United States suspends financial contributions to the World Trade Organization

Picture of By Ops_Intels
By Ops_Intels

3 months ago

United States suspends financial contributions to the World Trade Organization
A logo is pictured on the headquarters of the World Trade Organization (WTO) in Geneva, Switzerland, June 2, 2020.

The United States has suspended its financial contributions to the World Trade Organization (WTO), according to multiple trade sources. This decision aligns with President Donald Trump’s “America First” policy, aiming to reduce government spending and reassess support for international organizations.

The WTO, headquartered in Geneva, operates with an annual budget of 205 million Swiss francs (approximately $232 million). The U.S. was expected to contribute about 11% of this budget, reflecting its share of global trade. As of December 2024, the U.S. had accumulated arrears of 22.7 million Swiss francs (around $25.7 million), placing it in “Category 1 arrears.” This status restricts U.S. representatives from presiding over WTO bodies or receiving formal documentation.

A U.S. delegate informed a WTO budget meeting on March 4 that payments for the 2024 and 2025 budgets are on hold pending a comprehensive review of contributions to international organizations. The delegate indicated that further information would be provided at an unspecified date.

This funding suspension is part of a broader strategy by the Trump administration to retreat from global institutions perceived as inconsistent with U.S. economic policies. Previously, in 2019, the U.S. blocked new judge appointments to the WTO’s appellate body, impairing its dispute settlement system..

The WTO is developing contingency plans to address potential prolonged funding pauses, though specific details have not been disclosed. As of the end of 2024, five other member countries—Bolivia, Democratic Republic of Congo, Djibouti, Gabon, and Gambia—were also in arrears.

Share this News:

Author

Picture of By Ops_Intels
By Ops_Intels

Ops Intel is your go-to source for the latest news on global conflicts, intelligence, geopolitics, and international affairs. Stay updated with real-time reports and expert insights

See Other Updates