The World Trade Organization (WTO) is set to cut about 10% of its spending – including a hiring freeze and short-term staff reductions – after the US fell back into arrears and a growing number of members were unable to pay their debts on time, according to confidential WTO documents seen by Reuters.
The watchdog of global trade rules since 1995 has already been tested by U.S. President Donald Trump’s sweeping tariffs that have rattled international trade, as well as more than six years of paralysis after Trump’s first administration in 2019 began blocking appointments to the organization’s top appeals court.
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Washington — typically the largest contributor to the Geneva-based body — is one of 10 Category 1 delinquent members, meaning it has not paid its dues for at least a year but less than two years, adding to growing financial pressure on the organization, according to internal documents dated March 12 and February 18 from its Budget, Finance and Administration Committee.
It was not immediately clear when — or even if — the U.S. would pay.
Own agenda
In March, US Trade Representative Jamieson Greer said the WTO would play a limited role in global trade policy going forward, and that Washington would instead pursue its trade agenda through regional, bilateral and, when necessary, unilateral channels.
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The WTO proposed cost-cutting measures, including cutting 39 short-term, full-time equivalent positions, freezing the recruitment of fixed-term staff, using more low-cost interns and reducing electricity costs, one of the confidential documents showed.
The organization was already dealing with its biggest backlog problem in a decade, with 20 members subject to administrative measures from the end of 2025.
“In response to this situation, the secretariat planned a 10% reduction in spending in 2026,” showed a confidential report on the budget committee held on March 2.
