United Nations Trade Agency Faces Major Cuts

By Olivia Le Poidevin

GENEVA (Reuters) – The United Nations trade and development agency, UNCTAD, which aims to assist developing countries in accessing the global economy, is facing substantial budget cuts as part of broader reforms stemming from declining global donor funding, according to Secretary-General Rebeca Grynspan.

Grynspan expressed concern that UNCTAD’s operations would be hindered even as the demand for its services increases, particularly in light of the sweeping tariffs imposed by U.S. President Donald Trump.

For the 2026 budget, Grynspan’s team has proposed a reduction of 70 posts from an overall headcount of 500, which includes around 400 permanent positions. She remarked, “This is painful. There’s no way to disguise this … we haven’t cut that number of posts ever in one budget.”

She further indicated that these cuts would significantly constrain the organization’s capabilities. U.N. agencies like UNCTAD are being forced to reduce costs due to a financial crisis partly triggered by the U.S., which contributes nearly a quarter of the U.N.’s funding, alongside long-term liquidity challenges.

Grynspan voiced her primary concern about the ability to respond swiftly to the needs of member countries. Additionally, she is part of a UN task force working on reforms aimed at enhancing efficiency and cost reduction among developmental agencies.

The U.N. Secretariat is also working on reducing its $3.7 billion budget by 20%, with about 75 agencies and departments required to propose cuts by a June 13 deadline. There are plans to vacate the historic Palais Wilson in Geneva, which currently houses the human rights office.

A final decision regarding UNCTAD’s proposed budget will be made by the U.N. Secretariat and member states in September.