White House Removes WTO from Funding Cut List
The White House unexpectedly removed the WTO from a list of $4.9 billion foreign aid cuts announced last Friday after concerns from lawmakers, trade groups, and the WTO itself. Democratic lawmakers argued these unilateral cuts were illegal because Congress had authorised the funding. Trade groups warned that cutting WT
The White House unexpectedly removed the WTO from a list of $4.9 billion foreign aid cuts announced last Friday after concerns from lawmakers, trade groups, and the WTO itself. Democratic lawmakers argued these unilateral cuts were illegal because Congress had authorised the funding. Trade groups warned that cutting WTO funding could weaken U.S. influence and benefit China.
WTO Director-General Ngozi Okonjo-Iweala told Reuters she is working with the U.S. Trade Representative and Trump officials to resolve the issue. The initial announcement highlighted $29 million in WTO contributions as part of the U.S. effort to cut international program spending, which the Trump administration called “toothless” and against its “America First” policy. By Wednesday, references to WTO were removed from the White House website.
Sources familiar with the matter suggested that the WTO funding was no longer being cut, although details remain scarce. Both the White House and the USTR declined to comment publicly. The initial move to cut WTOfunds was part of a broader effort by President Trump and his political movement, “Make America Great Again,” to shrink U.S. international spending and prioritise domestic issues. This decision followed a comprehensive review of U.S. participation in international organisations completed in August, with details yet to be disclosed.
Both Democratic and Republican leaders criticise the WTO for not resolving trade conflicts and setting global standards. Trump’s trade policies with high tariffs and bilateral deals have reshaped global commerce, challenging multilateral rules.
A senior official stated that the WTO reference was removed from the White House website to prevent confusion, as it pertained to previously funded programs rather than recent budget cuts. The WTO funding cut initially alarmed Congress and trade groups like the NFTC, which warned that withdrawing U.S. support could benefit China in global trade.
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Another source noted that the initial WTO reference was made without prior consultation with other agencies. Funds from an automatic account for the WTO could be used after September 30. The U.S. still owes about 11% of the $232 million annual budget for 2024 due to the Geneva-based organisation.
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