World Trade Organisation Capability to Meet the Challenges - Essay Example

WTO as an international welfare organization is entrusted with the responsibility of mitigating issues relating to multilateral trade policies. WTO during the year 2009 had planned to develop an effective governance structure on a global basis, as decided in the Public Forum, which was held in Geneva. The governance system is based on the concept of ‘Global Problems, Global Solutions: Towards Better Global Governance’. WTO has planned to enhance governance structure by the involvement of different sectors in the discussion that include government organizations, non-government organizations, the business community, trade unions, academic organizations, lawyers and journalist among others.

The discussion in relation to the global problem of trade policies implied that multilateral trade policies based on rules might facilitate in recovering from the global economic crisis situation (WTO, 2009).     WTO, in order to mitigate the challenges in relation to global trade, has developed ‘multilateral trade rule book’. The trade rulebook provided different trade aspects that include ‘Global Value Chain’ (VGC), ‘Spaghetti Bowl Effect’, Protectionism and Development Goals.

WTO with the provision of VGC has planned to improve trade operations by simplifying global trade rules for better alignment with the present trade developments. Additionally, WTO has planned to impose better cross-border policies with the aim of ensuring that trade operations are conducted.