The United States has halted its financial contributions to the World Trade Organization (WTO), according to three trade sources who spoke with Reuters.
This latest action follows a 2019 decision during Trump’s first term to block new judge appointments to the WTO’s top appeals court, weakening the organization’s dispute settlement system. Washington had criticized the WTO Appellate Body for overstepping its judicial authority in trade disputes.
In 2024, the WTO’s annual budget stood at 205 million Swiss francs ($232.06 million), with the United States contributing around 11% based on its share of global trade, according to public documents from the organization.
At a March 4 WTO budget meeting, a U.S. delegate indicated that payments for the 2024 and 2025 budgets were frozen while a review of the country’s contributions to international organizations was underway. The U.S. has not provided a timeline for when it will update the WTO on the review’s outcome. A third source confirmed that the WTO was preparing a “Plan B” in case the funding pause is prolonged, although details remain unclear.
By the end of December 2024, the U.S. had accrued arrears totaling 22.7 million Swiss francs ($25.7 million), as reported in a WTO document from February 21. According to WTO rules, any member failing to pay its dues for over a year faces “administrative measures,” which escalate the longer the payments remain overdue.
