RESTRICTEDWORLD TRADE
ORGANIZATIONWT/BFA/46
5 April 2000
(00-1386)
Committee on Budget, Finance and Administration
REPORT OF THE MEETING HELD ON 13 MARCH
1. The WTO Committee on Budget, Finance and Administration met on 13 March 2000 under
the chairmanship of Ms. L. Dubois-Destrizais.  The terms of reference and composition of the
Committee are set out in document WT/L/44/Rev.1.  The agenda contained in document
WTO/AIR/1262 was adopted with additional points from the delegation of United Kingdom and the
Secretariat under Other Business, regarding respectively the terms of employment of consultants, andthe renewal of external auditors and voluntary contributions from non-governmental sources.
I. WORK PLAN FOR 2000
2. The Chairperson referred to the document CRP(99)24 Rev.1 of 3 March 2000 on the
proposed schedule of meetings for 2000.  It included inter alia  the examination of:  (i) the Director
General’s Budgetary and Financial Report for 1999 and the Report of the External Auditors on the
1999 Account, (ii) the WTO and the ITC Budget estimates for 2001, and (iii) the method of
calculation of contributions of the WTO Members.  The Chairperson stressed that if, in the course of
the year, more meetings were required, or additional issues necessitated discussions or review, they
would be added to the proposed schedule.
3. A Member indicated the wish to be kept info rmed on the development of the merit pay, and
promotion systems.  Another Member indicated the wish to discuss efficiency savings and budget
format.  The Secretariat said that the question of internal auditor would be taken up in the Budget
Committee meeting in the course of this year.  The possible extension of the term for the current
external auditor would be discussed either in May or in June, and the realization of the 1999
objectives at the divisional level would be included in the Director General’s Budgetary and Financial
Report for 1999.  The Chairperson agreed that there would be much to gain if the WTO budget bepresented in a clearer and more systematic way, presenting priorities and activities, that could be
easily transmitted to the various capitals.
4. The Committee took note of the comments.
II ADMINISTRATIVE UP-DATES AND PROGRESS REPORTS AS AT
29 FEBRUARY 2000
A. C
ASH SITUATION AND STATEMENT OF OUTSTANDING CONTRIBUTIONS (CRP(00)01 AND
WTO/BFA/SPEC/43)
B. INSTALMENT PAYMENTS FOR COUNTRIES IN ARREARS (CONTRIBUTIONS FROM 1987
(CRP(00)02)
C. CONTRIBUTIONS OF OBSERVER COUNTRIES TOWARDS THE COST OF SERVICES PROVIDED BY
THE SECRETARIAT (CRP(00)03)
5. The Secretariat presented reports on the cash situation and statement of outstanding
contributions as at 29 February 2000, the instalment payments for countries in arrears, and theWT/BFA/46
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contributions of Observers countries towards the cost of services provided by the Secretariat.  The
total contributions received from Members amounted to CHF 48,157,761 while contributions received
from Observers amounted to CHF 141,773.  The Working Capital Fund stood at CHF 7,691,473.
Since 29 February 2000 Brunei Darussalam, Guatemal a, Luxembourg, Namibia, the Philippines and
South Africa had made payments.  As of 29 February 2000, there were three Members in Category Iand six in Category II, while in Category III there were seven and in Category IV, seventeen.  In the
context of the instalment payment for countries with contributions in arrears (contributions for 1987
and earlier years), Gabon had paid all arrears and was, therefore, no longer listed under the
administrative measures.  With regard to Observers, Jordan had made a payment after
29 February 2000.
6. The Secretariat recalled that payment from a Member has first to be credited against the
oldest arrears starting with 1988 and that no penalties were attached to pre-1988 arrears.
7. The Committee took note of the reports.
III. INACTIVE MEMBERS
8. Following the recommendation of the Preparatory Committee of the World Trade
Organization on the issue of Members in category IV of the administrative measures, the Secretariat
prepared a list of Members which have accumulated as at 29 February 2000 three or more years of
arrears up to and including the financial year of 1999 (WT/BFA/W/37).
9. Consequently, in accordance with paragraph 7(b) of document PC/7, L/7578, the Committee
recommends to the General Council that the following Members be urged to liquidate their arrears:
Antigua and Barbuda Guinea-Bissau
Burundi Mauritania
Central African Republic Niger
Chad Rwanda
Congo Sierra Leone
Democratic Republic of the Congo Togo
Djibouti Uganda
Gambia ZambiaGuinea
IV. METHOD OF CALCULATING ASSESSED CONTRIBUTIONS TO THE WTO
BUDGET
10. The Chairperson recalled that during last year ’s meetings when the Committee examined the
budget estimates for 2000, some Members expressed concerns with regard to the variations of
percentage, from one year to another, which served as basis of calculating the assessed contributions
of Members.  To this end, the Secretariat prepared a document CRP(00)04 which summarised the
method of calculating assessed contributions to the WTO budget.  The Chairperson proposed toestablish a Working Group to examine the matter.  It was noted that the Working Group would be
opened to all Members who wished to participate.  Members were requested to inform the Secretariat
on the specific points that they would like to ex amine within the framework of the Working Group.
Members wishing to participate in the Working Group should also inform the Secretariat.  The
Chairman elect would consult with regard to (i) the chair and (ii) the mandate of the Working Group.WT/BFA/46
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V. OTHER BUSINESS
TERMS OF EMPLOYMENT OF CONSULTANTS
11. A Member of the Committee took the floor and requested information on the following: (i)
from what part of the budget are consultancies financed? (ii) Who was responsible for determining the
salary level at which consultants are employed? (iii) Are there any objective criteria used for
determining the salary level at which consultants are employed? (iv) How many consultants have
been employed at a salary equivalent to that of a grade 12? And (v) Who are the consultants, if any,
who have been employed at a grade 12 level in the last year and what are the tasks which had been
entrusted to them?  In the course of the ensuing discussion, the Member of the Committee said that he
would provide the questions to the Secretariat in written form.
12. Other Members also expressed their interest to receive the above mentioned information and
added that they would like to know the duration of contracts offered to the consultants.  The
Secretariat said that it would respond to the request prior to the next meeting of the Committee on
Budget, Finance and Administration scheduled in May.
EXTERNAL AUDITOR13. A member of the Secretariat recalled that the Netherlands Court of Audit was nominated to
audit the WTO accounts effective as from the audit of the 1997 accounts for a period of three years.The minimum period of appointment was three years with a possibility of an extension of two years,
which would lead to a call for tenders every five y ears.  The Court of Netherlands would be sending a
letter to the Secretariat informing the latter of its intention in this respect.  The matter would be taken
up at the next meeting of the Committee.
VOLUNTARY CONTRIBUTIONS FROM NON-GOVERNMENTAL SOURCES
14. The Deputy Director General responsible for Budget, Finance and Administration recalled
that informal consultations had taken place in January on the subject.  He said that while the Financial
Rules and Regulations provided for the acceptance of such contributions, it was felt that further
guidelines should be established, given the specific role of the WTO in trade-related matters.  He
indicated that the Director General intended to submit guidelines in this regard to the GeneralCouncil.  The Committee would revert to the issue.
VI. FOLLOW UP ACTION ON ITC 2000 BUDGET
15. The Deputy Executive Director of ITC made an introductory statement indicating that the
budget for the year 2000, which had been approved by the Committee last year, included the cost of
three posts proposed for reclassification.  He then recalled that, at the time of the approval of the ITC
budget estimates, two Members requested that the Committee revert to the question of the three
proposed reclassifications in early 2000.  A co nference room paper  (CRP ITC/B UD/31) was
submitted to the Committee summarizing the situation.
16. Two Members requested clarification on ITC's policy regarding post reclassifications in
general, as they were concerned that the upgrading of posts might lead to cost increases and to a top
heavy staffing pyramid.  In their view, upgradings should be offset by downgradings.  Furthermore,
they asked whether the proposed reclassifications might lead to other reclassifications in the sameareas.  The Deputy Executive Director explained that the overall policy of reclassification was that
when a post was vacated, it was submitted automatically for classification review.  If the exercise
resulted in a level that could not be accommodated within the existing organizational post structure, it
could be implemented only subject to budget clearance.WT/BFA/46
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17. A few years ago, there was a major review of the organizational structure of ITC.  As a result
of this exercise, there were several confirmations and reclassifications - upgradings as well as
downgradings - identified, which were accommodated with in the existing structure.  He also clarified
that for budgetary purposes, while General Service category posts up to the G-6 level were lumped in
one single group, G-7, Professional and above grad es, were budgeted individually.  Furthermore, he
confirmed that the proposed reclassifications would not lead to other reclassifications in the same
areas.  Following up on the request of one Me mber, he explained briefly the UN process of
performance reporting to the General Assembly, on the implementation of the first year of the
approved biennium (2000-2001).
18. The Committee took note of the comments and explanations and approved the
implementation of the proposed reclassifications.
VII. ELECTION OF CHAIRPERSON
19. The Chairperson recalled that the Chairman of the General Council had carried out informal
consultations on the appointment of Chairpersons to the different WTO standing bodies in accordancewith the established guidelines for the appointment of such officers.  On the basis of the
understanding reached, Ms. Dubois-Destrizais proposed that the Committee on Budget, Finance and
Administration formally elect Mr. Hakki Akil of Turkey as Chairperson by acclamation.  The
Committee so agreed.
POINT FOR DECISION: Paragraph 9
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