The United States is currently among ten members categorized under "Category I arrears."
According to reports, a World Trade Organization (WTO) document indicates that, given the U.S. has again fallen into arrears on its membership dues and an increasing number of members are failing to pay on time, the WTO is preparing to cut approximately 10% of its expenditures. Related measures include a hiring freeze and reductions in short-term staff.
WTO spokesperson Ismaila Dieng stated that while the budget issue was not discussed at the WTO General Council meeting held on the 6th and 7th, the WTO's Committee on Budget, Finance and Administration did address the organization's current budgetary constraints at its last regular session. The committee is seeking solutions regarding the proposed 10% spending reduction for 2026. The next regular session of the Committee on Budget, Finance and Administration is scheduled for May 21.
"Reiterating the Call for Payment of Outstanding Contributions" Dieng noted that during the last WTO Committee on Budget, Finance and Administration meeting, the committee chair's report highlighted that challenges persist in certain areas. For instance, 24 members remain subject to administrative measures or are in the process of establishing payment plans. The committee chair reiterated the call for members to settle their outstanding contributions.
However, Dieng did not specify in the interview which members currently have outstanding payments.
Administrative measures, in simple terms, refer to a series of graduated penalties imposed on any member that is over one year late in paying its contributions. The longer the delay, the more severe the penalty.
According to WTO rules, this means representatives from that member cannot chair meetings of WTO bodies, cannot be elected as chairs of WTO-related bodies, and may be denied access to certain official documents.
Reports indicate that based on internal WTO Committee on Budget, Finance and Administration documents from March 12 and February 18, the United States is currently one of ten "Category I arrears" members. This means it has been in arrears for at least one year but less than two years, further exacerbating the WTO's growing financial strain. It remains unclear when or if the U.S. will make this payment.
Previously, the U.S. was placed on the WTO's "Category I arrears" list in 2025. After making a payment, it was removed from the list by the end of 2025. At that time, the U.S. had been in a stalemate with the WTO over contribution payments for eight months, but paid over $25 million in overdue 2024 contributions to the WTO in October 2025.
However, a WTO document from March of this year shows that the U.S. has returned to the "Category I arrears" member list.
Another WTO document based on an assessment from late last December shows that the U.S. owes the WTO 23.09 million Swiss francs, accounting for approximately 11.37% of the organization's annual budget—a figure similar to its 2024 arrears of 23.20 million Swiss francs.
Based on available information, the United States is currently the member with the largest share of assessed contributions for the WTO's 2025 budget, followed by China (11.33%) and Germany (7.04%). The European Union, as a supranational entity, does not bear contribution obligations; its 27 member states are required to pay individually. However, if the contributions of EU member states are combined, they account for 31.04% of the total WTO assessed contributions for 2025.
Unpaid Contributions Reach Highest Level in Nearly a Decade WTO financial status documents reveal that as of December 31, 2025, the WTO had received 199.1 million Swiss francs in member contributions. This amount includes 172.9 million Swiss francs for the 2025 assessment and 26.2 million Swiss francs in overdue contributions from previous years paid by some members.
Simultaneously, as of the end of 2025, the total amount of unpaid member contributions stood at 41.4 million Swiss francs, the highest level in nearly a decade. "Consequently, the Secretariat has had to plan for a 10% reduction in expenditures and anticipates it may need to draw up to 4.5 million Swiss francs from its working capital fund until contributions are received," the document stated.
Specifically, as of the end of 2025, 20 members owed a total of 12.5 million Swiss francs and were subject to administrative measures, while 4 members owed a total of 0.3 million Swiss francs and were required to establish payment plans.
Reports indicate that the WTO has proposed a series of cost-saving measures, including cutting 39 short-term full-time positions, freezing the recruitment of fixed-term contract staff, increased use of low-cost interns, and reducing electricity costs.
According to a document dated February 18, the WTO has proposed reducing the member-approved 2026 budget from approximately 200 million Swiss francs to 183.4 million Swiss francs to bridge the funding gap until contributions are received.
The WTO's annual budget for 2025 totals 204.9 million Swiss francs. It is divided into seven categories: Staff costs, including salaries, pensions and post-employment benefits, medical and disability insurance, and family and international benefits; Temporary staff costs, including short-term staff, consultants, translators, interpreters, panelists, and interns; General services, covering telecommunications and postage, contractual services and maintenance, energy and supplies, and documentation and publications; Travel and hospitality expenses; Implementation partner costs; Capital expenditure, including fixed asset purchases and equipment rentals; and Financial expenses and contributions to the International Trade Centre and special reserves.
Among these expenditures, the largest item is "Staff costs" at 135 million Swiss francs, accounting for over 65% of the total budget.
The WTO's annual budget for 2025 was reduced compared to 2024. For example, contributions to special reserves, including the Building Renovation Fund and the Ministerial Conference Operating Fund, were eliminated for the 2025 budget. Previous U.S. payment delays have impacted the WTO's daily operations. It is understood that most of the WTO's technical assistance activities had to be shifted from in-person to online or were canceled.
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