|
||
|
TWN Info
Service on WTO and Trade Issues (Oct20/19) Washington DC, 16 Oct (D. Ravi Kanth) – The United States and other major developed countries appear to have blocked, for the time being, the WTO’s annual budget of CHF 197, 204,000 for 2021 due to several concerns over the use of trust funds, and the allocation of funds for the dispute settlement system, including the Appellate Body (AB) as and when it is restored, said people familiar with the development. The WTO’s budget for 2020/2021 was presented in December 2019, when the WTO General Council approved the 2020 budget and took note of the budget for 2021. The 2021 budget is yet to be approved and it “retains the zero nominal growth budget approach that has been in place since 2011,” according to the documents seen by the SUNS. The budget for 2021 is placed at Swiss Francs 197,204,000 (more than US$215 million). “Some adjustments have been made to the 2021 budget allocations” and “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,” according to the restricted report (WT/BFA/W/523) issued in June 2020. The US had raised sharp concerns about the trust funds last year and it continues to raise similar concerns this year as well, a person said, referring to a restricted report (WT/BFA/188) issued by the Committee on Budget, Finance and Administration (CBFA) on 10 September. In the report of the CBFA meeting held on 10 September, it was noted that “a Member made observations and asked for clarifications on the following topics: the need for the examination and reform of trust fund management, specifically the review of its landscape, the monitoring and adherence to procurement policies, the cross-divisional distribution of management and the over-reliance on short-term L positions; and the lack of a standard recruitment process for consultants.” According to the report, “additionally, the Member expressed concerns over the Appellate Body performance audit explaining the expectation of a performance cost analysis which takes into consideration the Members’ inputs and assesses the appropriateness of the declared fees and expenses.” Further, “the Member noted that the External Auditors relied on previous information from the Office of Internal Oversight and he asked the Auditors to undertake their own review of the propriety of the fees and expenses claimed by AB members. He underscored that his delegation sought an assessment of the appropriateness of the declared fees and expenses, not just a review of the WTO’s procedures for processing claims. The Member also raised concerns around the overspending on Temporary Assistance and Short-term Staff as well as requesting an update on the case of fraud detected in 2017 including the measures implemented as a result.” Several least-developed countries, particularly Benin, raised sharp concerns over the delay in approving the budget, as it could severely affect the technical assistance and capacity-building activities, said a trade envoy, who asked not to be quoted. Meanwhile, India has suggested a cut in the budget for the WTO Secretariat on grounds that members are going through a difficult period and the Secretariat must remain sensitive to these difficult times, said a person, who asked not to be quoted. At the General Council (GC) meeting on 13 October, India’s trade envoy Ambassador Navnit Brajendra took the floor towards the end of the meeting to request a cut in the budget for the Secretariat due to current financial difficulties faced by members, the person said. The Indian trade envoy acknowledged at the GC meeting that his proposal would be “unpopular” with the WTO Secretariat, suggesting that it is a difficult time for members and the Secretariat needs to be sensitive to these difficult times, the person said, preferring not to be quoted. India’s statement was also mentioned at a town hall meeting of senior WTO officials and the staff on 15 October, where the Deputy Director-General Alan Wolff from the US said one WTO member had called for a cut in the budget for the Secretariat, said another person, who asked not to be quoted. The DDG also informed the staff that India’s request was not supported by any other member at the General Council meeting, the person added. The Indian request also comes at a time when the United States wants to look at every trust fund and contribution made by China and other industrialized countries. In the past, some industrialized countries had raised demands for cuts in funds for the Secretariat ostensibly for enhancing their oversight of taking control of each activity at the Secretariat, said another person, who asked not to be identified.
|
||
