Trump halts funding of World Trade Organization

 DC Daily Journal:

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The Trump administration has taken a decisive step by suspending financial contributions to the World Trade Organization (WTO) as of Thursday, March 27. This move marks a significant escalation in President Donald Trump’s ongoing efforts to reshape America’s relationship with international organizations, which he has repeatedly accused of weakening U.S. sovereignty and misusing American taxpayer money.

The suspension affects U.S. funding for both 2024 and 2025, cutting off approximately 11% of the WTO’s annual operating budget. According to Reuters, the organization’s total budget for 2024 stands at around $232 million, making the U.S. contribution a substantial piece of its financial framework. Trump has been vocal about his frustrations with the WTO for years, often pointing to what he perceives as unfair treatment of the United States.

In a statement from May 2020, he questioned the organization’s structure: “Why is it that China, for decades, and with a population much bigger than ours, is paying a tiny fraction of [dollars] to The World Health Organization, The United Nations and, worst of all, The World Trade Organization, where they are considered a so-called ‘developing country’ and are therefore given massive advantages over The United States, and everyone else?” This critique zeroes in on China’s designation as a “developing country” within the WTO—a status that grants Beijing extended timelines for compliance, lower membership dues, and access to billions in World Bank loans typically reserved for less prosperous nations, despite China boasting the world’s second-largest economy.
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The administration’s discontent with the WTO is not new. Back in 2019, Trump effectively crippled the organization’s highest appeals body by refusing to approve judicial appointments, leaving its primary dispute resolution system in limbo. Critics of the WTO within the administration argue that the body has engaged in judicial overreach and consistently ruled against U.S. interests in trade disputes. The decision to freeze funding now amplifies those earlier actions, signaling a deeper rejection of the WTO’s current framework.
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The move should also help the US reduce its deficit spending problem. China is clearly not a developing country anymore and should start paying its fair share of the expenses of organizations like this. Past presidents have not paid much attention to this issue.