The United States is urging nations to support a “trade over aid” initiative at the United Nations, a plan that would privatize global humanitarian assistance, which the United Nations warns will increase the risk of exploitation by for-profit companies targeting the world’s most vulnerable populations. This move marks a broader shift by the Trump administration away from donor-focused development assistance and toward greater private investment in relief efforts.
Secretary of State Marco Rubio has ordered all U.S. diplomats to deliver a call to action to high-level foreign officials, demanding their support by Monday, according to a diplomatic cable obtained by The Associated Press. The "Trade Over Aid Initiative" is designed to encourage U.N. member states to implement "pro-business reforms" within their aid processes. These reforms are to be facilitated through conversations between governments, the private sector, and international organizations.
The Privatization Push
The proposal explicitly calls for "free market" policies intended to attract foreign trade. These policies include "limited regulation, low taxation, multiple energy sources, private property rights, sanctity of contracts, and a trusted judiciary." State Department spokesman Tommy Pigott asserted that "the idea that trade and free market capitalism is the surest path to prosperity has been proven by the facts and by history." Pigott further claimed that "the U.S. remains the most generous country in the history of the world," while dismissing critics by stating, "those arguing for ‘aid not trade’ are really arguing for lining the pockets of a corrupt NGO industrial complex."
This initiative, while nonbinding, is intended to reflect global opinion on the increasingly dire global aid situation. It comes as powerful countries, including the U.S. and the United Kingdom, have decreased funding for humanitarian aid. Simultaneously, these nations have increased their defense spending, redirecting collective resources away from human needs and towards the imperial garrison.
Who Bears the Cost
The United Nations and other international organizations view this latest U.S. effort as a further abandonment of the established aid system. This withdrawal occurs at a moment of growing conflicts around the world, exacerbating the risk of exploitation for populations already in crisis. U.N. spokesperson Stephane Dujarric affirmed the UN's commitment to its sustainable development agenda by 2030, which aims to end poverty, achieve gender equality, and urgently tackle climate change. Dujarric stated that while "trade, investment, and private sector engagement can be powerful drivers of inclusive growth and job creation," they "should, however, not be used to substitute international development cooperation or for principled humanitarian assistance."
Eric Pelofsky, an executive at the Rockefeller Foundation and former State Department official, criticized the initiative, stating that "there’s no American who looks at a picture of a starving child and sees an opportunity for companies to enrich themselves." Pelofsky’s critique, however, appealed to "America’s traditions, values, and national security interests," rather than challenging the underlying economic system that creates such disparities.
The State's Role in Capital Accumulation
The initiative is consistent with the Trump administration’s pattern, observed over its second year in office, of withdrawing from organizations that promote global cooperation. Since taking office in January 2025, the administration has suspended support for agencies such as the World Health Organization, the U.N. Human Rights Council, and the U.N. cultural agency UNESCO. The administration also dismantled the U.S. Agency for International Development. It has adopted a larger, "à la carte approach" to paying dues to the United Nations, selectively funding operations and agencies that align with Trump’s agenda and avoiding those that no longer serve what it defines as "U.S. interests."
In December same year, U.S. officials announced a $2 billion pledge for U.N. humanitarian aid. This figure represents a small fraction of past contributions, despite the administration's assertion that it is a generous amount intended to maintain America’s status as the world’s largest humanitarian donor. The formal introduction of this initiative at the U.N. is scheduled for later this month.