According to a Reuters article, the United States has put on hold payments of $25.70 millions for 2024 and 2025.
The move reflects an overall shift by the Trump administration to reduce its involvement in international institutions as part of a review that aims to align foreign funding with their “America First” agenda.
The WTO is preparing for the long-term effects of missed US payments.
WTO short $25.7m after US payment pause
The WTO budget for 2024 is 205 million Swiss Francs ($232.06 millions), and the US was expected to contribute approximately 11% of this total based on their share in global commerce.
The Geneva-based organization has not received the funds expected.
According to a WTO document dated February 21 and marked “RESTRICTED”, by December 2024 the US would have accrued arrears of 22.7 million Swiss Francs ($25.70 millions).
The funding pause comes after a meeting of the WTO Budget Committee on March 4, where a US delegates confirmed that contributions for 2020 and 2025 will be held until an internal review of all payments to international bodies is completed.
The delegate did not provide a timeline as to when a final decision would be taken.
WTO is working on a plan B in case the suspension continues longer than expected. Details of this plan are confidential.
Trump orders review of global membership
In February 2025 President Trump signed an Executive Order directing Secretary of state Marco Rubio evaluate all US participation within international organisations.
The goal is to determine if continued membership aligns well with US interests. This directive includes an extensive funding review that now includes the WTO.
According to a spokesperson for the State Department, WTO contributions form part of this ongoing assessment.
The White House did not issue a public statement and did not respond to media inquiries regarding the halt.
This is in line with other actions taken under Trump’s leadership.
In his previous term, the US blocked the appointment of the WTO’s appellate panel in 2019, limiting the dispute resolution function.
It has also reduced or withdrawn funding for other global organisations such as the World Health Organization.
The WTO has placed the US in Category 1 of arrears
The United States has been classified as “Category 1”, a country with arrears.
This status limits its influence within the organisation–representatives from the country cannot preside over WTO bodies or receive formal documents.
The WTO Secretariat – responsible for the day-to-day management of its operations – has acknowledged that such arrears can hinder its functioning.
The growing list of unpaid fees is putting pressures on its resources.
According to WTO internal figures, by the end of 2024 five other countries –Bolivia (Democratic Republic of Congo), Djibouti (Gabon), and Gambia — were also in Category 1. The total outstanding contributions amounted to 38,4 million Swiss Francs.
WTO prepares to fill long-term funding gap
The WTO hasn’t confirmed that it is currently enforcing any administrative measures against the US. However, its budget chair informed members of the country’s Category 1 arrears.
The WTO rules are still in place and it is up to the members to decide what action to take next.
The nomination of an ambassador by the US to the WTO signals a continued diplomatic engagement.
The long-term impact on the organisation is uncertain, however, as budget contributions have been halted and there is no timeline for resolution.
If arrears continue to persist for more than a year, WTO can impose harsher penalties within its administrative framework.
This post US halts financial contribution to WTO amid policy reviews: report may be updated as updates unfold
This site is for entertainment only. Click here to read more
