Trump cut funding to the WTO to reduce spending on foreign entities.

The United States has suspended its financial contributions to the World Trade Organization (WTO) for the years 2024 and 2025, according to Reuters.

This decision is part of a broader initiative by President Donald Trump's administration to review federal spending, especially regarding international organizations.

This move is a continuation of the United States' withdrawal from several global entities under Trump's "America First" economic agenda. The administration has expressed its intention to withdraw from some organizations, like the notorious World Health Organization (WHO), and to reduce financial commitments to others.

The confrontation with the WTO is not new. In 2019, during Trump's first term, the administration blocked the appointment of new judges to the WTO's Appellate Body.

This blockade left the organization's key dispute resolution system partially inoperative. The United States had correctly accused the WTO's Appellate Bodyof acting beyond its mandate in trade conflicts.

The WTO, based in Geneva, had an annual budget of approximately 205 million Swiss francs (about 232.06 million dollars) for the year 2024.

The United States, being the largest contributor, was supposed to contribute approximately 11% of this budget, based on its share of global trade, according to the quota system established in the WTO's public documents.

The suspension of U.S. contributions could have significant implications for the WTO's operations and budget. Additionally, the United States could face punitive measures from the WTO due to this disruption in payments.

According to a U.S. delegate at a WTO budget meeting held on March 4, payments for the 2024 and 2025 budgets are suspended until a review of contributions to international organizations is completed.

It was indicated that the WTO will be informed of the outcome of this review at an unspecified date. Sources close to the matter confirmed that the WTO is working on a "Plan B" in case the pause in funds is prolonged, although no further details were provided.

At the end of December 2024, during Biden's administration, the United States had arrears totaling 22.7 million Swiss francs (25.7 million dollars), according to a confidential WTO document dated February 21.

According to WTO rules, any member that doesn't pay its dues for more than a year is subject to "administrative measures", a set of sanctions that become progressively stricter as the months pass.

WTO spokesperson Ismaila Dieng confirmed that the United States is in "Category 1" of arrears, along with other countries, meaning that its representatives can no longer chair WTO bodies or receive formal documentation from the organization.

Although it could not be confirmed if the WTO is already applying these measures to the United States, Dieng noted that the WTO is managing its resources prudently and has plans to operate within the limitations imposed by any payment arrears.

The report also indicated that other countries, such as Bolivia, the Democratic Republic of the Congo, Djibouti, Gabon, and Gambia, are also in the same category of arrears.

At the end of 2024, the total unpaid contributions amounted to 38.4 million Swiss francs (43.47 million dollars), including unpaid dues from 2024 and previous years.