If the United States veto paralyses the dispute system, it would end 23 years of WTO enforcement, the keystone of worldwide efforts to prevent trade protectionism, at a time of heightened global trade tensions.
"If they don't shape up, I would withdraw from the WTO", Mr Trump said in an interview. China is a thorn, per US Trade Representative Robert Lighthizer, who views China's 2001 entry into the body as a mistake.
A United States withdrawal from the WTO potentially would be far more significant for the global economy than even Trump's growing trade war with China, undermining the post-World War II system that the United States helped build.
"We have all to prepare to the "WTO minus USA: system". In the meantime, the United States has been blocking the appointment of new judges, which could ultimately put the WTO's ability to issue judgments on ice. President Trump had said that they had rarely won a lawsuit but in the last one year, they have started to win a lot of cases because they know if USA won't win then it will itself out of the organisation. "The US concerns about areas in the WTO that they would like to improve are not new".
Leaving the WTO would upend the decades-old global trade system, which the USA helped establish, and roil markets around the globe.
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"That is the worst thing that could happen for an economy as globally connected as the American economy", Roberto Azevedo said.
The Trump administration has recently blocked the appointment of judges to the WTO's appeals body.
The Trump administration has taken his complaints a step further by arguing that the WTO's dispute settlement system is broken and in need of a major overhaul. But change at the organisation may not come easy.
In an interview with Bloomberg on Thursday, Mr Trump insisted that officials at the organisation must "change their ways".
The WTO, which was set up in 1994, is at the heart of the system of rules for global trade.