A Shadow of Its Former Self

This chapter argues that the multilateral trade regime that emerged in the post-war period was, and remains, hierarchical. Examining rule creation as the main process of trade governance, it contends that top-down processes have dominated trade rule-making. Yet, challenges have begun to chip away at the hierarchical nature of the regime. First, the chapter argues that regionalism is threatening to create a multilevel hierarchy and that to date, while regional arrangements have largely nested into the global trade regime, there is no guarantee this will continue. If one sees regionalism as a substitute for multilateralism, the multilateral trade regime is in growing danger. Second, while rule-making power remains exclusively with states, non-state actors have elbowed their way into the process due to the expansion of regionalism, the changing nature of global trading relationships, and the growing emphasis on non-trade issues as central to trade agreements. This has allowed networks of actors, including firms and nongovernmental organizations, to influence the rules of the trade regime, even though they have no formal “seat at the table”.