U.S. Halts Financial Support to WTO Amid Budget Review

March 28, 2025 - 02:08

The United States has decided to suspend its financial contributions to the World Trade Organization (WTO), according to multiple trade sources. This decision aligns with the current administration's ongoing efforts to reduce government expenditures and reflects a broader trend of distancing from international organizations perceived as conflicting with the "America First" policy.

At a recent budget meeting on March 4, a U.S. delegate indicated that contributions for the 2024 and 2025 budgets are currently on hold pending a comprehensive review. In light of this funding uncertainty, the WTO is reportedly developing a "Plan B" to address the potential impacts of an extended financial hiatus.

This move follows previous actions by the U.S. that have already weakened the WTO's operational capabilities, particularly the blockage of new appointments to its appellate court during the Trump administration. As a result, the WTO's dispute resolution mechanism has been left in a diminished state, raising concerns about the future of global trade governance.