The US escalates trade tensions by halting WTO payments

The United States has suspended its financial contributions to the World Trade Organization (WTO) as part of the Trump administration's initiative to reduce government spending and reassess support for international organisations. This decision aligns with a broader strategy to withdraw from global institutions perceived as inconsistent with the "America First" economic policy.

Source: World Trade Organization.

Previously, in 2019, the US disrupted the WTO's operations by blocking the appointment of judges to its top appeals court, rendering its key dispute settlement system only partially functional.

The WTO's annual budget for 2024 was 205 million Swiss francs (approximately $232m), with the US expected to contribute about 11% based on its share of global trade.

As of December 2024, the US had arrears of 22.7 million Swiss francs, placing it in "Category 1 arrears". This status restricts US representatives from presiding over WTO bodies and limits their access to formal documentation.

The WTO is preparing contingency plans to address the potential prolonged funding pause, though specific details have not been formally announced.

As of the end of 2024, five other member countries—Bolivia, Democratic Republic of Congo, Djibouti, Gabon, and Gambia—were also in arrears.