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U.S. Suspends WTO Funding, Deepening Global Trade Uncertainty

The Trump administration halts contributions, leaving $25.7 million unpaid, as part of its 'America First' agenda, prompting operational challenges for the WTO and escalating trade tensions.

  • The United States has officially suspended financial contributions to the World Trade Organization, withholding $25.7 million in dues from 2024 and 2025 budgets.
  • The decision aligns with the Trump administration's broader strategy to reduce U.S. involvement in international organizations seen as conflicting with national interests.
  • As a result of unpaid dues, the U.S. has been classified under WTO rules in a restricted category, barring its representatives from presiding over WTO bodies or receiving formal documentation.
  • The WTO has activated contingency plans to manage operations despite the funding gap, with concerns about the organization's long-term capacity to function effectively.
  • The suspension coincides with U.S. plans to impose new tariffs on the European Union and Canada, further heightening global trade tensions and economic uncertainty.
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