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The Trump administration is reportedly rallying international support for a new initiative dubbed “trade over aid.” This plan encourages nations to embody “America First” principles by investing in U.S. businesses rather than allocating funds to overseas development efforts.
According to the Washington Post, Secretary of State Marco Rubio has instructed diplomats to assess global backing for this proposal. The aim is to present it at the United Nations by the end of the month.
In a diplomatic cable, Rubio outlined how the United Nations could be leveraged to “promote America First values” while simultaneously creating opportunities for U.S. businesses. He highlighted America’s current “new Golden Age,” attributing it to a robust economy driven by pro-business initiatives such as deregulation, tax reductions, and advancements in the energy sector.
“It was private enterprise, not government aid, that built the world’s thriving economies,” he asserted.
A diplomatic note from the U.S., obtained by Devex, criticized wealthier nations for spending billions on foreign aid projects, suggesting a shift towards trade investments.
“For decades, government aid has been flowing from developed to developing countries with only limited impact,” it says.
“It has not solved the world’s economic development challenges, and it has often created dependency, inefficiency, and corruption.”
Weeks after President Trump was inaugurated for the second time, plans were unveiled to eliminate approximately $60 billion in foreign aid spending by cutting 92% of grants issued by the US Agency for International Development – before it was later absolved into the State Department.
The audit identified nearly 15,000 grants and targeted almost 10,000 for elimination — the majority of which were issued by USAID – and first reported by the Washington Free Beacon.
The US State Department vowed to address decades of so-called “institutional drift,” according to a memo seen by the outlet, and reform the way Washington delivers foreign assistance.
“Every dollar we spend, every program we fund, must be justified with the answer to three simple questions: Does it make America safe? Does it make America stronger? Does it make America more prosperous?” the note said.
The Free Beacon reported in March 2023 how the Biden administration gave the green light to spend up to $1 million of taxpayer cash on helping disabled people in Tajikistan become so-called climate leaders.
Senior State Department official Jeremy Lewin told The Post in January, “Every dollar of foreign assistance has to advance the American national interest.”
Western nations such as the UK are among those who have joined the US in cutting foreign aid expenditure amid a rise in defense spending because of the ongoing Ukraine-Russia conflict.
In February last year, UK Prime Minister, Sir Keir Starmer, announced plans to increase foreign defense spending to 2.5% of national income from 2027.
The UK government is cutting around £6 billion ($8 billion) from its foreign aid budget – and spending is at its lowest level since 2008, the Guardian reported.
France, Germany, and Japan have also trimmed down their respective foreign aid budgets, as have the EU institutions.