The United States has paused contributions to the World Trade Organization, WTO, as President Donald Trump's administration ramps up efforts to cut government spending.
The Trump administration is said to be retreating from global institutions it sees as at odds with his “America First” economic policies.
The administration plans to quit some, such as the World Health Organization, and has cut contributions to others as part of a broad review of federal spending.
It was gathered that the WTO has already been hobbled by a US move in 2019 during Trump's first term to block new judge appointments to its top appeals court, which left its key dispute settlement system only partially functional.
Also, the US had accused the WTO Appellate Body of judicial overreach in trade disputes.
DAILY POST reports that the Geneva-based trade watchdog had an annual budget of 205 million Swiss francs ($232.06 million) in 2024.
According to public WTO documents, the United States was due to contribute about 11% of that based on a fees system that is proportionate to its share of global trade.
On March 4, a US delegate told WTO budget meeting that its payments to the 2024 and 2025 budgets were on hold pending a review of contributions to international organisations and that it would inform the WTO of the outcome at an unspecified date.
At the time of filing this report, The White House is yet to comment on the development.
According to a State Department spokesperson, Trump last month signed an executive order directing Secretary of State Marco Rubio to review within 180 days all international organizations the US is a member of to determine if they are contrary to US interests.
