decision, his delegation had request ed additional information from the 
Secretariat . He expressed his delegation's appreciation for the ver y constructive help it had 
extended.  He said Members have a right to ask the Secretariat for information  and have informal 
meetings. He said addi ng a particular footnote  here or in any other paper  might have some WT/BFA/209  
 
- 13 - 
 
  implication on other occasions that do not have such  a footnote . He said from a systemic point of 
view, his delegation has an issue with adding a particular footnote on the  daily collaborations and 
information and help extended by the Secretariat on the exercise and the delivering  of the agenda 
of this or any other Committee.  
4.84.  DDG Ellard thanked the Chair and delegations that had intervened  for their  suggestions . She 
asked the proponent of the proposal to give clarification as to the information that it is asking the 
Secretariat to pro vide as it would be difficult to meet a Member 's expectation without knowing 
exactly what it is. She said she would appreciate it if the Member  could provide clarity.  
4.85.  The Member that proposed the footnote said her delegation is trying to be quite pragmatic . 
She respond ed to the comments that were made at paragraph  4.83.  , noting  that the reference in 
the footnote could be to her country, instead of to a delegation, and the reference to a certain budget 
item could be changed to state the  precise item. She said  the minutes do not normally cite a Member 
by name. She said the minutes could state that one delegation has a  concern about the line for 
temporary assistance and interpreters  in document WT/BFA/614 and is  seeking information from 
the Secretariat  for these . 
4.86.  In response to the request for clarification in paragraph  4.84.   , the Member said her 
delegation prepared a document after research on the WTO c alendar of events and  observed certain 
findings regarding how many regular meetings, negotiating meetings , and TNC meetings had been 
conducted.  She said her delegation would like to receive information on budgetary allocations based 
on the types of meetings and the total number of meetings held per category , including meetings 
that were organized by the WTO . She said the information ought to also indicate how many meetings 
were conducted  during working days and during  holidays . She said her delegation sent a copy of the 
kind of  information it is seeking from the Secretariat to the Chair and DDG Ellard over the lunch 
break . She said the document can be shared with the entire membership . She said the Secretariat 
has the document and know s precisely what information her delegation is asking for.  
4.87.  With reference to the comments made by a Member at paragraph 4.8 1., the Member said she 
is not accusing any delegation of transparency or non-transparency . She said that a lot of Me mbers 
are noting that transparency is important . She said she is lost as to why it creates issues for other 
Members when her delegation is asking for information, and what is the objection on the current 
instance when in some instances Members are vigorously advocating for transparency . She said her 
delegation is asking for information  so that it can make a very considered decision and would  like to 
join the consensus, but not with the formulation  that was presented to Members. She said that if 
Members are not willing to look at her delegation's  formulation , then the Committee will not have a 
consensus.  
4.88.  The Chair said she is not sure whether all delegations are fully aware of what  the Member 
that had spoken at paragraph 4.86.   is seeking from the Secretariat . She said that, for the sake of 
transparency, it could be helpful if the Member can  read out the information  her delegation is  
requesting so that this will be clearer to the Committee  and then send it to the Secretariat to circulate 
to all Members . 
4.89.  The Member said the d ocument is a two -page document . She said she would capture only the 
essence of the request , because of the time factor . She said her delegation would like an overview 
of meetings that took place on the WTO premises in 2022.  She said her delegation had raised this 
issue in both informal and formal meetings of the CBFA . She said her delegation's document makes 
reference to the di scussion that the Committee was having on the mid-term budget review regarding 
WTO meeting s. She said the meetings calendar is an online interactive tool to estimate how much 
time is allocated to multilateral issues and non -mandated issues , as it is accessible and categorizes 
meetings according to the WTO regular meetings  categories , regular  bodies, negotiating bodies , and 
other WTO events and meetings . She said these are the three categories on which her delegation is 
seeking information . She said o ther WTO events and meetings may include sub-categories such as 
book launches, seminars , symposi a, workshops, public for a, webinar s, and WTO holidays . She said 
the type s of meeting s can be regular meeting s, JSI meetings , and negotiating meetings under the 
Trade Negotiations Committee.  She said her delegation requires the total number of meetings held 
on the WTO premises during weekdays and the share of meetings per category, in percentage terms.  WT/BFA/209  
 
- 14 - 
 
  4.90.  The Chair asked the Member tha t spoke at paragraph 4.89.   to send her delegation's 
document  to the Secretariat, for circulation to Members. The Chair said it seems that more time  is 
needed to reflect on the proposal, although the Committee seems to be approaching a consensus . 
She suggested that, in view of the discussions that had taken place during the meeting in the 
afternoon, the Committee c ontinu e its deliberations on this matter, mindful that the deadline to 
submit a report to the General Council is 8 December . She said this deadline implies that Members 
will need a few days before then to give approval to the report . 
4.91.  The Chair said the meeting will be  resumed on Monday and an invitation will be circulated . 
She said i n the meantime , she would consult on this issue.  
4.92.  The meeting resumed on 5 December.  
4.93.  The Chair recalled the announcement that was made at the Committee's meeting on 
1 December and  that a document had been circulated at the request of a delegation to the Committee 
through  an email dated 2 December . 
4.94.  The Chair recalled that the Committee had a detailed discuss ion of  this topic during its meeting 
on 1 December.  She said some questions that were raised by some Members were clarified whilst 
also identifying common ground regarding the recommend ation to be made to the Ge neral Council.  
4.95.  The Chair then read out the recommendation that she had propos ed on 1 December to be 
made to the General Council : 
Having considered Table 1 contained in document WT/BFA/W/614, the Committee on 
Budget, Finance and Administration (CBFA) recommends to the Gen eral Council that the 
WTO Budgetary Surplus as at 31st December 2022, amounting to CHF six (06) million, be 
exclusively utilised to cover mandatory and unavoidable expenses.  
4.96.  She also recalled that a delegation had asked for its proposal to add a footnote t o the 
recommendation be circulated, which was done on 2 December. The Chair said over the weekend , 
she had a positive exchange with the delegation , and she said her hope is that the Committee might 
be able to find a good solution during the meeting. She sa id she and the delegation had an exchange 
about what should be contained in the CBFA Report of the meeting to the General Council. The Chair 
then read out the text that the delegation had requested be included in the report : 
"While noting that the WTO meetings are a major driver of the budget, because they cost 
staff time, interpretation and it is one of the justifications for increase in budget and the 
use of budget surplus, one delegation emphasized during the discussion of the surplus 
that expenses f or activities involving a subset of Members should be segregated from the 
expenses for meeting of the regular bodies and negotiating bodies of the WTO, so that 
Members could consider how those activities should be managed."  
4.97.  A Member said his delegation has  shown flexibility and the text that the Chair had just read 
out was requested by his delegation for inclusion on the CBFA report. He then read out the text 
again.  
4.98.   The Chair said she is open to including th is text in her report . 
4.99.  A Member said that as this  text is an expression from a Member regarding how the Member 
would like his delegation 's position  articulated in the report, it does not require the approval of the 
Committee . He asked that the text be read again to ensure that the Committee hears it prop erly, 
which the Chair did . 
4.100.   The Member that had made comments at paragraph 4.97.  asked that the text of the 
recommendation to be made to the General Council  be modified to include the following phrase, 
"…and acknowledging the ongoing exchange of information…"  
4.101.   The CBFA then endorsed the following recommendation to the made to the General Council , 
which includes the proposal that was made by the Member in paragraph  4.100.   : WT/BFA/209  
 
- 15 - 
 
  Having considered Table 1 contained in document WT/BFA/W/614 and acknowledging 
the ongoing exchange of information, the Committee on Budget, Finance and 
Administration (CBFA) recommends to the General Council that the WTO Budgetary 
Surp lus as at 31st December 2022, amounting to CHF six (06) million, be exclusively 
utilised to cover mandatory and unavoidable expenses . 
 
4.102.   The Chair thanked Members for their  engagement, flexibility , and patience over the 
weekend.  
4.103.   DDG Ellard conveyed her gratitude to Members for their flexibility and for understanding the 
difficult financial situation. She said she understands all the caveats that Members had indicated 
throughout the process. She said  the action that the Members had just taken would make a huge 
difference . She said she looks forward to continu ing to work with Members on the  budget.  
5  WTO 2022 -2023 MID -TERM BUDGET REVIEW – WT/BFA/W/607  
5.1.  The Chair recall ed that the proposal for a revised 20 23 budget is set out in document 
WT/BFA/607, and that the Secretariat also circulated document  WT/BFA/INF/16 containing 
responses to questions raised by Members. She said she and DDG Ellard also held a series of informal 
consultations  with some delegations  on the matter. She said, b ased on earlier discussions including 
the informal discussion at the CBFA meeting held on 8 November, her sense is that delegations 
require more time to consider some of the important elements contained in the proposal. She said 
she expect s that no decision will be arrived at during the meeting and that the discussion will 
continue next year in the context of  the 2024 -2025 budget.  
5.2.  DDG Ellard thanked the Chair. She said she did not have much to add given the fact that 
Members did not have a  consensus on the 2023 proposal by the Director -General for a budget 
increase . She said this would be moved into next year and a discussion  will be h eld in the context 
of a fresh proposal that the Director General would put forward with regard to the 2024 -2025 budget. 
She said if Members have any questions , she would be h appy to answer them, either at the meeting, 
in informal sessions , or privately . 
5.3.  The Chair p ropose d that the Committee defers  its discussion of the proposal set out in 
connection with the WTO 2022 -2023 Mid -term Budget Review. She further suggest ed that the 
Committee c ontinue those conversations in the context of the biennial budgeting process for 2024 -
2025.  She said in view of this, the approved budget for 2023, amounting to CHF 197,203,900, will 
remain unchanged. She said, as usual, this budget will be financed through assessed contributions 
and miscel laneous  income . The Chair  noted that the assessed contributions from Members for the 
2023 budget, totalling CHF  195,500,000, will be based on the updated trade statistics, as foreseen 
in Financial Regulation 12 and in keeping with routine practice every ye ar. 
5.4.  The Chair said the assessed contributions will not include the mid -term budget increase 
proposed by the Secretariat. She informed the Committee that a  document containing the 2023 
scale of contributions will be circulated to Members before the end of the day, with an express 
recommendation for its approval by the General Council.  She requested  the CBFA  to endorse a 
recommendation, which she read out dur ing the meeting, and which was projected on the screen.  
5.5.  A Member asked for clarification as to how the item was factored into the agenda of the 
meeting, while noting that the assessed contributions are relatively routine . He said his delegation  
has a  little discomfort  agreeing to something it has  never seen . He suggested that, as the Committee 
will be resuming its meeting on Monday, it could g avel th e recommendation on Monday  after 
Members have seen the document in question . 
5.6.  The Chair agreed to proceed as s uggested by the Member in paragraph 5.5.  
5.7.  After the meeting had resumed on 5 December, the Chair re introduced the 2023 scale of 
contributions.  
5.8.  The CBFA endorsed the following recommendation:  WT/BFA/209  
 
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  The Committee on Budget Finance and Administration (CBFA) recommends to the General 
Council to approve the 2023 scale of assessed contributions contained in Table 1 of the 
document WT/BFA/W/616.  
6  ORAL UPDATE ON THE SECRETARIAT TRANSFORMATION EXERCISE  
6.1.  The Chair recall ed that Deputy Director -General Ellard has provi ded helpful information and 
updates to Members regarding the Secretariat transformation exercise, including recently at the 
CBFA meeting held on 8 November.  
6.2.  DDG Ellard delivered the statement contained in  JOB/BFA/ 70, as follows:  
6.3.  I am pleased to provide you  with an update on the Secretariat's transformation exercise and to 
hear your comments. As I have done before, I will provide my speaking notes to you in writing 
following this meeting. Additional updates will be provided as developments warrant, and the 
transformation work will remain on the agenda for discussion at our meetings.  
6.4.  I have been providing you with Information Notes prepared by the Transformation Office 
setting out the detailed outcomes in specific areas as these are shared with WTO staff. No a dditional 
Notes have been distributed since our last meeting just over three weeks ago, but we anticipate that 
at least one more Note will be available before the end of the year.  
6.5.  Current transformation work continues to focus on implementing the outcomes approved by 
the Transformation Steering Committee. As I reported at our last meeting, progress is most 
advanced for Rewards Outside Promotion, Procurement, and Mobility. A revised policy on Rewards 
Outside Promotion was submitted to the Joint Advisory Comm ittee (JAC) earlier this month, after 
our last CBFA meeting, based on what was included in this Information Note circulated to Members 
on 23  September 2022. The JAC is composed of WTO staff, with half designated by the Staff Council 
and half by the Directo r-General. The Staff Regulations and Rules require the JAC to provide advice 
to the Director -General in connection with changes to personnel policies. Once the JAC has advised 
the Director -General on this new policy, the policy can be finalised and impleme nted. 
6.6.  Our Procurement Policy has also been revised to reflect new thresholds for low -value 
procurement, and the translations are being finalised so that the new internal policy can go into 
effect. These changes are consistent with what was included in the Information Note circulated to 
Members on 3  October 2022. This policy falls under the purview of Deputy Director -General in charge 
of Finance. To complement the new procurement policy, we are developing training programs for 
staff and Divisions involved in  procurement.  
6.7.  With respect to Mobility, we are also proceeding with arrangements for an internal mobility 
exercise for entry level staff who are already subject to mobility requirements under our current 
mobility policy, and on communications to increase a wareness of the benefits of mobility for 
individuals and for the Secretariat as a whole. We continue to pursue external mobility arrangements 
with other international organizations and have recently agreed to a revised MoU with the 
International Trade Cent re (ITC). Work is ongoing on revising our internal and external mobility, 
promotions process, and risk management policies, and developing a new recruitment policy.  
6.8.  As I reported at our last meeting, t he digital transformation work is at the stage of asses sing 
the possible costs and content of the use cases identified as priorities, and how they fit alongside 
other initiatives already being rolled out. This has been an ongoing process for the last several 
months. We anticipate further engagement with Member s as this workstream develops.  
6.9.  No steps have been taken with respect to strategy yet, as I have been reporting, because of 
the need for resources.  
6.10.  Thank you again for your constructive engagement with our transformation work.  
6.11.  I look forward to any comments or questions that you would like to share.  WT/BFA/209  
 
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  6.12.  DDG Ellard also provide d with an update on Director recruitment . She announce d the 
completion of the recruitment processes for the two Director positions in Human Resources and the 
Information and External Relations Division , IERD. 
6.13.  DDG Ellard said that the new Director of HRD will be M s Alison Holmes , a British and Australian 
national . DDG Ellard described her as an experienced HR manager  who has built an extensive 
international care er in HR and corporate leadership  in the UN system and the private sector , both 
as HR director and management consultant. Her areas of expertise include HR strategy and policy 
development, change management, workforce planning and organizational design, co mpensation 
and benefits, administrative law,  diversity and inclusion, social security, and talent management, 
among others . She is currently director of human resource management at UNAIDS and is 
responsible for managing human resources and activities in  initiatives in 60 offices worldwide. She 
will join the Secretariat in January . 
6.14.  DDG Ellard also announced that t he new Director of Information and External Relations 
Department is Mr. Ismaila Dieng, a Senegalese  National, who has over 20 years of experience in 
strategic communications . He is now the global ch ief of communications at UN Women in New York, 
where he is leading the operations of the Communications  team. Pr ior to joining UN Women , he 
served as deputy chief of media relations at the International Monetary Fund . He also had a stint at 
the African Development Bank and at Oxfam.  He will join the Secretariat in January . 
6.15.  A Member said his delegation appreciate s the ongoing updates. He said his delegation had 
observed that there are many external hires for director positions . He asked if , as part of the rewards 
and promotion and the transformation exercise, there is some examination given to the opportunities 
that current staff would need to meet the qualifications. He said his delegation would have thought 
that there would have been a strong number of internal candidates for the rang e of pos itions , not 
just the two that the DDG had mentioned, but the one that the Director -General  mentioned in the 
TNC as well. He said his delegation hopes that this consideration is also part of promotion s, which 
he noted is a critical element for staff  movement to senior levels.  
6.16.  A Member said,  in preparation of the negotiations for the next budgetary cycle next year, his 
delegation's view is that it is essential for the transformation work to t ransition away from the very  
important work that it is curre ntly doing and  move  to the strategic discussion , which his delegation 
has been mentioning quite a bit in the Committee.  He said the conversation ought to at least be 
initiated within the constraints of existing resources and staff. He said that given that the work of 
the Transformation Office will likely soon come to an end, one option would be for the Transformation 
Office  to switch over to working on strategy. He said s ome movement on this front is necessary to 
prevent a similar challenge the Committee faced in the discussions of the mid -term budget review , 
and he would not want to see this repeated next year. He said his delegation once more encourage s 
the Secretariat to initiate that process.  
6.17.  A Member said her delegation is also interested in the work on strategy . She said, if she  heard 
correctly at the TNC meeting the previous day, t he Director -General mentioned that the work on 
vision and strategy would start in January . She said, when possible, her delegation would  also be 
interested to hear more det ails, and in particular concerning the involvement of the CBFA.  
6.18.  DDG Ellard thanked the delegations who made comments . In response to the comments made 
at paragraph 6.15 . regarding the hiring of external candidates , DDG Ellard said she and t he Director -
General both feel that the staff at the WTO is excellent , and she thank ed the Member that had made 
the comments in support of the Secretariat  staff. She said t here were internal candidates considered 
for many of these posts . She reassured Members  that the sele ction of external candidates was based 
on the particular criteria and the particular new demands now being placed on some of these 
Divisions . She said she and the Director -General have a soft spot for internal candidates and hope 
that in future recruitments , they will succeed . She said that she anticipate s that there will be some 
retirements coming up, providing yet another opportunity to consider internal candidates. She said 
that with respect to vacancies at a level as senior as director , it has been long -standing WTO policy 
to issue an external vacancy notice so that all candidates , whether internal or external , can apply.  
6.19.  Responding to the question in paragraph 6.15 ., DDG Ellard said that the work on 
transformation relating to rewards and p romotions  is an important means to provide opportunities 
for staff to be eligible for and achieve Director status . She also noted the need to have staff advance WT/BFA/209  
 
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  in seniority through promotions to become eligible to apply for these positions. She noted that are 
limited to 30 per year and that Members have sought to un-invert the pyramid  staffing structure , 
which limits the opportunities for staff to move up senior levels where they might be eligible for 
consideration. DDG Ellard also said that m obility is another way in which the Secretariat  tries to 
provide more opportunities for staff so they can gain new experience.  She also pointed to the 
transformation category of career pathways, which  is perhaps one of the most significant ways in 
which the Secretariat  can try to create opportunities for staff to advance. She recalled that in 
previous Committee meetings , she had described to Members how the Secretariat  would move more 
senior staff into two tracks  – expert and management  – with the opportunity to move back and 
forth.  She also emphasized of the importance of providing appropriate training, noting  that the 
Secretari at has an enormously active learning centre in which many opportunities are provided for 
staff regularly and routinely , including coaching, to help them achieve their best potential.  
6.20.  In response to the comments made at paragraph 6.16 . and 6.17 . regarding strategy , DDG 
Ellard said she understand s the points that were made by the delegations about the need to start 
this discussion. She stressed that the Secretariat  will involve the CBFA  in that process. She noted 
the Secretariat is facing the reso urce challenge to find the adequate expertise . She said that it is not 
possible to simply transfer staff because of the level of expertise, objectivity, and credibility required.  
6.21.  Responding to the comment made in paragraph 6.17 . about the Director -General's statement 
at the TNC meeting the previous day, DDG Ellard said that the Director -General is expressing her 
commitment and hope that the Secretariat  will soon start identifying resources to use for strategic 
mapping, but that the high ly specialized nature of the work requires special skills.  DDG Ellard later 
noted that the TNC report shows that Director -General mentioned January in the context of other 
transformation activities, not strategy . She promised to keep Members updated  becau se of the 
importance that Members place on this issue.  
6.22.  The Committee took note of the statements and comments made.  
7  DRAFT ANNUAL REPORT OF THE CBFA TO THE GENERAL COUNCIL – WT/BFA/W/615  
7.1.  The Chair introduced the agenda item by stating that it relates to the activities of the CB FA for 
the entire year of 2022. She said the report contains a brief factual description of the activities of 
the CB FA, to be submitted for the General Council' s notation.  She said Annex 1 of the  draft annual 
report contains a list of all CBFA documents issued in 2022 , providing further information regarding 
the important work carried out by the Committee this year. She said this responds to a helpful 
suggestion made by a Member  at a meeting of the Committee  held earlier on in the year.  
7.2.  An Official of the Secretariat  said the draft annual report was circulated  to Members,  but that  
there are some elements  that have to be concluded during the ongoing CBFA meeting and later 
incorporated in to the report . In this regard, s he cited the  decisio n regarding the 2023 scale of 
contribution s and the decision  regarding the utilization of the 2021 budgetary surplus.  
7.3.  The Chair proposed that the Committee take note of the comments made and  that, as the 
Official of the Secretariat had described the draft annual report needs to be finalized  in the coming 
days. The Chair said it would then be submitted to the Committee  for final review before it is 
submitted to the General Council.  The Chair said the da te that the Committee needs to keep in mind 
is the 8th of December,  as this is the date on which documents have to be submitted to the General 
Council.  
7.4.  The Committee took note of the statements and comments made.  
8  REMARKS  AT THE END OF THE MEETING ON 1 DECE MBER  
8.1.  The Chair thanked Members for their participation and constructive effort s and said she remains 
hopeful for Monday.  
8.2.  Responding to a Member's question regarding the tim e of the meeting on Monday  5 December , 
the Chair said the meeting would begin at 10h00. WT/BFA/209  
 
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  8.3.  The Chair said the Committee would resume its meeting on Monday, adding that the Committee 
had not yet concluded agenda item D regarding the proposed utilization of the 2021 budgetary 
surplus. She said the Committee would be informed of the room in which the meeting would take 
place and reiterated that the meeting would be starting at 10h00.  
9  CLOSING REMARKS  ON 5 DECEMBER  
9.1.  The Chair recalled that the draft annual report of the CBFA, contained in document 
WT/BFA/W/615 , has to be finalized to reflect the  decision taken regarding the 2021 budgetary 
surplus and to incorporate the recommendation regarding the 2023 scale of contributions. She said 
the draft annual report will be circulated to Members on 5 December for their final review before it 
is submitted  to the General Council by its deadline on the 8th of December. She said any comments 
by Members must to be received by the Secretariat by noon on 7th December.  
9.2.  Noting that this is the final meeting of the CBFA in 2022, the Chair extended her best wishes 
to Members and their families for the end of the year. She said these wishes include Interpreters , 
and she thanked them for staying with Members beyond regular meeting times.  
 
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