Method of calculation of contributions assessed on members of the wto



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METHOD OF CALCULATION OF CONTRIBUTIONS

ASSESSED ON MEMBERS OF THE WTO




  1. The Joint WTO/GATT Committee on Budget, Finance and Administration recommended to the General Council on 29 June 1995 a new methodology for the calculation of the assessment of Members’ contributions to the WTO budget (document WT/BFA/6-L/7633). The General Council had approved the recommendations on 15 November 1995 (document WT/GC/M/8). Among the recommendations of the Committee, were the following:

  1. The share to be contributed by each Contracting Party/Member to the annual operating budget of the GATT/WTO shall be established on the basis of that country’s (or separate customs territory’s) international trade (imports plus exports) in relation to the total international trade of all GATT Contracting Parties/WTO Members;

  2. The figures used shall be those for the last three years for which data are available;

  3. The statistics used shall relate to trade in goods1 services and intellectual property rights as reported in Balance of Payments statistics from the International Monetary Fund (IMF); with regard to services, the statistics shall relate to the definition of commercial services as applied in the WTO;

  4. Where IMF data deviate from IMF guidelines2 and include transactions not related to goods, services or intellectual property rights, adjustments provided to the WTO by the Central Bank or the National Statistical Office of a Contracting Party/Member shall be taken into account by the Secretariat when adequately documented and justified;

  5. If IMF data are not available, the WTO Secretariat will use estimates based on the best other available sources;

  6. A minimum contribution of 0.03 per cent will be applied to those contracting parties/members whose share in the total international trade of all GATT Contracting Parties/WTO Members is less than 0.03 per cent.

  1. Further, the Committee recommended on 14 December 1999 that the minimum contribution be fixed at 0.015 per cent (document WT/BFA/44). The General Council approved the recommendation on 17 December 1999 (WT/GC/M/52).

3. On 28 July 2000, the Committee, desiring to ensure a greater measure of homogeneity in the years for which statistical data are used for the calculation of contributions to the WTO Budget, and to minimize to the extent possible wide variations in contribution percentages from one year to the next, recommended to the General Council paragraph (b) of the recommendation of the Committee on Budget, Finance and Administration (paragraph 33, WT/BFA/6) approved by the General Council on 15 November 1995 (WT/GC/M/8) be amended (document WT/BFA/49). The General Council approved the recommendations on 10 October 2000 as follows (document WT/GC/M/58):

(b.1) Calculations of assessed contributions for the years 2001, 2002 and 2003 (which are prepared in the course of the respective previous year) shall be based on international trade statistics for the years 1996-1998, 1997-1999 and 1998-2000, respectively; or, if these statistics are not available, for the last three years for which statistics are available.

(b.2) Calculations of assessed contributions for at least the following ten years, i.e. 2004, 2005, 2006 to 2013, (which are prepared in the course of the respective previous year) shall be based on international trade statistics: for the years 1997-2001, 1998-2002, 1999-2003, etc. respectively; or, if these statistics are not available, for the last five years for which statistics are available.

4. Calculation of percentages involves the following operations:



  1. Determination of the threshold trade figure for the minimum contribution of 0.015 per cent (total trade of all Members x 0.015 per cent);

  2. Determination of Members whose trade value does not exceed that amount;

  3. Determination of the shares of the other Members, after the relevant adjustment of total international trade to take account of the incidence of countries paying the minimum of 0.015 per cent.

5. Changes in percentages from one year to another reflect relative variations in the international trade of the various Members concerned. Changes can also result from the accession of new Members which, by increasing the number of contributors, reduces the relative shares of Members not assessed at the minimum contribution.

1 Excluding gold held as a store of value (deposit money banks).

2


 Balance of Payments Manual, Fifth Edition, International Monetary Fund.


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