Modernization of the WTO in the Context of Changing Trends in International Trade

In the recent years multilateral trading system, the key element of which is the WTO, is subject to severe challenges. The critical situation occurred partly due to the changes in the foreign policy of US, which contradicts multilateral trading system, based on the WTO rules; partly due to the internal crisis of the WTO reflected in usability of the Organisation to perform its key functions. These facts widely resonance in the recent trade conflicts. The situation is partly explained by the outdated system of the WTO, unable to adapt to the modern trade issues and cope with the increasing number of Members. This paper focuses on the identification of the key obstacles on the way of the WTO to modernisation. Detailed analysis of the history of establishment and development of the WTO is performed throughout the paper, along with an in-depth research of the decision-making process of the WTO in order to obtain theoretically-grounded results. Institutional level inefficiencies are identified in the paper and approaches to possible solutions of the latter proposed. Historical disputes, which led to delay of the process of establishment of the WTO are identified as key drivers of the modern issues. European approach to modernisation of the decision-making system is considered as dominating, under conditions of control for abuse of the rights by Members. It is also determined that WTO still maintains its relevance within the framework of the multilateral trading system regulator, apart from the inflexible decision-making system. The study concluded that the WTO does not require an in-depth modernization, however without evolutionary enhancements to some key areas of functioning, the WTO is indeed in danger of completely losing the confidence of the international economic community as an effective regulator of the multilateral system of trade regulation.