Reuters reported, citing three trade sources, that the United States has suspended its contributions to the World Trade Organization (WTO), as the administration of President Donald Trump is stepping up its efforts to cut government spending.
Under Trump, the United States withdrew its support for several global institutions, claiming that such contributions contradicted its "America First" economic policy.
The United States plans to withdraw from some of these global organizations, such as the World Health Organization (WHO), and has already cut its contributions to other institutions as part of a comprehensive review of federal spending.
The WTO was already affected by a US decision in 2019, during Trump's first term, that blocked the appointment of new judges to its highest appeals court, thereby partially paralyzing its dispute settlement mechanism. Washington had accused the WTO's appellate body of exceeding its powers in trade disputes.
The annual budget of the Geneva-based WTO was 205 million Swiss francs ($232,06 million) in 2024. The United States was to contribute about 11 percent of that budget, based on a distribution system proportional to its share of global trade, according to public organization documents.
Two informed sources said a U.S. official informed a WTO budget meeting on March 4 that Washington's payments for the 2024 and 2025 budgets were suspended pending a review of U.S. contributions to international organizations. He added that the United States would inform the WTO of its decision at a later date, without specifying a date.
A third trade source confirmed the report and said the WTO was considering an "alternative plan" in the event of a prolonged suspension of funding, without providing further details. All three sources asked Reuters not to disclose their names because the budget meeting was confidential and the suspension of US funding has not been officially announced.
The White House has not yet responded to requests for comment.
A U.S. State Department spokesperson said Trump signed an executive order last month directing Secretary of State Marco Rubio to reevaluate all international organizations of which the United States is a member within 180 days "to determine whether they are contrary to U.S. interests."
By the end of December 2024, the United States owed 22,7 million Swiss francs ($25,7 million) in arrears to the WTO, according to a February 21 WTO document seen by Reuters.
Under WTO rules, any member that fails to pay its dues for more than a year is subject to "administrative measures," a series of sanctions that intensify with the duration of non-payment.
