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Squabble grows as US government holds back 2024 funding from world anti-doping watchdog WADA

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Squabble grows as US government holds back 2024 funding from world anti-doping watchdog WADA
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Squabble grows as US government holds back 2024 funding from world anti-doping watchdog WADA

2025-01-09 06:54 Last Updated At:07:03

The U.S. government did not pay the more than $3.6 million due to the World Anti-Doping Agency in 2024, making good on a long-running threat anchored in unhappiness with the global watchdog's handling of cases involving Chinese swimmers and others.

Those funds, normally distributed by the White House Office of National Drug Control Policy, represent about 6% of WADA's annual budget.

WADA statutes say representatives of countries that don't pay are not eligible to sit on the agency's top decision-making panels. U.S. drug czar Rahul Gupta is listed as a member of the WADA executive committee.

Gupta told The Associated Press the ONDCP was “evaluating all our options," and did not rule out eventually sending the money to WADA.

“WADA must take concrete actions to restore trust in the world antidoping system and provide athletes the full confidence they deserve,” he said. "When U.S. taxpayer dollars are allocated, we must ensure full accountability and it is our responsibility to ensure those funds are used appropriately.”

In 2022, when Gupta held out, then eventually directed his office to send the balance of its yearly contribution, he did so with reservations, along with a letter saying the U.S. absence at the time from key policymaking positions was “a sorry state of affairs.”

Half of WADA’s budget is covered by the International Olympic Committee, with the other half covered by governments across the world, which receive 50% of the spots on key WADA governing committees.

The U.S. contribution is double that of Canada, the home country for WADA that puts in the second most money among the more than 180 countries that contribute.

The funding fight has been going on for at least the last six years, with the talking points not much different between the Trump and Biden administrations.

Dissatisfied over the handling of the Russian doping scandal, the first Trump White House started asking for reforms with the potential of tying them to its annual payment. More recently, WADA's handling of cases involving 23 Chinese swimmers has been a focal point of criticism.

A government study that came out in 2020 concluded Americans didn't get their money's worth from the contribution. Shortly after, Congress gave the ONDCP discretion to withhold future funding.

In between, tensions have grown between WADA and the U.S. Anti-Doping Agency, which runs the drug-fighting program in the United States.

“Unfortunately, the current WADA leaders left the U.S. with no other option after failing to deliver on several very reasonable requests, such as an independent audit of WADA’s operations” in the wake of the Chinese doping saga, USADA CEO Travis Tygart said.

WADA, meanwhile, has chafed at the Rodchenkov Act, a law that allows the U.S. to prosecute people of any nationality involved in doping conspiracies. That bill was signed by Donald Trump at the end of his first term as president. The IOC suggested last year that investigations the law permitted could cost the U.S. a chance to host the Winter Olympics in Salt Lake City in 2034.

Just as some of that rhetoric died down comes the news that the U.S. is still deciding whether to pay its 2024 obligation.

And all of it comes against the backdrop of the United States preparing to play a large role in hosting international events. The World Cup arrives in the country next year, followed by the 2028 Olympics in Los Angeles.

“Now is the time to get WADA right to ensure these competitions on U.S. soil are clean, safe, and a pageantry of fair competition in which we can all have faith and confidence,” Tygart said.

He said WADA rules dictate that the money fight will not have any impact on U.S. athletes' ability to compete at home or abroad.

AP Summer Olympics: https://apnews.com/hub/2024-paris-olympic-games

FILE - Dr. Rahul Gupta, the director of the White House Office of National Drug Control Policy, is asked a question as he arrives for the State Dinner with President Joe Biden and India's Prime Minister Narendra Modi at the White House, June 22, 2023, in Washington. (AP Photo/Jacquelyn Martin, File)

FILE - Dr. Rahul Gupta, the director of the White House Office of National Drug Control Policy, is asked a question as he arrives for the State Dinner with President Joe Biden and India's Prime Minister Narendra Modi at the White House, June 22, 2023, in Washington. (AP Photo/Jacquelyn Martin, File)

FILE - Witold Banka, president of the World Anti-Doping Agency (WADA), attends a press conference at the 2024 Summer Olympics in Paris, France, July 25, 2024. (AP Photo/Michel Euler, File)

FILE - Witold Banka, president of the World Anti-Doping Agency (WADA), attends a press conference at the 2024 Summer Olympics in Paris, France, July 25, 2024. (AP Photo/Michel Euler, File)

LONDON--(BUSINESS WIRE)--Apr 3, 2025--

According to the latest report from Omdia’s Large Area Display Production Strategy Tracker, display panel makers maintained a fab utilization above 80% in 1Q25 but are expected to reduce utilization in 2Q25. As the pull-in demand for 1Q25 winds down at the start of 2Q25, set makers are adopting a more conservative approach to panel purchases.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20250402228909/en/

Uncertainty surrounding the new U.S. tariffs on display application products including TVs, PCs and smartphones, combined with reduced panel orders from brands and OEMs, is prompting panel makers to scale back capacity utilization. Omdia predicts utilization will drop below 80% in April 2025 and further to 76% in May 2025.

Since 4Q24, panel makers have operated fabs at high utilization levels of 81%-83% driven in part by China’s “swap old for new” subsidy program which has boosted demand for LCD TV panels. Chinese TV manufacturers have accelerated production and shipments to the U.S. to mitigate tariff risks, pushing demand higher in early 2025, particularly for 75 inches and larger LCD TV panels.

However, concerns over new potential U.S. tariffs starting in April and uncertainties in display panel demand have led to PC and TV set makers reduce their panel inventory purchases. Some have already reduced their panel orders for 2Q25. In Omdia’s February 2025 outlook, April utilization was expected to be 82% and May at 78%. However, with some China TFT LCD makers planning extended breaks for the May Labor Day holiday utilization could fall further to around 75% in May.

“With demand slowing and uncertainty around tariff impact, panel makers are shifting from their original high capacity utilization mode back to the production-to-order mode,” said David Hsieh, Senior Director for Display research in Omdia. “This strategy should help stabilize panel prices amid weakening demand. . However, since panel prices have remained elevated over the past six months, TV and PC brands and OEMs may push for further price reductions to offset U.S. tariffs.

Hsieh added, “The display market is entering into a new cycle and will likely stabilize later in 2025. Tariffs and their impact on display demand will be the biggest swing factor in this transition.”

ABOUT OMDIA

Omdia, part of Informa TechTarget, Inc. (Nasdaq: TTGT), is a technology research and advisory group. Our deep knowledge of tech markets combined with our actionable insights empower organizations to make smart growth decisions.

Fab utilization rates (%)

Fab utilization rates (%)

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