WTO: 2024 Budget Deal

World Trade Organization members have agreed to a 3.6% percent hike in the WTO’s regular budget for 2024, an increase of about CHF 7.09 million (approximately $7.1 million) from CHF 197.2 million in 2023 to approximately CHF 204.29 million in 2024.

During the meeting, Russia seemed to have joined the consensus for increasing the budget, as it did not raise any flag. The budget proposal appears to have been worked out by the European Union, said people familiar with the development.

Though the Secretariat sought an almost similar increase for 2025, the issue has been deferred to next year.

A separate proposal for increased contribution to the WTO Pension fund of CHF 4.4 million (around $4.5 million) was turned down by India, Indonesia and Russia till the Secretariat carries out substantial reforms, said people familiar with the development.

A proposal for an additional 3.6 percent budget increase for 2025, was put off for discussion until next year.

Contributions

The United States, given its overall share in international trade both in goods and services, will have to pay CHF 23.70 million in 2024 as compared to its contribution of CHF 22.80 million this year. China, according to the EU’s proposal, will be required to pay CHF 23.20 million in 2024 as compared to CHF 21.03 million this year.

Germany would be required to pay CHF 14.84 million in 2024, as compared to CHF 14.06 million this year.  Japan, which is currently contributing CHF 7.4 million, will be required to pay CHF 7.6 million in 2024.  

India’s contribution will go up by almost CHF 400,000 in 2024, from CHF 4.57 million to CHF 4.96 million, while Malaysia’s contribution will go up by about CHF 100,000, from CHF 1.83 million this year to CHF 1.927 million in 2024, according to the EU’s proposal.

It appears that the United States and India still have several unanswered questions, said negotiators involved in the budget discussions.  

As regards an increase in the contributions to the WTO’s pension fund, India and Indonesia appear to have conveyed their disapproval of the pension hike saying unless the WTO undertakes deeper pension reform, it will not agree to an increase at this juncture, said a person who asked not to be quoted.