According to information provided by three sources in the trade industry, the United States has decided to temporarily halt its contributions to the World Trade Organization. This decision is part of the Trump administration's efforts to reduce government expenditures, reflecting a shift away from global organizations that are perceived to conflict with the administration's "America First" economic agenda. The U.S. had already disrupted the WTO in 2019 by obstructing new judicial appointments to its appeals court. As a result, the WTO's dispute settlement mechanism has been functioning at a reduced capacity since then. The organization's annual budget for 2024 amounted to 205 million Swiss francs, with the U.S. expected to contribute about 11%. During a WTO budget meeting on March 4, a U.S. representative announced that payments for 2024 and 2025 were on hold pending a review of contributions to international bodies. If this funding pause continues, the WTO is devising a contingency plan, according to one of the sources. The sources requested anonymity due to the confidential nature of the meeting and the lack of formal announcement regarding the US funding halt. Despite requests for comments, the White House and the U.S. mission to the WTO have not responded. The WTO spokesperson deferred queries to U.S. authorities. The U.S. had accumulated arrears of 22.7 million Swiss francs by the end of December 2024, with potential consequences outlined under WTO regulations for members failing to pay dues promptly.
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