The Trump administration reportedly halted its financial contribution to the World Trade Organization (WTO) as of Thursday.
The decision comes as part of a broader change by President Donald Trump to distance the United States from international organizations perceived to undermine American sovereignty or misplace taxpayer dollars. US funding for both 2024 and 2025 will halt, representing approximately 11% of the WTO’s annual operating budget, with the organization’s total 2024 budget reaching approximately $232 million. According to To Reuters. (Related: “Attack on American Sovereignty”: Red State officials urge Trump to investigate EU corporate climate obligations)
“Why are we paying a small number of people, for decades, where there’s a population that’s much larger than ours? [dollars] Are they being given greater advantages over the United States and everyone else, to the World Health Organization, the United Nations and, more than anything, the World Trade Organization, as they are considered so-called “developing countries”? ” Trump wrote in May 2020.
Why have China, much bigger than ours, paid for decades, the World Health Organization, the United Nations and, worse yet, the World Trade Organization, which is considered to be the so-called “developing country” and, in the worst case, …and…?
– Donald J. Trump (@RealdonaldTrump) May 16, 2020
The president has long criticised the WTO for what he sees as a judicial overreach and systematic bias against the United States in trade disputes. Trump previously paralyzed the organization’s top appeal agency in 2019 by blocking judicial appointments, failing primarily to work with the WTO’s core conflict resolution mechanism.
However, the main anchor point remains China’s continued classification as a “developing country” in the WTO. Despite being the second largest economy in the world, China receives extended compliance timelines, reduced membership fees and billions of dollars on World Bank loans, which are usually reserved for poor countries.
China, a major economic force, is considered a developing country within the World Trade Organization. Therefore, they can get tremendous perks and benefits. Everyone says this is fairer, especially in the US. We were badly represented. The WTO is unfair to us
– Donald J. Trump (@RealdonaldTrump) April 6, 2018
Wilson Center, an international affairs-oriented think tank; It was previously criticized Its status as an outdated loophole that benefits economic superpowers at the expense of developed democracy. According to Reuters, the Trump administration repeated the criticism behind closed doors during a WTO budget meeting in early March.
The US has reportedly not withdrawn from the WTO, but a freeze in funding could cause diplomatic and economic moans. WTO Rules A weakened legal device of the body may limit its ability to enforce, but it allows punitive measures against non-paying member states.
Trump has already withdrawn from the World Health Organization, cut funds to the United Nations, signaling potential exits from other world groups he considers “unfair” to US interests. (Related: Who will beg for money online after Trump announces withdrawal?)
The White House did not immediately respond to a request for comment from the Daily Caller News Foundation.
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