The United States has suspended its financial contributions to the World Trade Organization (WTO), as the administration of President Donald Trump intensifies its initiatives aimed at reducing governmental expenditures.
The Trump administration is reported to be distancing itself from international institutions that it perceives as conflicting with its “America First” economic doctrine.
The administration intends to withdraw from certain organizations, such as the World Health Organization, and has reduced funding to others as part of a comprehensive reassessment of federal financial allocations.
It has been reported that the WTO has already been significantly impaired by a United States action in 2019 during Trump’s initial term, which obstructed the appointment of new judges to its highest appellate court, consequently rendering its essential dispute resolution mechanism only partially operational.
Moreover, the United States has alleged that the WTO Appellate Body has engaged in judicial overreach concerning trade disputes.
CREEBHILLS indicates that the Geneva-based trade regulatory body had an annual budget of 205 million Swiss francs (approximately $232.06 million) for the year 2024.
Per public documents from the WTO, the United States was scheduled to contribute approximately 11% of that budget, determined by a fee structure that correlates with its proportion of global trade.
On March 4, a United States delegate articulated during a WTO budget meeting that its financial commitments to the budgets for 2024 and 2025 were suspended pending a review of contributions to international organizations, and that the WTO would be informed of the results at a future, unspecified date.
At the time of this report’s compilation, the White House has not provided any commentary regarding this development.
According to a spokesperson from the State Department, President Trump enacted an executive order last month instructing Secretary of State Marco Rubio to conduct a review within 180 days of all international organizations of which the United States is a member, with the aim of assessing their alignment with U.S. interests.
