US Suspends Financial Contributions to WTO Amid Review of Global Commitments

The United States has temporarily halted its financial contributions to the World Trade Organization (WTO) as part of an ongoing review of federal spending under President Donald Trump’s administration. The move reflects the administration’s broader strategy to reduce involvement in global institutions perceived to conflict with its “America First” economic policies. The suspension aligns with a larger effort by the Trump administration to withdraw from or reduce funding to international organizations, including the World Health Organization (WHO).

This decision follows a 2019 U.S. action that hindered the WTO’s functionality by blocking new judge appointments to its appellate body. The stalemate left the WTO’s dispute settlement system partially inoperable. Additionally, the U.S. had accused the WTO Appellate Body of overstepping its judicial authority in handling trade disputes, further straining relations between the two parties. The WTO’s budget for 2024 is set at 205 million Swiss francs ($232 million), with the U.S. responsible for approximately 11% of the funding based on its share of global trade.

On March 4, a U.S. delegate informed the WTO that its payments for the 2024 and 2025 budgets would be on hold pending the completion of a review of contributions to international organizations. The outcome of this review will be communicated to the WTO at an unspecified later date. As of now, there has been no official comment from the White House on the matter.

In line with this review, Trump signed an executive order in February directing Secretary of State Marco Rubio to evaluate all international organizations in which the U.S. participates. The order mandates a 180-day review to determine whether these organizations align with U.S. interests, potentially leading to further reductions in international commitments.

Source: daily post