U.S. Pauses WTO Contributions Amid 'America First' Policies

The United States has paused contributions to the WTO, reflecting President Trump's efforts to align international spending with 'America First' policies. This decision follows earlier U.S. actions that weakened the WTO's appeals court. The pause puts the U.S. in Category 1 arrears, affecting its participation in WTO activities.

The United States has halted its financial contributions to the World Trade Organization, according to three trade sources speaking to Reuters. This move aligns with President Donald Trump's strategy to cut federal spending and retreat from global institutions that are inconsistent with his 'America First' agenda.

The suspension of payments is part of a wider effort by the Trump administration to adjust obligations to international bodies. The U.S. move comes after the WTO's appeals body was partially incapacitated by an earlier American action, which blocked new judicial appointments, stalling the organization's dispute resolution mechanism.

In response to the payment freeze, the WTO is developing alternative plans, as confirmed by trade insiders. Meanwhile, the U.S. now finds itself in 'Category 1 arrears,' restricting its role in WTO operations. The White House has not commented on the funding halt, and the situation remains sensitive amidst ongoing reviews of U.S. international commitments.

(With inputs from agencies.)