United States Department of State
Washington, D.C. 20520

JUN O4 2019

The Honorable
James E. Risch, Chairman
Committee on Foreign Relations
United States Senate
Washington, DC 20510
Dear Mr. Chairman:

Consistent with section 7019(e) of the Department of State, Foreign Operations, and Related
Programs Appropriations Act, 2019 (Div. F, P.L. 116-6) and Senate Report 115-282, please find
enclosed a report on U.S. arrears at the United Nations and other international organizations.
Sincerely,

Cflf:,<tJ
Mary Elizabeth Taylor
Assistant Secretary
Bureau of Legislative Affairs

Enclosure:
As stated.

 UNCLASSIFIED

Report to Congress
Arrears Owed by the United States to the United Nations_ and
Other International Organizations
October 1, 2018 - March 31, 2019
This report is submitted consistent with section 7019(e) of the Department of State, Foreign
Operations, and Related Programs Appropriations Act, 2019 (Div. F, P.L. 116-6) ("FY 2019
Act") and Senate Report 115-282. Senate Report 115-282 calls for the Secretary of State to
update the report on arrears required by section 70480) of the Department of State, Foreign
Operations, and Related Programs Appropriations Act, 2017 (Div. J, P.L. 115-31) ("FY 2017
Act"). Section 70480) of the FY 2017 Act stipulates:

G) REPORT ON ARREARS. Not later than 30 days after enactment of this Act, and
updated every 90 days thereafter until September 30, 2018, the Secretary of State shall
submit a report to the appropriate Congressional committees detailing:
(1) a description of the treaty or other obligation of the United States to pay assessed
contributions at specified rates for the United Nations and other international
organizations by organization or entity;
(2) a description of relevant United States laws regarding such assessed rates and
contributions;
(3) a description of, and justification for, any deviation from payment of such assessed
rates and contributions, to include the cumulative amount of arrears owed, or anticipated
to be owed, by the United States to any organization or entity as a result of such
deviation;
(4) a specific plan for payment of such arrears;
(5) an analysis of when the amount of arrears owed by the United States may trigger
Article 19 of the United Nations Charter or similar provision in a treaty, convention or
charter governing participation in an international organization, resulting in the loss of a
vote by the United States in the United Nations General Assembly or other governing
body of an international organization; and
(6) an analysis of the impact to the national interest of the United States in international
organizations, including the United Nations, as a result of arrears owed, if any, including
with respect to the loss of influence within such organizations.

Report Outline
This is the sixth report corresponding to this requirement. This report covers October 1, 2018,
through March 31, 2019. The amounts of arrears included in the report are as ofJanuary 1,
2019. At most organizations covered by this report, new arrears accrue on January 1 each year.
The impacts from arrears that are identified in this report occurred during October 1, 2018,
through March 31, 2019, timeframe.

UNCLASSIFIED

 UNCLASSIFIED
-2-

This report includes information about international organizations to which the United States
makes an annual assessed contribution of $1 million or more through the Contributions to
International Organizations (CIO) account, as well as through the Contributions for
International Peacekeeping Activities account, which provides funds for UN peacekeeping
expenses. The report also includes information on organizations that receive annual assessed
contributions that are less than $1 million, if late U.S. payment or arrears triggered sanctions or
affected U.S. influence at the organizations.
The international organizations included in this report account for approximately 98 percent of
the total amount of assessed contributions that the United States contributes annually. The CIO
account provides funding to pay the U.S. share of the assessed budgets of 43 international
organizations. U.S. participation in most of these organizations is the result of U.S. ratification
of a treaty or convention that cominits the United States, along with all other member countries,
to pay annual assessed contributions.
Definition of Arrears

The United Nations and other international organizations generally operate on a calendar year
basis with member state assessments being due at the beginning of the year. Each
organization's financial regulations provide timelines for payment of assessed contributions.
For example, Regulation 3.4 of the Financial Regulations and Rules of the United Nations
provides that assessed contributions are due and payable in full within 30 days of the receipt of
notice from the Secretary General. As of January 1 of the following calendar year, the unpaid
balances of such contributions are considered to be in arrears. The Department does not
consider non-payment of voluntary contributions to constitute arrears.
Timing of U.S. Contributions
Contributions to International Organizations (CIO): The timing of U.S. contributions to the
United Nations and other major international organizations differs from other.countries. With
respect to the United Nations and other major international organizations funded through the
CIO account, the United States is more likely to go into arrears than other countries because of
the U.S. practice of deferring payments. This practice dates to the 1980s, when the Department
of State began deferring U.S. contributions to these organizations by paying at the end of the
calendar year instead of the beginning of the year. This practice results in the United States
having significant amounts of unpaid assessments when the end of the calendar year
approaches. In accordance with the definition provided above, non-payment of any of these
amounts results in arrears if not paid in full by the end of the calendar year. The arrears cease to
exist, when payments subsequently occur during the following calendar year.

Statutory requirements to withhold funds from certain organizations also increase the likelihood
of the United States going into arrears, if the statutory requirements are not addressed by the end
of the calendar year. For example, section 7048(a) of the FY 2019 Act requires the withholding
of 15 percent of funds appropriated for the United Nations, UN agencies, and the Organization
of American State's until such time that the Secretary of State determines and reports to
Congress on the protection ofwhistleblowers from retaliation, public access to audit reports, and
travel practices, including air travel practices.

UNCLASSIFIED

 UNCLASSIFIED
-3-

Contributions for International Peacekeeping Activities (CIPA): As of January 1, 2019,
U.S. peacekeeping arrears at the UN totaled $776.2 million due to delayed payments and
statutory and policy withholdings. $328 million of the arrears are from withholdings that
pre-date 2001 (see table and explanation below). The newer arrears reflect amounts not paid
due to the 25 percent statutory cap on U.S. contributions and amounts that were not paid within
the year in which they were due because of delays in making payments related to the availability
of appropriated funds. Amounts not paid due to the 25 percent statutory cap reflect the
Department's approach of using appropriated funds such that the combined amount ofCIPA
appropriations and credits applied by the UN does not exceed 25 percent of total assessments.
Summary Table of CIO and CIPA Arrears at the United Nations: The following table
identifies amounts of U.S. arrears at the United Nations and U.S. contributions paid to the
United Nations in millions of U.S. dollars. The amounts of contributions paid are for
comparison purposes. The contributions paid with FY 2018 funds exceed the total amount of
U.S. arrears across all years.

U.S. Arrears (dollars in millions)
Prior Year Arrears
New Arrears as of January 2017
New Arrears as ofJanuary 2018
New Arrears as ofJanuary 2019 1
Total Arrears as of January 20192
Total U.S. Contributions with FY 2018 Funds3

UN Regular
Budget
192.6
19.1
135.3
34.1
381.1
625.9

UN
Peacekeeping
328.0
2.7
538.0
50.4
776.2
1,555.4

War Crimes
Tribunals
12.0
0
6.5
-1.8
16.7
27.5

Impact of Arrears
Since the founding of the United Nations in 1945, the United States has occasionally accrued
arrears. The most significant instance took place in the 1990s, when U.S. arrears were
sufficiently large that special congressional legislation (the Helms-Biden Act) was enacted to
avoid possible loss of vote in the UN General Assembly under Article 19 of the UN Charter.
Accumulation of new UN peacekeeping arrears due to application of the 25 percent cap on
U.S. peacekeeping contributions could impact U.S. influence and credibility at the UN, and
further strain UN peacekeeping capacity at a time when the UN is engaged in a number of
critical missions. The United States has a compelling national interest in preventing the
New arrears of January 1, 2019, are less than the amount of arrears accrued from calendar year 2018
assessments due to the payment of calendar year 2017 amounts during calendar year 2018.

1

2

Amounts of arrears as of January 2019 are from UN records.

Total U.S. contribution amounts are for comparison purposes. The total U.S. peacekeeping
contribution amount includes the UN's application of $57.8 million in UN peacekeeping credits and
payments made with FY 2018 two-year Overseas Contingency Operations funds in FY 2019.
3

UNCLASSIFIED

 UNCLASSIFIED
-4-

outbreak, escalation, and spread of conflicts that threaten international peace and security. The
Department of State assesses there are five potential impacts that result from arrears:
1. Sanctions such as loss of vote or inability to be a member of governing bodies, executive
committees, or similar leadership bodies of the organization in question;
2. Diminished U.S. standing and diminished ability to pursue U.S. priorities or influence the
organization's conduct on a variety of matters;
3. Reduced U.S. ability to promote increased oversight and accountability through reforms that
promote efficiency, cost savings, and improved management practices;
4. Reduced standing needed to successfully promote U.S. participation in elected bodies and
the candidacy of qualified U.S. citizens to assume senior management roles; and
5. Impairments to the ability of an organization or peacekeeping mission to operate, including
addressing objectives that may directly impact the national security of the United States.
Explanation of Assembled Data

The attached chart assembles and displays information related to each report element. The
sections of the table correspond with the report requirements outlined above, with one additional
column noting the 'Deferral Status' of each entry, indicating the extent to which the
United States defers payments to each organization.
The column entitled ~cumulative Amount of Arrears' includes information on unpaid
assessments for years prior to calendar year 2019, which are generally considered to be arrears.
The column entitled 'Plan to Pay Arrears' indicates when the Department expects to pay
outstanding arrears. Because of delays in the availability of FY 2019 funding, some amounts of
CY 2018 arrears will not be paid until CY 2019.
The column entitled 'Relevant U.S. Laws' includes specific statutory authorities related to
U.S. participation of funding of the international organization. In many instances, such
authority is derived from the Senate's advice and consent to ratification of an applicable treaty
or convention.
The column entitled 'Sanctions' contains information describing loss of vote or other specific
implication for member states triggered when arrears reach a certain amount.
The column entitled 'Impact of Arrears on National Interest' includes information describing
actual or imminent application of sanctions or diminished U.S. ability to exercise influence
necessary to achieve U.S. objectives at the organization.

UNCLASSIFIED

 Status of U.S. Arrears at International Organizations
as of January 1, 2019
Organization

Treaty or Other

Relevant U.S. Laws

Obligation

Deferral Status

Cumulative Amount of

and/or Deviations

(by
Organization)

from Required

Plan to Pay Arrears

Arrears

Arrears Sanctions (by
Organization)

Impact of Arrears on U.S.

As of 1 January of the
following calendar year, the
unpaid contribution balance
shall be considered to be
one year in arrears. Loss of
vote in the UN General
Assembly and its
committees when the
amount of arrears equals or
exceeds the amount of
contributions due for the
preceding two fuR years.

UN Regular Budget: In late
December, the Seaetariat reported a .
dire financial situation that reflected
exhaustion of the Regular Budget
General Fund, the Working Capital
Fund, and the Special Account. This
was the graves1 financial situation the
Seaetariat has experienced for at
least the past six years. As a result,
the Secretary-General is advocating
for several measures to address the
cash-flow situation, which the Fifth
Committee wiN consider in May-June.

National Interest

Payments
United Nations (UN)

Article 17 of the UN Charter
and UN Financial Regulation
3 .5

Section 8 of the UN
Participation Act (22
U.S.C. 287e); Limitations
on U.S. share of
assessment are found in
section 11 of the UN
Participation Act (22
U.S.C. 287e-3) for UN
Regular Budget
assessments and section
404(b)(2) of Foreign
Relations Authorization
Act, Fiscal Years 19941995 (P.L. 103-236) for
UN peacekeeping
assessments.

Assessments for the UN UN Regular Budget: As of
Regular Budget are fully January 1, the United States
deferred.
O\Wd $381 .1 million in
arrears for the UN regular
budget. Of this amount,
$19.1 milion was from CY
2016 and $34.1 milion was
from CY 2017. There are
$135.3 million in arrears from
CY 2018, the majority of
which are funds being
withheld under section
704B(a) of the FY 2019
appropriations .act. The
United States also owes
$171.4 million in pre-2000
arrears and $21.2 million in
arrears from 2001 through
2015.
UN Peacekeeping: As of
January 1. there were sns.2
milion in U.S. peacekeeping
$448.2 milion of
arrears.
this amount are cap-related
arrears from CY 2017 and CY
2018. There are also $328
million in U.S. peacekeeping
arrears from prior to 2001,

1

The Department does not
plan to pay the CY 2016 and
CY 2017 regular budget
arrears and the cap-related
arrears from CY 2017 and
CY 2018. Payment of
approximately $90 million of
the CY 2018 arrears is
contingent on the
determination and
submission of the report to
Congress required under
section 7048(a) of the FY
2019 appropriations act,
There is no plan to pay any
of the pre-2001 arrears.

UN Peacekeeping: Several UN
peacekeeping operations were having
cashflow problems before an influx of
new contributions began arriving in
January. As of December 31, two
peacekeeping missions had negative
cash balances. Four missions had
cash balances that were less than one
month's operating expenses.

 Status of U.S. Arrears at International Organizations
as of January 1, 2019
Organization

Treaty or Other
Obligation

Relevant U.S. Laws

Cumulative Amount of
Arrears (by
Organization)

Plan to Pay Arrears

Arrears Sanctions (by
Organization)

Fully deferred.

As of January 1, $33.5 million
and €21.1 milion v.ere unpaid
from CY 2018. Additionally,
there is an unpaid balance of
$2 miHion stemming from a
Special Reserve Account
assessment of $3.5 miUion
issued in 1993.

The Department plans to
pay the CY 2018 arrears
with FY 2019 funds.
Payment of $10 million and
€6.3 minion is contingent on
the determination and
submission of the report
required by section 7048(a)
of the FY 2019
appropriations act. The
Department has no plans to
pay the arrears from the
1990s.

As of 1 January of the
following calendar year, the
unpaid contribution balance
shall be considered to be
one year in arrears. Loss of
vote in the FAQ Conference
and its subsidiary
committees, and ineligibifity
to serve on the FAQ
Council, when the amount of
arrears equals or exceeds
the amount due for the two
preceding years.

FAQ experienced critical cash flow
issues in the period Oct 1 - Dec 31,
despite U.S. payments during that
time period. FAQ introduced
documents that were not considered,
recommending new tools to sanction
Member States in .arrears. U.S.
voting rights were not in jeopardy,
however.

IAEA resorted to using its Working
Capital Fund three times due to
delays in U.S. payments. The
Wor1<ing Capital Fund is sufficient on~
to sustain the organization's operating
expenses for fifteen days, creating
potential risk to the organization if
there are furlher delays in U.S.
payments.

Deferral Status
and/or Deviations
from Required
Payments

Impact of Arrears on U.S.
National Interest

Food and Agriculture
Organization (FAO)

Arlicle XVIII of the FAQ
ConstiMion

22 U.S.C. 279, 279a

International Atomic

Arlicle XIV(D) of the IAEA
Statute

22

u.s.c. § 2024

75 percent deferred.

As of January 1, the United
States had approximately
€800,000 in CY 2018 arrears
at IAEA. The United States
owes $248,000 in pre-2002
arrears.

The Department plans to
pay the CY 2018 arrears
with FY 2019 funds. The
Department has no plans to
pay the pre-2002 arrears.

As of 1 January of the
following calendar year, the
unpaid contribution balance
shall be considered to be
one year in arrears. Loss of
vote if the amount of arrears
equals or exceeds the
amount of contributions due
for the pre~ding two years.

22
Arlicle 61 of the ICAO
lntematlonal Clvll
Aviation Organization Convention and Article 6.5 of
the ICAO Financial
(ICAO)

u.s.c. § 2673

50 percent deferred.

As of January 1 , the United
Stales was not In arrears at
ICAO.

NIA

Potential suspension of vote None Reported
In the ICAO Council, if
annual contributions are in
arrears for longer than 18
months, and in the
Assembly, if arrears equal
or exceed total assessments
due for the three preceding
years. Being in arrears also
results in ineligibility for
election to the ICAO
Council, its Committees,
and bodies.

Energy Agency (IAEA)

Regulations

2

 Status of U.S. Arrears at International Organizations
as of January 1, 2019
Organization

International Labor
Organization (ILO)

Treaty or Other
Obligation

Article 13 of the ILO
22lJ.S.C. § 271-272a
Convention and Article 10 of
the ILO Financial Regulations

lntematlonal Maritime Article 55(b) of the IMO
Convention
Organization (IMO)

International
Telecommunlcatlon
Unlon(ITU}

Relevant U.S. Laws

Article 28 of the ITU
Constitution

Deferral Status
and/or Deviations
from Required
Payments

·Cumulative Amount of
Arrears (by
Orga!"lization)

Plan to Pay Arrears

Arrears Sanctions (by
Organization)

lm'pact of Arrears on U.S.
National Interest

Fully deferred.

As of January 1 , 50 percent.
or 41 .4 milion Swiss francs,
of the ILO assessed
contribution for CY 2018 was
unpaid.

The Department plans to
pay the CY 2018 arrears
with FY 2019 funds.
Payment of 12.4 mil&on
Swiss francs of the arrears
Is contingent on the
determination and
submission of the report
required by section 704B(a)
of the FY 2019
appropriations act.

Loss of vote in the
International Labor
Conference, in any
committee, or in the
elections of members of the
Governing Body if the
8/llOINlt of arrears equals or
exceeds the amount of
contributions due for the
proceeding tv.u full years.

General cash flow difficulties from
delayed U.S. payments have resu~ed
in delayed implementation of regular
fund activities.

14 u.s.c. § 149

Not deferred.

As of January 1, the United
States was not in arrears at
IMO.

NIA

Loss of vote in the
Assembly, Council, Maritime
Safety Committee, Legal
Committee, Marine
Environment Protection
Committee or Technical Cooperation Committee when
contributions not paid within
one year, ine~gibilily for
Council if contributions not
paid 30 days prior to
Assembly.

Delayed payment dlmlnlshed the
credibility of the U.S. delegation in
IMO governing body meetings.
Fallure to pay the U.S. assessment in
full will result in the United States
belng ineligible for an IMO Council
seat, if payment is not complete by
September 2019.

28 U.S.T. 2495

Not deferred.

As of January 1, the United
States was not in arrears at
ITU.

NIA

Loss of vote when the
amount of arrears equals or
exceeds the amount due for
the prior tv.u years. Arrears
are subject to an interest
penalty at rate of 6%.

General cash now difficulties resulted
In delayed implementation of regular
fund activities. Candidates running
against an American citizen for a
senior leadership position cited
arrears as a reason not to support the
U.S. candidate. ITU charges interest
on arrears pursuant to Article 33,
paragraph 474 of the ITU Convention.

3

 Status of U.S. Arrears at International Organizations
as of January 1, 2019
Organization

Treaty or Other
Obligation

Article IX of the UNESCO
United Nations
Educational, Scientific Constitution
and Cultural
Organization (UNESCO)

Relevant U.S. Laws

22 U.S.C. § 287m , 287r

Defell'ill Status
and/or Deviations
from Required
Payments

Cumulative Amount of
Arrears (by
Organization)

Plan to Pay Arrears

Arrears Sanctions (by
Organization)

Impact of Arrears on U.S.
National Interest

The Department has no
paid any contributions to approximately $612 million in plans for payment of arrears
UNESCO slnce 2011.
arrears dating from 2011
as payment is prohibited by
through 2018.
law.

As of 1 January of the
following calendar year, the
unpaid oontlibution balance
shall be considered to be
one year In arrears. Loss of
vote in the General
Conference when arrears
exceed the amount due for
the current and preceding
year. The UnH.ed States
incurred this sanction in
2013, 2015, and 2017.

The inability to pay arrears and regain
the abillty to be a fully participating
member was a factor in the 2017
decision to withdraw from the
organization effective December 31,
2018.

Not deferred.

Loss of vote and loss of
eligibility for membership in
the Council of
Administration and the
Postal Operations Council
when arrears exceed
contributions due for the
preceding two years and
there is a failure to submit
and comply with an
amortization schedule.
Arrears subject to an
Interest penalty at a rate of

The United States announced the
intention to withdraw, 'Mlich takes
effect in October 2019.

The Depatment has not The United States ov.es

'

39
Universal Postal Union Article 21 of the UPU
Constitution and Article 146 ot
(UPU)
the UPU General Regulations

u.s.c. § 407(b)

As of January 1, the United
States was not In arrears at
UPU.

NIA

6%.

4

 Status of U.S. Arrears at International Organizations
as of January 1, 2019
Organization

World Health
Organization (WHO)

Treaty or Other
Obligation

Article 56 of the WHO
Constitution and WHO
Financial Regulation VI

World Intellectual
Article 11 of the WIPO
Property Organization Convention
(WIPO)

World Meteorologlcal

Organization (WMO)

Article 24 of the WMO
Convention and WMO
Financial Regulation B.1

Relevant U.S. Laws

22

u.s.c. § 290, 290b

Deferral Status

Cumulative Amount of

and/or Deviations
from Required
Payments

Arrears (by
Orga~ization)

Fully deferred.

Plan to Pay Arrears

Arrears Sanctions (by
Organization)

Impact of Arrears on U.S.
National Interest

As of January 1, $29.4 million The Department plans to
and 29.5 million Swiss francs pay the CY 2018 arrears
remained unpaid from CY
with FY 2019 funds.
2018.
Payment of $8.9 million and
€8.9 milion Is contingent on
the determination and
submission of the report
required by section 7048(a)
of the FY 2019
appropriations act.

As of 1 January of the
None Reported
following year, the unpaid
balance of such assessed
contributions shall be
considered to be one year in
arrears. Potential
suspension of voting rights
if the amount of arrears
equals or exceeds the
amount of contributions due
for the preceding two years.

'

21 U.S.T. 1749

Fully deferred.

As of January 1, there were
1,253,411 Swiss francs in
unpaid assessments for CY
2014 through CY 2018.

The unpaid amounts
represent withholdings
under section 7048(a) of the
FY 2015 through FY 2018
appropriations acts.

As of 1 January of the
None Reported
following year, the unpaid
balance of such assessed
contributions shall be
considered to be one year in
arrears. Loss of vote in all
WIPO bodies when arrears
equal or exceed the amount
of contributions due for the
preceding two full years.

1 U.S.T. 281

Fully deferred.

As of January 1 , 7 millon
Swiss francs of the WMO
assessed contribution for CY
2018 was unpaid.

The Department plans to
pay the CY 201 B arrears
with FY 2019 funds.
Payment of 2. 1 millon Swiss
francs is contingent on
submission of the report
required by section 7048(a)
of the appropriations act.

Loss of vote and lne!lgibility
for elected office and
membership on the
Executive Council when
a,reqr$ accrue for more
than two consecutive years.

5

WMO struggled with cash needs
during the final quarter of calendar
year 2018 due to significant US
arrears. U.S. voting rights, however,
were not in jeopardy.

 Status of U.S. Arrears at lntemational Organizations
as of January 1, 2019
Organization

Treaty or Other
Obligation

Relevant U.S. Laws

Asia-Pacific Economic Paragraphs 5 and 6 of the
Section 424 of P.L. 103Cooperation (APEC) Bangkok Declaration on Asia 236
Pacific Economic Cooperation
Institutional Arrangements

Deferral Status
and/or Deviations

Cumulative Amount of
Arrears (by

from Required
Payments

Organization)

Plan to Pay Arrears

Arrears Sanctions (by

Impact of Arrears on U.S.

Organization)

National Interest

Not deferred.

As of January 1, the United
States was not in arrears at
APEC.

NIA

The Bangkok Declaration
None Reported
and APEC's financial
regulations do not define
arrears or stipulate
consequences for late or
non-payment of
contributions. Wllhhokling
funding of our assessed
contributions \WUld mean
effectively withdrawing from
the organization.

lntemaUonal Agency for Article VIII of the IARC
Research on Cancer Statute
(IARC)

22 u.s.c. § 290e-1

70 percent deferred.

The United States ov.es
approximately $6 milion in
pre-2002 arrears.

The Department has no
plans to pay the prior year.
pre-2002 arrears.

Loss of vote in the
None Reported
Governing Council if the
amount of arrears equals or
exceeds the contribution
due for the preceding
financial year.

lntematlonal Bureau of tArticle 9 of the Metre
Weights and Measures Convention
(IBWM)

1875 U.S.T. LEXIS 8

70 percent deferred.

As of January 1, the United
States was not in arrears at
IBWM.

NIA

Potential suspension of
None Reported
membership privileges when
arrears reach three years.
Potential exclusion from the
organization when arrears
reach six years . •

6

 Status of U.S. Arrears at International Organizations
as of January 1, 2019
Organization

Treaty or Other
Obligation

Inter-American Institute Article 23 of the Convention
on the Inter-American
for Cooperation on
Institute for Cooperation on
Agrlculture (IICA)'
AgricuRure

International

Renewable Energy
Agency (IRENA)

North Atlantic Treaty

Organization (NATO)

.

Relevant U.S. Laws

32 U.S.T. 3779

Deferral Status
and/or Deviations
from Required
Payments

Cumulative Amount of
Arrears (by
Organization)

Plan to Pay Arrears

Arrears Sanctions (by
Organization)

Impact of Arrears on U.S.
National Interest

.

25 percent deferred.

As of January 1, 2019 the
United States was not in
arrears at IICA.

NIA

Suspension of vote in the
Executive Committee and
Inter-American Board of
Agricu!ure v.tien arrears
accrue for two full years.

None Reported.

Article XII, Section A, of the
IRENA Statute

22

u.s.c. § 290p

Not deferred.

As of January 1, 2019 the
United States was not in
arrears at IRENA.

NIA

Loss of vote if the amount of None Reported
arrears equals or exceeds
the amount of contributions
due for the preceding two
years.

Article 28 of the NATO
Financial Regulations and
FRP XXIX.8 and XXIX.9 of
the NATO Financial Rules
and Procedures

22 U.S.C. § 1928(a)

Not deferred.

As of January 1, the United
States was in arrears in the
amount of 7.5 million euros,
the balance due for the
calendar year 2018
assessment, pl.ls 8.4 mll lon
Euros for the NATO pension
fund .

The Department authorized
payment in the amount of
7.5 milion euros on April 19,
2019. The balance of 1.8
milion wil be made up with
credits.

NATO's agreements and
regulations do not prescribe
particular consequences for
late or non-payment of
contributions.

7

Failure to meet U.S. obligations on a
timely basis could become a political
issue with Ames and a public relations
liability given the U.S. policy focus on
ensuring NATO allies meet their
commitment to increase their defense
spending. Any suggestion that the
U.S. is accumulating arrears to the
NATO budget/pension could
undermine this top poicy goal. Future
delays in payments towartl the
pension fund could hinder NATO's
ability to meet its financial obigations
on pension payments.

 Status of U.S. Arrears at International Organizations
as of January 1, 2019
Organization

Treaty or Other
Obligation

Relevant U.S. Laws

.

u.s.c. § 1928a-b

Deferral Status
and/or Deviations
from Required
Payments

Cumulative Amount of
Arrears (by
Organization)

Plan to Pay Arrears

Arrears Sanctions (by
Organization)

Impact of Arrears on U.S.
National Interest

Failure to meet U.S. obligations on a
timely basis could become a political
issue with Allies given the U.S. policy
focus on ensuring NATO Allies meet
their commitment to increase their
defense spending. Any suggestion
that the U.S. is accumulating arrears
to the NATO PA could undermine this
top policy goal.

Not deferred.

As of January 1, the United
States was not in arrears at
NATO PA.

NIA

Loss of vote at both the
committee and plenary level
if full contribution has not
been received by the first
day of the Assembly's
annual sessio.n in October.

Article 54 of the OAS Charter 2 U.S.T. 2394
Organization of
American States (OAS)

;15 percent deferred.

As of January 1, the United
States was not in arrears at
OAS.

NIA

The OAS Charier and rules None Reported.
of procedure do not
prescribe consequences
such as loss of voting rights
for late or non-payment, and
no action has been taken in
recent years in response to
Member State failures to
pay contributions.

Article 20 of the OECD
Organization for
Economic Cooperation Convention and Article 64 of
IEA's International Energy
and Development
Program Agreement
(OECD)

Fully deferred.

The Department plans to
As of January 1, the United
pay the 2018 balance with
States had an unpaid CY
2018 balance of €20.3 milion. FY 2019 funds.

North Atlantic Treaty
Organization
Parliamentary

Article 24 of the Financial
Regulations (279 GEN 10 E)

22

Assembly (NATO PA)

12 U.S.T. 1728

8

There are no automatic
sanctions for arrears at
OECD. However, the
OECD Council could take
action in response to a
Member's late or insufficient
payments, since failure to
contribute would constitute a
breach of that Member's
obUgations under the
OECD Convention.

Some members openly expressed
concerns about U.S. arrears during
the specified timeframe. The OECD
Secretary General has used U.S.
arrears to create doubts about U.S.
intentions. Further delays in U.S.
payments could test the ability of the
U.S. mis~ion to gamer support for
U.S. priorities, including needed
reforms and the level of future
budgets within the organization.

 Status of U.S. Arrears at International Organizations
as of January 1, 2019
Organization

Treaty or Other
Obligation

Organization for
Most Part II bodies use the
Economic Cooperation OECD convention and its

Relevant U.S. Laws

12 U.S.T. 1728

Deferral Status
and/or Deviations
from Required
Payments
Fully deferred.

Pan American Health
Organization (PAHO)

Article 24 of the PAHO
Convention

T.S. 714

Plan to Pay Arrears

Arrears Sanctions (by
Organization)

As of January 1, the United
The Department plans to
States had not paid SO
pay the 2018 balances with
percent of the CY 2018
FY 2019 funds.
assessments due OECD Part
II agencies funded through
the CIO account.

There are no automatic

Not deferred.

As of January 1, the United
States was not in arrears at
OPCW.

Loss of vote under Article
VIII, paragraph eight of the
Chemical Weapons
Convention, when arrears
reach two full years.

Deferred by three
months.

As of January 1, the United
None
States was in arrears to
PAHO In the amount of $15.9
million for the calendar year
2018 assessment.

and Development Part II resulant scale of
oontributions as their basis for
(OECD Part II)
collecting assessed
contributions, except IEA.

Organization for the Article VIII, paragraph 7 of the
Prohibition of Chemical Chemical Weapons
Convention
Weapons (OPCW)

Cumulative Amount of
Arrears (by
Organization)

9

NIA

Impact of Arrears on U.S.
National Interest

None Reported.

sanctions for arrears at any
of the OECD Part II
organizations.

While the United States is not in
arrears at OPCW, the timing of U.S.
and other states parties' payments
has a profound impact on OPCWs
ability to perform its work program.
The organization ended 2018 with a
cash balance of only 4.2 milHon euros,
\\flich is rougly one month's operating
expenses. Due to cash-flow
problems, OPCW has Often needed to
draw down funds from its working
capital fund.

As of 1 January of the
None Reported
following year, the unpaid
balance of such assessed
contributions shall be
considered to be one year in
arrears. Suspension of
vomg privileges occurs
when arrears exceed the
sum of annual contributions
for two full years.

 Status of U.S. Arrears at International Organizations
as of January 1, 2019
Organization

Treaty or Other
Obligation

Re levant U.S. Laws

The Pacific Community Article XIV, paragraph 48, of 22
the Consolidation of Agreed
(SPC)
Provisions and Practices
Relating to the EstabHshment
and Operation of the South
Pacific Commission

Customs Cooperation Article XII of the Convention
to Establish a Customs
Council (WCO)
Cooperation Council

World Trade
Organization (WTO)

u.s.c. § 280, 280b

22 U.S.T. 320

Article Vll.4 of the Marrakesh 19
Agreement Establishing the
World Trade Organization
and Regulation 13 of the
WTO Financial Regulations

u.s.c. § 3511

Deferral Status
and/or Deviations
from Required
Payments

Cumulative Amount of
Arrears (by
Organization)

Plan to Pay Arrears

Arrears Sanctions (by
Organization)

Impact of Arrears on U.S.
National Interest

As of January 1, the United
States was not in arrears at
SPC.

NIA

Members who do not follow None Reported
through on repayment
commitments would be
subject to various measures
depending on the duration
In arrears starting at 1 year
to 3 years or more, ranging
from inef,gibility to chair any
meeting or working group,
to members allowed to join
consensus or break
consensus on any decision.

As of January 1, the United
WCO has a financial
year that ends on June Stites was not In arrears at
30. Due lo the timing of wco.
Congressional
appropriations, the
Department did not pay
the balance of the U.S.
contribution until June,
at the end of the
financial year.

NIA

Potential rescission of vote None Reported.
in Council when contribution
for the preceding financial
year is not paid within three
months of receiving
notification of the amount
due. Loss of voting rights if
payment is not made by
Councirs annual session in
June.

The Department plans to
pay the 2018 balance with
FY 2019 funds.

Loss of eligibility to preside None Reported.
over WTO bodies when
arrears exceed on.e year;
loss of access to wro web
site and documents when
arrears exceed two years;
inactive status when arrears
exceed three years.

70 percent deferred.

Fully deferred.

As of January 1, 11. 1 mimon
Swiss francs from the CY
2018 assessment remained
unpaid.

10

 Status of U.S. Arrears at International Organizations
as of January 1, 2019
Organization

lntemaUonal Coffee
Organization (ICO)

Treaty or Other
Obligation

2007 International Coffee
Agreement

Relevant U.S. Laws

22

u.s.c. § 2656

Deferral Status
and/or Deviations
from Required
Payments
Not defened.

Cumulative Amount of
Arrears (by
Organization)

Plan to Pay Arrears

The United States was a
member of the ICO from
1962-1993 and rejoined in
2005. The United States
owes 164,752 stel1ing pounds
arrears from the 1990s when
the United States went into
arrears.

The United States withdrew
from the ICO in 2018. The
Department does not plan to
pay the arrears from the
1990s.

11

Arrears Sanctions (by
Organization)

Impact of Arrears on U.S.
National Interest

Withdrawing from ICO Is
None Reported
unlikely to have any adverse
effects on U.S.
stakeholders, given the
closely integrated
convnercial ties between
suppiers and U.S. industry.