UN trade agency warns of 'painful' cuts as demand rises

The United Nations Conference on Trade and Development agency (UNCTAD) faces deep staffing cuts amid a global funding crisis, raising concerns about its ability to support developing nations navigating economic shocks like U.S. tariffs.

These cuts, the largest in the agency’s history, come amid a broader funding crisis affecting the entire U.N. system.

Secretary-General Rebeca Grynspan warned the move will seriously limit UNCTAD’s ability to respond to the growing demand from developing countries, particularly as they seek guidance on the effects of global trade shifts, including U.S. President Donald Trump’s tariffs.

UNCTAD is included in the broader cost-reduction initiative across the U.N., driven by a notable decline in funding, partly due to decreased U.S. contributions and ongoing liquidity issues.

The U.N. Secretariat plans to reduce its total $3.7 billion budget by 20%, with various agencies—such as the human rights office in Geneva, facing requests to downsize operations.

The proposed budget for UNCTAD will be reviewed and finalized by the U.N. Secretariat and member states in September.

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