WASHINGTON, D.C. -The United States has halted its financial contributions to the World Trade Organization (WTO), according to three trade sources, as part of a broader effort by the U.S. government to reassess spending on international institutions under the Trump administration’s “America First” economic agenda.
The U.S., responsible for about 11% of the WTO’s annual budget based on its global trade share, informed the Geneva-based trade watchdog in a March 4 budget meeting that payments to the 2024 and 2025 budgets were on hold pending a review.
This pause adds further strain to the WTO, which has already faced operational hurdles since the U.S. blocked the appointment of new judges to its Appellate Body in 2019, leaving its dispute resolution mechanism partially inoperable.
The WTO’s 2024 budget stood at 205 million Swiss francs ($232.06 million), with the U.S. arrears amounting to 22.7 million Swiss francs ($25.70 million) by the end of December 2024.
The WTO document, marked “RESTRICTED,” revealed that as of February 2025, the U.S. was categorized under “Category 1 arrears” for failing to pay dues for more than a year.
Under WTO rules, Category 1 members face administrative measures, including losing the ability to preside over WTO bodies or receive formal documentation.
WTO spokesperson Ismaila Dieng acknowledged the financial constraints posed by the U.S. arrears but emphasized that the Secretariat continues to prudently manage its resources and has contingency plans in place.
The U.S. pause has heightened concerns about the WTO’s operational capacity, as it joins five other countries—Bolivia, the Democratic Republic of Congo, Djibouti, Gabon, and Gambia—in Category 1 arrears.
Together, these countries account for a total of 38.4 million Swiss francs ($43.47 million) in outstanding contributions.
The WTO is reportedly preparing a “Plan B” in case of prolonged funding delays, though details remain undisclosed.
The U.S. decision is part of a broader trend of withdrawing from global institutions perceived as misaligned with the Trump administration’s policies.
Washington has already moved to exit the World Health Organization and cut contributions to other bodies.
The White House and the U.S. mission to the WTO in Geneva have yet to comment on the funding pause.
Meanwhile, global trade stakeholders await further clarity on the U.S. position and its potential impact on the multilateral trading system.
