Trump has repeatedly told top White House officials he wants to withdraw from the trade organization, which he said isn’t always fair to the US, Axios reported, citing unidentified administration sources.
The note, prepared for EU governments ahead of a June 28-29 summit where trade will be discussed, reflects the growing strains between traditional allies.
The United States on Wednesday rejected as "baseless" China's retaliatory tariffs and complaint in the World Trade Organization over the US tariffs recently imposed on steel and aluminum imports.
US President Donald Trump has launched a series of tariff-raising moves, upsetting allies and rivals alike.
USTR had filed a request for consultations with China at the WTO to address "discriminatory technology licensing agreements".
The move comes after a WTO ruling last month that obliged Beijing to lower the tariffs unless it appealed within 20 days.
The dispute concerned South Korean import bans and additional testing requirements imposed on Japanese seafood.
Malaysia will also seek a solution through the Malaysia-EU free trade agreements and the proposed Asean-EU free trade agreement.
Pascal Lamy says middle-income taxpayers do not want to pay those in authority ‘twice’.
Both countries to meet end-July to 'discuss and coordinate' issues, including organising a joint mission to Europe to 'engage with relevant parties and stakeholders'.
The UN agency also revised down its 2017 forecast, with trade now expected to grow between 1.8-3.1 percent, down from the previously anticipated 3.6 percent.