Generally, WTO has been a game changer in how the countries of the world engage in trade and logistical operations. Regarding global logistics, the trade organization has helped regulate the movement of goods between member countries. This means that the international trade organization is an important regulator of business and trade among its member countries. As mentioned, the main reason why the organization was formed about five decades ago was to help reduce obstacles to trade. Many of the countries faced trade barriers and wanted to trade freely. It is important to note that the organization came up as a result of negotiations, and its operations are also based on negotiations between member states. The trade barriers were lowered through negotiations as agreed by the member states. Another important aspect to note about the WTO and its role in global logistics is that it is keen on uplifting developing countries economies. As Narlikar (2019) argues, more must be done to help the developing nations ensure that their position and influence in the WTO do not worsen with time. The world has a lot of imbalance, especially in the economy, as some countries are more developed than others. This means that the citizens in those countries continue to struggle with low livelihoods. As a result, WTO came in to supervise and ensure that it liberalizes world trade.
Overall, it is important to note that the WTO has six key objectives that it seeks to enhance globally. One is to set and enforce the rules for international. Each trade organization member agrees upon these rules to provide a regulated trade environment. Another reason is to provide a forum for member countries to negotiate and monitor trade liberalization. This means the organization needs to do more for the world to realize an ample environment where business can thrive. The third step is to resolve trade disputes that arise from member states. When there is rivalry among member states in terms of trade, WTO comes in to solve the issues in accordance with the organization’s laws. The other objective is to ensure increased transparency in the organization’s decisions. When the organization’s decision-making process is fair and transparent, the member states and other countries will fully subscribe to its agenda and ideology.
On the other hand, if the process is biased, member states will lose trust in the organization and leave. Another objective is to form cooperation with other international economic institutions. This ensures that the WTO remains relevant and that its agendas and ideas are reflected worldwide. The last objective is to help growing and developing countries benefit from the global organization. As mentioned, developing nations feel they have been left out by other countries regarding trade. To remedy this, WTO seeks to introduce regulations to see them benefit and grow.
All these objectives are important as they seek to ensure an environment where trade is carried out fairly under set rules and regulations. The WTO is the only international trade organization that deals with rules that govern trade between countries. The importance of having developing countries included in WTO is to ensure fairness and inclusivity. Looking at the organization’s membership, several developing countries are included in its composition. Most importantly, these countries will sit at the decision-making table to decide how they will trade with other countries. Solving trade disputes among member countries ensures harmony and that trade is carried out in a peaceful environment. Generally, the WTO is an important organization that has restructured trade among its member states.
Recommendations.
In terms of recommendations, there are solutions that should be put in place to ensure that WTO works best and that the developed countries are not left behind in terms of development. This means that several changes need to take place at the WTO. The WTO is where trade policy and related issues are addressed. This means there should be a policy dialogue for the organization to work best. Policy dialogue is the ability of the members to come up with ways of ending trade-distorting policies that exist in the world today. This can be done through dialogue which ensures that all members of the WTO agree on where the problem is and work towards solving it. Dialogue is also important as it helps members agree on a road map that leads the organization to the future.
On the other hand, policy dialogue is also important as it helps an organization establish a new work program. This work program will include ideas and subjects that matter to all members of the organization. Dialogue should also involve reviewing the bodies of the WTO organization’s work. Another solution that should be implemented to bring change to the organization is the support of an open plurilateral. This means considering whether all members should be present and have their opinion during the launch of a new initiative or agenda for the organization. This is important, especially for developing nations who always feel left out by their developed counterparts in decisions. There has always been an outcry that developing nations cannot make decisions in the WTO. This initiative will ensure they are included and allowed to air their agenda to the organization.
The Secretariat of the WTO should also be allowed to provide input. Over the years the organization has been member-driven over the years, with very little power given to the secretariat. Giving power to the secretariat to support policy dialogue will boost the trading system of the organization. Despite all this, it is important to note that empowering the members is a good initiative as it ensures that they keep track of what is occurring in the organization. Another recommendation that should be offered is reviewing the WTO organizational performance. Now and then, members should meet to evaluate the progress of the organizations and the steps taken to better trade. This would be a policy change as the WTO organization’s operations are not subject to regular assessment. The member states should develop a review mechanism and ways of establishing self-assessment. Climate change is another agenda that should be on the agenda of the Organization. According to Watson (2013), the WTO has become the organization to which the international community seeks to address the twin objectives of trade and environment policy. As noted, climate change can negatively affect trade when distribution channels are disrupted, thus raising the cost of supply chains. Most organizations worldwide have embraced the climate change agenda due to its threat to many aspects of life. Generally, WTO should embrace climate change as one of its top agendas as it can potentially disrupt global trade. Global logistics ensure that goods and services reach every part of the world. Global logistics is one of the main elements that form part of the WTO. Generally, with the many changes in the world, WTO also needs to conform to those changes through how the organization operates.
References.
Watson, J. (2013). The WTO and the Environment: Development of competence beyond trade. Routledge.
Narlikar, A. (2019). Developing Countries and the WTO. In Trade politics (pp. 133-145). Routledge.
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