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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.

Police officers guard the entrance of the headquarters of the World Trade Organization on the eve of the WTO Ministerial Conference in Geneva on June 11, 2022. (Photo by Fabrice COFFRINI / AFP) (Photo by FABRICE COFFRINI/AFP via Getty Images)
The WTO headquarters at the Centre William Rappard in Geneva, Switzerland

Overview

  • 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.