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Info Service on WTO and Trade Issues (Dec22/18) Geneva, 20 Dec (D. Ravi Kanth) — India has apparently shown “the mirror” to Singapore and the World Trade Organization’s Director-General Ms Ngozi Okonjo-Iweala that the WTO’s surplus funds of CHF 6 million (more than 6 million in US dollars) from the previous year of 2021 cannot be availed of for extraneous purposes, without a comprehensive discussion. During the WTO’s General Council meeting on 19 December, India questioned the underlying rationale for using the surplus funds of CHF 6 million for improving audio-visual services, and on inflation-induced tariffs on water and electricity, without discussing the issue first, said people, who asked not to be quoted. India repeatedly argued that it is important to ensure the staff’s salaries and other benefits, dismissing the allegedly “baseless charges” made by Singapore at the meeting, said people, who asked not to be quoted. At the General Council meeting, the budget report presented by the WTO Secretariat appears to have suggested that the WTO DG has withdrawn her controversial proposal for a mid-term budget hike of more than CHF 15 million for 2023, SUNS was told. However, some members as well as the DG on 19 December allegedly and somewhat surreptitiously raised the issue of availing of CHF 6 million of surplus funds from 2021 for improving the audio-visual facilities, overcoming immediate inflationary pressures due to increased tariffs imposed by the Swiss government on water, electricity and other unspecified services, and for meeting the increase in the insurance premiums of the staff, said people familiar with the discussions in the General Council. During the discussion on the reports submitted by the Committee on Budget, Finance and Administration (CBFA), India said that while it is most important to ensure timely salaries and even premiums for the staff’s insurance policies, it called for a thorough discussion on how these surplus funds of CHF 6 million are going to be used. India said it would be prudent to discuss the need to use the surplus funds for some of the above activities before taking any decision at this juncture, said people who asked not to be identified. India also pointed out that in the WTO’s annual budget of CHF 197 million, the salaries and other funds for staff are already clearly earmarked, suggesting that it is wrong to say that the surplus funds are needed for the increase in insurance premiums, said participants, who asked not to be quoted. At one point during the discussion, India told the General Council (GC) chair, Ambassador Didier Chambovey from Switzerland, not to make “baseless insinuations”, as the GC chair allegedly suggested that India is questioning the use of surplus funds for staff’s salaries, said people, who asked not to be quoted. Singapore seems to have aggressively attacked India for holding hostage a decision on the use of surplus funds. Singapore was the first country along with Nigeria and Cameroon to support the DG’s mid-term budget review for increasing the WTO budget by more than CHF 15 million (close to 16 million in US dollars) for 2023. Several countries such as Switzerland, the United Kingdom, Japan, and the European Union apparently supported the move to avail of the surplus funds from the previous year. The DG also joined the discussion to press for availing of the surplus funds and apparently read out a long statement that seems to have been prepared beforehand to counter any objections from members, said participants asked not to be quoted. Surprisingly, the US, which had raised sharp concerns over the DG’s mid-term budget review, did not take the floor at the GC meeting. In response to the statements made by Singapore and several other countries, India countered their arguments by saying that the surplus funds cannot be used for unspecified services and other extraneous purposes, suggesting that it would be wise to have a thorough discussion before availing of these funds. India apparently said that for audio-visual services, the Secretariat can use funds from the CHF 24 million (more than 24 million in US dollars) building and renovation fund. India said that it is not stopping the use of surplus funds, emphasizing that it is important to have a thorough discussion on all essential and un-essential aspects. DG DROPS HER MID-TERM BUDGET PLAN Meanwhile, the DG appears to have suffered a major setback when she dropped her mid-term plan for increasing the WTO’s budget by 7.7% from CHF 197.2 million to CHF 212.45 million in 2023 due to continued opposition from several members. As reported in SUNS #9686 dated 10 November 2022, the DG’s proposal has continued to face fierce opposition from day one. After the DG dropped her mid-term budget plan, she and some countries attempted to use the surplus funds of CHF 6 million, apparently for servicing the Joint Statement Initiative (JSI) negotiations, said people, who asked not to be quoted. It remains to be seen if the issue will be raised again at the GC meeting on 20 December. +
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