2021 wto budget proposal1

RESTRICTED

WT/BFA/W/523/Rev.1

9 November 2020

(20-8002) Page: 1/20

Committee on Budget, Finance and Administration

2021 WTO BUDGET PROPOSAL1

Revision

1 Due to rounding of figures in various tables and summary charts, minor differences can result between

subtotals and totals.

WT/BFA/W/523/Rev.1

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TABLE OF CONTENTS

1 INTRODUCTION ......................................................................................................... 4

2 BUDGET PROPOSAL 2021 ........................................................................................... 4

2.1 Miscellaneous Income ............................................................................................... 6

2.2 Assessed Contributions from Members ......................................................................... 6

3 WTO CONSOLIDATED BUDGET PROPOSAL BY SECTION ............................................ 10

3.1 Part A - Staffing Resources ...................................................................................... 10

3.1.1 Staff Expenditure ................................................................................................. 10

3.1.2 Staff Remuneration .............................................................................................. 10

3.1.3 Other Staff Expenditure ........................................................................................ 12

3.1.4 Temporary Assistance .......................................................................................... 12

3.1.5 Consulting .......................................................................................................... 13

3.1.6 Panellists ............................................................................................................ 13

3.2 Part B - Other Resources ......................................................................................... 14

3.2.1 General Services .................................................................................................. 14

3.2.2 Telecommunication and Post ................................................................................. 14

3.2.3 Contractual Services and Maintenance .................................................................... 14

3.2.4 Energy and Supplies ............................................................................................. 15

3.2.5 Documentation and Publications ............................................................................. 15

3.2.6 Other/Miscellaneous ............................................................................................. 15

3.2.7 Travel and Hospitality ........................................................................................... 15

3.2.8 Implementing Partners ......................................................................................... 16

3.2.9 Capital Expenditure .............................................................................................. 17

3.2.10 Financial Expenditure .......................................................................................... 18

3.3 Part C - Operating Funds & ITC ................................................................................. 18

4 BUDGET BY OUTPUT CHAPTER .................................................................................. 19

4.1 2021 Budget Proposals by Output Chapter ................................................................. 19

4.2 Facilitating Negotiations .......................................................................................... 19

4.3 Administering Agreed WTO Rules .............................................................................. 19

4.4 Monitoring Trade Policies ......................................................................................... 19

4.5 Settling Disputes .................................................................................................... 19

4.6 Capacity Building .................................................................................................... 19

4.7 Assisting Accessions ................................................................................................ 20

4.8 Conducting Research .............................................................................................. 20

4.9 Reaching Out ......................................................................................................... 20

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TABLES AND FIGURES

TABLE 1 2021 BUDGET ESTIMATES .................................................................................... 4

TABLE 2 2021 BUDGETED INCOME ..................................................................................... 4

TABLE 3 2021 PROPOSED CONSOLIDATED WTO BUDGET ...................................................... 5

TABLE 4 2021 MISCELLANEOUS INCOME BUDGET ................................................................ 6

TABLE 5 SCALE OF CONTRIBUTIONS FOR 2021 .................................................................... 6

TABLE 6 SECTION 1: STAFF EXPENDITURE ........................................................................ 10

TABLE 7 STAFF PENSION AND POST-EMPLOYMENT BENEFITS .............................................. 10

TABLE 8 STAFF HEALTH AND INVALIDITY INSURANCE ........................................................ 11

TABLE 9 STAFF FAMILY AND INTERNATIONAL BENEFITS ...................................................... 11

TABLE 10 OTHER STAFF EXPENDITURE ............................................................................. 12

TABLE 11 SECTION 2: TEMPORARY ASSISTANCE ................................................................ 12

TABLE 12 SHORT-TERM STAFF ......................................................................................... 12

TABLE 13 CONSULTING .................................................................................................. 13

TABLE 14 PANELLISTS .................................................................................................... 13

TABLE 15 SECTION 3: GENERAL SERVICES ....................................................................... 14

TABLE 16 SECTION 4: TRAVEL AND HOSPITALITY .............................................................. 15

TABLE 17 SECTION 5: IMPLEMENTING PARTNERS .............................................................. 16

TABLE 18 SECTION 6: CAPITAL EXPENDITURE ................................................................... 17

TABLE 19 SECTION 7: FINANCIAL EXPENDITURE ................................................................ 18

TABLE 20 SECTION 8: CONTRIBUTIONS TO ITC AND SPECIAL RESERVES .............................. 18

TABLE 21 BUDGET PROPOSALS 2021 REVISED BY OUTPUT CHAPTER .................................... 19

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1 INTRODUCTION

1.1. As Members may recall, having been presented with the 2020/2021 budget in 2019, the General Council approved the 2020 WTO Budget and took note of the 2021 WTO Budget. It was agreed that the 2021 budget would be subject to finalization in 2020.

1.2. In keeping with the decision of Members, the Director-General is presenting the budget of the WTO for 2021.

1.3. The 2021 budget retains the zero nominal growth budget approach that has been in place since

2011. Some adjustments have been made to the 2021 budget allocations that were noted by Members in December 2019. These adjustments take expenditure patterns in 2020 into account including in the context of the ongoing effects of the COVID-19 pandemic and the cessation of active Appellate Body proceedings.

1.4. In view of the above, the tables for 2021 have been modified to show adjustments made to the 2021 budget figures that were presented to Members in late 2019.

1.5. As in previous periods, the financial situation will continue to be closely assessed and necessary

measures taken to exercise prudent and diligent management and stewardship of the Secretariat.

2 BUDGET PROPOSAL 2021

2.1. The Director-General hereby submits the budget proposal for the income and expenditure of

the World Trade Organization (WTO) for the year 2021. The budget proposal has been prepared in accordance with the Financial Regulations of the WTO (WT/L/156/Rev.3).

Table 1 2021 Budget Estimates

(in thousands of Swiss Francs)

Secretariat 2021 Consolidated Budget

WTO 178,961

ITC 18,243

Grand Total 197,204

Table 2 2021 Budgeted Income


Income 2021 Budgeted Income

Contributions from WTO Members 195,500

Miscellaneous Income 1,704

Grand Total 197,204

2.2. The proposed budget amount of CHF 197,203,900 for 2021 is to be funded as follows:

a. By contributions from Members amounting to CHF 195,500,000; and

b. By miscellaneous income estimated at CHF 1,703,900.

2.3. Members' contributions are assessed on the basis of annually updated trade statistics, in

accordance with Financial Regulation 12. Contributions from Members are considered due and payable in full on 1 January 2021.

2.4. Table 3 presents the budget for 2021 that was presented to Members in 2019 in column D,

adjustments made are shown in column E; and the Restated Proposed 2021 WTO Budget is shown in column F.

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Table 3 2021 Proposed Consolidated WTO Budget


Part

(Column

A)

Section

(Column B)

Budget Line

(Column C)

2021 Budget

Presented in

2019

(Column D)

Adjustments

(Column E)

Restated 2021

Budget

(Column F)

A Staffing

Resources

1. Staff

Expenditure i) Staff Remuneration 88,520 0 88,520

ii) Staff Pension & Post-

Employment Benefits 23,230 150 23,380

iii) Staff Health & Invalidity

Insurance 6,794 0 6,794

iv) Staff Family &

International Benefits 10,971 0 10,971

v) Other Staff Expenditure 1,900 0 1,900

2. Temporary

Assistance i) Short-Term Staff 9,850 0 9,850

ii) Consulting 5,818 306 6,124

iii) Panellists2 1,606 -306 1,300

A Staffing Resources Total 148,690 150 148,840

B Other

Resources

3. General

Services i) Telecommunication & Post 641 0 641

ii) Contractual Services &

Maintenance 11,163 450 11,613

iii) Energy & Supplies 2,066 0 2,066

iv) Documentation &

Publication 1,458 0 1,458

v) Other / Miscellaneous 48 0 48

4. Travel &

Hospitality i) Travel 7,393 600 7,993

ii) Hospitality 214 0 214

5.

Implementing

Partners

i) Implementing Partners 213 0 213

6. Capital

Expenditure

i) Procurement of Fixed

Assets 1,455 800 2,255

ii) Rental & Leasing of

Equipment 640 0 640

7. Financial

Expenditure i) Bank & Interest Charges 580 0 580

ii) Building Loan

Reimbursement 1,200 0 1,200

B Other Resources Total 27,071 1,850 28,921

C

Operating

Funds and

ITC

8.

Contributions

to ITC &

Special

Reserves

i) Contribution to ITC 18,243 0 18,243

ii) Appellate Body Operating

Fund 2,000 -2,000 0

iii) Ministerial Conference

Operating Fund 600 0 600

iv) Building Renovation Fund 600 0 600

C Operating Funds and ITC Total 21,443 -2,000 19,443

Grand Total 197,204 0 197,204

2 For details please refer to Table 14.

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2.1 Miscellaneous Income

Table 4 2021 Miscellaneous Income Budget


Item 2021

Budget

Contributions of Observer Countries 600

Sale of Publications & Royalties 270

Trust Fund - Allocation from Program

Support Fund3 190

Refund of prior year's expenditure 180

Rental of meeting rooms & office space 125

Other 339

Total 1,704

2.5. The miscellaneous income for 2021 is projected to be CHF 1,703,900.

2.2 Assessed Contributions from Members

2.6. The proposed assessed contributions from Members amount to CHF 195,500,000 for 2021. The following draft scale of contributions has been prepared based on a minimum possible contribution of 0.015% of the total budget as per Financial Regulation 12.

Table 5 Scale of Contributions for 2021

(in Swiss Francs)

Member

2020

Contribution

CHF

2020

Contribution

%

2021

Contribution

CHF

2021

Contribution

%

Afghanistan 44,965 0.023% 41,055 0.021%

Albania 41,055 0.021% 43,010 0.022%

Angola 379,270 0.194% 326,485 0.167%

Antigua and Barbuda 29,325 0.015% 29,325 0.015%

Argentina 719,440 0.368% 692,070 0.354%

Armenia 39,100 0.020% 41,055 0.021%

Australia 2,553,230 1.306% 2,521,950 1.290%

Austria 1,917,855 0.981% 1,927,630 0.986%

Bahrain, Kingdom of 238,510 0.122% 230,690 0.118%

Bangladesh 365,585 0.187% 391,000 0.200%

Barbados 29,325 0.015% 29,325 0.015%

Belgium 3,663,670 1.874% 3,587,425 1.835%

Belize 29,325 0.015% 29,325 0.015%

Benin 29,325 0.015% 31,280 0.016%

Bolivia, Plurinational State of 101,660 0.052% 99,705 0.051%

Botswana 72,335 0.037% 68,425 0.035%

Brazil 2,287,350 1.170% 2,189,600 1.120%

Brunei Darussalam 62,560 0.032% 54,740 0.028%

Bulgaria 318,665 0.163% 324,530 0.166%

Burkina Faso 33,235 0.017% 35,190 0.018%

Burundi 29,325 0.015% 29,325 0.015%

Cabo Verde 29,325 0.015% 29,325 0.015%

Cambodia 129,030 0.066% 140,760 0.072%

Cameroon 68,425 0.035% 66,470 0.034%

3 Programme Support Costs are charged at a rate of 13% of the direct costs incurred by Trust Funds

administered by the WTO. The amount is transferred to the Programme Support Fund (PSF). The WTO may

allocate a portion of the Programme Support Costs to Trust Funds that it manages with implementing partners.

Subsequently, 10% of the flows into the Programme Support Fund are transferred to the regular budget as a

contribution to overheads incurred.

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Member

2020

Contribution

CHF

2020

Contribution

%

2021

Contribution

CHF

2021

Contribution

%

Canada 4,838,625 2.475% 4,779,975 2.445%

Central African Republic 29,325 0.015% 29,325 0.015%

Chad 39,100 0.020% 39,100 0.020%

Chile 703,800 0.360% 684,250 0.350%

China 20,142,365 10.303% 20,419,975 10.445%

Colombia 531,760 0.272% 502,435 0.257%

Congo 70,380 0.036% 70,380 0.036%

Costa Rica 158,355 0.081% 162,265 0.083%

Côte d'Ivoire 109,480 0.056% 107,525 0.055%

Croatia 230,690 0.118% 232,645 0.119%

Cuba 129,030 0.066% 121,210 0.062%

Cyprus 123,165 0.063% 136,850 0.070%

Czech Republic 1,405,645 0.719% 1,431,060 0.732%

Democratic Republic of the Congo 113,390 0.058% 119,255 0.061%

Denmark 1,515,125 0.775% 1,509,260 0.772%

Djibouti 29,325 0.015% 31,280 0.016%

Dominica 29,325 0.015% 29,325 0.015%

Dominican Republic 168,130 0.086% 172,040 0.088%

Ecuador 218,960 0.112% 213,095 0.109%

Egypt 490,705 0.251% 496,570 0.254%

El Salvador 80,155 0.041% 80,155 0.041%

Estonia 175,950 0.090% 175,950 0.090%

Eswatini 29,325 0.015% 29,325 0.015%

European Union4 0 0.000% 0 0.000%

Fiji 29,325 0.015% 29,325 0.015%

Finland 862,155 0.441% 850,425 0.435%

France 7,466,145 3.819% 7,458,325 3.815%

Gabon 66,470 0.034% 64,515 0.033%

The Gambia 29,325 0.015% 29,325 0.015%

Georgia 70,380 0.036% 72,335 0.037%

Germany 13,976,295 7.149% 14,031,035 7.177%

Ghana 168,130 0.086% 172,040 0.088%

Greece 631,465 0.323% 635,375 0.325%

Grenada 29,325 0.015% 29,325 0.015%

Guatemala 148,580 0.076% 142,715 0.073%

Guinea 29,325 0.015% 31,280 0.016%

Guinea-Bissau 29,325 0.015% 29,325 0.015%

Guyana 29,325 0.015% 29,325 0.015%

Haiti 29,325 0.015% 29,325 0.015%

Honduras 76,245 0.039% 78,200 0.040%

Hong Kong, China 5,548,290 2.838% 5,575,660 2.852%

Hungary 1,008,780 0.516% 1,024,420 0.524%

Iceland 80,155 0.041% 86,020 0.044%

India 4,455,445 2.279% 4,510,185 2.307%

Indonesia 1,673,480 0.856% 1,657,840 0.848%

Ireland 2,619,700 1.340% 2,955,960 1.512%

Israel 856,290 0.438% 860,200 0.440%

Italy 5,075,180 2.596% 5,034,125 2.575%

Jamaica 50,830 0.026% 52,785 0.027%

Japan 7,673,375 3.925% 7,599,085 3.887%

Jordan 168,130 0.086% 164,220 0.084%

4 The European Union is not subject to contributions. However, its 27 members are assessed

individually. The total share of members of the European Union represents 30.45 % of the total assessed

contributions for 2021.

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Member

2020

Contribution

CHF

2020

Contribution

%

2021

Contribution

CHF

2021

Contribution

%

Kazakhstan 508,300 0.260% 461,380 0.236%

Kenya 125,120 0.064% 123,165 0.063%

Korea, Republic of 5,669,500 2.900% 5,577,615 2.853%

Kuwait, the State of 594,320 0.304% 568,905 0.291%

Kyrgyz Republic 37,145 0.019% 35,190 0.018%

Lao People's Democratic Republic 46,920 0.024% 52,785 0.027%

Latvia 160,310 0.082% 164,220 0.084%

Lesotho 29,325 0.015% 29,325 0.015%

Liberia 29,325 0.015% 29,325 0.015%

Liechtenstein 64,515 0.033% 62,560 0.032%

Lithuania 322,575 0.165% 310,845 0.159%

Luxembourg 999,005 0.511% 1,018,555 0.521%

Macao, China 258,060 0.132% 256,105 0.131%

Madagascar 33,235 0.017% 33,235 0.017%

Malawi 29,325 0.015% 29,325 0.015%

Malaysia 1,923,720 0.984% 1,896,350 0.970%

Maldives 29,325 0.015% 29,325 0.015%

Mali 35,190 0.018% 35,190 0.018%

Malta 148,580 0.076% 152,490 0.078%

Mauritania 29,325 0.015% 29,325 0.015%

Mauritius 56,695 0.029% 54,740 0.028%

Mexico 3,802,475 1.945% 3,884,585 1.987%

Moldova, Republic of 35,190 0.018% 37,145 0.019%

Mongolia 54,740 0.028% 56,695 0.029%

Montenegro 29,325 0.015% 29,325 0.015%

Morocco 361,675 0.185% 371,450 0.190%

Mozambique 66,470 0.034% 64,515 0.033%

Myanmar 127,075 0.065% 134,895 0.069%

Namibia 48,875 0.025% 48,875 0.025%

Nepal 50,830 0.026% 56,695 0.029%

Netherlands 5,732,060 2.932% 5,741,835 2.937%

New Zealand 465,290 0.238% 467,245 0.239%

Nicaragua 56,695 0.029% 54,740 0.028%

Niger 29,325 0.015% 29,325 0.015%

Nigeria 586,500 0.300% 543,490 0.278%

North Macedonia 56,695 0.029% 60,605 0.031%

Norway 1,348,950 0.690% 1,282,480 0.656%

Oman 365,585 0.187% 342,125 0.175%

Pakistan 357,765 0.183% 369,495 0.189%

Panama 252,195 0.129% 242,420 0.124%

Papua New Guinea 62,560 0.032% 60,605 0.031%

Paraguay 113,390 0.058% 113,390 0.058%

Peru 416,415 0.213% 418,370 0.214%

Philippines 768,315 0.393% 821,100 0.420%

Poland 2,228,700 1.140% 2,326,450 1.190%

Portugal 787,865 0.403% 803,505 0.411%

Qatar 746,810 0.382% 703,800 0.360%

Romania 725,305 0.371% 766,360 0.392%

Russian Federation 3,657,805 1.871% 3,407,565 1.743%

Rwanda 29,325 0.015% 29,325 0.015%

Saint Kitts and Nevis 29,325 0.015% 29,325 0.015%

Saint Lucia 29,325 0.015% 29,325 0.015%

Saint Vincent and the Grenadines 29,325 0.015% 29,325 0.015%

Samoa 29,325 0.015% 29,325 0.015%

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Member

2020

Contribution

CHF

2020

Contribution

%

2021

Contribution

CHF

2021

Contribution

%

Saudi Arabia, Kingdom of 2,162,230 1.106% 2,037,110 1.042%

Senegal 48,875 0.025% 50,830 0.026%

Seychelles 29,325 0.015% 29,325 0.015%

Sierra Leone 29,325 0.015% 29,325 0.015%

Singapore 4,744,785 2.427% 4,803,435 2.457%

Slovak Republic 780,045 0.399% 783,955 0.401%

Slovenia 310,845 0.159% 324,530 0.166%

Solomon Islands 29,325 0.015% 29,325 0.015%

South Africa 936,445 0.479% 905,165 0.463%

Spain 3,714,500 1.900% 3,782,925 1.935%

Sri Lanka 181,815 0.093% 187,680 0.096%

Suriname 29,325 0.015% 29,325 0.015%

Sweden 2,056,660 1.052% 2,037,110 1.042%

Switzerland 3,687,130 1.886% 3,573,740 1.828%

Chinese Taipei 3,286,355 1.681% 3,165,145 1.619%

Tajikistan 29,325 0.015% 29,325 0.015%

Tanzania 93,840 0.048% 87,975 0.045%

Thailand 2,404,650 1.230% 2,389,010 1.222%

Togo 29,325 0.015% 29,325 0.015%

Tonga 29,325 0.015% 29,325 0.015%

Trinidad and Tobago 107,525 0.055% 97,750 0.050%

Tunisia 191,590 0.098% 183,770 0.094%

Turkey 2,009,740 1.028% 2,050,795 1.049%

Uganda 52,785 0.027% 54,740 0.028%

Ukraine 561,085 0.287% 508,300 0.260%

United Arab Emirates 3,102,585 1.587% 3,059,575 1.565%

United Kingdom 7,399,675 3.785% 7,473,965 3.823%

United States of America 22,855,905 11.691% 22,949,745 11.739%

Uruguay 138,805 0.071% 130,985 0.067%

Vanuatu 29,325 0.015% 29,325 0.015%

Venezuela, Bolivarian Republic of 568,905 0.291% 559,130 0.286%

Viet Nam 1,583,550 0.810% 1,757,545 0.899%

Yemen 80,155 0.041% 78,200 0.040%

Zambia 86,020 0.044% 80,155 0.041%

Zimbabwe 52,785 0.027% 50,830 0.026%

TOTAL 195,500,000 100.0000% 195,500,000 100.000%

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3 WTO CONSOLIDATED BUDGET PROPOSAL BY SECTION

3.1. The Budget is divided into three parts: Part A - Staffing Resources; Part B - Other Resources; and Part C - Operating Funds & the International Trade Centre (ITC). Part C comprises the WTO's contribution to the budget of the ITC as well as the funding of the Ministerial Conference Operating

Fund and the Building Renovation Fund. In the following sections, the adjustments made to the 2021 WTO Budget, which was presented to Members in 2019, to arrive at the restated 2021 WTO Budget, are explained.

3.1 Part A - Staffing Resources

3.2. Staffing resources comprises the expenditure for staff funded through the regular budget. This includes salary, pension, health insurance, death and invalidity insurance, staff benefits, and expenditure related to travel on recruitment or separation, removal and installation. Expenditure for

short-term staff, consultants and panellists also fall under this part of the budget.

3.1.1 Staff Expenditure

Table 6 Section 1: Staff Expenditure


Section Line

2021 Budget

Presented in

2019

Adjustments Restated 2021

Budget

1. Staff

Expenditure i) Staff Remuneration 88,520 0 88,520


Employment Benefits 23,230 150 23,380

iii) Staff Health & Invalidity

Insurance 6,794 0 6,794

iv) Staff Family & International

Benefits 10,971 0 10,971

v) Other Staff Expenditure 1,900 0 1,900

Grand Total 131,415 150 131,565

3.1.2 Staff Remuneration

3.3. Staff Remuneration covers the expenditure for salaries of regular staff as well as overtime paid

to fixed-term staff and outstanding leave payments at separation from service. There are 645.5 approved posts to be funded from the regular budget. This number of posts has remained unchanged since 2012.

3.4. The allocation under Staff Remuneration is based on the established salary methodology (WT/GC/M/63) and the provision for the Performance Appraisal System (WT/GC/M/80) amounting to 2% of the budgeted base salary. A minimum vacancy rate of 6% of overall posts is required in

order to stay within budget. This budget allocation also allows for recruiting temporary staff as a replacement for vacant posts. The recruitment process for filling a post is quite long, involving an expression of interest, followed by an internal vacancy and afterwards an external vacancy, which can take between five and nine months before the new staff member is on the post. This budget

allocation is to be cross-referenced with paragraph 3.10 under Temporary Assistance.

3.1.2.1 Staff Pension and Post-Employment Benefits

Table 7 Staff Pension and Post-Employment Benefits


Line Account

Description

2021 Budget

Presented in 2019 Adjustments

Restated 2021

Budget


Employment Benefits Staff / Pension 19,355 0 19,355

Staff / Retiree Health

Insurance 3,875 150 4,025

Grand Total 23,230 150 23,380

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3.5. Staff Pension and Post-Employment Benefits relates to the WTO's pension contributions for regular staff as well as to the health insurance contributions for retired staff. The WTO pension contributions amount to 23.7% of the pensionable remuneration. Of this, staff members contribute 7.9% and Members contribute 15.8%.

3.6. The evolution of the health insurance premiums for retirees is driven by two elements: the actual increase of the premium and the increase in the number of retirees. The initially projected increase in the health insurance premium for retirees was 7%. Due to the COVID-19 crisis and the

projected increase in the number of retirements in 2021, the allocation to the premium has been revised upwards by 15% over 2020, an amount of CHF 150,000.

3.1.2.2 Staff Health and Invalidity Insurance

Table 8 Staff Health and Invalidity Insurance


Line Account Description

2021 Budget

Presented in

2019

Adjustments Restated

2021 Budget

iii) Staff Health &

Invalidity Insurance Staff / Health Insurance 6,297 0 6,297

Death and Invalidity

Insurance 497 0 497

Grand Total 6,794 0 6,794

3.7. Staff Health and Invalidity Insurance relates to the health insurance contributions for fixed-term staff and their dependents; death and invalidity insurance premiums; and insurance premiums for service-incurred accidents. No changes are projected compared to the budget

presented in 2019.

3.1.2.3 Staff Family and International Benefits

Table 9 Staff Family and International Benefits



2021 Budget

Presented in

2019


Budget

iv) Staff Family &

International

Benefits

Staff / Child Allowance 3,311 0 3,311

Staff / Spouse Allowance 1,609 0 1,609

Staff / Secondary

Dependence Allowance 340 0 340

Staff / Education Grant 4,062 0 4,062

Staff / Home Leave 1,336 0 1,336

Staff / Rental Subsidy 314 0 314

Grand Total 10,971 0 10,971

3.8. Staff Family and International Benefits include child allowance, spouse allowance and secondary dependence allowance, as well as rental subsidy, home leave and education grant for

eligible staff members. No changes are foreseen under this item.

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3.1.3 Other Staff Expenditure

Table 10 Other Staff Expenditure



2021 Budget

Presented in

2019


Budget

v) Other Staff

Expenditure Staff / Travel and Removal 474 0 474

Staff / Installation Grant &

Medical Examinations 285 0 285

Staff / Separation Grant 652 0 652

Staff / Negotiated

Termination Indemnity 140 0 140

Staff / US Taxes 350 0 350


3.9. Other Staff Expenditure includes the following elements for eligible staff: installation grant; negotiated termination indemnities; separation grants; expenditure for travel and removal at appointment and termination; and expenditure linked to a methodology differential on reimbursement of US taxes for staff liable to US taxes. No changes are foreseen under this budget

line.

3.1.4 Temporary Assistance

Table 11 Section 2: Temporary Assistance


Section Line 2021 Budget


Restated

2021 Budget

2. Temporary

Assistance i) Short-Term Staff 9,850 0 9,850

ii) Consulting 5,818 306 6,124

iii) Panellists 1,606 -306 1,300

Grand Total 17,275 0 17,275

3.1.4.1 Short-Term Staff

Table 12 Short-term Staff



2021 Budget

Presented in

2019

Adjustments

Restated

2021

Budget

i) Short-Term Staff Short-Term Staff / Salary 2,191 0 2,191

Short-Term Staff / Pension 725 0 725

Short-Term Staff / Health Insurance 200 0 200

Translators / Daily and Monthly 2,434 0 2,434

Translators / Special Service Contract 2,029 0 2,029

Interpreters 1,755 0 1,755

Interns 516 0 516


3.10. Short-Term Staff comprises gross salary of temporary staff as well as related pension and health contributions, untaken leave at termination and overtime and the remunerations for

translators, interpreters and interns. No changes are foreseen under this item.

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3.1.5 Consulting

Table 13 Consulting


Line Account Description 2021 Budget


Restated 2021

Budget

ii) Consulting Consulting Firms &

Employment Agencies 2,653 0 2,653

Special Service Agreement 1,009 306 1,315

Translators / External

Translator Contract 2,156 0 2,156

Grand Total 5,818 306 6,124

3.11. Consulting includes temporary assistance provided by companies such as employment

agencies and consulting firms, special service agreements with individuals and external translator contractors paid by the word translated.

3.12. The allocation to Consulting Firms & Employment Agencies mainly includes the budget for IT

consultants, the budget for the Human Resources Training Program and for the Technical Assistance related Activities. The allocation is not changed.

3.13. The appropriation under Special Service Agreement mainly includes individual consultants for Technical Assistance related training courses, the Human Resources Training Program, medical

consultants and IT consultants. It is increased for 2021 in order to provide funds for specific IT projects such as the Open Trade Data Initiative, the Human Resources information system, the implementation of virtual platforms for meetings and the development of Extensible Markup

Language (XML) based translation tools.

3.1.6 Panellists

Table 14 Panellists



2021 Budget

Presented in

2019


Budget

iii) Panellists Panellist Fees 815 485 1,300

Appellate Body Member

Fees 791 -791 0

Grand Total 1,606 -306 1,300

3.14. The budget for Panellist Fees includes special service agreements with panellists and related experts. Since the previous budget proposal was approved for 2020, the workload of the Legal Affairs and the Rules Divisions has continued to reflect the elevated level of dispute settlement activity

apparent in 2018 and 2019. As of mid-May 2020, there were 38 ongoing panel and arbitration proceedings at the WTO. In addition, WTO Members requested consultations in 19 new disputes in 2019, seven of which have already led to active panel proceedings in 2020. Over the past 12 months,

panels have been composed in 13 disputes, including one compliance panel. In addition, there is an arbitration going on pursuant to Article 22.6 of the DSU. A further five requests for the establishment of a panel are pending before the Dispute Settlement Body.

3.15. Because the current workload of the Rules and the Legal Affairs Divisions is similar to that witnessed in 2019, similar levels of expenditure are expected to arise from panel and arbitration proceedings over the next 12 months. However, panels' projected schedules may extend further into 2021 than originally planned as a result of the disruptions to travel resulting from the COVID-

19 pandemic. While panels and arbitrators are continuing their work, some meetings had to be postponed. Over half of the panels that are currently underway are still to hold a substantive meeting. Panels and Article 22.6 arbitrators are consulting with parties to explore options in response

to this situation. In some cases, for example, parties have been prepared to consider substituting a physical hearing with a written procedure. It can be expected that the solutions will differ in individual cases, also considering the different stages that work has reached in the respective proceedings. It

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seems apparent, however, that certain panels that initially planned meetings in coming weeks and months in 2020 have to delay their meetings until later in the year or into 2021. This could well lead to a situation of more panel meetings in Geneva in 2021 than were initially envisaged, which would consequently increase the expenditure on panellists' fees for the 2021 budget year.

3.16. The increased allocation for 2021 also takes into account that the expenditure in 2019 on panellists' fees exceeded the amount budgeted for by 29%. This is not only due to the large number of ongoing cases, but also reflects the wish of the Members/parties to avail themselves of non-

governmental officials as panellists.

3.2 Part B - Other Resources

3.17. Part B of the budget relates to expenditure for general services, travel and hospitality, activities jointly funded by the WTO and third parties, as well as capital and financial expenditure.

3.2.1 General Services

Table 15 Section 3: General Services


Section Line Account Description

2021 Budget

Presented in

2019

Adjustments

Restated

2021

Budget

3. General

Services

i) Telecommunication

& Post Telecommunication 324 0 324

Post & Freight 317 0 317

ii) Contractual

Services &

Maintenance

Contractual Services 7,509 150 7,659

Equipment Maintenance 2,012 300 2,312

Building Maintenance 1,433 0 1,433

Insurance 194 0 194

Rental of Premises 15 0 15

iii) Energy & Supplies Electricity 570 0 570

Water 54 0 54

Gas & Fuel 461 0 461

Supplies 981 0 981

iv) Documentation &

Publication Books 15 0 15

Subscriptions 385 0 385

Printing 140 180 320

Publications 618 -180 438

Media & Public Relations 300 0 300

v) Other /

Miscellaneous

Membership and

Registration Fees 15 0 15

Advertising 20 0 20

Other / Miscellaneous 13 0 13

Grand Total 15,376 450 15,826

3.2.2 Telecommunication and Post

3.18. Telecommunication and Post includes expenditure relating to fixed and mobile phones and

postal and freight services. No changes are projected in this area.

3.2.3 Contractual Services and Maintenance

3.19. Contractual Services refers to outsourced service contracts related to buildings, plant and equipment, the cleaning contract (CHF 0.9 million), the contract for the outsourced security provider

(CHF 3.6 million), the contribution to the International Computing Centre (CHF 1.97 million) and the IT Service Desk (CHF 1.1 million). The allocation for the contribution to the International Computing Centre is increased by CHF 150,000. This amount covers the allocation for the additional

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infrastructure for working remotely. Following the COVID-19 situation the capacity had to be increased from 100 virtual desktops to 700 virtual desktops. It also covers projects already started in 2020 such as the Public Key Infrastructure Service (PKI), the Security Awareness Service and the Skype for Business Telephony Service.

3.20. Equipment maintenance includes expenditure allocated for repairs and upkeep not related to the building such as IT equipment, security equipment, conference equipment and documents reproduction equipment.

3.21. The allocation under IT equipment maintenance is increased by CHF 300,000 for various planned IT projects detailed in the section on capital equipment (please see Chapter 3.2.9).

3.22. Building maintenance relates to the contracts for the maintenance and servicing of installations (maintenance of lifts, cooling units, fire detection etc.), various repair work such as

painting, flooring, plumbing, the maintenance and servicing of the heating system and the electrical installations, and the maintenance of the green spaces within the WTO security perimeter.

3.23. Insurance includes all building, vehicle, IT equipment, inventory and third-party insurance

expenditure.

3.24. The line rental of premises, relates to the rental of offices, conference rooms and storage facilities.

3.2.4 Energy and Supplies

3.25. This line includes electricity, gas, fuel, water expenditure and supplies for documents reproduction, IT and office supplies.

3.2.5 Documentation and Publications

3.26. Documentation and Publications relates to the purchase of books, subscriptions to magazines and newsfeed, the internal production of publications, the outsourced printing arrangements for publications, editing of publications, the cost of sales for publications and expenditure linked to the

rental of photography and filming services.

3.27. In the area of publications, the printing and the publications budget lines are re-aligned with actual and projected expenditure.

3.2.6 Other/Miscellaneous

3.28. Other/Miscellaneous includes expenditure for advertising for recruitment, membership and registration fees for staff training events and other expenditure of a general nature.

3.2.7 Travel and Hospitality

Table 16 Section 4: Travel and Hospitality


Section Line Account Description

2021 Budget

Presented in

2019


2021 Budget

4. Travel &

Hospitality i) Travel Air & Rail Transportation 4,878 600 5,478

Other Travel Related

Expenditure / Out of

Pocket

2,295 -1,400 895

Accommodation / Hotel /

Meeting Facilities 0 1,400 1,400

Insurance / Participants 220 0 220

ii) Hospitality Hospitality & Meeting

Refreshments 214 0 214

Grand Total 7,607 600 8,207

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3.29. Travel includes the cost of transportation, per diem and travel insurance for official missions, technical missions, trade-related technical assistance, as well as travel related to the Human Resources Training Program, travel for panellists, recruitment and external auditors.

3.30. The increase of CHF 600,000 under Travel is entirely dedicated to Technical Assistance Related

Training Activities. This increase aims at making up in 2021 what could not be implemented in 2020 due to the COVID-19 pandemic. Members and the WTO are facing an unprecedented situation, both with respect to measures adopted to address the immediate health aspects of the pandemic and to

the measures necessary to bolster economic recovery. In this context, the Secretariat feels that WTO-related technical assistance and capacity building have a special role to play in supporting efforts undertaken by beneficiary countries.

3.31. As a result, the Secretariat has been exploring how best to reschedule the planned face to

face activities once things get back to some normality. Apart from postponing some activities, the Secretariat is piloting virtual delivery of training activities starting with national activities. Therefore, in preparing for the delivery of such activities, potential beneficiaries have been consulted regarding

delivery modes, format and content of virtual training activities. During the consultation, it has become evident that there is a preference for face to face delivery leading to having to postpone some activities to 2021. This would entail increasing the funding available for 2021 TA activities

funded from the regular budget.

3.32. Based on the indications received so far, several Geneva-based courses funded from the regular Budget and postponed to 2021 would entail increasing the number of participants in such courses or increasing the number of such courses in 2021. These include the annual Advanced trade

Policy Courses; the Joint WIPO-WTO Advanced Course on IP for Government Officials; the Advanced Course on RTAs and WTO; the Course on Economic Analysis of Trade Policy; and, the Course on Import Licensing Notifications plus some 32 national activities postponed to 2021. Part of these

activities are proposed to be funded by the additional allocation of CHF 600,000.

3.33. Also in the area of the technical assistance related activities, the allocation under Other Travel

Related Expenditure and Accommodation/Hotel/Meeting Facilities is re-arranged in order to align the

expected expenditure under the Technical Assistance related training courses with the budget.

3.34. Insurance/Participants relates to the travel insurance for WTO staff on mission.

3.35. Hospitality covers the divisional hospitality budget as well as hospitality related to Technical Assistance training courses and the Human Resources Training Program.

3.2.8 Implementing Partners

Table 17 Section 5: Implementing Partners


Section Line Account

Description

2021 Budget

Presented in

2019


2021 Budget

5. Implementing

Partners

i) Implementing

Partners

Implementing

Partners 213 0 213

Grand Total 213 0 213

3.36. Implementing Partners covers activities or events partly or jointly funded by the WTO and executed by a third-party organization. Examples are the WTO's contribution to the running costs of the International Labour Organization Administrative Tribunal, the International Service for

Remunerations and Pensions of the Coordinated Organizations and the UN Joint Purchasing Unit, the International Organization for Standardization (ISO) for the publishing of the ISO/WTO Directory of Standardizing Bodies Accepting the WTO Code of Good Practice, certain professional networks, the

WTO Essay award and the contribution to the WTO Staff Assistance Fund. No changes are projected

under this line.

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3.2.9 Capital Expenditure

Table 18 Section 6: Capital Expenditure



Description

2021 Budget

Presented in

2019


2021 Budget

6. Capital

Expenditure

i) Procurement

of Fixed Assets

Office Furniture and

Equipment 75 0 75

Computing Hardware 630 0 630

Computing Software 300 800 1,100

Audio Visual &

Telecommunication

Equipment

250 0 250

Security Equipment 180 0 180

Reproduction

Equipment 0 0 0

Vehicles 20 0 20

ii) Rental &

Leasing of

Equipment

Rental and Leasing of

Equipment 640 0 640

Grand Total 2,095 800 2,895

3.37. Capital Expenditure includes the purchase of audio-visual and telecommunication equipment, computing hardware and software, office furniture, security equipment and other equipment as well as reproduction equipment.

3.38. The allocation for Computing Software is increased by CHF 800,000 to fund the development and implementation costs for the Human Resources Information System, the implementation of a tool to hold virtual meetings with interpretation services (such as Interprefy which was used during

the first virtual General Council). It is also designated for the extensible mark-up language (XML), a

machine-based translation and publishing tool to provide services to Members, and to bring develop and/or implement cross-divisional programs leveraging technology. These include:

i. the Open Trade Data Initiative, which will improve how trade data is collected,

processed and disseminated. This will contribute to transparency and consistency.

ii. Artificial Intelligence, which will be piloted to improve the work of Committees. In addition, remote interaction and collaborative platforms will be made available on the

Web and on mobile phones and there will be rapid Cloud development.

3.39. With respect to the extensible mark-up language-based (XML) translation and publishing tool, it can be highlighted that the current process of authoring and publishing documentation at the WTO is done with the use of MS Word templates; and the processing, translating, formatting and

publishing is still a print-centric approach. The only output is currently an MS Word and a static PDF with no accessibility features. Most work in the process in terms of quality checks is performed manually, is very repetitive in nature and therefore ripe for automation. The indexing is also currently

done manually, is incomplete and makes the retrieval of information a cumbersome task giving incomplete results.

3.40. Introducing XML-based tools will improve services to Members in that the production process

for documents will be faster, certain mistakes will be permanently avoided because of automated checks, and the documents will be available in different formats (from different PDF profiles to ePUB and HTML). Other benefits include a significant reduction of manual interventions in the workflow, for instance multiple cataloguing steps, seamless integration of content into translation tools,

resulting in an exclusively electronic, paperless workflow.

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3.2.10 Financial Expenditure

Table 19 Section 7: Financial Expenditure



Description

2021 Budget

Presented in

2019

Adjustments

Restated

2021

Budget

7. Financial

Expenditure

i) Bank & Interest

Charges Bank charges 580 0 580

ii) Building Loan

Reimbursement

Building Loan

Reimbursement 1,200 0 1,200


3.41. Financial Expenditure includes bank fees and negative interest charged by the banks as well

as the reimbursement of the interest-free building loan of CHF 60 million over 50 years.

3.42. The allocations remain unchanged.

3.3 Part C - Operating Funds & ITC

3.43. Part C of the WTO Secretariat budget is related to the contributions to the International Trade Centre, the Ministerial Conference Operating Fund and the Building Renovation Fund.

Table 20 Section 8: Contributions to ITC and Special Reserves

(in thousand Swiss Francs)


Description

2021 Budget

Presented in

2019

Adjustments

Restated

2021

Budget

8. Contributions

to ITC & Special

Reserves

i) Contribution to

ITC

Contribution to

ITC 18,243 0 18,243

ii) Appellate Body

Operating Fund

Appellate Body

Operating Fund 2,000 -2,000 0

iii) Ministerial

Conference

Operating Fund

Ministerial

Conference

Operating Fund

600 0 600

iv) Building

Renovation Fund

Building

Renovation

Fund

600 0 600

Grand Total 21,443 -2,000 19,443

3.44. The allocation to the budget of the International Trade Centre UNCTAD/WTO is in accordance with a decision taken by the contracting parties on 22 November 1967 (SR.24/14) and

Resolution 2297 (XXII) adopted by the United Nations General Assembly on 12 December 1967, effective 1 January 1968, to the effect that the ITC would be operated jointly by UNCTAD and GATT on a continuing basis. The WTO has since assumed the responsibilities of the GATT in this respect

(WT/GC/M/3, item 6). Details of the ITC budget proposal for 2021 are prepared by the ITC and considered in a separate document by the Committee on Budget, Finance and Administration.

3.45. The Appellate Body Operating Fund is not replenished in 2021 and the amount of CHF 2 million

that was initially allocated to it has been reallocated to other needs as indicated in earlier sections of this document. If a division of the Appellate Body can be established to hear an appeal, resources may be allocated from other budget lines which have been underspent.

3.46. The Ministerial Conference Operating Fund (MOF) was established in 1999 (WT/BFA/44) to

even out the budget allocation for costs associated with any given Ministerial Conference.

3.47. The Building Renovation Fund (BRF) was established at the end of 2015 in order to provide for the renovation costs for buildings and infrastructure over the medium- and long- term. The

necessary annual allocation estimated by the FIPOI (Fondation des Immeubles pour les Organisations Internationales) amounts to CHF 2.5 million. According to the guidelines of the

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Building Renovation Fund, a part of the savings realised on other budget lines can be used to increase the yearly allocation with the objective to reach CHF 25 million after 10 years of its establishment.

4 BUDGET BY OUTPUT CHAPTER

4.1 2021 Budget Proposals by Output Chapter

4.1. Members may recall that the Secretariat presented its first budget by Outputs in the biennium 2016-2017. The budget for 2021 represents the 6th budget by Output Chapter.

4.2. The expenditure for the 8 main Output Chapters is projected as follows:

Table 21 Budget Proposals 2021 revised by Output Chapter


Output Chapter 2021 Budget Presented in

2019

% of

total

Restated 2021

Budget

% of

total

1 Facilitating Negotiations 9,500 5% 9,500 5%

2 Administering Agreed WTO

Rules 44,500 23% 46,500 24%

3 Monitoring Trade Policies 28,000 14% 28,000 14%

4 Settling Disputes 39,000 20% 37,000 19%

5 Capacity building 42,000 21% 42,000 21%

6 Assisting Accessions 5,000 2% 5,000 2%

7 Conducting Research 15,500 8% 15,500 8%

8 Reaching out 13,704 7% 13,704 7%

Grand Total 197,204 100% 197,204 100%

4.2 Facilitating Negotiations

4.3. This output chapter includes all committees and negotiating groups related to Negotiations

such as the Trade Negotiations Committee and other negotiating bodies. The projected expenditure amounts to CHF 9.5 million for 2021.

4.3 Administering Agreed WTO Rules

4.4. This output chapter includes the Ministerial Conference, all committees related to the General Council and its Bodies, committees related to the Council for Trade in Goods and its Bodies, Committees related to the Council for Trade in Services and its bodies, and the Council for Trade-Related Aspects of Intellectual Property. The expenditure is estimated at CHF 46.5 million for 2021.

As a Ministerial Conference is planned for 2021, an increase of expenditure compared to 2020 is expected, as the expenditure is traditionally higher in a ministerial year.

4.4 Monitoring Trade Policies

4.5. This output chapter mainly comprises expenditure related to the WTO Trade Policy Review Body, Trade Policy Reviews and Trade Policy Monitoring, as well as Notifications on WTO Agreements. The expenditure is projected to be CHF 28 million for 2021.

4.5 Settling Disputes

4.6. This output chapter includes the Dispute Settlement Body, as well as pre-dispute activities, panels, appeals and arbitrations. The expenditure is estimated at a lower level than originally estimated in 2019 for 2021, due to the re-distribution of the funds for the Appellate Body Operating

Fund.

4.6 Capacity Building

4.7. This output chapter comprises all activity related to capacity building courses and training, the

Aid for Trade work program, trade and gender activities, the development and monitoring of the TA

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Plan. In addition, the contribution to the International Trade Centre is included under this Chapter. The expenditure is estimated at CHF 42 million.

4.7 Assisting Accessions

4.8. This output chapter includes all activities related to accessions. The expenditure is estimated

at CHF 5 million for 2021, which is in line with previous years.

4.8 Conducting Research

4.9. This output chapter relates to the WTO's publications such as the World Trade Report, the WTO

Annual Report and other kinds of research reports and papers produced, trade statistics and monitoring, as well as the support of WTO publications. The projected expenditure amounts to CHF 15.5 million for 2021.

4.9 Reaching Out

4.10. This output chapter includes all outreach activities of the WTO, such as general press relations, general outreach to Members and the private sector, key outreach events such as the Public Forum, the Open Day and the Aid for Trade Work Program, as well as work done with other international

organizations. The expenditure is projected at CHF 13.7 million for 2021.

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2021 wto budget proposal1

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