Geneva/Washington: The White House has dropped the World Trade Organization (WTO) from a list of $4.9 billion in foreign aid cuts announced last week, after the move triggered pushback from US lawmakers, trade groups, and the head of the global trade body.
The original announcement, released on Friday, highlighted $29 million in WTO contributions as an example of US funding that violated President Donald Trump’s ‘America First’ priorities.
The administration had described the WTO as ‘toothless.’ But by Wednesday, all references to the WTO had quietly disappeared from the White House website.
The cuts, part of Trump’s wider push to rein in US spending abroad, drew immediate criticism. Democratic lawmakers argued the administration’s move was unlawful, since the funding had already been authorized by Congress.
Business groups, including the National Foreign Trade Council (NFTC), warned that pulling WTO funding would weaken US influence and open the door for China to expand its sway over the global trading system. The NFTC also cautioned that ceding space within the WTO would have long-term strategic consequences.
WTO Director General Ngozi Okonjo-Iweala said that she had been in discussions with the USTR, led by Jamieson Greer, and other senior officials in Washington to clarify the situation.
The Geneva-based organization operates on an annual budget of 205 million Swiss francs ($232 million). The United States, its largest economy and historically a key member, contributes roughly 11 perecnt of the total. Washington still owes the WTO contributions for 2024, according to officials.
The controversy comes amid a government-wide review of US participation in international organizations, completed in August but not yet made public. Trump has repeatedly criticized the WTO, accusing it of failing to adjudicate disputes effectively and undermining US trade sovereignty.
The administration has simultaneously pursued an aggressive trade policy, imposing tariffs on allies and rivals alike while negotiating bilateral deals that trade experts say undercut multilateral rule-making.
Unless specifically redirected, US contributions to the WTO are expected to roll over after September 30, as the account that funds them carries over automatically at the end of the fiscal year.
