COMMUNICATION FROM THE UNITED STATES TO THE COUNCIL FOR TRADE IN GOODS REGARDING SYSTEMIC CONCERNS ABOUT THE SECRETARIAT PROPERLY INFORMING AND CONSULTING WITH MEMBERS PRIOR TO UNDERTAKING CERTAIN ACTIVITIES

Communication from the United States

The following communication, dated 25 March 2025, is being circulated at the request of the delegation of the United States.

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INTRODUCTION

Members may recall the discussions from the July and December 2024 meetings of the Council for Trade in Goods (CTG) regarding the extent to which the Secretariat was properly informing and consulting with Members prior to undertaking certain activities that are highly relevant to Members' work in the CTG and its sub-bodies. As was evidenced at those meetings, several Members have concerns about the Secretariat's activities and indicated an interest in potential further action. In addition, the United States is deeply concerned about the systemic implications that those activities are having on the CTG and its sub-bodies.

CONSIDERATIONS

We greatly value the work of the Secretariat as it seeks to serve Members. However, based on the concerns raised, it has become readily apparent that the Secretariat is moving away from its Member-driven purposes, and is attempting to re-invent itself into a resource to be provided to the public, regardless of Members' views or the impact that such activities may be having on Members' interests or budget contributions.

The United States has identified five specific categories of concerns that stem from the concerns raised by Members since this issue was first raised:

(1)     not coordinating outward facing activities, such as seminars, with all relevant Committees with functional knowledge of a topic;

(2)     not informing Members or seeking their approval, where appropriate, via relevant Committees before drafting and issuing reports covering a specific functional area;

(3)     creating substantive databases, in particular for outside use, that were not requested by or previously discussed with or approved by Members;

(4)     Secretariat staff participating as panelists at outward facing events without clearly stating that any comments made do not represent the views of the WTO or WTO Members; and

(5)     a lack of transparency concerning how Secretariat activities and research not approved by Members utilize WTO budget resources that are provided by Members.

As a result, we propose that Members create formal guidance and procedures that are specific to each category above that provide sufficient space for the Secretariat to operate, where applicable, but also the necessary guidance that the Secretariat currently lacks to ensure that the Secretariat's initiatives and activities are Member-driven.

Such guidance would consist of:

·_        Retrospective and prospective reporting on Secretariat activities to the relevant substantive bodies, especially those involving use of staff time, budget expenditure, and allocation of resources;

·_        An annual reporting requirement to the CTG, whereby the Secretariat would cover all activities and initiatives relevant to the CTG and sub-bodies. Such a report shall include:

ü_  Activities that were covered during the reporting period;

ü_  Activities that are being undertaken in the subsequent reporting period;

ü_  Activities that are being considered for future work;

ü_  Budget implications of such work, including costs, travel expenses, and staff time consumed; and

ü_  Disclosure of Committees and other bodies that were consulted before such work was undertaken and whether that work was approved, as appropriate, by the relevant Committees;

·_        Rules for when the Secretariat must seek Member input and approval prior to undertaking major initiatives, including drafting reports, and meetings; and

·_        For all panels and seminars in which Secretariat staff participate, a requirement that both the event and the Secretariat staff involved make clear that any comments made are not being made on behalf of the WTO, unless the Membership has approved of the content.

NEXT STEPS

We recognize that Members may need additional time to consider all of the above. We welcome any feedback or suggestions on what has been identified above, as well as any specifics to the guidance and procedures to be developed. Our intent is to approach this in a collaborative way with Members, as it is in all Members' interest to ensure that the Secretariat continues to serve Members in the most effective, transparent, and cost-efficient way possible.

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