The United States has paused contributions to the World Trade Organization (WTO) as President Trump's administration seeks to cut government spending, according to three trade sources. This move reflects a broader retreat from global institutions perceived as conflicting with his "America First" policies.
In 2019, the US blocked new judge appointments to the WTO's appeals court, undermining its dispute resolution system. The WTO had a 2024 budget of 205 million Swiss francs, with the US expected to contribute about 11%.
During a March 4 budget meeting, a US delegate indicated that payments for 2024 and 2025 were on hold pending a review of contributions to international organizations. The WTO is preparing a "Plan B" in case funding is delayed further.
As of December 2024, the US owed US$25.7 million. Under WTO rules, countries that fail to pay dues for over a year face "administrative measures," and the US is currently classified in Category 1, meaning its representatives cannot participate in WTO bodies.
William Reinsch, a former US Commerce official, believes the US will eventually settle its WTO obligations. As of the end of 2024, five other countries were also in Category 1 arrears, with a total of 38.4 million Swiss francs outstanding.
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