The United States has withheld its 2024 and 2025 financial contributions to the World Trade Organization (WTO), putting $25.70 million in payments on pause, as per a Reuters report.
The move reflects a broader shift by President Donald Trump’s administration to scale back involvement in international institutions under a review aimed at aligning foreign funding with its “America First” agenda.
The WTO is now considering contingency measures as it braces for the potential long-term impact of missing US payments.
WTO short $25.70m after US payment pause
The WTO’s 2024 budget stands at 205 million Swiss francs ($232.06 million), and the US had been expected to contribute around 11% of that total based on its share in global trade.
However, the Geneva-based body has not received the expected funds.
By December 2024, the US had already accrued arrears amounting to 22.7 million Swiss francs ($25.70 million), according to a WTO document marked “RESTRICTED” and dated February 21, the report stated.
The funding pause follows a March 4 meeting of the WTO budget committee, where a US delegate reportedly confirmed that contributions for 2024 and 2025 would be held pending an internal review of payments to all international bodies.
The delegate offered no timeline for when a decision would be made.
The WTO is reportedly working on a “Plan B” in case the suspension lasts longer than expected, but details of that plan remain confidential.
Trump orders review of global memberships
In February 2025, President Trump signed an executive order directing Secretary of State Marco Rubio to evaluate all US participation in international organisations.
The goal is to determine whether continued membership aligns with US interests. This directive includes a comprehensive funding review, which now encompasses the WTO.
According to a State Department spokesperson, WTO contributions are part of this ongoing assessment.
The White House has not issued a public statement on the matter and has not responded to media queries regarding the halt.
This move is consistent with previous actions under Trump’s leadership.
In his earlier term, the US blocked appointments to the WTO’s appellate body in 2019, limiting its dispute resolution function.
It has also withdrawn or reduced funding for other global bodies such as the World Health Organization.
US is placed in Category 1 arrears by the WTO
Due to the arrears, the United States is now classified under the WTO’s “Category 1” arrears designation.
This status limits its influence within the organisation—representatives from the country cannot preside over WTO bodies or receive formal documents.
The WTO Secretariat, responsible for managing day-to-day operations, has acknowledged that such arrears could hinder its functioning.
While it is currently maintaining operations through careful financial management, the growing list of unpaid dues is putting pressure on its resources.
As of the end of 2024, five other countries—Bolivia, the Democratic Republic of Congo, Djibouti, Gabon, and Gambia—were also in Category 1, bringing total outstanding contributions to 38.4 million Swiss francs, according to internal WTO figures.
WTO prepares for long-term funding gap
While the WTO has not confirmed whether it is currently enforcing administrative measures on the US, its budget chair has informed members of the country’s Category 1 arrears status.
It remains up to WTO members to determine what actions to take next under existing rules.
The US has nominated an ambassador to the WTO, signalling continued diplomatic engagement.
However, with budget contributions paused and no resolution timeline in sight, the long-term implications for the organisation remain uncertain.
If arrears persist beyond a year, the WTO can impose stricter penalties under its administrative framework.
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