White House Quietly Removes WTO, ILO from Foreign Aid Cut List

The White House quietly removed the WTO and the ILO from the list of entities targeted in Trump's latest round of foreign aid cuts. © Al Drago / GETTY IMAGES NORTH AMERICA / Getty Images via AFP

The White House has quietly withdrawn the World Trade Organization (WTO) and the International Labour Organization (ILO) from its list of entities targeted in sweeping foreign aid cuts, both agencies confirmed to AFP this week.

US President Donald Trump’s administration announced last Friday that it was cancelling $4.9 billion in congressionally-approved foreign aid, a move that sparked sharp criticism from Democrats. The initial list of cuts included $107 million for the ILO and $29 million for the WTO.

However, by Wednesday the WTO had disappeared from the document, followed by the ILO on Thursday. Both Geneva-based organisations confirmed their removal but said they had not been given an explanation for the decision.

“We are aware of the removal of the International Labour Organization from a US administration memo released on 29 August,” the ILO said in a statement, adding that it was seeking clarity on the implications. The WTO likewise confirmed it was no longer targeted.

The Trump administration defended the aid reductions as necessary, saying in a memo that it was “committed to getting America’s fiscal house in order by cutting government spending that is woke, weaponised, and wasteful.”

Since returning to office in January, Trump has significantly scaled back US involvement in international development, effectively dismantling the US Agency for International Development (USAID). Earlier executive orders led to the closure of most ILO projects funded by Washington, forcing layoffs among hundreds of staff.

The United States remains a key financial supporter of both organisations, covering about 11.4 percent of the WTO’s budget and 22 percent of the ILO’s core funding. Still, Washington has yet to pay its assessed contributions for 2024 and 2025, delays that both agencies noted are not unusual among member states.

The quiet removal of the two institutions has raised questions about the administration’s strategy and whether further revisions to the aid cut list are still to come.

Source: AFP

Written By Rodney Mbua