Geneva, May 3 (SANA) The World Trade Organization is preparing to cut spending by about 10% as it grapples with a growing funding shortfall driven by unpaid member contributions and ongoing paralysis in its dispute settlement system.
According to internal documents cited by Reuters, the WTO plans to reduce its 2026 budget to 183.4 million Swiss francs ($235 million) from 204.9 million francs ($263 million), highlighting a widening gap between expected income and actual receipts.
The proposed measures include a hiring freeze, reductions in temporary roles, limits on non-permanent staff and cuts to day-to-day operating costs, aimed at maintaining core functions.
The plan also calls for lower energy use at the organization’s Geneva headquarters, underscoring a shift from expansion toward cost containment.
The United States accounts for a significant share of the shortfall, with unpaid contributions estimated at about 23.09 million Swiss francs, or roughly 11% of the WTO’s annual budget.
The financial strain comes as the global trading system faces mounting pressure from rising trade tensions and a resurgence of protectionist policies, including tariffs introduced by U.S. President Donald Trump.
Analysts say the WTO faces a dual challenge of funding constraints and weakened enforcement mechanisms, raising concerns about its ability to regulate global trade if current trends persist.
N.J/ABD
