WTO move reaches crunch time

The Centre William Rappard, current headquarters of the World Trade Organization Keystone

Negotiations over a new home for the World Trade Organization (WTO) in Geneva are reported to have entered a critical stage.

According to the Neue Zürcher Zeitung newspaper, the WTO could quit Switzerland unless the government pays up to SFr400 million ($330 million) to provide it with suitable premises in the city.

Both the Swiss government and the WTO have refused to comment on Wednesday’s newspaper report but it is no secret that the world trade body wants to house all its 700 staff under one roof.

Its current headquarters on Lake Geneva are too small to accommodate everyone and personnel are split across two sites.

The Swiss foreign ministry has been negotiating with the WTO since December to resolve the situation but, according to the NZZ, talks have now reached crunch time.

The newspaper claims the WTO is asking for a no-strings-attached payment of SFr300-400 million from the Swiss government to finance its new headquarters, otherwise it could move to Hong Kong or Singapore.

Typically, the government-funded Building Foundation for International Organisations offers interest-free loans over 50 years to those wanting to be based in Geneva.

Keith Rockwell, spokesman for the WTO, declined to comment on the NZZ article but told swissinfo that “the situation with respect to office space has not been sufficient for a while”.

He said discussions had been going on at various levels for some time but no site had been chosen. Rockwell added that a final decision would be taken by the WTO’s 150 member states.

Sole objective

“The director-general [Pascal Lamy] has been having discussions with the Swiss and what he has said is that whether it’s a new site, whether it’s a refurbishment of the existing site, his sole objective is to get everybody under one roof,” Rockwell said.

Questioned on the subject on Wednesday, Swiss Economics Minister Doris Leuthard insisted that both her department and the foreign ministry were keen to ensure the WTO stayed in Geneva.

Lars Knuchel, spokesman for the foreign ministry, said the WTO was an important pillar of international Geneva and its need for more office space was well known.

He said the cabinet had mandated the foreign ministry in December last year to talk to the WTO to try to find an acceptable solution that would then be presented to the government for approval.

“At this moment discussions between the WTO, the foreign ministry and the Geneva authorities are underway and these discussion mainly revolve around the issues of additional space, the needs of the organisation and their financing,” Knuchel said.

swissinfo, Adam Beaumont in Geneva

In brief

The Building Foundation for International Organisations receives funding from the Swiss government and canton Geneva.

In principle the government provides interest-free loans, while the canton provides land on a leasehold basis, also on a favourable basis.

Since its creation in 1964, the foundation has financed the purchase or construction of buildings for a total of SFr974 million. International organisations had repaid SFr489.4 million up to December 31, 1999.

Key facts

The WTO was formed in January 1995.
It has 150 member states.
Its budget for 2007 is SFr182 million.