Trump halts funding to Okonjo-Iweala’s WTO

The United States has halted its contributions to the World Trade Organization (WTO) as part of a broader effort by President Donald Trump’s administration to cut government spending, multiple trade sources have revealed.

The decision aligns with Trump’s “America First” policy, which has seen the U.S. withdraw from or reduce funding to international organizations deemed contrary to its interests. Similar moves were made against the World Health Organization (WHO), and in 2019, the U.S. also blocked judge appointments to the WTO’s appeals court, weakening its dispute resolution system.

The WTO, based in Geneva, operates on an annual budget of 205 million Swiss francs ($232.06 million) for 2024, with the U.S. expected to contribute around 11% of that amount. However, during a WTO budget meeting on March 4, a U.S. delegate informed members that payments for 2024 and 2025 were on hold pending a review of international contributions.

According to WTO documents, the U.S. had already accumulated arrears of 22.7 million Swiss francs ($25.70 million) as of December 2024. Under WTO regulations, any country that fails to pay dues for over a year faces “administrative measures,” restricting its role within the organization. Sources confirmed that the U.S. has now entered the first stage of such penalties, which means its representatives cannot preside over WTO bodies or receive formal documentation.

WTO spokesperson Ismaila Dieng acknowledged that the organization had been informed of the U.S. funding pause, adding that plans were in place to manage financial limitations caused by arrears. He noted that the WTO Secretariat continues to operate prudently despite the setback.

Meanwhile, a State Department spokesperson confirmed that Trump had signed an executive order directing Secretary of State Marco Rubio to review all international organizations within 180 days to determine whether they align with U.S. interests.

Despite the suspension of payments, trade analysts suggest that the U.S. may still fulfill its financial obligations, given that the administration has nominated a U.S. ambassador to the WTO, signaling ongoing engagement.

The U.S. now joins other WTO members facing financial penalties, including Bolivia, the Democratic Republic of Congo, Djibouti, Gabon, and Gambia. In total, the WTO is owed 38.4 million Swiss francs in unpaid contributions.