The United States has paused its financial support to the World Trade Organization (WTO), now led by Dr. Ngozi Okonjo-Iweala. This move is part of a larger plan by the U.S. government to review how it funds international organizations.
The WTO, based in Geneva, runs on a yearly budget of around 205 million Swiss francs, or about 232 million U.S. dollars. The U.S. is expected to contribute about 11 percent of that budget, based on its share of global trade. But as of late 2024, the U.S. had not paid about 22.7 million Swiss francs—roughly 25.7 million dollars. This delay puts the country in a group labeled “Category 1 arrears,” which limits its role at the WTO. For now, U.S. delegates cannot lead any WTO meetings or receive key official documents.
This is not the first time the U.S. has stepped back from the WTO. In 2019, it blocked new judges from joining the WTO’s appeals panel, making it hard for the group to handle trade disputes. The latest decision to stop funding adds more pressure on the organization.
WTO officials are now working on backup plans to keep things running despite the funding freeze. The U.S. has said its payments for both 2024 and 2025 are on hold until it finishes a full review. There is no clear timeline for when that review will be done.
This pause in funding raises concerns about how the WTO will manage its programs and goals, especially during a time when global trade remains a key issue for many countries.
