Source: WTO
The United States has suspended its contributions to the World Trade Organization (WTO), according to three trade sources who spoke to Reuters, as President Donald Trump’s administration intensifies its efforts to reduce government expenditures.
The Trump administration is distancing itself from global institutions that it perceives as conflicting with its “America First” economic agenda. Plans are underway to withdraw from certain organizations, such as the World Health Organization, while also reducing contributions to others as part of a comprehensive evaluation of federal spending.
The WTO has already faced challenges due to a U.S. decision in 2019 during Trump’s initial term, which blocked the appointment of new judges to its highest appeals court, rendering its essential dispute resolution system only partially operational. The U.S. has accused the WTO Appellate Body of overstepping its judicial authority in trade matters.
In 2024, the Geneva-based trade organization had an annual budget of 205 million Swiss francs (approximately $232.06 million). The United States was expected to contribute around 11% of this amount, based on a fee structure aligned with its share of global trade, as indicated by public WTO documents.
During a budget meeting on March 4, a U.S. delegate stated that payments for the 2024 and 2025 budgets were on hold while a review of contributions to international organizations was conducted, and that the WTO would be informed of the results at an unspecified future date, according to two trade sources familiar with the meeting. A third source corroborated this information, noting that the WTO was developing a “Plan B” in anticipation of a prolonged funding suspension, although details were not provided.
All three sources requested anonymity due to the private nature of the budget meeting, and the U.S. funding suspension has not been officially announced.The White House did not respond promptly to requests for comment.
A spokesperson for the State Department indicated that last month, Trump signed an executive order instructing Secretary of State Marco Rubio to conduct a review within 180 days of all international organizations in which the U.S. participates, to assess whether they align with U.S. interests.
The spokesperson indicated that funding for the WTO, along with other international organizations, is currently being evaluated. An official from the U.S. Trade Representative’s office stated on Friday that the Secretary of State is undertaking a “general review of U.S. funding to all international organizations.”
The USTR is collaborating with the State Department regarding the WTO. Ismaila Dieng, a spokesperson for the WTO, noted that U.S. contributions were in progress but had been delayed due to a halt in payments to international agencies.
He explained that while arrears can affect the operational capacity of the WTO Secretariat, the Secretariat is managing its resources wisely and has strategies in place to function within the financial constraints imposed by any outstanding payments, directing further inquiries to U.S. authorities. As of the end of December 2024, the United States had outstanding payments amounting to 22.7 million Swiss francs ($25.70 million), according to a WTO document obtained by Reuters, which was marked “RESTRICTED” and dated February 21.
According to WTO regulations, any member that fails to settle its dues for over a year may face “administrative measures,” which are a series of increasingly severe penalties for unpaid fees. The U.S. is currently categorized in the first of three such classifications, as confirmed by two trade sources to Reuters, meaning its representatives are no longer permitted to lead WTO bodies or receive official documentation. It remains unclear whether the WTO has already implemented these measures against the United States.
William Reinsch, a former U.S. Commerce official now affiliated with the Center for Strategic and International Studies, expressed his belief that the U.S. would ultimately fulfill its financial obligations to the WTO. He noted that the Trump administration had nominated a U.S. ambassador to the organization, suggesting a continued interest in engagement.
WTO spokesperson Dieng stated that the chair of the budget committee had notified WTO members that the United States, along with several other nations, is currently classified as being in “Category 1 arrears.”
He emphasized that it is the duty of WTO Members to address the repercussions associated with these arrears. According to a restricted WTO document, by the end of 2024, five additional member countries—Bolivia, the Democratic Republic of Congo, Djibouti, Gabon, and Gambia—will also fall into this category.
The document indicated that there are outstanding contributions totaling 38.4 million Swiss francs, which includes unpaid fees from 2024 and previous years.
