During the Great Depression in 1930, many countries around the world adopted trade protectionism and blocked their respective economies, forming a trend leading to the gradual contraction of trade and long-term economic recession around the world. Will history repeat itself when many countries started to embrace protectionism during the financial crisis in 2008? This has become an issue widely concerned. Fortunately, IMF in October 2009 reported that world economy has avoided the repeat of 1930 Great Recession and started to recover. In November the same year, EU Committee indicted that despite the many trade restrictions and distorted measures adopted by many countries, the expansion of protectionism could be prevented. This purpose of this study was to explore what role the WTO has played and what challenges it faced in this financial crisis in order to revive the world economy? This study especially focused on the mechanism proposed by the WTO Secretary General Lamy in 2009 to monitor the trade restrictions and related distorted measures. In the beginning, the proposed mechanism drew severe criticisms, but later it won support during a series of summit meetings, leading to construction of a united monitoring mechanism among different international organizations. A comparison was made between the above-mentioned monitoring mechanism and the traditional functions of the WTO. On the other hand, analysis was conducted on the characteristics of this monitoring mechanism. In the end, this study also pointed out the prospect of Doha Round and the role played by East Asian countries.