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 Body of 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.
