U.S. Funding Halt Casts Doubt Over WTO Future

The United States has paused its contributions to the World Trade Organization as part of President Donald Trump's efforts to cut government spending and withdraw from international institutions. This move, following a previous action that weakened the WTO's top appeals court, raises questions about the organization's financial stability.

The United States has halted its contributions to the World Trade Organization, according to multiple trade sources. This decision aligns with President Donald Trump's broader strategy to cut spending and step back from international bodies, as part of his 'America First' economic approach.

This funding pause follows an earlier U.S. move to block new appointments to the WTO's top appeals court, significantly affecting the functioning of its dispute settlement system. With the U.S. expected to cover about 11% of the WTO's budget, the financial strain from this halt adds uncertainty to the organization's future.

In a recent WTO budget meeting, a U.S. delegate announced the freeze on payments for 2024 and 2025, pending a review of international contributions. WTO officials are developing contingency plans, while U.S. arrears stand at over 22 million Swiss francs as of December 2024, putting the country in a punitive 'Category 1' status.

(With inputs from agencies.)